French Parliament Votes to Slow Down Fast Fashion

France is taking aim at fast fashion, especially from China. Christophe ARCHAMBAULT / AFP
France is taking aim at fast fashion, especially from China. Christophe ARCHAMBAULT / AFP
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French Parliament Votes to Slow Down Fast Fashion

France is taking aim at fast fashion, especially from China. Christophe ARCHAMBAULT / AFP
France is taking aim at fast fashion, especially from China. Christophe ARCHAMBAULT / AFP

France's parliament on Thursday backed a string of measures making low-cost fast fashion, especially from Chinese mass producers, less attractive to buyers.
The vote makes France the first country in the world "legislating to limit the excesses of ultra fast fashion", said Christophe Bechu, minister for the ecological transition.
Key measures include a ban on advertising for the cheapest textiles, and an environmental charge slapped on low-cost items, AFP said.
The French clothes market has been flooded with cheap imported clothes, while several homegrown brands have declared bankruptcy.
But the main arguments put forward by Horizons -- the party allied to President Emmanuel Macron submitting the draft law -- were environmental.
"Textile is the most polluting industry," said Horizons deputy Anne-Cecile Violland, saying the sector accounted for 10 percent of greenhouse gas emissions and was a major polluter of water.
She singled out Chinese company Shein and its "7,200 new clothing items per day" as a prime example of intensive fashion production.
France will apply criteria such as volumes of clothes produced and turnover speed of new collections in determining what constitutes fast fashion, according to the law.
Once the law comes into force -- which still requires a vote in the Senate -- precise criteria will be published in a decree.
Fast fashion producers will be forced to inform consumers about the environmental impact of their output.
A surcharge linked to fast fashion's ecological footprint of five euros ($5.45) per item is planned from next year, rising to 10 euros by 2030. The charge cannot, however, exceed 50 percent of an item's price tag.
Violland said the proceeds from the charge would be used to subsidize producers of sustainable clothes, allowing them to compete more easily.
A measure to limit advertising for fast fashion was also approved, although conservative lawmaker Antoine Vermorel-Marques remarked that "a ban on advertising for textiles, especially fashion, spells the end of fashion".
An initiative brought by left-wing and Green party deputies to include minimum penalties for producers breaking the rules as well as import quotas and stricter workplace criteria in the industry into the new law was struck down.
High-end fashion is a cornerstone of the French economy thanks to leading global luxury brands like Louis Vuitton, Chanel, Hermes, Dior and Cartier.
But the French lower-end fashion segment has lost ground to European rivals Zara, H&M and, more recently, to Chinese behemoths Shein and Temu.



Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
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Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)

Kering reported a bigger-than-expected drop in second-quarter sales and forecast a weak second half, as the French luxury group struggles to revive its key label Gucci and worries grow about a prolonged downturn in high-end spending.

Sales at the French luxury group which owns labels Gucci, Boucheron and Balenciaga, fell to 4.5 billion euros ($4.9 billion), an 11% drop on an organic basis, which strips out currency effects and acquisitions.

The figure was below analyst expectations for a 9% drop, according to a Visible Alpha consensus.

It also said second-half operating income could fall by around 30%, following a 42% drop in the first half.

Sales at Gucci fell 19%, showing no improvement from the first quarter, and below analyst expectations for a 16% decline, according to a Visible Alpha consensus.

Kering has been revamping Gucci, the century-old Italian fashion house which accounts for half of group sales and two-thirds of profit.

Minimalist designs from new creative director Sabato de Sarno, which began trickling into stores earlier this year, are key to the design reset and push upmarket, in a bid to cater to wealthier clients who are more immune to economic headwinds.

Kering chief financial officer Armelle Poulou told reporters that the designs had been well received and the rollout was on track.

But the efforts have been complicated by a downturn in the global luxury market, while China's rebound - traditionally Gucci's most coveted market - was clouded by a property crisis and high youth unemployment as Western markets came down from a post-pandemic splurge.

Earnings from sector bellwether LVMH on Tuesday missed expectations as sales rose 1%, offering few signs that a pickup is around the corner, sending shares in luxury goods companies down on Wednesday. Kering traded at its lowest level since 2017.