Saudi Arabia, Kering Group Sign MoU to Elevate Fashion Sustainability in Kingdom

The Saudi Fashion Commission logo
The Saudi Fashion Commission logo
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Saudi Arabia, Kering Group Sign MoU to Elevate Fashion Sustainability in Kingdom

The Saudi Fashion Commission logo
The Saudi Fashion Commission logo

The Saudi Fashion Commission has signed a memorandum of understanding (MoU) with French-based Kering, one of the world’s most influential luxury fashion conglomerates, to engage in discussions that support the development and implementation of initiatives that align with Saudi Arabia’s broader goals for the fashion sector.

The signing ceremony, held in Riyadh, was attended by Saudi Fashion Commission CEO Burak Cakmak and Chief Sustainability and Institutional Affairs Officer at Kering Marie-Claire Daveu.

The MoU marks the beginning of a strategic alliance aimed at exploring collaborative efforts in several key areas of common interest. The two organizations will work together to establish Kering Generation Awards, which recognize and celebrate leading sustainable fashion businesses, including establishing award criteria, participant selection processes, and award recipient development.

Moreover, the collaboration features a Regional Sustainability Index, providing fashion enterprises with a roadmap to enhance sustainable practices.
The initiative also entails publishing joint reports on achievements, conducting awareness sessions, and aligning with key events in Saudi’s annual fashion calendar.

Leveraging Kering’s industry expertise, the two parties will focus on customer engagement, circular economy and water protection and aim to identify pioneering approaches to sustainable materials that can serve as industry standards.

This partnership underscores the Saudi Fashion Commission’s commitment to advancing sustainability across the fashion value chain. As a leader in sustainable luxury fashion, Kering brings a wealth of experience in managing eco-conscious initiatives, reinforcing the MoU’s potential to drive meaningful change in the region’s fashion landscape.

“We are delighted to partner with Kering, whose commitment to sustainability aligns with our mission to foster a forward-thinking, eco-conscious fashion ecosystem in Saudi Arabia. Together, we aim to set new standards for sustainability and innovation in the region,” said Cakmak.

As for Daveu, she said that the MoU presents a remarkable opportunity for the company to support the growth of sustainable fashion practices in Saudi Arabia.

“We look forward to collaborating on initiatives that will contribute to a more sustainable future for the fashion industry,” she added.

The MoU will be effective immediately for an initial term of one year, with an option for automatic renewal upon mutual agreement.
This partnership reflects the shared vision of the Saudi Fashion Commission and Kering to lead the region’s move toward a more sustainable and responsible fashion industry.



Hermes Q3 Sales Up 11.3%, Continues to Outshine Rivals

A logo of Hermes is seen on a store in Nantes, France, October 17, 2024. REUTERS/Stephane Mahe
A logo of Hermes is seen on a store in Nantes, France, October 17, 2024. REUTERS/Stephane Mahe
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Hermes Q3 Sales Up 11.3%, Continues to Outshine Rivals

A logo of Hermes is seen on a store in Nantes, France, October 17, 2024. REUTERS/Stephane Mahe
A logo of Hermes is seen on a store in Nantes, France, October 17, 2024. REUTERS/Stephane Mahe

Birkin bag maker Hermes reported on Thursday an 11.3% rise in third-quarter sales, continuing to outshine rivals hit hard by a downturn in China as its luxury handbags lure wealthy shoppers.

The French luxury company generated 3.7 billion euros ($3.99 billion) in revenue for the three months ending in September, an 11.3% rise at constant exchange rates, Reuters reported.

The figure was in line with an analyst consensus estimate of 11% growth cited by Jefferies.
"In a more uncertain economic and geopolitical context, I want to thank all employees for the robust third-quarter performance, and our customers for their loyalty," said Axel Dumas, Executive Chairman of Hermes.
"Thanks to the singularity of its model, Hermes is continuing its recruitments and long-term investments," he said in a statement.
A sector-wide slowdown has affected labels across the high-end spectrum.
Luxury bellwether LVMH missed expectations last week and flagged a drop in Chinese consumer confidence to COVID-era lows, with a deterioration in demand for fashion over the quarter.
Late on Wednesday, Kering warned its 2024 operating income would almost halve to its lowest in years as weak demand in China deepened the struggles of the French luxury goods group's main label Gucci.
Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity and made the company one of the most consistent performers in the industry.
Handbags like the coveted $10,000 plus Birkin model are affordable only for the wealthiest shoppers -- who are typically the more immune to choppy economic conditions.
But showing limits of its resilience, executives earlier this year said that Hermes was seeing slightly less traffic from aspirational clients, impacting higher volume products like fashion accessories such as silk scarves.
Hermes shares have risen nearly 9% since the start of the year, outpacing rivals, with LVMH down nearly 15%, Moncler down 3.3% and Kering, which is working to turn around Gucci, down 40%.