France Mulls Penalties to Rein in Ultra-fast Fashion Brands

The ultra-flexible supply chain has allowed Shein to create a different business model than established fast-fashion players like Zara and H&M, which pioneered shorter production timelines but still largely rely on predicting shoppers’ preferences. Reuters pic
The ultra-flexible supply chain has allowed Shein to create a different business model than established fast-fashion players like Zara and H&M, which pioneered shorter production timelines but still largely rely on predicting shoppers’ preferences. Reuters pic
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France Mulls Penalties to Rein in Ultra-fast Fashion Brands

The ultra-flexible supply chain has allowed Shein to create a different business model than established fast-fashion players like Zara and H&M, which pioneered shorter production timelines but still largely rely on predicting shoppers’ preferences. Reuters pic
The ultra-flexible supply chain has allowed Shein to create a different business model than established fast-fashion players like Zara and H&M, which pioneered shorter production timelines but still largely rely on predicting shoppers’ preferences. Reuters pic

Fashion brands with ultra-fast product turnover such as China's Shein should be subject to penalties of up to 50% of their garments' selling price to offset their environmental impact, French ruling-majority MPs have proposed in a new bill.
The MPs say that ultra-fast fashion brands, rather than renewing their collections four times per year like traditional clothing brands, offer thousands of new products per day, inciting excessive spending and unnecessary pollution, Reuters reported.
"This evolution of the apparel sector towards ephemeral fashion, combining increased volumes and low prices, is influencing consumer buying habits by creating buying impulses and a constant need for renewal, which is not without environmental, social and economic consequences," the bill said.
The bill singled out Chinese ready-to-wear company Shein, saying that it on average presents more than 7,200 new garment models a day, and makes more than 470,000 different products available to consumers.
To offset the environmental impact of ultra-fast fashion, the MPs propose penalties of up to 10 euros ($10.86) per item sold, or up to 50% of the selling price, by 2030.
Shein, in a statement to French news agency AFP, said it follows "best international practices in terms of sustainable development and social commitment".
Following discussion in a parliamentary committee, the bill will be presented to parliament in the second half of March.
French Environment Minister Christophe Bechu said in a statement on Monday that following a meeting with industry players, activists and researchers, his ministry plans several measures to reduce fashion's environmental impact.
He said France plans a ban on advertising by ultra-fast fashion companies and the introduction of a financial incentives system to make ultra fast-fashion more expensive while sustainable fashion will become cheaper.
The popularity of fast fashion e-commerce retailers like Shein and Temu has disrupted the retail sector. Shein taps a network of largely China-based suppliers, bucking traditional manufacturing trends by accepting small initial orders, then scaling up based on demand.
The ultra-flexible supply chain has allowed Shein to create a different business model than established fast-fashion players like Zara and H&M, which pioneered shorter production timelines but still largely rely on predicting shoppers' preferences.



Michael Kors Owner Capri's CFO to Join Macy's as Finance Head

People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)
People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)
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Michael Kors Owner Capri's CFO to Join Macy's as Finance Head

People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)
People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)

Capri Holdings' chief financial officer and operations head, Thomas Edwards, will leave the luxury holding company to assume similar roles at department store chain Macy's in June.

Edwards, who has been with the company since April 2017, will be succeeded by unit Michael Kors' Rajal Mehta as interim CFO, Reuters reported.

The change at Capri comes amid reports of Italian luxury group Prada moving closer to a deal for its Versace brand.

In March, Capri said Donatella Versace would step down as the main designer for Versace after almost three decades.

Edwards will replace Adrian Mitchell at Macy's. Mitchell, appointed finance head in 2020, was most recently involved in a turnaround at the Bloomingdale's parent rolled out by CEO Tony Spring.