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
TT

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.



LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
TT

LVMH Sales Grow 1% in Second Quarter, Missing Estimates

This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)
This photograph taken on January 25, 2024 shows the logo of World's top luxury group LVMH during presentation of its 2023 annual results in Paris, on January 25, 2024. (AFP)

LVMH, the world's biggest luxury company, posted a 1% rise in organic sales in the second quarter on Tuesday, missing analyst estimates, and likely adding to investor jitters about slowing growth in the sector.

Sales at the French group, owner of labels Louis Vuitton, Tiffany & Co. and Hennessy, grew to 20.98 billion euros ($22.8 billion), a 1% rise on an organic basis, which strips out currency effects and acquisitions.

The figure fell below analyst expectations for revenues of 21.6 billion euros, according to an LSEG poll based on six analysts.

The report from luxury sector bellwether LVMH, which is Europe's second-largest listed company, worth around 340 billion euros, comes amid concerns about weak sales of designer fashions in the sector's key market, China.

The group's fashion and leather goods division, which includes the Louis Vuitton and Christian Dior brands and accounts for nearly half of group sales and the bulk of operating profit, grew 1%, slowing slightly from the previous quarter's 2% rise.

"While remaining vigilant in the current context, the group approaches the second half of the year with confidence," said LVMH Chairman and Chief Executive Officer Bernard Arnault in a statement.