Adidas and Puma Eye Chances in Soccer's Fashion Moment

FILE PHOTO: The Adidas logo is pictured in Herzogenaurach, Germany, August 9, 2019. REUTERS/Andreas Gebert/File Photo
FILE PHOTO: The Adidas logo is pictured in Herzogenaurach, Germany, August 9, 2019. REUTERS/Andreas Gebert/File Photo
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Adidas and Puma Eye Chances in Soccer's Fashion Moment

FILE PHOTO: The Adidas logo is pictured in Herzogenaurach, Germany, August 9, 2019. REUTERS/Andreas Gebert/File Photo
FILE PHOTO: The Adidas logo is pictured in Herzogenaurach, Germany, August 9, 2019. REUTERS/Andreas Gebert/File Photo

Sportswear brands like Adidas and Puma are seeking to take advantage of a flirtation with soccer by the fashion world to reach a new customer base, building in part on demand created by this summer's successful Women's World Cup.
With celebrities like Kim Kardashian seen attending matches and wearing soccer jerseys, clubs too spy new merchandising opportunities. One Premiership team has hired a creative director to expand its apparel offering, while Adidas in September launched an "exclusively off-pitch" apparel collection for some of the big-name teams it sponsors.
"The love-in between football and fashion is only just beginning," said Richard Busby, CEO at sponsorship consultancy BDS Sponsorship.
The Women's World Cup showed there is huge unmet demand for soccer-related merchandise for women: Nike drew a backlash from fans for not offering replica kits for England's Mary Earps and other goalkeepers playing in the competition.
But the trend extends to fashion-conscious fans of both sexes, Busby said. "Premiership clubs have a lot of wealthy supporters but very few of the items they sell appeal to them, whether men or women."
Second-division Greek football club Athens Kallithea is among those giving its jerseys a makeover. Its campaigns show women wearing the unisex tops with satin skirts and styled as smart casual clothing to wear out to dinner.
The ranges are designed to appeal beyond a club's traditional fan base.
Kardashian has been spotted wearing vintage Roma and Paris Saint-Germain shirts, while 20-year-old model Mia Regan paired an Arsenal shirt with a long denim skirt and boots at a Paris Fashion Week show in October.
In August, Crystal Palace hired Kenny Annan-Jonathan as creative director focused on apparel. He is expected to expand the range of clothing offered by the Premier League club.
HYPE AROUND FOOTBALL CULTURE
Adidas and Puma have long been associated with streetwear and pop culture.
But with the German companies each spending two-thirds of their annual sponsorship outlay on soccer, according to a GlobalData report published this month, football's fashionable turn could prove lucrative.
For Nike, which also invests significantly in basketball and college sports, soccer accounts for 48% of its annual sponsorship spend, GlobalData found.
"We are experiencing hype around football jerseys and general designs influenced by football culture across streetwear and fashion," said Puma's global creative director Heiko Desens.
Puma is seeking to further fuel that hype. Its newest footwear collaboration with popstar Rihanna's Fenty brand, launched last month, was a trainer inspired by cleats worn by the late, legendary Brazilian soccer player Pele.
The launch campaign featured Rihanna inside a giant de-constructed soccer ball. The shoes, priced at $170 for a silver colorway and $160 for a black and white model, sold out on Puma's website on the day they were released, Reuters reported.
"Puma has a higher sales exposure to women than Adidas or Nike, and the original Rihanna partnership in 2015 was really effective in helping it build strong demand and a lot of credibility with the female consumer," said Graham Renwick, analyst at Berenberg.
"So with the relaunch of this partnership Puma will be hoping for a similar response."
Adidas's apparel range for Arsenal, Bayern Munich, Juventus, Manchester United and Real Madrid, launched in September, included crop tops and dresses made in a jersey knit and featuring more subtle club branding.
"We want to cater to the needs of both the consumer who plays football actively and the consumer who is attracted by football culture," Adidas said.
High fashion is also getting involved: in May, Italian label Prada collaborated with Adidas on soccer cleats in three colorways including white, retailing for $595 a pair.
Liverpool and Newcastle United are also seeking to hire creative directors, in a trend that could change the dynamic between the Premiership clubs and their sponsoring brands.
Athens Kallithea and Italy's Venezia FC have used slick social media campaigns to sell apparel globally despite a smaller fanbase.
"There's a risk of tension with existing fans whenever you start moving beyond the core culture," said Athens Kallithea's president and creative director, Ted Philipakos. He said teams from the Premier League and Bundesliga had contacted him to learn from his strategy.
"It's a delicate balancing act that requires more nuance and sensibility than many big clubs tend to have," Philipakos said.



Loro Piana is Latest Italian Luxury Brand Under Fire for Worker Abuse in Supply Chain

FILE PHOTO: The logo of Loro Piana is seen in a shop in downtown Rome, Italy February 10, 2016. REUTERS/Tony Gentile/File Photo
FILE PHOTO: The logo of Loro Piana is seen in a shop in downtown Rome, Italy February 10, 2016. REUTERS/Tony Gentile/File Photo
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Loro Piana is Latest Italian Luxury Brand Under Fire for Worker Abuse in Supply Chain

FILE PHOTO: The logo of Loro Piana is seen in a shop in downtown Rome, Italy February 10, 2016. REUTERS/Tony Gentile/File Photo
FILE PHOTO: The logo of Loro Piana is seen in a shop in downtown Rome, Italy February 10, 2016. REUTERS/Tony Gentile/File Photo

Cashmere king Loro Piana, part of LVMH's luxury empire, became on Monday the fifth high-end brand to be put under judicial administration in Italy over worker abuses in supply chains, after an investigation that has tainted the image of Italian luxury goods.

Loro Piana Spa will undergo court monitoring for a year, according to the 26-page ruling reviewed by Reuters, which stems from investigations into the world of subcontracting for luxury goods in Italy that started in 2023.

As in previous cases involving Italian luxury firms, the administration may end earlier if the company brings its practices into line with legal requirements.

In a statement, Loro Piana blamed a supplier for sub-contracting work without informing it, breaching legal and contractual obligations, and said it had ended work with the supplier as soon as it found out in May.

The case involving Loro Piana Spa originated after Carabinieri police from the Milan labor protection unit in May arrested a Chinese workshop owner and closed his factory in the northwestern suburbs of Milan, Reuters reported.

The employer was reported by one of his workers for beating him, causing injuries that required 45 days of treatment, after the worker demanded 10,000 euros ($11,692.00) in unpaid wages.

Carabinieri police found that the workshop produced Loro Piana-branded cashmere jackets and that its 10 Chinese laborers, including five illegal immigrants, were forced to work up to 90 hours a week, seven days a week, were paid 4 euros an hour, and slept in rooms illegally set up inside the factory.

Units of fashion brands Valentino, LVMH's second largest brand Dior, Italy's Armani, and Italian handbag company Alviero Martini were previously placed under administration for similar alleged worker exploitation.

The Court of Milan found that Loro Piana, which makes expensive cashmere clothing, subcontracted its production through two front firms that had no actual manufacturing capacity to Chinese-owned workshops in Italy.

The owners of the contracting and subcontracting companies were put under investigation for exploiting workers and employing people off the books, while Loro Piana Spa itself faces no criminal probe.

The company said in its statement it "has been constantly reviewing and will continue to strengthen its control and audit activities" to ensure compliance with its own quality and ethical standards across the supply chain.

LVMH, the world's biggest luxury group, acquired 80% of Loro Piana in 2013, leaving 20% to the company's founding family. In June, Loro Piana appointed Frederic Arnault, son of LVMH chairman and Chief Executive Bernard Arnault, as CEO.

WORKER ABUSE AT SUBCONTRACTORS

The Milan court, as in the cases of the other brands targeted by the investigation, found Loro Piana "culpably failed" to adequately oversee its suppliers in order to pursue higher profits, according to the ruling.

The prosecutors in the case said the violation of rules among fashion companies in Italy was "a generalized and consolidated manufacturing method".

Experience from past investigations "indicates that the complete outsourcing of industrial production processes is aimed exclusively at reducing labor costs and, consequently, also the criminal and administrative liability of the company with regard to worker safety... All this is done with a view to maximizing profits at the lowest possible production cost," the Court of Milan said.

Italy is home to thousands of small manufacturers that make up 50%-55% of global luxury goods production, consultancy Bain has calculated.

In May, Italy's fashion brands signed an accord with legal and political authorities to fight worker exploitation, but the ruling on Loro Piana said "this production chain, headed by Loro Piana, has continued to operate until now" and despite the previous cases being widely reported.

Carabinieri police said in a statement they inspected two intermediary companies and three Chinese workshops, all in the Milan area, and identified 21 workers, 10 of whom were working off the books without proper registration, including seven illegal immigrants.

According to the court ruling, the owner of an intermediary company stated that in recent years she had been producing around 6,000-7,000 jackets per year for Loro Piana at an agreed price of 118 euros per jacket if the order was for more than 100 items and 128 euros if the order was under 100 items.

"The reported cost figures are not representative of the amounts paid by Loro Piana to its supplier, nor do they consider the full value of all the elements, including, among others, raw materials and fabrics," the company said.

On the Loro Piana website, prices for men's cashmere jackets range from over 3,000 euros to over 5,000 euros.