2021年全球財富和高端生活報告（英）-Julius Bar-2021正式版

GLOBAL

WEALTH

AND

LIFESTYLE

REPORT

2021

FOREWORD1

RajeshManwani

PearlynWong

HeadMarkets&Wealth

HeadInvestmentPromotion&

ManagementSolutions

SolutionsAsia

AsiaPacific

“Whatonegenerationseesasaluxury,thenextseesasanecessity,”saidAnthonyCrosland,aBritishpoliticianandeconomist.Theevidencewasallaroundus.Mobiledevices,televisions,andcomputersbecamemodernnecessities.Livingstandardsanddietsevolvedassocietiesgrewwealthier.Theburgeoningglobalmiddleclassaspiredformoreandthedemandforluxurygoodsbecameinsatiable.

Thenthepandemicstruck.Globalconsumptionslumpedandtheluxurymarketfacedarecordrecession,severelyaffectingentireeconomies.Deemed‘non-essential’,high-endretailstoresinmanycitieshadtoremainclosed.Afteryearsofconsternationabout‘overtourism’,travelhotspotssuchasVenice,Bangkok,andBarcelonafoundthemselvessuddenlydeserted.Theglobaltravellerhadtostayhome.

Didthepandemicfundamentallyrewiretheglobalcon-sumer’smindset?Ordiditacceleratetrendsthatwerealreadysetinmotion?

Afteradecadeofpublishingwealthreportsandstudyingconsumertrends,wehavethefollowinginsightstoshare.

Weknowfromexperiencethatluxurydemand(asmeas-uredbyourLifestyleIndex)waxesandwaneswiththe

fortunesoftheworldeconomy.Justasit-rebounded-aftertheglobalfinancialcrisis,weexpectdiscretionaryspendingtorecoverwhenCovid-19abates.

Secondly,experientialluxuryisheretostay.Duringthepandemic-inducedcollapseinexperientialspending,con-sumerstemporarilyrevertedtobuyinggoodsoverservices.Yetevenasbordersclosed,travellersturnedtolocaldestin-ationstosatisfytheirwanderlust,fuellingadomestictour-ismboom.WhenMirazurinFrance,whichwasrankedNo.?1intheWorld’s50BestRestaurantslistin2019,reopenedinJune2020afteranationwidelockdown,therestaurantwasalreadyfullybookeduntilNovember.Thisistestamenttotheoverwhelmingdemandforpremiumservicesovergoods,atrendweidentifiedanumberofyearsago.

Lastly,theconsciousconsumptionmovement,whichweexaminedinlastyear’sreport,isjusttakingoff.Covid-19hasraisedconsumercommitmentto,andaware-nessof,buyingethicallyandsustainably,withmanyofthesechangesinbehaviourlikelytoendurelongafterthepandemic.

Wehopeyouenjoyreadingthe2021editionoftheGlobal-WealthandLifestyleReport.

CONTENTS

3

HOWISMYLIFESTYLECHANGING?

19 Towardsamoresustainablesociety

22 Flightplans:aviationafterthepandemic

Isgreenthenewblack?Rebuildingfashionsustainably

Foodandthefuture:changingthewaywefarmandeat

Consciouscorporations

HOWISMYREGIONCHANGING?

TheJuliusBaerLifestyleIndex:keyfindings

TheJuliusBaerLifestyleIndex:cityrankings

TheJuliusBaerLifestyleIndex:newitems

TheJuliusBaerLifestyleIndex:regionalinsights

Cityportraits:acloserlookat12citiesfromourIndex

HOWISMYWEALTHCHANGING?

Themirageofmoney:inflationatwork

Acloserlook:Asia

Lastinglegacies:thechallengeofwealthpreservation

Conclusion

THEINDEX

Methodology

Globalrankings:relativerankingbycostpercity

AsiaPacificsummaryandcitybreakdowns

Europe,MiddleEast,&Africasummaryandcitybreakdowns

Americassummaryandcitybreakdowns

Disclaimer

Masthead

HOWISMYLIFESTYLECHANGING?

TOWARDSAMORESUSTAINABLESOCIETY

19

TOWARDSAMORESUSTAINABLESOCIETY

Withthecoronaviruspandemicforcingusalltore-evaluateourday-to-daylivesandpriorities,theeraofconsciousconsumptionhaswellandtrulybegun.

CarstenMenkeCFA

HeadofNextGeneration

Research

HOWTHECORONACRISISIMPACTEDCONSUMPTION

Inthepastyear,ourviewoftheworldhaschanged.Thecoronacrisisturnedourlivesupsidedownascountryaftercountrymovedintolockdown.Whatwasnormalbeforewasnotnormalanymore,especiallyforthosewhocaughtthevirus.Thinkofmeetingfamilyandfriends,thinkofastrollinthecity,orthinkoftravelling.Aswebecame

lockeddown,wewereforcedtoslowdown.Wehadtothinkaboutwhatisimportantinlife–healthandwellbeingonalllevels,familyandfriends.Wewereconfrontedwithmanyquestionswedidnotconsiderwhenwewerecaughtupinourdailyroutines.Wealsorealisedthat,inadditiontobeingplacestolive,ourhomeshadtoaccommodateallaspectsofourlives,fromworkandeducationtoentertain-ingourselvesandmaintainingphysicalandmentalfitness.

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Zoomingoutfromthepersonalperspective,thebiggestchallengeofthecrisishasbeentobalancehealthrisksandwealthrisks.Focusingontheformerwhilenotlosingsightofthelatterrequiredmassivesupportandstimuluspack-agesputtogetherbypoliticiansandpolicymakersallovertheworld.Thankstothesepackages,consumptioninmostcountrieshasrecoveredveryswiftly.Accordingtolocalstatisticaloffices,forsevenoutoftenoftheworld’slargestdevelopedanddevelopingcountries,consumptionlevelswerehigherbeforethemostrecentlockdownsthantheyhadbeenayearbefore.Whilethisshowsthestrengthofworldwideconsumersociety,itdoesnotmeanconsump-tion-as-usualanymore.Diggingdeeperintothedata,thereisalotofevidencethatconsumptionpatternsandpreferencesarechangingfasterthaneverbefore.Theworld’sconsumersaredefinitelybecomingmorecon-scious.Thisisnotanewtrend,but,aswehaveseenwithtrendsinotherareasofourlives,ithasclearlyacceleratedduringthecoronacrisis.

WHATISCONSCIOUSCONSUMPTION?

Whetherornotweconsiderourselvesconsciousconsum-erscanbeverysubjective.Forsome,itmayactuallymeancuttingbackonconsumption.Forothers,itmaysimplymeanbeingmuchmoreawareoftheconsequencestheirconsumptionhas.Inanycase,thefocusisonthesocietalandenvironmentalfootprintofourlifestyles.Thequestionisnotsomuchaboutwhatwewantorwhatweneed,butwhetherwecanafforditfromasocietalandenvironmen-talpointofview.Consciousconsumptiontouchesalmostallareasofeverydaylife:ourfoodandourfashion,thewaywecommute,andthewaywetravel.Thequestioniswhatimpactwemake.

HOWWEEATISHOWWELIVE

Wecaremuchmoreaboutfoodtodaythanwedidinthepast,anditsprominenceinourliveshasundoubtedlyrisen.Thinkofthevarietyofrestaurantsinourcities,thefoodbloggersonline,andwhatweknowaboutitemsoffood.Weareawareoftheadversehumanhealtheffectsofprocessedfood,andwecareaboutanimalwelfare,evenifwearenotvegetarianorvegan.Weareconcernedabouttheenvironmentalfootprintofourfood,rangingfromexcessivewaterusageinfruitandvegetableproductiontothegreenhousegasemissionsofthelivestockindustry.

Foodisalotabouthabits.Changingoureatinghabitsisaquestionofbothourwillingnessandourabilitytodoso.

Willingnessrelatestoindividualandsocialvalues.DoIwanttoeatdifferently?DoIwanttosupportmylocalfarmer?Doessocietyrecognisethebenefitsoflocallyandorganicallyproducedfood?Doesitrealisetheissuesrelatedtoeatingtoomuchmeat?Doesitcareabouttheenvironmentandtheanimals?Abilityrelatestoprosperity.DoIhavethefinancialflexibilitytospendmoremoneyonthemoreexpensive,locallyandorganicallyproducedfood?

Theshareoforganicfoodsalesinacountryprovidesagoodgaugeofhowconscioustheconsumersareaboutwhattheyeat.Organicfoodcoversboththewillingnessaspect,astheseconsumerscareabouthowtheirfoodisproduced,aswellastheabilityaspect,astheyarepayingmorethanfornon-organicfood.Unsurprisingly,theshareoforganicfoodisthehighestinprosperousdevelopedcountries,reachingupto10percentinsome.GrowthinorganicfoodsalesinGermany,Switzerland,andtheUnitedStateshasoutpacedgrowthoftotalfoodsalesbyafactorof10sincethebeginningofthecentury.Thecrisisprovidedanotherbigboosttothistrend,accordingtolocalorganicassociations.

However,organicfoodisnotjustademand-drivenstory.Statisticsshowthatpricesoforganicmilkandmeatarenotjusthigherbutalsolessvolatile,therebyprovidingahigherandmorestableincomefortheproducers.Organicfoodisthusawin-winstoryforproducersandconsumers,leavingalotofroomforgrowth.

FROMFASTFASHIONTOSLOWFASHION

Theworldoffashiontendstobefastandflashy.Ourinsa-tiabledemandfortheneweststyleshasledtotheriseoffastfashion,apracticethatseesproducerschurningoutahighnumberofcollectionseveryyearfromcheaperma-terialsandcheaperlabour.Thisinevitablyhassignificantadverseimplicationsforqualityandtendstoresultinclothesthatlookfaded,shapeless,orshabbyafterafewwashes.Theflipsideofthishighchurn-outisexcessivewaste.Studiesshowthatweuseonly20to30percentoftheclothesinourwardrobes,eachofwhichiswornamereseventimesonaveragebeforeitisignoredordisposedof.

Fastfashioncomeswithaneverincreasingenvironmentalfootprint.Ahugeamountofwaterisneededfortheman-ufacturingofthenearly80billiongarmentsproducedannually.Nearly15,000litresofwaterarerequiredtopro-duceonekilogramofcotton,whichisroughlyequivalent

TOWARDSAMORESUSTAINABLESOCIETY

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totheweightofashirtandapairofjeans.Inaddition,garmentproductionisalsoresponsibleforwaterpollutionduetotheamountoftoxicchemicalsbeingdischargedintodrains,rivers,andlakes.Nexttoitsenvironmentalimpact,theindustryisoftenassociatedwithpoorworkingconditions.Garmentworkersindevelopingcountrieshittheheadlinesbecauseofverylowwagesandsafetyissues.Thatsaid,theriseofthegarmentindustrieshasliftedmanyofthemoutofpoverty.

Inaworldoffastfashion,wearespoiledforchoice.Never-theless,someformofchangehasbeenslowlygatheringpacewithinthefashionindustry,supportedbygrowingconsumerawarenessoftheindustry’snegativeimpactonouranimals,people,andplanet.Labelled‘slowfashion’,thismovementseekstoencouragefewerpurchasesofgarmentsandfootwear,madeofhigher-quality,sustaina-bleandlocallysourcedmaterials.

Suchanapproachinevitablyslowsdowntheoverallpaceofshoppingbutenhancestheconsumers’connectionwithfashionintoonewhereethicsandsustainabilitymatterasmuchasseasonsandstyles.Whiletheforcedslowdownoftheindustryduringthecoronacrisismayhavespeduptheslowfashiontrend,thetransitionoftheindustryisstillinitsinfancy.

NEWWAYSOFGETTINGAROUND

Therearenotmanythingsasimportantasmobility.Itconnectshomeandwork,whilealsobringingourglobaleconomy’ssupplychainstolife.Ourmobilityneedsverymuchdependonourlivingconditions,inparticularifweliveinacityorinthecountryside.Inacitywecanrelyonpublictransportation,whileinthecountrysideweoftenhavenootheroptionthanusingourcars.Theflipsideisthenegativesideeffectsofmobility,suchastheemissionsandpollutionfromcars,trucks,andplanes.

Theemergenceoftheplug-incaroffersacalmerandcleaneralternativetoconventionalcars.Theirelectricmotorismuchmoreefficientthanthecombustionengineandtheirsmallercarbonfootprintisgettingevensmallerifcleanenergyisusedforcharging.Environmentalandsoci-etalconcernsrelatedtothemanufacturingoftheirbatter-iesarehittingtheheadlinesbutneedtobeputintoper-spective.Inparticular,theyneedtobebalancedwithcomparableissuesinoil-producingcountries.Thecoronacrisisfast-forwardedtheshifttowardsplug-incarsthanks

tostatestimulusmeasures,includingdedicatedsupportforcleanermobility.Addinthegrowingnumberofmoreaffordable,long-range,andcleanelectriccarsoverthenextfewyears,andthisdecadewillseetheeraofelectricmobil-itytrulytakeoff.

Thecoronacrisishasalsoalteredhowpeoplearegettingaroundincities.Crowdedpublictransportationhascomeunderscrutinybecauseofpotentiallyhigherinfectionrisks,promptingsometoprefertheircarswhileothersdis-coveredcycling.Someoftheworld’scitieswitnessedabikeboomlastsummer,ascommuterswereembracingcyclingasacleanerandhealthierwayofgettingaround.Howaboutafterthecrisis?Theshareofcyclistsislikelytostayhigher,eventhoughsomewillswitchbacktopublictransportation–aswillsomeofthedrivers.

Higherup,wehadfewerplanesintheskiesduringthecrisisandthisshouldremainthecase,atleastasfarasbusinesstravelisconcerned.Forprivatetravel,thedesiretoseetheworldandexplorenewplacesmaybetoostrongafactortokeeppeoplegrounded.

HOWTOBEAMORECONSCIOUSCONSUMER?Becomingaconsciousconsumerrequiresanawarenessoftheimpactourconsumptionhasontheenvironmentandsociety.Thisawarenesscanbeusedtosingleoutspecificstepstochoosemorecarefully.Forfood,itwouldmeanreducingtheconsumptionofbeefanddairybecauseoftheirgreenhousegasemissions.Forfashion,itwouldbeallaboutbuyinglessandchoosinghighqualityoverlowqual-itygarments.Andformobility,itwouldbeaboutreducingyourradiusandcurbingyouremissionsbyswitchingtogreeneroptionssuchaselectriccars,bicycles,orpublictransportation.Doesthissoundlikeanasceticlifestyle?Itshouldnot,asconsumptionwillremainarewardandthisreward,forsocietyasawhole,mayultimatelybebiggerifweallconsumemoreconsciously.

Food:GrowthinorganicfoodsalesinGermany,Switzerland,andtheUnitedStateshasoutpacedgrowthoftotalfoodsalesbyafactorof10sincethebeginningofthecentury.

Fashion:Weuseonly20to30percentoftheclothesinourwardrobes,eachofwhichismerelywornseventimesonaveragebeforeitisignoredordisposedof.

Mobility:Theenergyefficiencyofaninternalcombustionengineislessthan25percent,suggestingthat75percentoftheenergyislost.Electricdrivetrainshaveanenergyefficiencygreaterthan80percent.

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FLIGHTPLANS

Thepandemicchangedairtravelforgood:nowtheindustrymustputsustainabilityattheheartofanyplanstorecover.

ByPaulCharles,CEOoftravelconsultancyThePCAgency

andformerDirectorofVirginAtlanticandEurostar

Oneofthebiggestoutliersinthe2021JuliusBaerLifestyleIndexcameintheformoftheflightdata.Covid-19ledtothehighestnumberofpassengerplanesevergroundedorinstorageatanyonetime.Morethan75percentoftheglobalfleetwasfirmlyonthegroundinMay2020–astaggeringstatisticforasectorthatonlyhasachanceofmakingmoneywhenplanesareinthesky.

Pricesforbusiness-classflightsintheIndexvariedwildlywhencomparedwith2019,from+148percentinMoscowto-31percentinMonaco,withtheoverallaveragepriceincreaseof11.4percentrepresentingthelargestaverageriseintheIndexthisyear.Thiscanbepartlyexplainedbythefactthatairlines,inanattempttogeneratesomerevenue,havebeentornbetweenratchetingupairfares,especiallyinbusinessclass,anddumpingseatscheaplyandenmassetotrytopump-primeanyformofrecovery.Combinedwithgovernmentrestrictionsontravelthathavepreventedconfidencereturning,circumstanceshaveleftpricesvolatile.

Fromtheperspectiveoftheindustry,neitherdrivingdemandthroughseatsalesnorincreasingticketpriceshasworkedparticularlywell,andairlineshavebeenleftwithretiredfleetsof747s,balance-sheetwrite-offs,tensofthousandsofjoblosses,andairportterminalsmothballed.What’smore,consumerattitudesarechanging:aYouGovglobalsurveyinNovember2020foundthatinItaly,theUK,andGermany,nearlyathirdofpeoplesaidtheywouldflylessafterthepandemic.

Thedeclineinairtrafficvolumescausedbythepandemicresultedinadropincarbonemissionsfor2020.Environ-mentalistsandairlineshavefinallyagreedononething–2020hasdemonstratedhowlowcarbonemissionscango,albeitforcedbyacrisis.Whileairlinesstarttorebuildtheircapacityasvaccinerolloutsrebuildtravellerconfidence,theyknowthatenvironmentalpressure“willcomebackswinging”,asTopiManner,CEOofFinnair,putsit.

Therecoveryoftheindustryisdependentonitreturninginamoresustainableandresponsibleway,asanincreas-ingnumberofconsumerswanttoseeairlines’emissionsoutputimprovebeforechoosingtoflyagain.Airlineshavethereforeturnedtheirattentiontohowtheycanbemoresustainablepost-pandemicandaddresscoststructuresdesignedformassflyingatanycosttotheenvironment.Theanswerslieinreducingaircraftweight,buyingnewaircraft(whichneedsastrongbalancesheet–noteasytofindinthecurrentclimate),andfindingtheelixirofsus-tainableaviationfuel(SAF).Aroundtheworld,trialsareunderwayorabouttobeginthatarebringingthevisionofsustainableandresponsibleaviationtolife.

CUTTINGEMISSIONS

Finnair’saimistoreducenetcarbonemissionsby50percentbytheendof2025andbecarbon-neutralby2045.Amiditssustainablearmoury,theairlinealsointendstohavecarbon-neutralnon-flightoperations(suchasgroundvehicles)bytheendof2022.Itsambitionishelpedbytheplantopurchasenew,morefuel-efficientplanes,which

FLIGHTPLANS

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hastobepartofanyairline’sstrategytohelptheenviron-ment,iftheirbalancesheetsallow.

InthenorthofFinland,theyareworkingwithSwedenontriallingbattery-powered,electric19-seaterplanesthataimtoserveregionalairportsacrosstheGulfofBothniaby2025.Zero-emissionplanesarerealistic,asiszero-emissionfuel.SwissfirmSynhelion,forexample,istriallingalternatives,usingconcentratedsolarenergytoturnCO2andwaterintosyntheticorsolarfuel.Thisreducesnetcarbonemissionsbyupto100percent.

“Environmentalistsand

airlineshavefinallyagreedononething–2020hasdemonstratedhowlowcarbonemissionscango.”

BritishAirways,alsoreelingfromthedownturnintravelin2020,hassetitssightsonhydrogen,recentlysigningadealwithZeroAvia,whichlaunchedtheworld’sfirstfull-scalehydrogenplanein2020.Itexpectstoboosttherangeandsizeofaircraftwitha20-seathydrogenplanetravellingupto500milesby2023,and1,000milesby2030.

SIZEMATTERS

Smalleraircraftarelikelytodominateourskiesasairlinesbuildbackbetter.Premiumtravellerspost-Covid19areseekingmorespaceandprivacyastheyprefertoremainintightbubblestoavoidpossiblefutureinfection.AirlinesareorderingsmalleraircrafttocrosstheAtlantic,forexample,withJetBlue,thefirstUSairlinetoachievecarbonneutral-ityforalldomesticjourneys,flyingtheA321LRonitsnewservicesbetweenLondonandBostonlaterthisyear.

Privatejetfirms,whichtendtofacemorecriticismfromenvironmentalistsbuthavenonethelessbecomeincreas-inglypopularduringthepandemic,arealsoworkinghardtoreducetheiroverallimpact.Some,likePrivateFly,arealreadyflyingthesmallestaircraft,andarechoosingtogo‘emission-neutral’,lookingbeyondcarbonoffsettingalone

andoffsettingotheraviationemissionsincludingwatervapour,aerosols,andnitrousoxide.PrivateFly,notitsVIPclients,offsets300percentofcarbonemissionstocovertheotheremissions,theentireimpactofthejourney.Althoughoffsettingisnotaperfectsolutionbyanymeans,itisastepintherightdirectionand,whencom-binedwithsmallerplanesandconsideredfuels,couldpro-videacompellingoption.

WASTENOT,WANTNOT

Thereareotherwaysinwhichairlinesarereducingtheirenvironmentalfootprint,too.InAsia,JapanAirlines(JAL)istestingthe‘EthicalChoice–MealSkip’option.IfyounotifyJALinadvancethatyouwillnotneedamealandwouldrathersleep,thatsavesthetrayandallitspackag-ingfrombeingloaded.Theaverageairlinepassengerleavesbehindanestimated1.4kgofwastefromeachflight;eachyear,20percentofallfoodproducedbyin-flightcateringteamsiswasted.Thepotentialwasteandcostsavingsifwealloptedfortheenvironmentallyfriendlychoiceandskippedamealcouldbeconsiderable.

It’snotjustairlinesthataredoing,andneedtodo,theirbit.Thepressureisalsoonregulatorsandairtrafficcon-trolauthoritiestodeliverprojectssuchastheSingleEuro-peanSky,whichcouldreduceemissionsby10percentduetoshorterflyingroutesfromAtoB.

SURVIVALOFTHEGREENEST

Fiftypercentofallaviationemissionshavebeenpro-ducedinthepast20years,onthebackoframpantgrowthinthewaywetravel.By2050,aircraftemissionscouldtriple.Withthisinmind,airlinesarerealisingthat,post-pandemic,theyhavetochangetheirattitudetosus-tainabilityiftheyaretosurvive–notjustsurvivefinan-cially,butalsosurvivetherapidlychangingconsumermentalitytowardsflying.Beingresponsibleisnolongera‘nice-to-have’,itisamust,andairlinesareusingtheCovid-19eratoquicklyadapttheirmindsetandstrategy.

Flyingwillneverbethesameagain,especiallyintermsofbusinesstravellernumbers.Seatpriceswillbehigherduetoreducedairlinecapacityanddemand,especiallyforkeyroutes.Thiswillleadtoanaturalfallinemissions,socar-rierswillbeabletousethisperiodtobecomemoreprofit-ableandinvestfurtherinsustainableinitiatives.Theyaredeterminedtoemergefromthepandemicasmoreresponsibleglobalcorporatecitizens.

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ISGREENTHENEWBLACK?

Theeventsof2020knockedtheUSD1.5trillionfashionindustryoffitsgildedpedestal.Canitbuildbacksustainably?

ByJohnArlidge

Thebiggestheadlinesinfashionlatelyhavenotbeenaboutcatwalkshows,fashionweeks,designers,orcollec-tions.They’vebeenaboutsomethingluxurygoodscom-panieshavelongsweptundertheredcarpet–thethornyissueoftheenvironment.Aglutofstockandprotestsfromtextilemanufacturersovercancelledordersduringlockdownshaveexposedabusinessmodelbasedonover-production,excessiveuseofresources,andcheaplabour.“Nowweareforcedintoamomentwhenwehavetoreset,”AnnaWintour,formerUS‘Vogue’EditorandnowChiefContentOfficerofCondéNast,concededlastyear.

Atthesametime,however,beingstuckathomeinincreasinglythreadbareloungewearhasremindedmanyofusofthejoythatfashioncanbring.“Peoplewhoenjoyclothescan’twaittodressupagain,”predictsSirPaulSmith,theBritishdesigner.Heshouldknow.Hehassurvivedhalfadozenrecessionsandisenteringhissixthdecadeofdressingupinhistrademark‘classicwithatwist’styleandencouragingotherstodothesame.

Thebiggestcriticismofthemodernfashionindustryisthat,inadesperateraceformarketshare,brandsover-produce.Theydotoomanycollections–ratherthansimplyspring/summerandautumn/winterlines–andstagetoomanycostly,elaborateshowsaroundtheworld.Theresultisaviciouscycleofearlyfull-pricesalesinboutiquesanddepartmentstores,followedbyrampantdiscountingandthen,forsomebrands,theburningofstock.That’sbadforbrandequityanddisastrousfortheenvironment.Evenbeforethecoronavirusoutbreak

groundedmostplanes,fashionaccountedformorecarbonemissionsthantheaviationindustry.

Someofthebiggestnamesinthebusinesshavepledgedtochange.EdwardEnninful,EuropeanEditorialDirectorof‘Vogue’,declares:“Wewereproducingwaytoomanyclothes,waytoomanyshows.Wecan’tgobacktothatspeed.”Upscaleretailersagree.AnnePitcher,ManagingDirectorofSelfridgesinLondon,says:“Peoplewillcarenotonlyabouthowyoudobusiness,buthowyouplacepeopleandtheplanetattheheartofyourthinking.”

Somebignamesaremakingadecentstartatmendingtheirwaresandways.Kering,whichownsGucci,SaintLaurent,andBottegaVeneta,hasintroducedenviron-mentalprofitandloss(EP&L)accountsthatputafinan-cialvalueonthecompany’senvironmentalimpact.“Intimesofcrisis,it’simportanttoshowyoucanrunagoodbusinessandatthesametimeprotectpeopleandtheenvironment,”saysKering’sHeadofSustainability,Marie-ClaireDaveu.Kering’sbiggest-grossingdesigner,Gucci’sAlessandroMichele,haspledgedtoreducethenumberofhislabel’sshowsfromfiveayeartotwo.

AtrivalLVMH,theconglomeratebehindLouisVuitton,Dior,andFendi,JonathanAnderson,CreativeDirectorofitsLoewelabel,hasbegunimplementing“massiveprod-uctchanges”–makingclothingoutofrecycledplasticbottles,findinglesstoxicwaysofgalvanisinghardware,andworkingondenimthatrequires80percentlesswatertomanufacture.Pradaisusingyarnspunfromrecycled

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oceanplastictomakeitsiconicnylonbackpacks.Balen-ciagaandBurberrynowtoutnotonlythequalityoftheirfabricsandleathers,butalsotheirgreencredentials.

Atfashionweeks,conceptsandmethodsthatwereoncetheexclusivedomainofyoung,fringedesigners–usingoldstockfabric,forexample,orcuttingupandrefashion-inglastseason’sunsoldgarments–arenowbeingadoptedbymainstreambrandssuchasMaisonMargiela.‘Carbon-neutral’shows,inwhichbrandsoffsetthecarbonemis-sionstheycan’teliminatebydonatingto,forexample,forestrestorationprojects,arenowstandard–althoughcriticsquestiontheeffectivenessofoffsetting.

Retailersarefollowingthebrands’lead.Selfridgesisintro-ducingclothingrental,asecond-handfashionshop,beautypackrecycling,anda‘concierge’tohelporganiseproductrepairs,aspartofafive-yearsustainabilityplan.Theretailerhasalsocreatedalabellingsystemthathigh-lightsproductsthatareorganic,forest-friendly,orvegan,aspartofitsProjectEarthinitiative.Pitcherhasgivenbrandstargetstoensurethatby2025theninemostenvi-ronmentallyimpactfulmaterialsusedintheirproductscomefromcertified,sustainablesources.Majore-tailers,includingNet-a-Porter,MatchesFashion,andZalando,haveintroducedsimilarlabels.

Theretailers’movesaremorethanpurelyaltruistic.Thereisastrongbusinesscaseforembracingreuseandresale.Thesecond-handmarketisexpectedtogrowfasterthanfastfashion.IntheUSitisprojectedtoalmosttripleinvalueinthenext10years,fromU