From the Sector

• Revenue Increases to HK$8,316 Million with Net Profit After Tax Surging Significantly
• Recording a Turnaround to HK$381 Million
• Re-Establishes ESPRIT’s Market Leadership

ESPRIT HOLDINGS LIMITED has announced its audited financial annual results for the year ended 31 December 2021, highlighted by a significant increase in both revenue and profit attributable to shareholders of the Company to HK$8,316 million and HK$381 million respectively, in which the profit attributable to shareholders of the Company also recorded a turnaround versus the loss attributable to shareholders of the Company of HK$414 million for the six months ended 31 December 2020. Gross profit margin was 48.6%, 7.0% higher than the Corresponding Period. Please refer to the Company’s results announcement for the Current Year for further details.

Such financial improvement was attributable to various reasons, including (i) the new infrastructure and strategies instituted by the current management team; (ii) improvement in sales with higher gross profit margin; (iii) positive results of efficient cost control measures; (iv) improved inventory management; and (v) growth in E-commerce.

Although revenue in the Current Year was affected by lockdowns in the Company’s major European markets during the first quarter of 2021, and due to increased restrictions on entry requirements into stores during the fourth quarter of 2021, the Group generated revenue via three main channels: E-commerce, wholesale, and owned retail stores. As the ESPRIT brand website and third-party E-commerce partners continued to trade during lockdown, a large portion of the Group’s sales were generated online. This business model allowed it to mitigate some of the negative impacts of the Pandemic in the retail segment. Another driver of growth came from selling fewer discounted products from the Company’s retail business compared to 2020.

The Group has not forgotten the ESPRIT mission and long-standing commitment to sustainability. The Company has continued to work tirelessly towards developing cutting-edge materials that set new standards in terms of environmental sustainability. The Company has formulated and further advanced its ESG strategies to establish ESPRIT as an industry pioneer. Such strategies involve the greater use of sustainable fibers, developing new and innovative product options that support a circular economy, and ensuring environmental awareness is a key message that underpins all of the Group’s projects. To achieve these objectives, the Management has identified four key pillars of growth (Sourcing and Procurement; Marketing and Product; IT, Internet, and E-commerce; and The ESPRIT Brand Story) that are paramount in maintaining the loyalty of existing ESPRIT patrons and attracting new customers.

Looking ahead, the global economy is anticipated to be negatively affected by the lingering effects of the coronavirus pandemic and the conflict in Ukraine. The already unstable logistics industry and disrupted supply chain will likely be further impacted, which in turn will result in higher logistic service costs. Despite the unfavorable global economic outlook, the Group believes that under the leadership of its current management and with the support of dedicated staff members, the Company is on track to ongoing profit growth.

For its 2021 Green Collection, the Italian luxury hosiery brand Sarah Borghi presents a broadened product offer in terms of colors and categories, meeting the needs of a stylish, yet sustainable consumer. By mixing fashion, quality, innovation and research, the tights and stockings powerhouse continues its development in the journey towards a conscious future.

A decisive step has been added to the brand’s history thanks to the publication of the Integrated Report by Gizeta Calze. Sarah Borghi is one of the first Italian companies in the hosiery sector to include sustainability throughout its business model. A commitment of responsibility and transparency on a path that has been carried on for years and that, today more than ever, becomes of the utmost importance, as stated by Luca Marzocchi, CEO of Gizeta Calze. The Integrated Report provides a complete view of the business strategy, operating model and governance, which combines financial information with sustainability insights, conceived as complementary to other strategies and, indeed, essential for increasing business value.

The collection presents a range of versatile, colorful products combined with extra-luxury comfort and designed for every type of woman: from seductive tights to everyday socks, together with knee- highs, up to athleisure with leggings.
 
The collection features two new generation materials. One is Amni Soul Eco®, a biodegradable in anaerobic conditions polyamide 6.6 yarn that degrades in around 5 years* after disposing of in landfill, developed by SOLVAY and produced and distributed by FULGAR. The other is ROICA™ V550 by leading fiber manufacturer Asahi Kasei, a premium sustainable stretch yarn boasting the Gold Level Material Health Certificate by Cradle-to-Cradle Product Innovation Institute** as it has been evaluated for impact on human and environmental health. Moreover, it smartly breaks down without releasing harmful substances in the environment according to Hohenstein Environment Compatibility Certification. Key elements that makes ROICA™ V550 a precious choice when it comes to Circular Economy material approach.

*Reference System: ASTM D5511 - Standard Test Method for the Determination of Anaerobic Biodegradation of Plastics Under High-solids Anaerobic Digestion Conditions
** The Cradle-to-Cradle Product Innovation Institute, a non -profit organization, administer the Cradle-to-Cradle Certified™ Product Standard. It was created to bring about a new industrial revolution that turns the making of things into a positive force of society, economy and the planet. The Cradle-to-Cradle Certified Product Standard™ provides designers and manufacturers with criteria and requirements for continually improving what products are made of and how they are made aiming to achieve a circular economy approach.

• Zufriedenheit angesichts erschwerter Bedingungen der Internationalen Fachmesse für nachhaltige Textilien

Die 49. INNATEX vom 25. bis 27. Februar 2022 ist mit einer zufriedenstellenden Bilanz zu Ende gegangen. „Es ist keine Überraschung“, sagt Jens Frey, Geschäftsführer der veranstaltenden MUVEO GmbH.
„Schon im Vorfeld meldeten Aussteller sowie Einkäuferinnen und Einkäufer, dass Ende Februar die Order weitgehend abgeschlossen ist. Hinzu kamen kurzfristige gesundheitsoder Quarantäne-bedingte Absagen. Den Umständen entsprechend waren wir mit immer noch 150 ausstellenden Labels gut besetzt und bekommen positives Feedback.“

Nach dem Ausfall diverser Messen sei man einfach froh, dass man sich im Messecenter Rhein-Main austauschen könnte, bestätigte ein Aussteller. Nach einem ruhigen Auftakt der erstmals an einem Freitag beginnenden Fachmesse berichten andere von guten Ordergesprächen im Verlauf der drei Tage dauernden INNATEX. So etwa Jan Roehler von HempAge: „Wir sind zu dem späten Termin ohne große Erwartungen gekommen und am Ende überrascht, wie viele Kunden hier waren und guter Dinge eine gute Order geschrieben haben. Trotz der aktuellen Umstände war es für uns ein sehr schönes Treffen mit Freunden und Kunden.

“Eine Gruppe von Besucherinnen beschreibt, sie erlebten einen Messetag „voller Inspiration“, auch wenn die Nachrichten aus der internationalen Politik im Messecenter Rhein-Main mitschwingen. Das Interesse an nachhaltiger Mode und die Ansprüche der Konsumentinnen und Konsumenten steigen. Heike Hess, Geschäftsstellenleiterin des Internationalen Verbands der Naturtextilwirtschaft (IVN) und Schirmherr der INNATEX, kann den Trend bestätigen: „Wir erhalten spürbar mehr Anfragen. Die kommen unter anderem von neuen Mitgliedern oder auch von bereits zertifizierten Herstellern, die einen strengeren Standard wie zum Beispiel den IVN BEST suchen. Themen wie Circular Economy oder Recycling, Klimaschutz, Fasersicherheit und Due Diligence haben deutlichen Aufwind.

Der Begriff Fasersicherheit beinhaltet die Rückverfolgung der Faser bis zur Rohstoffgewinnung. Bei der Baumwolle wird der Anbau zum Beispiel nur nach einer eingehenden Prüfung als „bio“ anerkannt. Ebenfalls immer wichtiger wird auch der Nachweis konsequenter unternehmerischer Sorgfalt entlang der gesamten Lieferkette. Wir arbeiten mit Partner:innen sowie Mitgliedern an Strategien für Rückverfolgbarkeit und Aufklärung.“ Zu den Neuheiten auf der INNATEX gehörten Schuhe aus Algen, ein Streetwear-Label, das sich gerade im Zertifizierungsprozess befindet, sowie plastikfreie Yogamatten. „Im Sommer findet die fünfzigste INNATEX statt“, sagt Frey. „Da holen wir mehr als nach, was uns in den letzten beiden Pandemiejahren verwehrt war. Darauf freuen wir uns schon.“

Nächster Messetermin: 29. – 31. Juli 2022 – 50. Ausgabe der INNATEX
 

Jamé’s concept.   
Jamé is inspired by the ancient Pay-Jamé: a piece of clothing that a woman or a man used to wear for fluid wellbeing 24/7 regardless of the activity, or the location, or duration time it is needed for. It’s a comfy refined outfit to make people feel free.

Jamè’s values.
Jamé is designed and made in Italy, digitally printed and created to deliver wellness, style, and 24/7 comfort.  
Jamé’s fabric of choice is Bemberg™, a textile that gives Jamé the highest contemporary qualities: Jamé garments are cool in summer, warm in winter, perfect all year round, fashionable, trendy and versatile. The ideal companion for everyday activities, Jamé is perfect for both indoors and outdoors, the perfect outfit for every occasion, day or night.

Environmental responsibility.
Every Jamé clothing is 100% recyclable and manufactured following a very contemporary and responsible made-to-order business model. The latest and greatest digital print technology assures us to avoid waste and over-production.
This means endless customization possibilities, creating a long lasting, high-quality product.

Styling.
Thanks to the expertise and knowledge of its founders Patrizia Marforio and Niccolò Zucchi Frua, Jamé’s vision is deeply rooted in the Italian design and textile tradition.
Jamé's historic archive - made up of more than 17.000 different textures from the 1920s to present day - seamlessly translating into the widest and deepest pattern choice in this one-of-a-kind collection.

Jamé’s fabric of choice:
Bemberg™ is the name of a technologically advanced fiber produced by Asahi Kasei. Bemberg™ is based on regenerated cellulose fiber made from the smart tech transformation of cotton linters.
As a pre-consumer material obtained from the manufacturing process of cotton seeds oil that is converted into fiber through a traceable and transparent closed loop process, Bemberg™ DNA is deeply based on a circular economy approach.
Bemberg™ is gentle on the skin, with amazing touch and exceptional moisture management properties: it quickly absorbs and releases moisture through very small waterways, keeping the wearer cool, fresh, and comfortable at any time of the year.

• The Green Revolution: How Microfactories Can Change the Face of Fashion by Mark Sollman, Product Manager EMEA, Mimaki Europe

With the all-important COP26 Climate Change Conference having taken centre stage in November, there is no time like the present for the fashion world to rally together in stepping up sustainability efforts and getting carbon emissions under control. Globally, the fashion industry is now estimated to account for around 10 percent of greenhouse gas emissions and 20 percent of wastewater , making the pursuit of greener production methods more pertinent than ever before. Thankfully, we are seeing a new era of production enter the fashion arena, with the increasing emergence of technologically advanced, highly automated microfactories.

Along with reducing unnecessary waste through on-demand production, microfactories have a smaller ecological footprint than traditional garment production and require no water use during the production process, making it not only a faster solution, but a greener one too.

Last year’s FESPA saw Mimaki team up with fashion designer Carolina Guzman to bring her designs to life in real time at the show, setting up its own working microfactory live on-site to take her designs from screen to garment within just a day. Guzman’s designs were created using Mimaki’s TS100-1600 Sublimation Printer, before being transferred to textile, digitally cut and finally pieced together. Devised with a string of ethical and environmental objectives threaded throughout, the microfactory also exclusively utilised eco-friendly Greentex fabric, and any remaining material was donated to Sheltersuit: a wind- and waterproof coat that can be transformed into a sleeping bag, which is provided free of charge to homeless people and refugees.

Through working with a number of strategic partners – including transfer printing expert, Klieverik; paper solutions specialist, Neenah Coldenhove; and digital cutting equipment provider, Summa – Mimaki was able to produce a collection of unique, high-quality garments live on the stand during the tradeshow, demonstrating to visitors from more than 100 countries some of the key reasons that microfactories seem set to change the future of fashion…

Unparalleled speed and versatility
Where traditionally, apparel manufacturing has centred on a production chain model of sourcing materials and producing garments in bulk, microfactories are now enabling on-demand, on-location production, making it possible to create everything from unique, one-off pieces and samples right through to entire product lines – all at unprecedented speeds. This means greater flexibility and customisation, enabling designers to modify or update designs and respond to market trends as they occur.

Simplified supply chains and minimised risk
The microfactory setup brings production in-house and on-demand, minimising the cost of not only storing stock, but also of shipping it and responsibly disposing of unsold items. Where recent geopolitical events have highlighted the fragility of global supply chains, microfactories offer a unique independence from these systems, empowering garment manufacturers to future-proof their businesses, become less reliant on external systems and suppliers, and reduce the risk of disruptions.

A boosted bottom line and a greener future
Facilitating savings in a whole line of resources, from physical storage and production space to time and energy, microfactories ultimately have the potential to significantly increase profitability for garment manufacturers, with the additional benefit of being easily scalable as production increases. Perhaps even more compelling, however, are the environmental considerations. Demonstrated on a small scale through Mimaki’s recent project, the environmental benefits inherent to microfactory production will have an even greater impact as it becomes more prolific and commonplace throughout the fashion world, with the potential to effect meaningful environmental change as adoption increases in the years to come.

The year 2021 is expected to end on an extremely positive note for the Swiss Group, with an organic turnover record (significantly higher than pre-pandemic levels) and an acceleration of the product range completion strategy: after the addition of Amom, in June, Riri is proud to share the closing of the acquisition and integration into the Group of DMC, a company specialized in the metal components sector for haute couture, more specifically leatherwear. This is another step towards creating a single hub dedicated to luxury accessories, whose goal is to develop a balanced portfolio including zips, buttons, metal hardware, and fashion jewels.

DMC, established in 1976 in Scarperia e San Piero a Sieve, near Florence, has a consolidated experience with major luxury brands and a strategic position, being located close to the Tuscan leatherwear district. Originally a family-run business, today it is a company which combines highly skilled Italian artisan tradition, which has a strong connection in the region, with the use of cutting-edge technologies. Its comprehensive vertical integration system allows for in-house management of all production process phases.

“The addition of DMC to the family” – explains Renato Usoni, CEO of the Riri Group – “is not just a bonus for our offer in terms of product range. It means also a fundamental milestone in the creation strategy of a fully integrated business model”. As a matter of fact, the operation is a further improvement in the Group’s designing potential, increasingly able to provide tailor-made accessories, as requested by each client, achieving very high levels of customization while keeping up massive investments in new technologies, organization systems and sustainability projects with a cross-cutting impact.

“Our Group” – Usoni adds – “is, to all intents and purposes, a leader in terms of innovation, thanks to its state-of-the-art plants, which are located in seven production factories, and thanks to its constant search on emerging technologies and materials”. More specifically, DMC’s proposal – in line with Riri’s – is increasingly focused on the use of sustainable products and on processes with a low environmental impact.

Furthermore, the new company in the Group is committed to integrating the economic development of its business with the ensuing social accountability. Evidence of this attention is shown by its having been awarded the certifications ISO 9001, due to the quality of its processes, products and services, and SA 8000, for its ethical management of human resource. Moreover, every year DMC produces a social report which, in line with what have always been distinctive values of Riri, bears witness to its intent of communicating its achievements clearly and transparently.

Istanbul Fashion Connection feiert Premiere: 300 Firmen und Marken präsentieren sich im Februar kommenden Jahres auf 30.000 qm im Istanbul Expo Center. Die Messe findet unter 2G-Regeln und Einhaltung strikter Hygienemaßnahmen statt.

Mit der Istanbul Fashion Connection lanciert die Istanbul Apparel Exporter's Association (IHKIB), Global Player unter den Exportverbänden und Interessenvertreter der türkischen Bekleidungs- und Textilindustrie, eine neue Plattform für die internationale Modebranche. Unter einem Dach wird die gesamte Palette der Bekleidungsindustrie präsentiert: Womenswear, Menswear, Kidswear, Denim. Show-in-Shows mit den Produktbereichen Lingerie und Strumpfwaren sowie Braut- und Abendmode komplettieren das Angebot.

Als halbjährliche Veranstaltung - der nächste Termin ist vom 24.-26. August 2022 - bietet Istanbul Fashion Connection einen Überblick über türkisches Design, Produktionsqualität und Serviceangebote der türkischen Modeindustrie.

Eine der größten Herausforderungen für Industrie und Handel in der Modeindustrie sind momentan nicht funktionierende Lieferketten, mit entsprechenden Konsequenzen für die Modebranche. Lieferstörungen werden zum größten Kostentreiber, wie eine aktuelle McKinsey-Studie zeigt. Nearshoring nimmt eine Schlüsselfunktion ein, Geschwindigkeit und Flexibilität in der Beschaffung sind zentrale Wettbewerbsfaktoren. Über 70% der befragten Sourcing-Verantwortlichen planen, bis 2025 ihren Einkauf aus nah gelegenen Ländern zu erhöhen. Die Türkei gehört hierbei zu einem der interessantesten Beschaffungsstandorte, sie ist zum ersten Mal in den Top 3. Das Land liegt strategisch günstig zwischen Europa und Asien und die Türkei ist Mitglied der EU-Zoll-Union.

Themen wie digitale Transformation, Smart Clothing, technische Textilien und Sustainability stehen im Fokus der Seminare und Workshops auf der Istanbul Fashion Connection. Trend Zonen und Modenschauen informieren über aktuelle Trends.

Für Besucher bietet IHKIB ein attraktives Einladungsprogramm inklusive Unterkunft und Transfer an.

• RGE has formalised two new partnerships in Singapore to advance sustainable fashion.

The first is a three-year strategic partnership with the Textile & Fashion Federation (TaFF) to advocate sustainable industry practices within Singapore and the region, through programme implementation, research, and education. The second is a five-year research collaboration with Nanyang Technological University, Singapore (NTU Singapore) on innovation in textile recycling technology.

The partnership with TaFF on its fashion sustainability programme was officially launched today. Through industry talent development and capacity building, raising corporate and consumer awareness, and innovation promotion, TaFF seeks to galvanise the fashion ecosystem towards redefining sustainable fashion.

Wilson Teo, President of TaFF, said, “Our strategic partnership with RGE marks a step forward for TaFF to expand our sustainability ecosystem throughout the fashion value chain, from materials, manufacturing, brands and technology to solutions. We have set up a Steering Committee that spans across the value chain, as a model for the industry. Together with our collaborators, we will continue to equip enterprises in the journey of sustainability. We will also work with communities to build awareness in responsible consumption and recycling.”

RGE has committed to provide nearly S$3 million funding over three years to support TaFF’s fashion sustainability programme. In addition, RGE’s Vice Chairman Bey Soo Khiang joins the programme’s Steering Committee as its Vice Chairperson.

Tey Wei Lin, President of RGE, said, “As a Singapore-based company and the world’s largest viscose producer, our business is well-positioned to support the country’s desire to advance sustainable development and to create a green economy. Our collaboration with TaFF and NTU is an investment of financial and other resources to create meaningful impact, not just within Singapore but also in the region. As part of our US$200 million investment commitment into next-generation textile fibre innovation and technology, we seek to work with innovators, industry partners, research institutions and academia to scale up solutions that will deliver cleaner and more circular cellulosic textile fibre to the masses at affordable prices.”

The launch of TaFF’s fashion sustainability programme follows the roll-out of the Enterprise Sustainability Programme (ESP) by Enterprise Singapore on 1 October 2021, which supports enterprises in their sustainability initiatives and helps them capture new opportunities in the green economy.

“Industry partnerships are pertinent to uplift capabilities of enterprises. We are very encouraged by TaFF’s efforts to drive sustainability in the textile and fashion sector as trade associations and chambers play a key role in strengthening sector-specific capabilities,” said Alan Yeo, Director of Retail & Design at Enterprise Singapore. “Collaborations with corporate partners such as RGE will also help accelerate this process. This is a good start and we hope to eventually see more companies across all sectors start to integrate sustainability alongside their growth.”

The launch event was graced by Minister of State for Trade and Industry Low Yen Ling, TaFF’s patron and Senior Minister of State for National Development and Foreign Affairs Sim Ann, CEO of Enterprise Singapore Png Cheong Boon, as well senior representatives from TaFF and RGE.

The official launch of the research collaboration with NTU is expected to take place next year. A key desired outcome from the collaboration is to complement RGE’s pilot urban-fit textile recycling plant in Singapore.

For its 2021 Green Collection, the Italian luxury hosiery brand Sarah Borghi presents a broadened product offer in terms of colors and categories, meeting the needs of a stylish, yet sustainable consumer. By mixing fashion, quality, innovation and research, the tights and stockings powerhouse continues its development in the journey towards a conscious future.

The evolution of the Green Collection, the sustainable hosiery collection first launched in 2020, confirms the efforts of the brand in promoting a new generation of attractive fashion and design which actively encourages and supports a responsible change in culture and smart products offer.

Lately, a decisive step has been added to the brand’s history thanks to the publication of the Integrated Report by Gizeta Calze, Sarah Borghi’s top-notch producer and first Italian company in the hosiery sector to include sustainability throughout its business model. A commitment of responsibility and transparency on a path that has been carried on for years and that, today more than ever, becomes of the utmost importance, as stated by Luca Marzocchi, CEO of Gizeta Calze. The Integrated Report provides a complete view of the business strategy, operating model and governance, which combines financial information with sustainability insights, conceived as complementary to other strategies and, indeed, essential for increasing business value.

The collection
The collection presents a range of versatile, colorful products combined with extra-luxury comfort and designed for every type of woman: from seductive tights to everyday socks, together with knee- highs, up to athleisure with leggings.
 
The responsible collection features two new generation materials. One is Amni Soul Eco®, the world’s first biodegradable in anaerobic conditions polyamide 6.6 yarn that degrades in around 5 years* after disposing of in landfill, developed by SOLVAY and produced and distributed by FULGAR. The other is ROICA™ V550 by leading fiber manufacturer Asahi Kasei, a premium sustainable stretch yarn boasting the Gold Level Material Health Certificate by Cradle-to-Cradle Product Innovation Institute** as it has been evaluated for impact on human and environmental health. Moreover, it smartly breaks down without releasing harmful substances in the environment according to Hohenstein Environment Compatibility Certification. Key elements that makes ROICA™ V550 a precious choice when it comes to Circular Economy material approach.

2050 is the year when adidas plans to achieve climate neutrality. It’s also the year when it’s expected that our oceans will contain more plastic than fish, that is, if we don’t act now. Adidas' solution to help end plastic waste and achieve climate neutrality? Sustainable innovation.

Last year adidas announced the Three Loop Strategy – their roadmap to help end plastic waste. At the heart of this is Circular Loop – Made To Be Remade.

The concept behind Made To Be Remade (MTBR) is simple: when one piece of plastic has fulfilled its purpose, it must be remade to fulfil another. Their attitude is that the end of one thing equates to the beginning of the next, and that their products’ lives can be extended by remaking them into new products.

Adidas' Circular Loop creation process has come a long way since they introduced FUTURECRAFT.LOOP – their first running shoe made to be remade – in 2019. From what started as a beta program of just 200 pairs has developed into a concept within the business that spans across multiple categories and in April this year saw the first commercial launch – Ultraboost Made To Be Remade.

Ultraboost Made To Be Remade will see the next generation released in November this year (2021). The shoe will be created in part from the previous generation. Featuring a torsion bar that contains 25% reused content from the Futurecraft Loop Gen 2.

W21 will see another adidas icon join the MTBR family - Stan Smith Made To Be Remade. Just like the Ultraboost model, Stan Smith MTBR has been created entirely from TPU – from laces to midsole and everything in between.

Adidas’s best-loved Outdoor products are also receiving the MTBR treatment. Alongside Stan Smith MTBR, October will welcome the TERREX Free Hiker Made To Be Remade, featuring a TPU knitted upper and TPU outsole, making it the first TERREX hiking shoe to use the technology. The shoe will be accompanied by the launch of the TERREX Made To Be Remade Anorak – their second-generation prototype following on from the FW20 FUTURECRAFT.LOOP Anorak, which will be commercially available in 2022.