The green revolution in the fashion sector has already begun

An analysis by Pwc shows that, at this rate, the sustainable fashion market will double within ten years.But what drives the ecological transition in the fashion industry?

The market of sustainable fashion is destined to more than double over the course of about ten years.These are the estimates from which the consultancy company starts Pwc in the'analysis carried out for Pambianco on the fashion industry.What is driving the ecological transition in the fashion sector?And what's behind you?Where is thecircular economy?These are just some of the topics covered that highlight a system in strong change.

What is changing in the fashion sector?

One of the most important data that emerges from the analysis is what shows how i consumers, especially the younger ones, are the nucleus from which the green fashion revolution originates: in 2020, 63 percent of these chose sustainable products, compared to 29 percent in 2019.Is this an effect of the pandemic?Likely.The fact is that it is a very important fact if we consider that consumers are the main engine of business growth.Equally fundamental is the change of pace undertaken by governments which influenced the transition to the sustainable market.It's school time Paris, which aspires to become the world capital of sustainable fashion by 2024, and which in February last year approved the Anti-gaspillage loi, that is, an anti-waste regulation that aims to promote a circular economy.

Four fundamental points: stop waste to preserve resources, mobilize industrialists to develop new production methods, inform citizens so they can consume better, improve waste collection.But the central point is the prohibition to destroy unsold products, which will instead have to be reused or recycled.

The contribution of banks and investors

There are also key players in this path towards sustainability banks And investors, who increasingly make factor-based risk allocation decisions Exg – environmental, social And corporate governance – capable of influencing the refinancing capacity of companies.What does it mean?That when a bank is called upon to decide whether to lend or invest money in a company, it will also evaluate how much it has integrated ESG issues into its corporate policies.Which has an impact on what is called in jargon credit rating, i.e. the ability of a company to meet the financial commitments undertaken, but also on the ability of some corporate borrowers to obtain capital and financing.

According to surveys, a growing number of funds is explicitly adopting ESG mandates, leading certain borrowers in certain sectors or with certain assets to have greater liquidity.Any examples of companies that have entered into agreements with the world of finance on green issues?Tod's is one:signed a agreement of financing with a pool of banks for a maximum total amount of 500 million.Then there is H&M, which issued a sustainability bond of 500 million euros.But they are also there Chanel, Adidas, Burberry, Vf corporation, Moncler And Prada.

The business of resale

In the last three years, one of the businesses to have recorded the greatest increase is that of resale, that is, the sale of used clothes, which has grown 21 times faster than the traditional clothing market.This is why brands will most likely have to adapt by offering the sale of used clothes alongside new items:“Brands and retailers will not only gain additional profits by fueling perceptions of quality, but will also increase customer loyalty through various incentives,” PWC explained.“Resale will double in the next five years, reaching a worth $64 billion by 2024”.

Confirming this trend are the prices of Poshmark, fashion portal second hand, but also the opening of several shops in the city of Milan itself, including, recently, Lampoo or the partnership between Gucci and The realreal, a portal specialized in the sale and purchase of second-hand luxury goods.

The materials

Then speaking of materials, during the research on the potential of the green fashion market conducted by Pwc for the Circular fashion report 2020, a value of was detected 350 billion dollars for opportunities identified for i recycled materials in the Western Hemisphere and a value of 40.38 billion dollars for the market ecological fibres in 2020.The highest demand, +69 percent, was recorded for vegan leather, but also the recycled plastic recorded a good increase with +35 percent, as did the organic cotton with a +23 percent.