SUSTAINABILITY

A DATA ANALYSIS OF THE FASHION AND COSMETICS INDUSTRIES

MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

1.INTRO
2. INTERVIEW WITH MORTEN LEHMANN,
CSO OF GLOBAL FASHION AGENDA

3. LOOKING AT THE SUSTAINABILITY

OF THE COSMETICS SECTOR

4. LOOKING AT THE SUSTAINABILITY

OF THE FASHION SECTOR

5. INFLUENCING SUSTAINABILITY

6. THE JOURNEY TO A PERFECT

ZERO-WASTE COLLECTION
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

1.INTRO
According to Vogue Business, “Luxury fashion and fragrance
companies used sustainability-related terms in their 2018
corporate reports six times as often as they did twelve years
ago.”

There is no doubt that the fashion, luxury, and cosmetics

industries have placed much higher precedence on
sustainability initiatives in recent years, but is this just in
response to shifting consumer demands and topical trends,
or are brands working sustainability initiatives into their
top-down processes? A growing consumer audience of Gen
Zers are willing to spend 10-15% more on
sustainably-produced clothing, as Forrester states that
audiences explicitly consider factors such as company values
when making purchases. However, the cosmetics industry
has also started an interesting sustainable trend, as this
sector has generated $77M in MIV®, compared to the $40M production, reducing sample loss and
in MIV that the fashion industry generated (in relation to redistributing items via online
sustainable terms). campaigns are just a few ways data can
help brands look forward to a
Creating an eco-friendly collection to meet this demand is a sustainable future.
step forward, but brands in the industry need to look at their
entire operational process if they want to start making leaps. In this data report, we will take an
analytical look at the fashion and
Sustainability is closely linked to the internal processes of cosmetics brands that are championing
businesses that involve waste of energy, materials, and sustainability, the influencers, and
resources, and brands can utilize data to start anticipating celebrities that are driving the
smarter decisions to reduce waste. Predicting where items conversations around the subject and
will be popular in order to determine global stock allocation, how you can create the perfect
moving collections online to evaluate success before zero-waste collection.
 2. INTERVIEW
With contribution from

Morten Lehmann
CSO of Global Fashion Agenda

You have been working on sustainability initiatives and studying trends in the
industry for a while. Do you think progress has been made? If so, how and why?

In recent years we have seen promising progress in the following areas:

- In the two years since we launched the Pulse of the Fashion Industry report,
progress in sustainability, as measured by the Pulse Score, has improved by 10
points (31%).

- In 2017 we also launched the 2020 Circular Fashion System Commitment, which
called on the fashion industry to take action on circularity by setting firm targets to
achieve by 2020. The commitment was signed by 90 companies – 12.5% of the
global fashion market. As of July 2019, signatories have reached 45 (21%) of the 213
original targets and set 17 new or more ambitious targets.

- We have seen the demand to attend Copenhagen Fashion Summit grow

significantly, with attendees having doubled since the first Summit in 2009.

- Most recently, we saw 30% of the fashion industry sign up to the Fashion Pact
which was launched by French President, Emmanuel Macron ahead of the G7 in
August.

However, our analysis projects that by 2030 the global apparel and footwear
industry will have grown by 81%, exerting an unprecedented strain on planetary
resources. We still lack a feasible alternative to the current model that fuels "OUR ANALYSIS
overconsumption and overproduction. PROJECTS THAT BY 2030
THE GLOBAL APPAREL
Though progress has been made, almost half of the industry, primarily small and AND FOOTWEAR
medium-sized companies, have not yet taken any action on sustainability INDUSTRY WILL HAVE
(meaning both social, environmental or ethical) and overall, progress is too slow to GROWN BY 81%,
meet the planetary boundaries. It is urgent that they act now if we are to transform EXERTING AN
the fashion ecosystem. UNPRECEDENTED
STRAIN ON PLANETARY
RESOURCES."
 MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

2. In one of the publications you produce with Global Fashion Agenda - The Pulse of the
INTERVIEW Fashion Industry - you noted that the fashion industry’s sustainability efforts have
slowed by ⅓ in the past year, with increasing customer demand for consciously
produced clothing, why do you think this has occurred?

The Pulse of the Fashion Industry analysis suggests that the fashion industry has made
some progress toward better social and environmental performance over the past year, but at a slower rate than in
previous years. We need to accelerate the pace of progress or we will not be able to keep up with the growing scale
and consequential impact of the fashion industry.

Progress was due mainly to rapid pushes among brands that are in the early stages of their sustainability journey and
have put in place foundational measures in strategy, governance, and target setting, but progress slowed among the
more advanced players who are now facing more challenging transformational hurdles which are stalling their ability
to propel into the next phase of sustainable development.

What do you think the biggest challenges are for brands in the fashion industry when it comes to implementing
sustainable practices?

Fashion brands face a wide range of social and environmental challenges and some are more straightforward than
others. Many fashion brands across segments lack traceability and full visibility in their supply chain, but this is essential
if brands are to be transparent about their processes.

Another clear challenge is tackling the processing stage and the implications of climate, water, and chemical pollution.
Although many fashion brands have already made significant progress in this area, a large gap still persists between
the top and bottom performers. Human rights violations also still occur, and brands should look into implementing
policies and processes to enhance the respect of universal human rights, including safe working conditions, no
discrimination, and no forced labor.

Brands that have already established measures to combat these

"BY IDENTIFYING THE
challenges must now figure out how to scale disruptive business models
CHALLENGES AND RISKS IN
that are circular and harness innovative technologies, if they are to become
EACH STEP OF THE SUPPLY
fully sustainable. In order do this we need more collaboration across the
CHAIN, YOU CAN NOT ONLY
value chain.
MAKE PROCESSES MORE
EFFICIENT BUT ALSO
What solutions are there for brands that are trying to implement more
INTRODUCE MORE
sustainable practices and do you think the structure of the fashion
industry as it stands supports this? SUSTAINABLE PRACTICES
AND MAKE MORE INFORMED
There’s so much material science developing such as utilizing food waste
BUSINESS DECISIONS. "
and there are many new fabrics that I expect we will see available in bigger
volumes over the next few years. The future holds a lot of exciting new
 MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

2. solutions. Another area where we’ve seen progress is circularity. Brands can push for
INTERVIEW more take-back systems to get waste turned into production rather than to produce
virgin fibers.

You also work on content for the Copenhagen Fashion Summit. Is there a regional focus from certain areas
when it comes to prioritizing sustainable fashion?

The Copenhagen Fashion Summit is designed to reflect a diverse and global perspective from stakeholders
throughout the supply chain. There is a strong need to reduce the environmental and social impact in countries
that are relied on heavily for the sourcing of materials and fibers such as Mongolia for cashmere and Kazakhstan
for cotton, and also within eastern manufacturing hubs where chemical and water pollution are severe.
Meanwhile, sustainability should also be a priority in the West which is accountable for significantly driving
overconsumption, waste pollution and demanding resources that exceed our planetary boundaries. Ultimately, it
is a global issue.

Over the time that you have been working on sustainable initiatives, how has the customer changed in terms
of what they look for in a brand?

Sustainability is definitely of growing importance among consumers. It is clear that consumers increasingly
expect brands to be concerned about environmental, social and ethical issues and to act accordingly. Our
research shows that 75% of consumers in the five countries that we surveyed view sustainability as very or
extremely important. Whilst over a third report actively switching from a preferred brand to another due to its
environmental and social practices. Moreover, 7% contended that sustainability in the key criterion when it comes
to purchasing decisions.

How do you feel brands can shape both their internal processes and production to build a more sustainable
future?

When addressing the internal processes of your brand you should firstly secure supply chain traceability. By
identifying the challenges and risks in each step of the supply chain, you can not only make processes more
efficient but also introduce more sustainable practices and make more informed business decisions. Meanwhile,
you should also ensure you have respectful and secure work environments in place, and that you are using your
resources effectively. Once you’ve conquered those challenges, then they can address further transformational
priorities from sourcing sustainable material alternatives to harnessing new digital technology that can improve
the supply chain.

Nevertheless, in order to create systemic change and a truly sustainable future we cannot remain insular by
focusing on purely internal changes. Brands should also look externally to collaborate with industry peers,
organizations, policymakers and investors in order to establish widespread change in the industry.
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

OF THE COSMETICS SECTOR

LOOKING AT THE SUSTAINABILITY

MAIN SUSTAINABLE TERMS ASSOCIATED WITH COSMETICS BRANDS

    
crueltyfree
    
vegan

veganbeauty
   
cleanbeauty
   
natural
   
naturalbeauty
   
soyfree

glutenfree
   
gmofree
   
provencleanbeauty

greenbeauty
   
sustainable

 

+$77M +25M
In Media Impact Value™ In Engagement and
generated by publications from a reach of 4 billion
cosmetics brands associated is what these publications
with sustainable terms during the obtained in the first Semester of
first half of 2019. the year.

TOP 10 COUNTRIES WHERE SUSTAINABILITY GENERATES THE MOST VALUE

CA UK
    IE      DE
       
FR IT
US
       
    
ES IN
       

AU
   

46%
of the impact around sustainability was generated in
the Americas
...followed by Europe (42%) and Asia (7%).
The United States was the country with the highest MIV.
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

OF THE COSMETICS SECTOR

LOOKING AT THE SUSTAINABILITY

TOP 15 COSMETICS BRANDS THAT GENERATE IMPACT ON SUSTAINABILITY

MIV Engagement

    

       

     

     

     

     

     

     

     

     

     

  

  

  

  
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

OF THE COSMETICS SECTOR

LOOKING AT THE SUSTAINABILITY

GLOBAL VOICE SPLIT IN THE COSMETICS SECTOR - HOW DO VOICES CONTRIBUTE TO

THE GENERATION OF VALUE AROUND SUSTAINABILITY?

Retailer/Partner Celebrity
  
Media is the Voice that
  
Influencer leads the generation of
   value for cosmetics brands,
followed by Owned Media.
During the first half of 2019
Media they generated
    OVER $6 MILLION IN MIV
RESPECTIVELY.

Influencers are the third

most valuable Voice for
generating value for
Owned Media cosmetics brands, racking
    up much lower MIV
numbers.
THEY REPRESENT 5% OF
THE TOTAL IMPACT.
THE MOST VALUED PUBLICATIONS FOR
COSMETICS BRANDS CELEBRITIES AND
PARTNERS
are poorly effective in
1. Lush is the brand that obtained generating impact for
the highest value per cosmetics brands when it
publication related to comes to sustainability.
sustainability - 8 of the 10
publications with the highest
MIV were from Lush during the
first half of 2019. The
predominant Voice that
contributes to these values for
Lush is Owned Media.
The first publication made by
Influencers of greater value
appears in the 15th position and
is related to a paid campaign Voice Type: Owned Media
between the brand Ren Clean MIV: $151K
Skincare and the Influencer
Voice Name: Instagram
Silvan Ayla.

2. 3. 4. 5.

Voice Type: Voice Type: Voice Type: Voice Type:

Media Owned Media Influencer Media
MIV: MIV: MIV: MIV:
$108K $63.2K $47.9K $42.8K
Voice Name: Voice Name: Voice Name: Voice Name:
The New York Times Instagram @sivanayla The Guardian
Style Magazine
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

We have to stop
transferring responsibility
for saving our environment
onto consumers –
businesses need to lead the
way and become
accountable for the entire
lifecycle of their products.
People are sick of feeling
guilty for something they
have no control over.
Global plastics
manufacturers are gearing
up to produce 30% more
plastic in the next five years,
which is absolutely
ridiculous, so brands need
to step up and offer
consumers a way to help
save the environment – it’s
that simple.

- Brianne West
Founder and CEO of Ethique, the world’s first zero-waste
beauty brand.
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

LOOKING AT THE SUSTAINABILITY

OF THE FASHION SECTOR
MAIN SUSTAINABLE TERMS ASSOCIATED WITH FASHION BRANDS

   
sustainablefashion
   
sustainable
   
sustainability
   
slowfashion
   
ethicalfashion
   
RunForTheOceans
   
recycled
   
ecofashion
   
eco-friendly
   
vegan

ethical

ecofriendly

 

+$40M +16M
In Media Impact Value™ In Engagement and
generated by publications of a reach of 6 billion
fashion brands associated with is what these publications
sustainable terms during the first obtained in the first Semester of
half of 2019. the year.

TOP 10 COUNTRIES WHERE SUSTAINABILITY GENERATES THE MOST VALUE

CA UK
      DE
   
US
FR IT
    
       

ES IN
         
AR
    AU
   

43%
of the impact around sustainability was
generated in the Americas and 43% by Europe
...followed by Asia (9%). The United States was the
country with the highest MIV.
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

OF THE FASHION SECTOR

LOOKING AT THE SUSTAINABILITY

TOP 15 FASHION BRANDS THAT GENERATE IMPACT ON SUSTAINABILITY

MIV Engagement

  

    

  

       

     

  

     

     

     

     

  

  

  

  

  

FASHION
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

LOOKING AT THE SUSTAINABILITY

OF THE FASHION SECTOR
GLOBAL VOICE SPLIT IN THE FASHION SECTOR - HOW DO VOICES CONTRIBUTE TO THE
GENERATION OF VALUE AROUND SUSTAINABILITY?

Influencer Retailer/Partner
 Similarly to the Cosmetics
  
industry, the leading Voice
Celebrity
for fashion in terms of
  
sustainability is Media,
Media
which generated
   
OVER $31 MILLION IN MIV.

Influencers and Celebrities

Owned Media represent a larger share of
    MIV when it comes to
fashion brands..
THEY REPRESENT 14.6%
OF THE TOTAL IMPACT.

THE MOST VALUED PUBLICATIONS FOR

PARTNERS
FASHION BRANDS
are the lowest performer for
the fashion industry when it
comes to sustainability.

1. Adidas was the fashion brand

with the highest value per
publication related to
sustainability - they used a mix
of marketing strategies when it
came to the Voices they
activated, relying mostly on
Celebrities and their Owned
Media.

The top celebrities for the brand

were Lionel Messi, and Paul
Pogba, who represented four of
Voice Type: Celebrities
the ten top publications.
MIV: $808K
Voice Name: Lionel Messi

2. 3 4. 5.

Voice Type: Voice Type: Voice Type: Voice Type:

Celebrities Media Owned Media Media
MIV: MIV: MIV: MIV:
$698K $156K $86K $41K
Voice Name: Voice Name: Voice Name: Voice Name:
Gisele Bündchen HYPEBEAST - US Reformation - WW Vogue - BR
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

As a designer, I carry an
obligation to consider what
we are doing at RAEBURN
and why; from the materials
we use e.g. in our RÆMADE
collections, to offering
lifelong free repairs and
keeping production small.
Everything we do is dictated
by the 3R’s ethos; RÆMADE,
RÆDUCED, RÆCYCLED.
That reflects not only in our
collections, but also in the
way we work day by day. For
instance, what brands we
support and carbon
offsetting our shipping.

Christopher Raeburn
British Fashion Designer, Founder of RÆBURN
and Creative Director of Timberland.
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

INFLUENCING
SUSTAINABILITY
THE TOP 5 INFLUENCERS DRIVING THE CONVERSATION AROUND SUSTAINABILITY

1.  2. 
MIV
Engagement
 

3.  4.  5. 

  

THE TOP THE TOP

SUSTAINABILITY SUSTAINABILITY
FASHION POST COSMETICS POST
BY AN BY AN
INFLUENCER INFLUENCER

KRISTIN LEO ELNAZ GOLROKH

MIV: $282,728 MIV: $282,728

THE TOP 5 CELEBRITIES DRIVING THE CONVERSATION AROUND SUSTAINABILITY

1.     2.    
MIV
Engagement
   

3.     4.  5. 
      

THE TOP 3 CELEBRITIES POST DRIVING THE CONVERSATION AROUND SUSTAINABILITY

1. Emma Watson 2. Lionel Messi 3. Gisele Bündchen

MIV: $1,059,008 MIV: $807,770 MIV: $753,426

MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

THE JOURNEY TO A PERFECT

Z E R O -WA S T E C O L L E C T I O N

1 BEFORE LAUNCH
"A US fashion brand was able to maximize the
use of each sample by using a centralized
reservation system. This allowed the brand to
eliminate the production of three sample sets
each season."

Go Start
Digital. Monitoring.
Before launching your Once your digital showroom
collection, create a digital is live, you can monitor
showroom to share with downloads and clicks by
press and consumers. You region. You can then predict
will be able to test out the where certain items or
different tastes across variations will be popular,
different markets, before before creating samples
putting samples in to and allocating stock. By
production - therefore tracking who is mentioning
eliminating the chance of your pieces you can also
overall waste. determine where to send
samples to achieve
maximum coverage.
Manage
Sample Flow.
By tracking your samples,
you can reduce waste as
well as cut losses. Produce
physical samples of your
popular items, and send
them to corresponding
influencers, press teams
and media outlets.

Leverage
Influencers.
2 DURING LAUNCH
Instead of sitting on slow-selling stock, create
coordinated influencer campaigns to push products
that haven't sold as well. By selecting the right
influencers you can unlock new audiences, and
increase sales flow on surplus items.
MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries

Reallocate.
As your collection launches, you can measure its
popularity by region, market, styles, colors etc. By
monitoring your press mentions and influencer
interest you can reallocate products to markets that
will have more demand for them as well as adjust
your sales and marketing plans for poor performing
pieces.

3
"If your marketing team is investing a disproportionate
amount of advertising spend on items at too low of a
price point, the merchandising team may not be
prepared for the demand surge, which can lead to
stock outs and lost sales or vice versa, which could
AFTER LAUNCH cause waste of product. "

Communicate.
Utilizing your Owned Media
Let your audiences know that channels is a great way to
you are taking steps to be communicate with your
more sustainable. this is following. Share snaps of
your customers in the new
important for a new
collection by leveraging
generation of consumers who your user generated
want to understand that you content, create social
are not only selling products campaigns and repurpose
but are also committed to influencer content to attract
new audiences. Your social
making a change.
channels are also a great

4
way to get feedback when it
comes to your next
collection launch, so you
can see what your
audiences loved, or didn't
love.
FUTURE LAUNCH

Reduce, Review, Re-strategize.

Repeat these steps with each launch, and you will make your way towards
a zero-waste collection.

MIV® is a registered trademark in the European Union

MAKING SENSE OF SUSTAINABILITY - A Data Analysis of the Fashion and Cosmetics Industries
METHODOLOGY
The data in this report was gathered with the use of
Launchmetrics' proprietary Media Impact Value™
algorithm (MIV®) to analyze the Voices and impact
generated around sustainability in the fashion and
cosmetics industries on the following scope:
Period: Jan 1- Jun 30, 2019.
Scope: The top fashion and cosmetics brands in
relation to sustainability, as well as industry Voices
& MIV.
Channels: Media (print and online), social
(Instagram, YouTube, Facebook. and Twitter)
About Media Impact Value (MIV ®): Launchmetrics’
proprietary Machine Learning algorithm provides
brands with a unified currency to measure the value
of all marketing activities across Voices, Channels,
and Markets by assigning a monetary amount to
every post, interaction, and article. Finely tuned to
specificities of Fashion, Luxury, and Cosmetics, the
algorithm was trained on actual media rates and 5+
years of FLC specific campaign data. It analyzes
more than 100 quantitative and qualitative attributes
including audience engagement, industry relevance,
source authority, and content quality, to create a
highly accurate method of measurement. MIV offers
a unified way to calculate how brand equity is being
created and which strategies create the most ROI.
About The Voices: Launchmetrics’ Voice-Centric
approach highlights the Voices creating value today
to provide a holistic view of marketing
performance and cross-compare the impact
various activities have on the customer lifecycle.
From Media, Celebrities, Influencers, Partners and
Owned Media, this methodology gives brands a
unique framework to understand the ROI of these
activities as well as the Voices that influence the
customer buying journey from awareness and
consideration to conversion and retention.
About the Share of Voice: Most of the figures
represented in this report appear in percentages
format. The concept of Share of Voice offers us a
percentage view of the value – based on the MIV –
generated by a brand, a segment of brands or an
influencer, over a certain period of time, while the
share of Voice represents the percentage of
mentions generated.
Influencer: An influencer is considered anyone
with the capacity to attract audiences and
generate reactions within them. According to this
definition, they are categorized into four groups
based on the volume of their community:
- Micro Influencer (10K-100K)
- Mid-Tier Influencer (100K-500K)
- Mega Influencer (500K-2M)
- All-Star Influencer (+2M)
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