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Not sure if anyone on here actually u/s the checks and balances in this country for the Fashion Trade, in particular PLC's.
Take a minute to compare Shein Corp Social Responsibility v that of Asos and BH, both of these companies (I admit BH were late to the party on this!) scrutinise Factories within an inch of there life on 3 separate Tiers, Tier 1 being Factory, Tier 2 being Wash Houses, fabric printers etc, Tier 3 being fabric suppliers etc, Fty inspections are carried out every year by independent inspection agencies, penalties for non compliance can be severe depending on the form of the non compliance, this includes being struck off and fines of £5k to £40k, in addition to the annual inspection you will also be subject to unannounced visits (note plural) by these agencies. This is just production i could take up pages and pages on here re sustainability, suffice to say that a well meaning Asos has now dropped using some recycled fabrics and flagging them because if they are not 100% accurate which is hard to do on 1000's and 1000's of sku's , eg you may have a garment that's flagged recycled but content is 25% however when customer facing GRS state in fact 50% is required, so just because your are 25% you are greenwashing, they will then be dragged over hot coals by the CMA, it's totally counter productive, better not to do anything and not shout out about anything , Asos have been at the forefront of addressing sustainability, CMA are pi##ing on their bonfire. Which brings us to Shein a Chinese Company , lol, lol, lol, not accountable to anyone but themselves on production let alone 50% min recycled that we scrutinise companies within an inch of their public relations life, i think any UK influencers on Shein need to take a good look in the mirror and if they have a shred of moral decency they should walk away, some already are.
https://inews.co.uk/news/consumer/shein-influencer-fast-fashion-brand-horrendous-workers-conditions-1921022
If you can put all above to one side, which is big if, Shein quality, deliveries and returns are beyond sh~t.
T4G, yes Allianz T did reduce Asos credit by 50%, i think what Asos CEO Jose said at time that actually the amount was reduced due to the requirement no longer being fully utilized but i'm not so sure.
I wasn't aware credit was also reducing on BH Group, at this stage just appears to be same insurer Allianz Trade .TBH it's not unusual these days, insurers only seem to like the smooth and start getting jittery when a bit of rough appears.
For the record we are still managing to get cover on both, if it changes i will let you know.
#Drapers@ZoeHu
Drapers understands the reduction will impact all Boohoo Group suppliers, but the exact amounts could vary.
The insurance firm's decision was based on falling consumer demand, macro-economic challenges and Boohoo's trading performance.
One Boohoo supplier told Drapers that his insurance cover was first reduced eight months ago, and it will now be reduced again.
In September, Boohoo Group reported a 13% fall in gross profits to £463.5m for the six months to 31 August 2022, compared to £533.3m in the previous year. The etailer said this was due to rising costs of freight and logistics, weaker than anticipated consumer demand and high cost inflation from the macro-economic environment, as well as the company's strategic investments.
Revenue dipped by 10% year on year to £882.4m for the period, and Boohoo said it expects a similar rate of revenue declines over the remainder of the financial year. It has also reduced its adjusted EBITDA margins to be between 3% and 5%, compared to the previously guided range of 4% and 7%.
Boohoo Group declined to comment.
I hear what you're saying but both of these have a extremely wide sourcing base, from Uk Turkey, Egypt, Tunisia, India, ****stan , Sri Lanka Vietnam, Cambodia , Bulgaria and more, so whilst it has had an impact its not imho as servere as you may think, one area that is a bit more tricky to source o/s China is pure outerwear , that is outdoor jackets that i quite technical, specifically Puffa Jackets, Asos missed season last year on these as they arrived very late due to container issues they arrived late Jan, they ended up in dark storage, fortunately these are a staple so were obvs on offer early thus season , already paid for i might add back in Feb.
Can someone please explain.
Rates go up to temper demand and inflation.
Taxes go up as growth not strong enough to cover uk running costs inc black hole.
Result of above is slamming both feet on the brakes with a double whammy of less demand and higher corp tax so job loses, no investment in UK Plc, also means higher benefit costs for government due to unemployed.
Both result in stunting growth , less taxes for government and higher costs.
#bemused
VA-Better still bring in a ex Next player and see the back of failed JL!
Noooooooooooooooooooooo, pretty much all Next senior equivalents to JL have lived in the Enderby bubble most of their careers, if they ever do leave before they are pushed then they invariably end up at M & S outside these two perhaps Asda they rarely survive, JL is a fighter and very streetwise, he has a ton of experience across many genres of Fashion, i'd rather have him my corner any day than someone who considers two pockets a fashion move on from one pocket!!!!
Simon Wolfson however, on the BoD, yes please.
Stores-Mmmmmm, i do think a bit of old fashioned high profile retail outlet or two wouldn't go a miss !
@Drapers #Bella Fish
https://www.drapersonline.com/news/profits-and-revenues-rise-at-allsaints
Profits and revenues rise at AllSaints
AllSaints's CEO Peter Wood says the brand can go into peak trading season with "confidence, but not arrogance" after reporting a rise in full-year revenues and profits, Drapers can reveal.
Total revenues, including four months’ trading performance at John Varvatos, were up by 20% to £337m during the period, from £261.5m the year before.
Retail (stores and ecommerce) revenues were up by 15% to £268m, against the year before. Ecommerce accounted for 38% for the year end.
https://www.retailgazette.co.uk/blog/2022/10/asos-axe-jobs/
Hope it opens
Can i just re-iterate once again, headwinds on cost re cotton and cargo have seen big falls, the market for enquiries is down on volumes, inventories have been scaled back, this started Mid July, prices in Asia and Turkey at factory gate are very soft.
Quick note on this, i think if others are charging and you are not then it is tempting especially at mo to evaluate where you can attract more shoppers. Asos are actually putting measures in place to stop wear return offenders, this particularly occurs on high price items like suits, evening wear and dresses etc, hard to get hold of orange tags are being used to kimbal or sewn in large labels with a do not remove if returning warning , this is being placed at centre of side seam in a very conspicuous place so if you do wear out you look a bit ridiculous with this hanging down at your side, serial offenders are also being notified, i do think we may see a more nuanced returns policy, i did note Jose give a wry smile in the Q and A when a journo suggested that they really should start charging.
Boohoo’s MD for ex-Arcadia brands steps down as amid consolidation.
With everything going on with Asos y.day i missed this, imho this is a bad move, Mitch is highly rated and amongst all the heady days of BH hype offered a voice of reason, not sure who will now head this up under so called consolidation.