We envision that as being capable of taking double-digit percentages of market share, but the question is how long it takes to get there. Its CEO, Dan Widmaier, says: “We’re looking at materials that have really big market opportunities.

“We see changes in consumer behavior as being more powerful than companies’ ability to respond.” The financial impact of a 20 percent decline in sales in the European apparel retail sector, for example, assuming no change to fixed costs, could result in a 60 percent decline in earnings before interest and tax, the bank estimates.Īssessing consumer sentiment on apparel sustainability, a UBS Evidence Lab Apparel Sustainability Awareness PulseCheck Survey in March 2020 revealed that 55 percent of respondents knew of people who had already changed their shopping behaviors as a result of sustainability-related awareness. This clearly poses financial risks for companies and investors in the sector. UBS estimates that continued educational, marketing and advocacy campaigns aimed at consumers, as well as those directed against companies themselves, combined with recognition of the potential benefits of better waste management and pollution control, could mean high-volume, low-price apparel sales declining 10 percent to 30 percent over five to 10 years. “We see changes in consumer behavior as being more powerful than companies’ ability to respond,” she says. Vicki Kalb, ESG & Sustainability Analyst at UBS Global Research, highlights widening recognition of the industry’s negative environmental and social impacts. The industry’s heavy environmental footprint is coming under increased scrutiny and a business model that has driven considerable profit for the biggest retail and fashion brands could face disruption.

This resource-led, consumer-driven paradigm is being challenged. The industry uses vast amounts of water, causes 20 percent of industrial water pollution, and emits more carbon dioxide than aviation and shipping combined. Over half of the garments produced every year are thrown away or incinerated within 12 months. Efficient global supply chains and decades-long apparel price deflation have enabled exponential growth in fast fashion, a business model built on speed to market and constant novelty-but often associated with low prices and a throwaway culture. Tackling societal threats without damaging a lucrative global industry is the key challengeįast fashion may offer consumers the opportunity to frequently refresh their wardrobe, but the challenges arising from the headlong growth of the apparel industry are increasingly attracting investor and consumer attention as concern over the wellbeing of our planet intensifies.Ĭlothing is a $2.5 trillion annual business, generating around 3 percent of the world’s gross domestic product. How Do We Slow Down the Fast Fashion Cycle?Īs consumer awareness of the garment industry’s environmental impact grows, change is coming through innovative sustainable materials.

Crush the industry lyrics