Britain to Investigate ASOS, Boohoo and Asda's Environmental Claims

A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. REUTERS/Dado Ruvic/Illustration
A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. REUTERS/Dado Ruvic/Illustration
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Britain to Investigate ASOS, Boohoo and Asda's Environmental Claims

A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. REUTERS/Dado Ruvic/Illustration
A keyboard and a shopping cart are seen in front of a displayed ASOS logo in this illustration picture taken October 13, 2020. REUTERS/Dado Ruvic/Illustration

Britain's competition regulator will investigate whether fashion brands ASOS, Boohoo and George at Asda are misleading shoppers with their environmental claims as it scrutinizes retailers for evidence of "greenwashing".

The investigation comes as regulators heighten scrutiny of companies which may be exaggerating their green credentials in an attempt to woo climate-conscious consumers as well as billions of dollars from environmentally-focused investor funds, Reuters said.

"People who want to 'buy green' should be able to do so confident that they aren't being misled," Competition and Markets Authority (CMA) interim Chief Executive Sarah Cardell said in a statement.

"Eco-friendly and sustainable products can play a role in tackling climate change, but only if they are genuine."

If the three companies are found to be misleading customers, the CMA will take enforcement action, including in court, if necessary, Cardell said, noting the probe was "just the start" of the CMA's work in the clothing sector.

The agency has outlined its concerns to the three companies and will begin gathering evidence, which will help it to decide whether there have been breaches of consumer protection laws.

It will examine whether the language used in marketing clothing, footwear or accessories is too vague and whether the criteria used by the companies to label products as sustainable might be lower than customers might reasonably expect.

Online fashion retailers ASOS and Boohoo said in separate statements they would work with the CMA and were committed to providing accurate information about their products.

Representatives for supermarket group Asda, which owns the clothing line George, did not immediately respond to requests for comment.

INVESTIGATING GREEN CLAIMS
The CMA's concerns come as the global fashion industry comes under increasing pressure to clean up its act.

The United Nations says the industry is the second biggest consumer of water globally, behind agriculture, and according to estimates, is responsible for up to 8% of carbon emissions.

Many regulators across the United States and Europe are cracking down on potentially false environmental, social and governance-related (ESG) claims made by companies across sectors as well as investor funds to make sure they are backed up.

The CMA last year published a green claims code, a set of guidelines for companies and shoppers to ensure that environmental claims are genuine and not misleading.

It will examine products in the fashion brands' eco ranges, where some labeled as environmentally friendly can contain as little as 20% recycled fabric, the CMA said.



Luxury Fashion Betting on Designer Reshuffles Faces Tricky Road ahead

A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier
A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier
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Luxury Fashion Betting on Designer Reshuffles Faces Tricky Road ahead

A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier
A model presents a creation by the creative studio of fashion house Chanel as part of their Fall/Winter 2025-2026 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, March 11, 2025. REUTERS/Sarah Meyssonnier

A slump in luxury fashion is prompting designer reshuffles at top houses Gucci, Chanel and Dior to reignite heat around their brands - while avoiding too radical a reset that could confuse affluent shoppers.

The stakes are high, as the 363 billion euro ($395.09 billion) global luxury goods market grapples with its lowest sales rates in years after an economic slowdown in China and rising inflation elsewhere make high-end consumers more reluctant to splash out, Reuters said.

"Brands are under more pressure than ever to balance creativity with commercial viability, while also maintaining relevance in a constantly shifting market," said Lydia King, group buying and merchandising director at upscale British department store Liberty.

Kering-owned Gucci and Chanel are placing their bets on rising stars from much smaller labels, with LVMH's Dior likely soon to follow suit. But new designers face the tricky task of bringing the right dose of renewal, with investors giving them little time to establish themselves. Last week's announcement that Gucci had appointed Balenciaga designer Demna to head its design teams sent Kering shares down over 10%, wiping around 3 billion euros off the group's market value.

In an era of “superstar” creative directors, designers shape the identity of brands, even overshadowing a brand’s heritage, said Jacques Roizen, of consultancy DLG.

Many analysts had lobbied for bolder fashion at Gucci following a two-year push upmarket with more classic designs, but investors worry Demna, 43, who brought buzz to Kering's smaller label with high-end streetwear styles, might not be the right fit.

Creative directors are redefining "not only the aesthetic direction but also the positioning and clientele of the houses,” said Roizen.

As China remains subdued, luxury brands are pinning their hopes on the US market this year, although signs of economic uncertainty are creeping in.

Chanel, which is privately owned, is bringing in Matthieu Blazy, 40, after his successful run at Kering's Bottega Veneta. He faces the daunting task of ushering in a fresh design approach, overseen for decades by Karl Lagerfeld, and then by longtime collaborator Virginie Viard following Lagerfeld's death in 2019.

The importance of the creative director can vary by brand, said Flavio Cereda, who manages GAM's Luxury Brands investment strategy. Since Viard's abrupt departure last year, Chanel has emphasized trademarks, sending models down a runway shaped in its interlocking-C logo or wearing clothes adorned with signature black bows - at Lagerfeld’s preferred venue, the Grand Palais in Paris.

INDUSTRY-WIDE CHANGE LVMH has yet to officially announce new creative leadership at Dior after menswear designer Kim Jones left in January, but is likely to soon hire a new designer, expected to be Jonathan Anderson. His departure from Loewe was announced on Monday, but LVMH declined to comment on Anderson's future role. There are also new faces at a host of smaller brands, including LVMH's Celine and Givenchy, and Donatella Versace, 69, is stepping aside at Versace after nearly three decades, replaced by Miu Miu's Dario Vitale.

"Clients don't know where to go anymore with all these musical chairs," said Yannis Ouzene, a sales assistant for a major European brand on the Avenue Montaigne in Paris, home to some of the most exclusive fashion houses.

“I don’t recall seeing such a significant shift in creative leadership across the luxury industry," said Achim Berg, fashion and luxury industry advisor.

Change will sweep through studios, merchandising teams, marketing departments and design teams -- but takes time, with no visible impact likely until next year, he added.

Brands need to be wary of bewildering clients with "too drastic changes in the aesthetic language of a brand," said Federica Levato, senior partner at consultancy Bain.

For Chinese shoppers, the "here and now" of a brand's design is more important than its historical context, while Western shoppers place "significant value on the continuity of a brand's identity", said Roizen.

For some, the designer is not a deal clincher.

"I don’t care who the designer is," said Stephanie Gold, an American tourist in Paris who recently purchased a pair of prominent Dior glasses. "I don’t like to buy what everybody has."

The luxury sector overall - which averaged annual growth of 10% over 2019-2023 - is expected to grow around 4% in 2025, with sales to Americans accounting for over a third of the global growth, up 7%, compared with a 1% decline from the Chinese, based on UBS estimates.

Olivier Abtan, consultant with Alix Partners, says brands have to be careful not to wait too long before shaking things up. As the market awaits word on Dior's new design chief, and LVMH grapples with shopper fatigue buffeting the industry, some wonder whether design change at Dior, which lags group heavyweight Louis Vuitton, should have come sooner.

Change needs to be made "as soon as a brand senses growth is slowing," Abtan said.