The Fashion Industry: Ethics & Sustainability
Essay Written by Tara-mae
August, 2020
Introduction
In this essay, I will argue and unveil the critical ethical issues presented in the fashion industry's pollution regarding removing toxic chemicals away from clothing and products, which is unethical under Kant's second formulation of the Categorical Imperative. The fashion industry is one significant contributor to environmental damage. In reference to Kantian and Friedman's views, many concerns and issues will be presented in this paper, among others, which vary in terms of severity. Initially, we live in a society where fashion conveys individuality, style, and culture. This lifestyle adheres to issues between how a person dresses and the sustainability to reshape a better world. Moreover, the industry is increasing environmental damage formed from the production of everyday wear. As generations mature, health issues become more prominent, and tending to every day means they may have impediments. And now, ignoring this issue is no longer an option. Amidst everything currently happening in the world, fashion companies should use this valuable time to modify their products by removing hazardous materials from their clothing. It all starts with the consumer in mind.
Takeaways
According to my research, growing scientific consensus has shown that clothing dye chemicals are potentially toxic, and businesses in the fashion industry create more detrimental factors. The Global Fashion Agenda predicts that "by 2030, the industry's water consumption will grow from 50 percent to 118 billion cubic meters, a carbon footprint can increase to 2,791 million tons, and the amount of depletion it creates will hit 148 million tons" (Hutomo, 2019). These are a few examples of how the industry creates issues: vibrant colors are often achieved using toxic chemicals that harm the environment and are disruptive to hormones and even potentially carcinogenic (Jones, 2019). The most common fabric used in fashion is polyester, which sheds tiny plastic fibers that find their way into the sea and rivers (Jones, 2019). Also, cotton has been genetically modified by the fashion industry to be resistant to some forms of infections, but as a result, superweeds are starting to thrive, and they now need extra-strong pesticides that are harmful to wildlife and humans (Jones, 2019). Customers expect fashion industries to produce products that are safe and keep them protected from harm. What's more is that simple clothing details are not prominent immediately on purchase, so consumers have no incentive to understand their clothing's underlying hidden factors.
Background
The principle of understanding why a customer purchases a product is a key to developing a successful business strategy. Imagine you are a fashion enthusiast waiting for the release of a trendy new collaboration of the Adidas Palace Sunpal poncho. It would be ideal if you made many decisions about receiving this product before it is sold out, usually without delay. Collective choices will be on if the online or instore holding these products will sell out directly, how much of a purchase-sale one can make, or if the color of the clothing or size is up to par with the consumer purchasing. I am not presenting that this collaboration poncho exhibits hazardous materials in the fabric. Still, the last thing on your mind is whether or not the ponchos suggested material is safe and effective to wear. Although studies show that consumer product marketing captures the necessary specs of a product, those searching for the product will not immediately face any results of harmful or hazardous materials in the product. An example of this is an experiment that studied several dozen undergraduate students to rate four jeans that would differ along with four measures. Questions reflected the style, the wash, the price, and whether the company used child labor (Aizenman, 2016). Unsurprisingly, given the previous research, more than 85 percent of students did not opt to determine whether child labor was used (Aizenman, 2016). The issue with this mindset is that it implies that marketers or advertisers are helpless and cannot utilize any influence over the consumer's buying decision (Black, 2018). In a marketer or advertisers' point of view, the question lies in whether the company is allowing consumers their autonomy, or are they using desperate people to make a profit for themselves? (Salazar, 2017, p. 43).
While employed in advertising for close to a decade, I have learned first-hand that one of the secrets behind a company's main success is the culture and the respect for the fact that no one is more ethically correct than the consumer. We look to consumers for inspiration on describing each product. Kilbourne states, "The consumer culture encourages us to not only to buy more but to seek our identity and fulfillment through what we buy and express our individuality through our' choices' of products" (Kilbourne, 2017, p. 602). As a copywriter, I believe in creating copy that does more than capture attention. It is my goal to craft a story that continues beyond my part in it. But it is defined by what the consumer wants out of the product. Research is done on the consumer's culture, interests, and subjective views and draws the individual to the service or product. A company can respect consumers' autonomy and reframe from being paternalistic by empowering consumers to make rational decisions about their purchases. Ideally, when you help people make the right decisions by providing them with the best information you have, you respect people and their ability to make the right decisions (Salazar, 2017, p. 43).
Ways that consumers may find trust in a company is the content on a brand's website where corporate social responsibility (CSR) should be addressed. Here, consumers have an idea of the notion of a company's image and brand mission to highlight a company's "core values and the ethical principles by which it abides" (Cerchia & Piccolo, 2019). What motivates a consumer to glance at a company's mission statement? Although this may come without saying, consumers who are loyal to their favorite brands will take on the notion of observing what the company stands for. Cerchia & Piccolo (2019) mention in The Ethical Consumer and Codes of Ethics in the Fashion Industry, "A company's code of ethics could become an important tool that allows the consumer to discover and learn more about its policies. Learning that a company has established a self-regulatory instrument to ensure adherence with principles of ethical business practice may affect the choices of ethical consumers who share the same principles and are concerned about the same issues that are reflected in the brand's code of ethics" (p.2). Giving consumers the option of finding this information on their online store suggests that a company's core values should represent in coherent ways consumer sensibilities and offer insight into the development concerning clothing the brand produces. It is not the consumer's duty to do additional research to see if their clothing will potentially have adverse effects or include hazardous materials. Cerchia and Piccolo go on to detail in their article that "these codes may serve a variety of purposes – they are undoubtedly one of the ways a brand communicates its commitment to ethical principles" (Cerchia & Piccolo, 2019). Although this information is sound for online stores, many in-store locations lack this incentive. Moreover, it is the company's duty, rather than the consumer, to practice these ethical principles.
With that in mind about the consumer, I have analyzed alarming concerns as a copywriter of a fashion brand of customers complaining about products sold that are harmful to those who wear them. An example of this was shown in 2018 when toxic metal cadmium was found in jewelry sold at Nordstrom Rack and Ross stores (CBS News, 2018). The report detailed lab testing, which saw 31 adult jewelry items purchased were at least 90 percent cadmium and can cause cancer and reproductive harm after protracted exposure (CBS News, 2018). The issue here was that there was no testing of the jewelry to find toxic metals during production, and these companies had not informed their employees or their customers of this defect. Also, Nordstrom Rack and Ross are recognized as stores that exhibit "savings," so not only was this jewelry affordable, it was also accessible to owning hazardous materials.
Adults and children alike will acquire toxic chemicals in their wear. Toxic chemicals can range from clothing to impacting children's bibs. "Children are particularly susceptible to toxic chemicals since their bodies are still developing, but they also weigh less, so their exposure can be higher" (Bendix, 2019). Research showed that in 2006 and 2007, the Center for Environmental Health (CEH) found lead in vinyl baby bibs sold at Walmart and Babies R Us stores (Bendix, 2019). The report presented "five of the bibs contained lead levels above 600 parts per million – the safety threshold set by the Consumer Product Safety Commission at the time but has since been lowered to 100 parts per million and were quickly recalled nationwide" (Bendix, 2019). Although less of an issue now, the Unnecessary Poison of lead had shown a "profound ability to damage children's intellectual and behavioral development" (Cox, 2007). These studies further imply that adults show a broad spectrum of health concerns from lead, including exposure to cancer, and even reduces women the ability to give birth to healthy children (Cox, 2007). According to recent studies, one from the Taiwan Institute of Occupational Safety and Health and the other from Brown Medical School showed that women with higher lead exposures were more likely to have infertility problems (Cox, 2007).
Research shows that Polyfluoroalkyl substances (PFAS) became popular in the US around the 1940s when manufacturing companies realized they could resist heat, grease stains, and water (Bendix, 2019). However, exposure to PFAS has been associated with severe kidney and testicular cancers, liver damage, and developmental issues, and although phased out, the chemicals can still be found in leather and textiles (Bendix, 2019). Another case to bring to light that also found in clothing is formaldehyde, known to cause cancer, and phthalates, which can disrupt the body's endocrine system impacting metabolism and fertility (Cernansky, 2019). A significant issue to follow is that these consumers do not know that almost all of their clothing holds in what Cernansky (2019) labels, "the world's most toxic materials." They are also disrupting their future with the long-lasting effects impacting the environment surrounding them. Even new clothing features chemical smells, which cannot always be washed off during laundry because formaldehyde, unfortunately, benefits to keep clothes free of wrinkles, static, or stains (Bendix, 2019). Cernasky argues that "Fluorinated chemicals are lauded for their efficacy at imparting stain, oil and water repellency into the fabric, and formaldehyde is utilized during the finishing process for fabrics and anti-wrinkle treatments (Cernasky, 2019). Thus, all variables of wear from clothing to body products are at risk where phthalates, which are present in many body care products, are a component of screen printing and some footwear" (Cernasky, 2019).
Millennials and Generation Z find trends through social media and across the internet and they are shown to be an active genre. According to research, the generation already emphasizes fitness, with over 76% of Millennials saying they exercise at least once a week compared to 70% of Generation X and 64% of Baby Boomers (Valerio, 2019). This generation includes a plethora of athletes or those who enjoy outdoor hiking and workouts. Their wallets also point a willingness to spend on the industry, with over $7 billion spent annually on health club memberships in budget gyms or boutique studios (Valerio, 2019). Regarding the wear and tear of workout clothing, these individuals are frequently purchasing workout garments that market to be weatherproof and easy to wash. However, these toxic chemicals are hiding in waterproof, stain-resistant, and wrinkle-free clothes (Bendix, 2019). Clothes that are billed as "waterproof," "stain-resistant," or "wrinkle-free" often contain chemicals that have linked to adverse health effects (Bendix, 2019). Furthermore, labels containing the words Gore-Tex or Teflon are commonly found in outdoor gear, and "moisture-wicking" workout clothes feature PFAS, which are often referred to as "forever chemicals" since they linger in the environment for years (Bendix, 2019). In other words, no matter how many washes hazardous clothing goes through, there will always be subtle amounts of these chemicals foreshadowed in this wear if not noted in the tags or labels of the clothing.
What is keeping brands from ceasing this issue? Popular brands manufactured everyday wear such as T-Shirts and underwear garments with chemicals were placed on a federal ban in 2008 but continued to be used in manufacturing (Bendix, 2019). The Federal Hazardous Substances Act (FHSA), as the federal ban, defined that the manufacturer must ensure that any alternative plasticizer is adequately tested (CPSC, 2019). The manufacturer must also be confident that the product does not pose a risk of injury or illness under regular use or reasonably foreseeable misuse (CPSC, 2019). I believe that the issue lies in not just the materials of clothing, but also the production. Another main concern is that few fashion brands know certain chemicals in their clothing are toxic, although most continue using the same hazardous materials because of a lack of substitutes (Cernansky, 2019). Thus, the lack of alternatives makes some brands eliminate their use, which can mean shuttering entire product lines and training customers to pick other options (Cernansky, 2019). Most companies will have to adhere to hiring more employees to design healthier products and give customers more choices in their line, while costs become a factor.
Ethical Analysis: Kant's Views
Given the dependency that the fashion industry services provide to their dedicated customers, perhaps a critical issue to address and argue is whether or not all of these companies are aware of these hazardous materials in their products and if they should allow their customers to risk a purchase. According to Kantian views in response to whether you should sell ineffective and harmful products, the answer is to enable and help people make rational decisions. Second, they have motivation from what Kant calls the "goodwill" (Salazar, 2017).
The second categorical imperative, from the Formula of the End in Itself, illustrates one must "Act in such a way that you treat humanity, whether in your own person or in the person of another, always at the same time as an end and never simply as a means" (Salazar, 2017). In other words, businesses should not see consumers as objects for their well-being but rather recognize each person's fundamental dignity and value. Companies in the fashion industry must adopt a "code that responds to the issues that consumers care about" (Cerchia & Piccolo, 2019). An approach to this view allows me to understand that there are products in life that either have instrumental value and inherent value. For example, clothing is valuable to me so long as it gives me comfort and durability. Clothing is also useful as a tool to perform the act of choosing what to wear and ultimately wearing it. Clothing is also replaceable. When clothing has defects or includes hazardous materials which are also detrimental to my health, it loses its instrumental aspect. By contrast, inherent value formed in clothing finds appreciation with its usage. Timeless materials add gratitude and not for what the clothing enables us to do with it. Salazar (2017) evaluates this and states, "We should allow people to use their rationality. And we should never circumvent the use of rationality to get something that we desire, even something that we think of as rational and good" (p. 46). Thus, it is only rational that a business withholds from allowing their consumers to purchase a defected product without having the consumer acknowledge the concerns to maintain a profit. Unlike the "animals" Kant references in The Formula of the End in Itself, humans can rise above their instincts and freely make critical decisions.
Following Kant's Three Maxims in Kant's Shopkeeper: all companies in the fashion industry must follow these practical ethical approaches when understanding their consumers: 1. Be honest with [their] customers to gain their trust and get repeat-business, 2. Be honest with [their] customers because [they] like them, and 3. Be honest with [their] customers because that is the right thing to do (Salazar, 2017. P., 47). Cerchia & Piccolo argue towards the purposes of codes and ethics and state that "codes of ethics traditionally do not outline specific behaviors required or prohibited as a condition of employment or provide practical details to ensure compliance with other codes or guidelines in force within a corporate structure" (2019, p. 6.) But by following Kant's guidelines, a clothing company will provide the "Good Will" of their actions and will allow their consumers the trust they need to build a company's right infrastructure to keep doing what they love for many years to come. Thus, following Kantian ethics, companies which include hazardous manufacturing materials in their clothing can save the business once they "give equal respect to all rational induvial by exercising [their] own rationality and allowing others to do the same" (Salazar, 2017, p.48). A company would not risk its failure so long as its consumers are happy with its products. Once a company takes accountability for their actions, they will provide their customers with the appropriate information to make rational decisions about their product.
Ethical Analysis: Milton Friedman's Views
Concerning Milton Friedman's view that "The Social Responsibility of a Business is to increase its profits," a fashion industry's success can be found "so long as it stays within the rules of the game, where the company engages in open and free competition without deception or fraud" (Friedman, 2017). As with virtue ethics, fashion companies must respect their customers' autonomy and exhibit fair and equal responsibility by eliminating fraud in their products and avoiding pollution. This case's main issue is that the companies that market their defected products towards the general public to increase their profits will indeed fail once their consumers are deceived and affected by these hazardous materials.
I recognize that Friedman believes the only "social responsibility of a corporation is to maximize profits" (Friedman, 2017). He argues, "it may well be in the long-run interest of a corporation that is a major employer in a small community to devote resources to providing amenities to that community or to improving its government. That may make it easier to attract desirable employees; it may reduce the wage bill or lessen losses from pilferage and sabotage or have other worthwhile effects" (Friedman, 2017, p. 77). In other words, I believe he is referring to corporations that can necessarily be socially responsible if there is a business purpose supporting the contribution. Friedman's views do not imply that corporations should not spend money on issues concerning society. But concerning companies that sell hazardous materials in clothing, companies should act socially responsible towards the consumer product safety commission, affecting product recalls.
According to Elrick & Thies's notion of Friedman's article, they argue that the material has been misunderstood and proposes that Friedman's view embodies much of today's mainstream approach to business ethical evaluation (Elrick & Thies, 2018). While Friedman "specifically endorsed the firm's stakeholder theory after it was developed, stakeholder theory' continues to be presented as an alternative to value maximization" (Elrick & Thies, 2018). This view of capitalism extends the interconnected relationships between business, including customers, suppliers, employees, investors, communities, and others (Stakeholder Theory, n.d). Thus, by shaping the abusive negligence of a company on behalf of producing hazardous materials, Friedman's observation is indeed a warning towards the social responsibility in much of today's mainstream approach to businesses' ethics.
Sustainability
Despite restrictions from these hazardous materials reaching their customers, brands are forced to respond as many consumers are changing their clothing options to more sustainable methods, myself included. Over recent years, I've noticed that brands such as Adidas impact on their clothing towards sustainability. For example, Adidas is now committed to "setting context- based targets," a new thought process in sustainability that recognizes that water impacts are local and priorities focusing efforts in water-stressed basins (Robertson, 2017). With the immediate need for sustainability, the notion of need surpasses the concept of having. However, "Sustainability is a central challenge of the fashion industry" (Cerchia & Piccolo, 2019). This article highlights "consumer sensibilities regarding a more suitable fashion industry and disputes that "those who might be characterized as ethical consumers are sensitive to specific issues and share a general sentiment that they want the workers who produced their clothes to be protected" (Cerchia & Piccolo, 2019). This thought is relative to Friedman's concerns towards the Stakeholder Theory as sustainable consumers "want the entire production chain oriented toward minimizing environmental impact and its carbon footprint" and "they want to protect animals, preferring cruelty-free products" (Cerchia & Piccolo, 2019). In terms of making an environmental impact, Adidas also recently partnered with ocean conservation group Parley for the Oceans to produce various products made from recycled waste from the sea (Robertson, 2017). One of their popular products, the Ultraboost Trainer, is made from 100% recycled material, including 11 plastic bottles (Robertson, 2017). What is vital to this impact is that Adidas is prominent in labeling their products through CSR and their integrity is highly recognized for labor conditions and animal welfare. Being a loyal Adidas customer guarantees that the consumer is also making an ethical impact beyond the purchase. As part of Adidas' Sustainability Strategy, the company has established reducing their carbon footprint and made a public commitment to reducing their waste production, energy consumption, and water use by at least 20% at all their facilities by 2020 (Robertson, 2017). Three years have passed since this article was written, and Adidas as a brand is only emerging as a step ahead from other "big sportswear brands when it comes to sustainability" (Robertson, 2017).
We now live in a society where reaching to others from a technological standpoint brings significant progress to exposing environmental problems and providing solutions. With the help of social media and immediate access to the internet, it is much easier for activists to get these important points across. Respectfully, activist environmental firms such as Greenpeace and the Zero Discharge of Hazardous Chemical Program (ZDHC) have launched campaigns that exert pressure on global sportswear brands to use safer alternatives (Roberts-Islam, 2019). Greenpeace's mission is to use "peaceful protest and creative communication to expose global environmental problems and promote solutions essential to a green and peaceful future (Greenpeace, n.d). Correspondingly, ZDHC specifically collaborates with fashion brands and the "entire value chain" to change how things are produced (Roadmap to Zero, n.d). In 2014, the Manufacturers Restricted Substance List (MRSL) was established by the ZDHC and is now "considered the global standard for chemical compliance in textile and apparel manufacturing" (Roberts-Islam, 2019). This movement includes collaborating with global brands, chemical suppliers, manufacturers, and other organizations to share a common vision of reshaping the world (Roadmap to Zero, n.d). Surveys of the fashion industry sources have found that more than two-thirds of respondents think it is likely to phase out hazardous substances by 2025 (Stringer, 2019).
Conclusion
What needs to be changed is the movement towards banning chemicals altogether or investing in better chemicals for clothing, cooperating with environmental activists, and approaching sustainability on behalf of the consumer. A proper way to achieve this is by contacting company standards through ethical practices conveyed by Kantian views. Consequently, there still exist various ethical issues in the case of fashion pollution. Brands now need to be productive in managing chemicals and materials incorporated into their products or risk losing customers' trust (Roberts-Islam, 2019). To make a statement through CSR, one way to enable consumers to acknowledge safety hazards is to suppress chemical ingredients listed on tags and clothing labels. Collectively, the brand can establish concrete management policies by adhering to these organizations and commit a "safe standard of chemical use and handling in their supply chain" (Roberts-Islam, 2019). By subscribing to chemical compliance commitments, fashion companies can monitor chemical inventory and analyze all materials used in clothing before they are produced. Ultimately taking this commitment will progress in "chemical transparency for manufacturers, brands, and finally, consumers" (Roberts-Islam, 2019).
Understanding the ethics behind businesses, humankind, and the environment is, by all means, what is critical to prosperity and paramount to the future. However, Hutomo (2019) argues another issue that fashion's fight for sustainability starts with the consumer. Producing clothing at an alarming rate is due to forecasted consumer demands, which has led to a bigger problem of fashion pollution (Hutomo, 2019). Consumers can make much of an impact by lessening the number of needs versus want in clothing. Another way to do this is to offer more incentives, much like electric vehicles providing cash rebates for owning a car, such as Tesla. Suppose the consumer is notified that a company will offer incentives such as cashback, rewards, or even a certain amount of profit given to charitable firms. For example, some firms, such as Tom's shoes, successfully provided incentives by establishing a business to improve lives. The company's "Buy-one, give-one" mission provided a successful solution for those in need and even inspired other companies to do the same. In that case, the consumer may contribute to this movement knowing there is an impact well beyond the purchase. Ultimately, the consumer and the fashion industry must take action to grant transparency on this change and better the future. Strong management, trust, and human dignity will shape a better world now and for the future.
References
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Digital Marketing Strategies in Shopping
An avid shopper, my motto has always been, "Buy less, buy better." Aging at 31 this year, I was a part of the lesser-known millennials who started shopping in thrift stores in the late 2000s. Emphasizing "longevity over momentary relevance" was a critical factor in my fashion style when I would dig through racks. Working in e-Commerce now has channeled the majority of decision-making towards my online shopping over the years. We have witnessed that throughout the rise of technology, essential mediums used by Millennial's today are computers and mobile devices. Millennials, born between the years of 1981 to 1996, are the biggest generational group since the baby boomers (Serafino, 2012). Having grown up socializing and making purchases online, this generation's usage of e-commerce will continue to grow along with their discretionary income. Millennials have been identified as the driving force behind online shopping (Smith, 2012). Lack of company digital marketing strategies as well as low-quality clothing became the major factors as to why Forever 21 failed, how start-ups are learning from this, and what Millennials are shopping for towards the future.
Digital marketing has crafted a substantial rise in sales between the years of e-Commerce's early beginnings and a more excellent method of the promotion of a product. The use of computers and mobile devices has made casual shopping flexible without having to leave your house or workspace. Seldom, can I find time to go out and search for the perfect fleece jacket when I can easily find what precisely what I’m looking for through a quick Google search. The purpose of Katherine Smith's Article Longitudinal Study of Digital Marketing Strategies Targeting Millennials is to analyze and determine which digital marketing strategies are preferred by Millennials and are useful in influencing their behavior. These four research questions were analyzed to this approach:
H1. Millennials will increasingly prefer coupons as a mode of online advertising.
Trend is substantial increase in Millennials' preference for email updates.
H2. Personalization will be the most successful website feature for grabbing the attention of Millennials.
H3. Competitive pricing will be a strong incentive for Millennials to visit a website repeatedly.
H4. Millennials are motivated to write online reviews if there is a personal benefit involved.
The internet allows Millennials to exert control over the free market by expressing their opinions through numerous venues that potentially influence a multitude of consumers and marketers (Smith, 2019). In ways of understanding the trend of Millennials indicate that Millennials have a definite preference for certain forms of online advertising. For instance, the use of WOM or Word of mouth is becoming an influential communication channel, and research shows that this fast speed motion of information on a product travels faster to the individual rather than a click and search. Moreover, Millennials are finding out more on preferred coupons and competitive pricing by expressing their opinions in this method of communication, although online advertising is the fastest-growing advertising medium. There are digital marketing strategies that are considerably more effective in grabbing the attention of Millennials, motivating repeat visits to a website, and encouraging Millennials to write online reviews (Smith, 2012). Social media, company websites, and interactive technologies are empowering Millennials to be more active in the promotion and advancement of products, and brands (Smith, 2012). Thus, becoming more aggressive in the development and improvement of products and brands, Millennials are making an impact on the marketplace. Millennials want to feel as if they are a part of the product before purchasing through the use of personalization. This idea is apparent for loyal customers who have always been the backbone of a business (Smith, 2012). Furthermore, with the rise of technology, another method of advertising is promoting through the usage of devices. Consumer-generated commercials, podcasts, and blogs are on the rise with the air of web sites such as YouTube, V-Cam, and Google Video (Smith, 2012).
Unfortunately, with the effectiveness of digital strategies making an impact for Millennials shopping online, "fast fashion" in stores such as Forever 21 is leading to bankruptcy as Millennials and consumers are channeling more environmentally conscious ways of shopping. This is because Millennials are beginning to consider the environmental implications of cycling through low-quality pieces in the name of fashion (Bhattarai, 2019). Past Forever 21 consumers have noticed that with low prices comes cheap quality. In other words, a consumer could admire the low cost of the clothing, yet only discover the variety of the garment itself would deteriorate immediately after the purchase. More and more start-ups are researching methods of new ways to reach consumers in this analysis. For instance, a new start-up fashion company, Sporty & Rich, began as a mood board for life; a collection of images from past and present that represent a life surrounded by beauty. Now, we offer a collection of simple, yet thoughtfully designed products that emphasize longevity over momentary relevance (Oberg et al., 2019). Amid this, Forever 21 continued to "explore different sustainability and social responsibility initiatives" says a spokeswoman for Forever 21, and notes that a new recycling program in its Los Angeles stores, for example, allows shoppers to drop off used clothing and shoes in exchange for a discount (Bhattarai, 2019). Changing consumer habits in shopping allude to the decline in Forever 21, such as an overreliance on mall stores and its failure to invest online (Bhattarai, 2019). Although Forever 21 is exploring various sustainability initiatives, in the end, it is determined by the quality of the clothing worth purchasing. Companies should connect with this new generation of consumers on their turf towards the digital arena in order to have success in the digital shopping world as marketing via the internet can level the playing field between large and small companies (Bhattarai, 2019). In the end, Millennials appeal to the personal touch of the product and ways to network with the marketer in this form of sustainable shopping.
Millennials are continually looking for new ways to shop towards the final years of the 2010s and the beginnings of the 2020s. Having grown up socializing and making purchases online, this generation's use of e-commerce will continue to grow along with their discretionary income (Smith, 2012). The shift in Millennials' income compared to past generations is staggering, and, although analyzed in 2012, Smith's analysis still rings true for start-ups in fashion and digital marketing strategies. Millennials can interact with the company and possibly have a part in the promotion and advancement of products and brands, make sure pricing is competitive, and look for the best sustainable value (Smith, 2012). The question for Millennials today, as well as growing e-commerce businesses, is would one rather spend $50 on a timeless eco-friendly pair of jeans or $13 on a pair of pants, which would only last a few washes before the colors begin to fade? This impacts decision making involving the duration of time the article of clothing is needed, what the garment is needed for, or even the weather. The reasonings behind this are elusive.
References
Bhattarai, A. (2019, October 3). 'A tipping point in fast fashion': Forever 21's bankruptcy signals the shifting priorities of young shoppers. Retrieved October 5, 2019, from https://www.washingtonpost.com/business/2019/10/03/tipping-point-fast-fashion-forever-s-bankruptcy-signals-shifting-priorities-young-shoppers/.
Oberg, E. (n.d.). About. Retrieved October 5, 2019, from https://www.sportyandrich.com/pages/about.
Serafino, J. (2018, March 2). New Guidelines Redefine Birth Years for Millennials, Gen-X, and
Post-Millennials. Retrieved October 5, 2019, from http://mentalfloss.com/article/533632/new-guidelines-redefine-birth-years-millennials-gen-x-and-post-millennials.
Smith, K. T. (2012). Longitudinal study of digital marketing strategies targeting millennials. The Journal of Consumer Marketing, 29(2), 86-92. doi:http://dx.doi.org.ezproxy.redlands.edu/10.1108/07363761211206339
Market Gains for Adidas: A Look Exploring 1996-2018
In the realm of sportswear sneakers, the study of iconic and fashion brand authenticity shines through the German brand, Adidas. Assuming that there is an important role in establishing customer relationships and brand loyalty, the question today is analyzing the company’s trend and its thriving market shares throughout the years. What shapes the fall and rise to regain composure and remain one of “the world’s best sneaker brands?” (Maddison, 2019). By analyzing a 1994 Forbes magazine article in conjunction with The Wall Street Journal’s 2018 article, the nature of Adidas comeback effort and growth towards its current rise in stocks is credited by a “rumpled French man” and the help of the “sneaker fashion” consumers.
“Adidas Flies Again” is cut from a 1994’s article from Forbes magazine addressing Frenchman Adidas head Robert Louis-Dreyfus who turns the company around from a debacle to fly again. Since the company’s upbringing in 1920, it has been apparent that Adidas was not a corporation that considered a growing concern, as assumed in the company’s “glory years” (Levine, 1994). When German entrepreneur and Adidas founder, Adi Dassler died in 1978, Adidas was in a battle of losing amongst competitors Nike and Reebok who had taken over the sportswear market. “By 1992, the $1.5-billion company was losing $90 million a year and was controlled by the French bank, Credit Lyonnais with a bad loan” (Levine, 1994). To reprimand the issue and save Adidas of being “booted off the field by Nike and Reebok,” Credit Lyonnais reached out to Louis-Dreyfus about turning the company around in a comeback effort. Offering Louis-Dreyfus 15% of the company with no cash down in exchange for him signing a nonrecourse note for $100 million, he had nothing to lose from backing down (Levine, 1994.) Thus, Louis-Dreyfus began the new challenge of bringing Adidas back into the sportswear market and staying.
To place strategic emphasis on managing the brand authority as the primary source of economic value creation, Louis-Dreyfus innovatively operated in 2 ways: “paring the Adidas staff drastically while shifting production from France and Germany to the Far East and doubling the market spending of sales (Levine, 1994). By doubling marking spending to 11% of sales, Louis-Dryfus managed new ad campaigns featuring prominent sports figures including “basketball stars like New York Knicks guard John Starks and Denver Nuggets’ Jalen Rose” even selling Rose’s signature basketball shoe, the “Ratball” at full price of $69.95 as “the particularly hot seller among inner-city kids, who set sneaker fashion” (Levine, 1994). By 1995, Adidas earned $172 million before taxes on sales of $2 billion. Louis-Dryfus progressively brought up the rest of Adidas from Europe to the States, “in the US, Adidas’ share of the $8-million market had risen to 5% from 2% in 4 years” (Levine, 1994). Towards the end of this battle, financing loans from Credit Lyonnais were all paid off in November 1995 when Adidas sold about 70% of the company to the public in Germany for around $1.3 billion (Levine, 1994). Successful decision-making in managing Adidas takes credit from Louis-Dryfus in keeping the aesthetic value and symbolic attributes true for its consumers especially those loyal to the brand in the inner-city sneaker fashion in the States and around the world by focusing on branching the company out of Europe and monitoring market shares.
Navigating into current strategies since the comeback, Adidas sales have been steadily growing but in analyzing Adidas is Looking Fitter Than Nike, the thriving sportswear brand worries investors after “constant-currency” growth amongst competitors. In analyzing the market battle of Adidas vs. other sportswear brands such as Nike, Adidas grew in global sales by 10% year over year in the quarter through June, (2018) … that included 16% growth in North America and 27% growth in China” (Wilmot, 2018). Consumers throughout the globe hold a perception the brand authenticity helps sustain a long-term relationship between brands and customers. With the rise in sales, Western Europe grew as a major market and despite the slowdown, “the stock leaped almost 9% in morning trading” (Wilmot, 2018). In developing successful marketing strategies that integrate the core value of brand authenticity and long-term relationships with consumers in fashion markets, “the key to such margin gains is selling shoes at full-price” (Wilmot, 2018). What Louis-Dryfus did in selling the “Ratball” sneaker was gain notoriety through successful marketing-generated towards those set in “sneaker fashion” throughout the world with the current movement of selling full-price. In competition with rival brands, “Adidas is growing sales and profits faster than Nike, yet even after today’s share-price jump, the German stock trades on 23 times progressive earnings, compared with 29 times for Nike” (Wilmot, 2018). Moreover, since a progressive move should be investing in full price sales, the rise of company stock is further an innovative model of company profit in stocks within the sneaker war between Adidas and competing brands.
The focus on brand authenticity is built along with innovative products and service, trust in the brand, and satisfied consumers. When one looks at Adidas today, technological innovations in the product are bringing customers near and far to purchase the popular Ultra Boost sneakers. “The German sports giant has been experimenting with 3D printing as a production method of groundbreaking webbed sole units (Maddison, 2019). Adidas customers such as I, watch in awe as Adidas’ bold innovations take focus on product as a timeless position with few “signs of letting up.” Research built from the comeback of 1994 herald beloved classics owned by many including “the Superstar, Stan Smith, and Gazelle all come to mind – and they’re not going away” (Maddison, 2019).
References
Levine, J. (1996, March 25). Adidas Flies Again. Forbes, 157 (6), 44–45. doi: 0015-6914
Madison, P. (2019, June 21). The Best Sneaker Brands In The World Right Now. Retrieved from
https://www.fashionbeans.com/article/best-sneaker-brands/
Wilmot, S. (2018, August 9). Adidas Is Looking Fitter Than Nike. Retrieved from
https://www.wsj.com/articles/adidas-is-looking-fitter-than-nike-1533825672