'Fashion is toxic:' Greenpeace

Two-thirds of high street garments tested in a study by Greenpeace contained potentially harmful chemicals, the group said Tuesday, highlighting the findings with a "toxic" fashion show in Beijing.

The environmental campaign group is pushing for fashion brands to commit to "zero discharge of all hazardous chemicals" by 2020 and to require suppliers to publicise any toxic chemicals they release into the environment.

Greenpeace said its investigation tested 141 garments from 20 top global fashion brands purchased in 29 countries and regions in April of this year for chemicals that might harm the environment or human health.

The garments were made in at least 18 countries, mostly in the developing world, according to Greenpeace. Samples tested included jeans, trousers, t-shirts, dresses and underwear, it said.

The tests found that 89 of the garments contained "detectable levels" of nonylphenol ethoxylates (NPEs), which it said can break down into hormone disrupting chemicals.

"Even the apparently small, but cumulative quantities of a substance such as NPE in individual items of clothing, which are legally allowed, can still be damaging," the group said in its report.

At the fashion show in Beijing, one model sporting leopard-print trousers carried an IV bag filled with orange goo, while another in an ivory bustier wore a bulging neck brace and face mask.

Another model with black powder caked around her eyes like bruises posed grimly with her arm in a sling.

"Major fashion brands are turning us all into fashion victims by selling us clothes that contain hazardous chemicals that contribute to toxic water pollution around the world, both when they are made and washed," Li Yifang, senior toxics campaigner for Greenpeace East Asia, said in a release.

The report, titled "Toxic Threads: The Big Fashion Stitch-Up", also said that "high levels of toxic phthalates" were found in four products and "cancer-causing amines from the use of azo dyes" were found in two products.

"As global players, fashion brands have the opportunity to work on global solutions to eliminate the use of hazardous substances throughout their product lines and to drive a change in practices throughout their supply chains," the report said.

With fashion seasons coming closer together, more clothes are piling up in landfills more frequently, Greenpeace said.

"As fashion gets more and more globalised, more and more consumers worldwide are becoming fashion's victims while contributing to the industry's pollution," Greenpeace's Li said.

Fashion rip-offs OK?

A fake Louis Vuitton handbag is not OK, right? Or so the fashion industry says. But what if they put out their own "fake labels"? Well then it's hip and cool, apparently.

The latest buzz on fashion news sites is the emergence of a new label, Conflict of Interest. Nobody knows who's behind it, but apparently it's some people deep in the international fashion world for whom, if their identity were known, the production of these T-shirts would be a conflict of interest between it and their day jobs. Why? Because the tees are fakes.

They are complete and utter piss-takes of high fashion, a point-and-laugh at the world's obsession with labels. Most fashionistas would scoff at paying $300 for a T-shirt, but if it's got a designer label stamped in plain script across the front, they'll toss their credit cards at the shop lady and gag for it, comfortably shelling out over $600 for an otherwise simple piece of cotton.

And funnily enough, rather then gasp at the audacity of the brand, the fashion world see the funny side, and these Conflict of Interest T-shirts have been spotted on some of the most high-powered people in fashion. 

This isn't the first time there have been T-shirts poking fun at high fashion. New Yorker Ross Karablin designed the famous Comme des F*$K Down tees a while back and it got the cool kids wet in the pants. Opening Ceremony also had a play with the label game and produced a range of Radarte pieces, playing with fashion darlings Rodarte's brand name.

While it's all very lovely that the high fashion world are having a giggle at their own expense, are they encouraging a horde of copycats to knock off their goods? It's almost as if they're saying it's OK to produce a fake (because we've all seen the "Reebok Just Do It" and "Marc Wacobs" garments for sale in Asia).

Is this a momentary snigger or could it lead to a resurgence of black market knock-offs? I'd love  to know what you think. Funny idea or just plain stupid? Hit me with your comments stick.

Fashion students’ festive fundraiser

FASHION students have kickstarted a six-month fundraising effort as they look to excel at a prestigious event in the capital next year.

A dozen dedicated students from the fashion enterprise course at Hartlepool’s Cleveland College of Art and Design campus are today hosting their very own Christmas fair - the first of a selection of fundraisers in the coming months.

All of the money raised at today’s and future events will then be put towards producing an outstanding showcase of the students’ work for when they make the trip to London for the Graduate Fashion Week in May next year.

Booking a spot to set up a stall alone at the showcase event costs £5,000, which the college pays for, but the students have now set an audacious target of £6,000 extra as they try to wow fashion icons at the event.

And the fundraising drive to hit that target started today at the Christmas fair, which is being held at Springs, at Hartlepool Marina.

The event, running from noon-7pm, features a variety of stalls selling home-made decorations, a selection of food and much more as well as quirky craft activities for kids.

Jemma Peacock, 20, is one of the final year students who will make the trip to the capital for the event, and helped to organise today’s fundraiser.

Jemma, who lives in the town centre area of Hartlepool, said: “All of the final year students will be going to the fashion week and we want to make our showcase as impressive as possible.

“An event like that is an easy way of getting scouted so we all want to show off what we are capable of.

“The more money we raise, the easier that is going to be.”

As well as today’s fundraiser, Jemma and her course-mates are already planning a fundraising movie night and date night in the coming weeks and months as they look to close in on their target. To be honest we don’t know how much we are going to raise,” added Jemma.

“But we just want to try and organise as many events as we can to raise as much as we can.”

Zuoan Fashion Limited Announces Third Quarter 2012 Financial Results

Zuoan Fashion Limited (ZA) ("Zuoan" or the "Company"), a leading design-driven fashion casual menswear company in China, today announced its financial results for the third quarter ended September 30, 2012.

James Hong, Founder, Chairman of the Board and Chief Executive Officer, commented, "Our revenue growth was a result of increased distributor sales volumes as well as increased sales volume from our direct stores.  We came in slightly below our third quarter top line revenue forecast largely due to an inventory shipment delay to distributors of approximately RMB58.8 million, resulting in a shift in revenue recognition to the fourth quarter instead of our third quarter.  Gross margin held steady as we benefited from increased wholesale prices implemented over the past year as well as increased contribution from our self-operated direct stores and flagship stores which contributed to higher overall gross margin.  Operating expenses trended higher than anticipated due to the increased cost associated with the expansion and management of our self-operated flagship stores and direct stores.  This was further compounded by a slowdown in consumer spending in China resulting in elevated inventory at the distributor and sub-distributor store level.  We are working with our distributors and sub-distributors to reduce inventory in their store channel."

"During the course of the third quarter, we made the decision to transition our 26 self-operated flagship stores over to our distributors.  As consumer demand in China has moderated recently, we felt it was important to streamline our internal operational infrastructure to lower expenses and improve performance. The distributors we work with are highly experienced in retail store operations and the transition of our flagship stores allows us to concentrate on design-driven casual menswear fashion, our core area of strength. This move, which will be fully implemented in the fourth quarter, is expected to reduce our future consolidated gross margin but can also lower our operating expenses, lower inventory levels at the company level and improve net margin."

"We have a healthy balance sheet and a strong cash position of approximately $134 million at the end of the third quarter.  In spite of slower market conditions, recent economic data from China indicates the domestic economy is improving which can lead to a pick-up in consumer spending environment in the coming quarters.  We continue to execute on our initiatives to raise the visibility of Zuoan and broaden our presence in China.  We remain optimistic about the long-term growth opportunities in our business and are confident our revenue and profit can continue to grow with the expected recovery of the domestic economy along with our efforts to enhance our distribution network, maximize operational efficiencies and increase our brand recognition." concluded Mr. Hong.

Third Quarter 2012 Financial Performance
Revenue for the third quarter was RMB476.3 million ($75.8 million), a 12.1% increase from RMB424.8 million ($67.6 million) in the same period last year.  The increase in revenue was driven by both distributor and direct store sales volume.  Third quarter distributor sales increased 11.3% to RMB450.2 million compared to RMB404.4 million in the third quarter of 2011. Third quarter 2012 self-operated direct store and flagship store sales were RMB26.1 million compared to RMB20.4 million in the prior year period. A total of 49 distributor and sub-distributor stores and 2 direct stores were opened in the third quarter of 2012, offset by the closing of 93 unproductive, older distributor and sub-distributor stores, resulting in a total of 1,289 store locations at the end of September 30, 2012 compared to 1,331 store locations at the end of June 2012.

Cost of sales increased 6.8% to RMB252.7 million ($40.2 million) in the third quarter of 2012 from RMB236.6 million ($37.7 million) in the same quarter of 2011, primarily as a result of the increase in sales volume. As a percentage of revenues, cost of sales decreased to 53.1% in the third quarter of 2012 from 55.7% in the third quarter of 2011.

Gross profit in the third quarter increased 18.8% year over year to RMB223.6 million ($35.6 million) from RMB188.1 million ($29.9 million) in the same period of 2011.  Third quarter 2012 gross profit margin was 46.9% compared to 44.3% in the same period last year.  Third quarter 2012 gross margin increased primarily due to greater sales from the Company's higher margin self-operated direct stores and flagship stores. Gross margin at the Company's self-operated direct stores and flagship stores was 65.4% and 73.0%, respectively.   Combined gross margin at Company self-operated locations was 72.1%.

Selling and distribution expenses in the third quarter were RMB84.1 million ($13.4 million), or 17.7% of revenue, compared to RMB46.6 million ($7.4 million), or 11.0% of revenue in the same period last year.  This percentage increase was primarily due to the increase in store expansion related rental charges and direct store expenses, advertising and promotion expenses, and costs of renovation and fittings of distributors' new and existing stores.

Administrative expenses in the third quarter were RMB14.0 million ($2.2 million), or 2.9% of revenue, compared to RMB15.6 million ($2.5 million), 3.7% of revenue in the same period last year. This percentage decrease was primarily a result of the decrease in equity-settled employee benefit costs.

The effective tax rate in the third quarter decreased to 25.6% compared to 26.6% in the prior year period.
Net income for the third quarter increased 0.7% to RMB92.8 million ($14.8 million) from RMB92.2 million ($14.7 million) in the same period last year.  Third quarter net income as a percentage of revenue was 19.5% compared to 21.7% in the prior year period.

Diluted earnings per ordinary share was RMB0.83 ($0.13) in the third quarter of 2012, equivalent to RMB3.34 ($0.53) per ADS, compared to diluted earnings per ordinary share RMB0.83 ($0.13) in the third  quarter of 2011, equivalent to RMB3.31 ($0.53) per ADS. The Company's diluted number of shares outstanding was 111.3 million in the third quarter ended September 30, 2012.

As of September 30, 2012, the Company had cash, cash equivalents of RMB841.6 million ($133.9 million), compared to RMB690.5 million ($109.9 million) as of December 31, 2011.  Net cash used in operating activities was RMB172.9 million ($27.5 million) in the three months ended September 30, 2012, compared to RMB4.3 million ($0.7 million) generated by operating activities in the three months ended September 30, 2011.

Zuoan Fashion Limited Announces Third Quarter 2012 Financial Results

Zuoan Fashion Limited (ZA) ("Zuoan" or the "Company"), a leading design-driven fashion casual menswear company in China, today announced its financial results for the third quarter ended September 30, 2012.
James Hong, Founder, Chairman of the Board and Chief Executive Officer, commented, "Our revenue growth was a result of increased distributor sales volumes as well as increased sales volume from our direct stores.  We came in slightly below our third quarter top line revenue forecast largely due to an inventory shipment delay to distributors of approximately RMB58.8 million, resulting in a shift in revenue recognition to the fourth quarter instead of our third quarter.  Gross margin held steady as we benefited from increased wholesale prices implemented over the past year as well as increased contribution from our self-operated direct stores and flagship stores which contributed to higher overall gross margin.  Operating expenses trended higher than anticipated due to the increased cost associated with the expansion and management of our self-operated flagship stores and direct stores.  This was further compounded by a slowdown in consumer spending in China resulting in elevated inventory at the distributor and sub-distributor store level.  We are working with our distributors and sub-distributors to reduce inventory in their store channel."

"During the course of the third quarter, we made the decision to transition our 26 self-operated flagship stores over to our distributors.  As consumer demand in China has moderated recently, we felt it was important to streamline our internal operational infrastructure to lower expenses and improve performance. The distributors we work with are highly experienced in retail store operations and the transition of our flagship stores allows us to concentrate on design-driven casual menswear fashion, our core area of strength. This move, which will be fully implemented in the fourth quarter, is expected to reduce our future consolidated gross margin but can also lower our operating expenses, lower inventory levels at the company level and improve net margin."

"We have a healthy balance sheet and a strong cash position of approximately $134 million at the end of the third quarter.  In spite of slower market conditions, recent economic data from China indicates the domestic economy is improving which can lead to a pick-up in consumer spending environment in the coming quarters.  We continue to execute on our initiatives to raise the visibility of Zuoan and broaden our presence in China.  We remain optimistic about the long-term growth opportunities in our business and are confident our revenue and profit can continue to grow with the expected recovery of the domestic economy along with our efforts to enhance our distribution network, maximize operational efficiencies and increase our brand recognition." concluded Mr. Hong.

Third Quarter 2012 Financial Performance
Revenue for the third quarter was RMB476.3 million ($75.8 million), a 12.1% increase from RMB424.8 million ($67.6 million) in the same period last year.  The increase in revenue was driven by both distributor and direct store sales volume.  Third quarter distributor sales increased 11.3% to RMB450.2 million compared to RMB404.4 million in the third quarter of 2011. Third quarter 2012 self-operated direct store and flagship store sales were RMB26.1 million compared to RMB20.4 million in the prior year period. A total of 49 distributor and sub-distributor stores and 2 direct stores were opened in the third quarter of 2012, offset by the closing of 93 unproductive, older distributor and sub-distributor stores, resulting in a total of 1,289 store locations at the end of September 30, 2012 compared to 1,331 store locations at the end of June 2012.

Cost of sales increased 6.8% to RMB252.7 million ($40.2 million) in the third quarter of 2012 from RMB236.6 million ($37.7 million) in the same quarter of 2011, primarily as a result of the increase in sales volume. As a percentage of revenues, cost of sales decreased to 53.1% in the third quarter of 2012 from 55.7% in the third quarter of 2011.

Gross profit in the third quarter increased 18.8% year over year to RMB223.6 million ($35.6 million) from RMB188.1 million ($29.9 million) in the same period of 2011.  Third quarter 2012 gross profit margin was 46.9% compared to 44.3% in the same period last year.  Third quarter 2012 gross margin increased primarily due to greater sales from the Company's higher margin self-operated direct stores and flagship stores. Gross margin at the Company's self-operated direct stores and flagship stores was 65.4% and 73.0%, respectively.   Combined gross margin at Company self-operated locations was 72.1%.

Selling and distribution expenses in the third quarter were RMB84.1 million ($13.4 million), or 17.7% of revenue, compared to RMB46.6 million ($7.4 million), or 11.0% of revenue in the same period last year.  This percentage increase was primarily due to the increase in store expansion related rental charges and direct store expenses, advertising and promotion expenses, and costs of renovation and fittings of distributors' new and existing stores.

Administrative expenses in the third quarter were RMB14.0 million ($2.2 million), or 2.9% of revenue, compared to RMB15.6 million ($2.5 million), 3.7% of revenue in the same period last year. This percentage decrease was primarily a result of the decrease in equity-settled employee benefit costs.

The effective tax rate in the third quarter decreased to 25.6% compared to 26.6% in the prior year period.
Net income for the third quarter increased 0.7% to RMB92.8 million ($14.8 million) from RMB92.2 million ($14.7 million) in the same period last year.  Third quarter net income as a percentage of revenue was 19.5% compared to 21.7% in the prior year period.

Diluted earnings per ordinary share was RMB0.83 ($0.13) in the third quarter of 2012, equivalent to RMB3.34 ($0.53) per ADS, compared to diluted earnings per ordinary share RMB0.83 ($0.13) in the third  quarter of 2011, equivalent to RMB3.31 ($0.53) per ADS. The Company's diluted number of shares outstanding was 111.3 million in the third quarter ended September 30, 2012.

As of September 30, 2012, the Company had cash, cash equivalents of RMB841.6 million ($133.9 million), compared to RMB690.5 million ($109.9 million) as of December 31, 2011.  Net cash used in operating activities was RMB172.9 million ($27.5 million) in the three months ended September 30, 2012, compared to RMB4.3 million ($0.7 million) generated by operating activities in the three months ended September 30, 2011.

'Fashion Star' Secures Asian Remake Deals

Fashion Star, the U.S. reality show featuring Jessica Simpson, Nicole Richie and John Varvatos as mentors of young designers seeking to launch a clothing line in a high-end New York retailer, is to be remade in South Korea, Vietnam and India.

Chinese Censors Suspend Broadcaster After Foul-Mouthed Rant on Reality Show

Part of Electus International’s slate at the Asia Television Forum, which begins this week in Singapore, Fashion Star has been snapped up for local series commitments by SBS E! in South Korea, VTV3 in Vietbam and Endemol in India. The original show has already been signed up to be shown in 20 countries in Asia through DIVA Universal.

“Asia is an incredibly important market for Electus International, so I’m thrilled to announce that we're kicking off our push into local productions through series commitments of Fashion Star in Korea and Vietnam,” said Electus International president John Pollak in a press release. “Fashion Star is a unique and compelling format that resonates universally as it fuses entertainment with commerce to build the next big fashion brand.”

The show revolves around a competition in which as-yet unknown designers were put through a variety of tests, while buyers from Macy’s, H&M and Saks Fifth Avenue judge the contestant’s work by bidding to purchase their work. Winning designs were made available online and in retail stores in the U.S. the night after each episode. The top prize, meanwhile, will be the opportunity to place an exclusive capsule line in each of the three stores.

Filming of the second season -- which will air on NBC next year -- was temporarily put to a halt in October because of an IATSE-backed picket, brought about by demands from the non-union show's crew for union pension and health benefits. The problem was resolved when the producers agreed to the demands.

Womens Fashion Retailer Javelin Scoops Prestigious Award at the Drapers Fashion Awards 2012

Womens Fashion Retailer Javelin of Bury St Edmunds has been announced winner for the Independent Womenswear Retailer of the Year at the Drapers Fashion Awards 2012. With tough competition, Javelin a specialist in designer and indie clothing brands for men and women proved to be ahead of its game.

Womens Fashion Retailer Javelin of Bury St Edmunds has been announced winner for the Independent Womenswear Retailer of the Year at the Drapers Fashion Awards 2012. With tough competition, Javelin a specialist in designer and indie clothing brands for men and women proved to be ahead of its game.

Voted for by the fashion heavyweights including Rob Templeman, British Retail Consortium, Marcus Leroux, Retail Correspondent for The Times and Eilidh MacAskill, Editor of InStyle to name a few, this year saw a 30% increase in entries.

Other winners included Primark, who won the Larger Multiple Retailer of the Year, River Island who won the Retailer of the Year – Consumer Award and celebrity favourite The Cambridge Satchel Company won Smaller Etailer of the Year.

Javelin had the following to say about winning their award: "This feels amazing. We work so so hard, every day, as a team and it's tough times for everyone. We're a small independent shop…in Suffolk…and we are here tonight at this big national awards having dinner at Grosvenor House, it feels incredible. The atmosphere is absolutely electric tonight. Thank you so much Drapers Fashion Awards."

It was a winning night for ASOS who has seen stellar growth over the last year securing two awards; Larger Etailer of the Year and Retailer of the Year.

Caroline Nodder, editor-in-chief of Drapers, comments: “We are delighted that Javelin is this years winner for the Womenswear Retailers of the Year. The judges felt top-level customer service combined with strong business acumen and a well-considered brand mix all contribute to the winner’s success”.

Drapers is the market leading fashion trade magazine and a key resource for the UK fashion industry. The Drapers Fashion Awards recognise and celebrate the very best in the fashion industry, having been selected across a range of categories by a panel of experts.

Located in a beautiful rambling 16th Century building in the heart of the historic market town of Bury St Edmunds, Javelin's flagship store is an eclectic boutique store consisting of over 3500 sq ft and offering a cultivated and unique selection of brands, across womenswear, menswear, footwear, accessories, jewellery and gifts.

Our diverse mix of brands, from iconic designers such as Vivienne Westwood, Diesel, Barbour, Scotch and Soda and Hugo Boss, to high street names such as Vero Moda and Superdry, has earnt Javelin its reputation as the ultimate shopping destination for any fashionista.

Originally a sports retailer, opening in 1997, Javelin has evolved and developed with fashion trends, new brands and customer needs. We are consistently updating the products on offer as Javelin strives to offer its fashion forward customers new and exciting, high quality fashion and lifestyle. The Javelin brand continues to grow, now occupying three stores; the flagship Bury St Edmunds store, the Sudbury sister store, and Javelin Outlet.