Rivet: Spring 2022 Issue

DENIM BUBBLE SOURCINGJOURNAL.COM

RISING COSTS

Y2K REWIND NO. 15 / SPRING 2022

Informa Markets Fashion 2022 Event Calendar Informa Markets Fashion connects the global fashion community through online experiences, industry insights, and worldwide fashion trade events.

July 16-18, 2022

July 18-19, 2022

Eden Roc, Miami

Iron 23, New York

September 18-20, 2022 Includes Online Event: August 1 - October 1

Javits Center, New York

August 8-10, 2022 SOURCING AT MAGIC OPENS AUG 7

Las Vegas Convention Center

Join the fashion community at our upcoming 2022 events.

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NASHVILLE

NEXT STOP NASHVILLE

MAY 16-17, 2022 MUSIC CITY CENTER magicfashionevents.com

SAME BUT DIFFERENT Does anyone else have the feeling they’re not the same person they were prior to 2020? I know I do.

Besides emotions clearly related to covid—like moments of uneasiness in unmasked crowds—I now have an internal nonsense detector I can’t shut off.

I’ve run out of patience for entertaining excuses for the sake of keeping the peace or ignoring glaring character flaws because someone might have other redeeming qualities. I’m a real joy to be around these days.

I chalk part of it up to the lack of interaction with others over the past two years, but mostly to watching the world crumble before my eyes. I don’t think you could tell most millennials who came of age during 9/11, the Afghanistan war, the Indian Ocean tsunami, Hurricane Katrina and the Great Recession otherwise, even if the only way we acknowledge these life-shaking events is through a heaping dose of memes and more than a dash of sarcasm.

That said, no real form of so-called “dopamine dressing,” though fun to look at, can paper over the effects that Covid-19, the murders of Black men and women at the hands of law enforcement, a deadly U.S. insurrection and now Russia’s war crimes in Ukraine have on the increasingly fragile psyche. Pink is pretty but the same day Valentino presented its F/W 22-23 pink-out collection in Paris, a family—a mom and her two children with a pet carrier in tow—were killed by a blast in a Kyiv suburb as they tried to flee the Russian invasion. And that is just one of millions of heartbreaking realities.

I wrestle with this inner turmoil over how it’s our job as fashion trade media to question brands about their transparency claims, while political forces like former U.S. President Donald Trump and Russian President Vladimir Putin simultaneously get away with rewriting history and rejiggering facts to satisfy their outsize egos. If they can repeatedly conjure up outlandish lies—not “falsehoods” or “mistruths” but straight-up lies—no matter the destruction they leave in their wake, why is it any surprise that companies can greenwash their denim collections? The world we’re trying to save by sustainably producing jeans is being destroyed in a million other ways.

But there is a feeling that the denim industry has an opportunity for a do-over. Most of this issue, which was written prior to Russia’s war in Ukraine, covers denim’s comeback fueled by consumers trying new fits and brands innovating with sustainability and cost consciousness in mind as raw material prices climb. No one should downplay the industry’s commendable efforts to lessen its environmental footprint and produce responsibly. However, in this new chapter, I hope companies and the individuals behind them do more to show their humanitarian side.

Case in point: When sourcing and labor editor Jasmin Malik Chua set out to report on the efforts to combat gender-based violence and harassment within Lesotho’s Nien Hsing Textile factory for this issue (“Finding a Voice” pg. 64), it became apparent how few people in the industry were familiar with the topic— myself included.

It is my hope that when we gather at Kingpins Amsterdam, Denim Premiere Vision and Bluezone this year, we shift some of the conversation to what can be done to safeguard the lives of the people who make and wear jeans on every continent. The global denim community considers itself a big family. Now is the time to act like one.

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TABL E O F CONT E NTS 22

LAST LAUGH Despite price increases and demand for comfort, denim experts expect strong growth in 2022.

26 30 32 38 EB DENIM DRESS, LIBERAL YOUTH MINISTRY BODYSUIT, STELLA MCCARTNEY SANDALS, MANSUR GAVRIEL BACKPACK, BLUMARINE NECKLACE.

SPRING 2022

FALL/WINTER 22-23 RUNWAY REPORT Denim bounced back onto the runway with upcycled fabrics, Y2K themes and laser prints.

Y2K REWIND True Religion CEO Michael Buckley shares how he is repositioning the 2000s brand for all ages.

CANDY Y2K fashion is back in full force.

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(VIRTUAL) REALITY SHOW Is the metaverse denim’s next frontier?

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COWBOY COOL Wrangler’s 75th anniversary shines a spotlight on the heritage brand’s future.

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THE PLANT BASE Fans of Lenzing Group’s Tencel reflect on the fiber’s 30-years’ worth of impact.

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FINDING A VOICE Nien Hsing Textile Co. was a tipping point in the denim industry's history of violence against women.

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WIDE APPEAL From flare to wide-leg, brands’ reveal their roomiest fits.

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DENIM BUBBLE Designers are enjoying consumers’ willingness to try new fits, but how long can the good times roll?

RAW TRUTH Denim mills around the world gamble on the cost of cotton–and everything else.

NEIGHBORING SUPPLIERS As nearshoring surges, Latin America’s denim industry reaps the rewards.

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Lucky in Vegas The Rivet x Project Awards honors the best in Fall/Winter 22-23 denim collections. w o r ds _____ANGELA VELASQUEZ

Retailers and brands gathered at Informa Markets Fashion’s Project trade show at the Las Vegas Convention Center Feb. 14-16 to take stock of what’s next in denim.

There, the Rivet editorial team selected the best in Fall/Winter 22-23 denim across seven categories: Best Women’s Collection, Best Men’s Collection, Best Trend, Editor’s Choice, Best Storytelling, Best Collaboration and Best Sustainable Collection.

From strong streetwear statements to fashion-forward collections that key into the category’s new trend cycle, the fourth edition of the Rivet x Project Awards recognizes the brands bringing newness and creativity to the denim market.

Once they buy a start box, they can reorder top styles and buy core sizes and colors. NOOS products, which span slim, skinny, joggers and more, account for more than one-third of turnover.

The collection is not without its specialty and trend-driven items. The Blue Journey range offers “designed in Italy” jeans made with Candiani Denim fabric. A rep said the brand takes key accounts to the Italian mill for a guided tour to learn more about the denim-making process. For consumers seeking a wider fit, Jack & Jones offers the Loose Chris, a high-rise jean with a loose thigh, knee and leg opening. The style is available in indigo and white, but a bandana laser-printed version is a standout.

BEST WOMEN’S COLLECTION: 7 FOR ALL MANKIND

BEST TREND: DRIFTWOOD

7 For All Mankind’s women’s assortment is a choose-your-own-adventure of denim, spanning jumpsuits, floral printed co-ords, coated jeans and pieces made with recycled hardware.

The brand leans into effortless dressing with several one-pieces, including a button-front wide-leg jumpsuit with spaghetti straps, a longsleeve jumpsuit with Western-inspired details and soft V-neck jumpsuit with puff-sleeve and a self belt—the latter of which is also available as a short dress. Meanwhile, a strapless black coated denim jumpsuit makes a strong case as the cool-girl alternative to a little black dress.

Wide-leg jeans covered with black crystals is 7 For All Mankind’s big ’90s moment, but a range of black coated pieces including jeans, jackets and a circle skirt gives the collection a downtown edge. To contrast, floral printed Trucker jackets and matching jeans are accented with sweet scalloped-edge labels. Other jeans feature floral embroidery and the phrase “oh yeah.” Black and pale pink wide-leg corduroy trousers with deep cuffs offer a cozy yet elevated alternative to jeans.

Bohemia is part of Driftwood’s DNA, but as the popularity of DIY and nostalgic denim grows, the brand’s embroideries, patchwork and retro silhouettes never felt more current.

The F/W 22-23 collection is dense with rich autumnal colors, floral embroidery, and mixed media patchwork.

With rich textures across a myriad of fits spanning flare, relaxed, wide-leg, joggers and bell-bottoms (complete with

BEST MEN’S COLLECTION: JACK & JONES

Launched in 1990, the Bestseller Group-owned Jack & Jones label has good bones to stand on as it aims to reestablish itself in the U.S. The brand’s F/W 22-23 range covers must-have men’s trends, including preppy varsity jackets and Gorpcore staples like corduroy shirting and plaid shackets made with recycled polyester and heaps of knits.

These seasonal items, however, complement Jack & Jones’ bread and butter: jeans. The brand’s NOOS range—short for “never out of stock”—offers retailers a risk-free way to ensure they always have bestselling jeans available.

Scotch & Soda

Dead. Than. Cool.

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Photo credit: Informa Markets Fashion

Mavi

BEST IN SHOW side insets), Driftwood manages to offer variety without losing its aesthetic. Even low-rise jeans without back pockets—a style Gen Zers with a Y2K fetish would swoon over—have a boho vibe.

Standout items include jeans and denim jackets with celestial embroideries, corduroy jumpsuits, jean jackets with dark floral velvet panels and a range of knitwear and jackets that would fit in on the set of “Yellowstone.”

BEST STORYTELLING: SCOTCH & SODA

Space exploration may be a popular theme in escapist fashion, but Scotch & Soda is interested in bringing consumers back closer to home. The Dutch label imagined what space on Earth would look like in its F/W 22-23 collection. Tops with surreal landscapes are literal examples of the concept, while sunset gradients, utility details and shackets with unexpected color schemes nod to Scotch & Soda’s exploration-inspired story.

The collection also highlights the brand’s environmental efforts. In addition to focusing on low-impact washes, Scotch & Soda is a long-term partner of Trees for All, a “global scope” foundation that has carried out reforestation projects in Central and South America, Africa and Asia as well as in the Netherlands for more than 20 years.

Key denim items in the men’s collection include a denim jacket with shearling insets, jeans with Amsterdam-themes embroidery and a denim shacket with a slight shawl lapel. The theme is echoed in the women’s range, where jeans and shirting feature subtle beadwork, shearling jean jackets are cropped and tonal patchwork updates balloon-shaped jeans.

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EDITOR’S CHOICE: DEAD. THAN. COOL.

As premium denim labels begin to chase streetwear trends to resonate with younger consumers, Los Angeles-based Dead.

7 For All Mankind

Than. Cool. is capturing that desirable market by staying true to its aesthetic. Known for details like abrasions, hand sewn repairs, 3D logo embroideries, high-shine hardware (button hems are a signature) and paint and bleach effects, the jeans are as fun to look at as much as they are a strong brand story for retailers. A rep said consumers are even beginning to wear the brand’s tags.

The F/W 22-23 collection offers more colorful tie-dye jeans, bleached denim jackets and jeans and tonal patchwork.

Recycled polyester tops offer a more accessible alternative to its silk shirts.

BEST COLLABORATION: PRPS

PRPS will launch a F/W 22-23 collection of jeans and tops with Jimi Hendrix. The collection includes tie-dye graphic tees and jeans decorated with Hendrix-themed newspaper-like prints.

PRPS plans to fete the collaboration with an event in the fall.

Tie-dye, in general, has been gangbusters for the brand, which is also celebrating its 20th anniversary this year.

BEST SUSTAINABLE COLLECTION: MAVI

Jack & Jones

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Hemp is here to stay. Mavi is the latest denim brand to introduce the low-impact fiber to its blends, beginning with a men’s workwear jacket and jean. The fabric includes cotton, recycled cotton and 13 percent “brushed” hemp. In general, the brand is ramping up its sustainability efforts and reporting. Along with performing LCAs for products, Mavi will release an updated sustainability report in April.

FASHION

LAST LAUGH

Denim is a focal point at The Metropolitian Museum of Art's "In America: A Lexicon of Fashion," exhibition.

Despite price increases and the pandemic-push for loungewear, denim experts expect strong growth in 2022. w o r d s _____ LIZ WARREN

HBO's "Euphoria" jumpstarts the Y2K revival.

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FASHION

Only a material with a history as rich as denim could not only survive, but thrive, in light of all that it faced in the past two years. Though the Covid-19 pandemic initially caused a dip in denim sales in 2020 as loungewear took over, the industry’s fast-acting nature helped turn a global disaster into a realm of opportunity.

According to retail intelligence company Edited, denim sell outs were up 10 percent in 2021 from the previous year. And while we may be just months into the new year, all signs are pointing to a brighter 2022: Edited reports that denim sellouts were up 27 percent in the first week of the year compared to 2021.

“While denim was one of the categories hit the hardest during the first wave of the pandemic, its bounce back and continued success amid several new variants have proved its tenacity and consumers' evergreen demand,” said Kayla Marci, market analyst at Edited.

Fueling denim’s resilience is its ability to pivot to reflect new trends. As homebound consumers opted for sweats and pajamas at

the beginning of the pandemic, the denim industry quickly leaned into its stretch offerings and looser fits to accommodate the growing need for comfort. And when Gen Z canceled skinny jeans at the beginning of 2021, companies once again responded to the changing demands with a slew of loose denim offerings that kicked off one of the greatest rebounds in recent sartorial history.

The appeal of loose denim is felt across the board. According to data from market research company The NPD Group, all wearer segments—men’s, women’s and kids’—are experiencing more than 25 percent growth from the previous year. Double-digit growth is also noted when compared to 2019 sales for men’s and women’s denim.

Unsurprisingly, women’s denim is leading the charge. Edited noted that the segment accounted for 44 percent of new denim arrivals in 2021 and made up 63 percent of sell outs.

Edited reports that, of these women's fits, straight-leg styles are most popular, followed by flare, bootcut and wide-leg. The new cycle also triggered the revival of the Y2K-inspired low-rise jean, which Marci refers to as a “controversial” but prevalent trend. The midriff-revealing style was a common theme at Spring/Summer 2022 shows like Isabel Marant, Miu Miu and MSGM. Men's jeans are also being affected by the category’s shift to roomier fits, with slim, straight and tapered cuts leading the way.

Syngal and Guess Inc.’s Carlos Alberini, who have each separately called out the new cycle of loose fits and the global shift to casualization as major factors in their recent success. In a Q4 2021 earnings call with investors, Bergh reported that “there’s every reason to be optimistic about denim and denim category growth” moving forward.

And it’s not just denim that’s benefitting from the new cycle. A refresh in denim silhouettes also triggers a refresh in other apparel items like tops and shoes. Express chief merchandising officer Malissa Akay noted that more denim fits and concepts to choose from are leading consumers to ask new styling questions. “Consumers have been trained to wear certain shoes and tops with skinny jeans for a decade,” she said.

Kristin Breakell, content strategist at product intelligence company Trendalytics said that 2022 will be the year for experimentation in denim, as the material is increasingly being used

NEW OPPORTUNITIES The positive data is generating widespread optimism from denim brand CEOs like Levi Strauss & Co.'s Chip Bergh, Gap Inc.’s Sonia

Ye and Julia Fox made waves in Paris dressed in matching denim.

in “refreshing ways.” Breakell called attention to denim corsets—a focal piece for actress/artist Julia Fox’s look at men’s fashion week earlier this year—and versatile denim shackets as being safe bets.

“Both styles are a reflection of consumers’ interest in trying new versions of all-over denim looks,” Breakell said, adding that embellishments, linings and details like contrast stitching and fabric treatments also offer interesting updates. She identified embellished jean jackets, fleece-lined denim jackets and men’s cargo jeans as further emerging trends to watch.

The pandemic-fueled weight fluctuation also continues to open new opportunities for denim, specifically one-size-fits-many concepts.

Good American, Old Navy, Silver Jeans Co. and Zara are among the growing roster of brands dabbling in this stretchy jeggings update.

Maria Rugolo, apparel analyst at The NPD Group, noted that stretch denim is an increasingly compelling offering, as it “continues

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to win with both male and female consumers.”

The group reported that stretch denim accounts for 90 percent of women’s denim sales and 47 percent of men’s denim sales.

“The diversified assortment has given consumers the ability to find the fit that resonates best with their lifestyle while helping update their closets,” she said.

More opportunities are also opening for fit technology, which includes solutions like sizing recommendations and digital fitting rooms. A recent report from sizing solution Presize.ai called attention to the largely untapped market, noting that, while many agree that fit technology is important, its rate of implementation is lagging. Companies that prioritize its adoption could see significant benefits, as consumers continue to look to online shopping methods where accurate fit information is crucial.

PRICING PROBLEMS New opportunities can also unlock a range of challenges. While the denim sector is largely celebrating the promising projections for 2022, it’s also facing the looming issue of increased cotton prices, which have reached recordbreaking levels. In 2021, the average cotton price soared by 41 percent year over year to $2.23 per kg. Market research firm IndexBox reported in February 2022 that cotton prices are expected to increase by 5 percent this year.

As cotton makes up over 90 percent of the raw materials used in production, denim is one of the apparel categories most affected by the price inflation. Still, a consumer-facing price increase may not be as great an issue as it once was. Shoppers are reportedly willing to spend

more for a higher-quality, more sustainable product. In fact, denim brands have already succeeded in raising prices without resistance.

After raising prices in Q2 2021 by 5 percent, Levi’s reported that pricing action is “sticking,” with a 7 percent increase in average unit retail (AUR) compared to 2019, mostly driven by its bottoms business.

The pricing change could also encourage a deeper investment in eco-friendly fibers such as hemp, lyocell and Tencel, which are now more evenly priced with cotton. Trendalytics reports that interest in sustainable fibers is already growing. Searches for organic cotton denim, "eco jeans" and hemp denim are up 71 percent, 56 percent and 50 percent compared to last year, respectively. Searches for recycled fabric are also up 10 percent over last year.

Despite the remaining uncertainty for the year ahead, Rugolo—much like the rest of the denim industry—remains optimistic.

“We expect momentum to pick up again in the spring with the hopes that warmer weather and (hopefully) fewer cases transitions to another return to social experiences,” she said.

Diesel made a splash at Milan Fashion

FASHION

SKINNY STATUS

Rag & Bone celebrates 20 years in the premium jeans business.

Snoop Dogg created a catchy tune called "Say It Witcha Booty" for G-Star Raw.

The new cycle of relaxed fit jeans has undoubtedly swiveled the spotlight onto wideleg, straight, flare and other relaxed styles. Data from Edited shows that skinny jeans sellouts are down 12 percent year over year. NPD echoed that sentiment, reporting that skinny jeans accounted for 30 percent of women’s jeans sales in 2021, down four points from 2020.

But consumers shouldn’t recycle their skinny jeans just yet. Despite the motion to cancel the body-hugging style, it remains a top silhouette in women’s denim. Brands are finding new ways to make the fit just as appealing as their relaxed counterparts with skinny jeans that fit multiple sizes. In recent months, Silver Jeans Co. debuted its “Infinite Fit” jean, Good American dropped “Always Fits” and NYDJ introduced “SpanSpring,” all with the same notion of offering a skinny jean that expands two or three sizes and accommodates weight fluctuation.

In addition to providing a simpler fit process, one-size-fits-many jeans also have a unique sustainability factor. High-stretch denim is more accommodating to body changes, meaning it’s less likely to be discarded as a person’s size increases or decreases. Size-less denim can also help lower return or exchange rates, ultimately mitigating carbon emissions associated with shipping.

Different demographics are handling the skinny jean evolution in their own way. Most notably, millennials are remaining loyal to their skinnies. NPD indicated that 36 percent of skinny jeans consumers were from this cohort.

The style even gained some traction among Baby Boomers.

And while the style generally lost momentum with Gen Z consumers after the TikTok-led skinny jeans protest, there is one subset of skinnies that the younger cohorts have their eye on. According to Edited, skinny fits were the dominating shape for low-rise jeans in late 2021. The fit made up 6 percent of low-rise styles that tap into Gen Z’s obsession with Y2K dressing. So, while Gen Z may have canceled the traditional high-rise skinny, it may have replaced it with a lower version from the early ’00s.

Ultimately, though skinny jeans are currently fluctuating in popularity, they’re still a wardrobe staple that should stay put for now.

“Given the extreme search volume of skinny jeans and the timeless nature of denim, skinny jeans are considered more of a basic than a trend item,” said Kristin Breakell, content strategist at Trendalytics. “While they are currently declining, we tend to cycle through preferred silhouettes every few years. The skinny jean will always have a presence in the market.”—L.W.

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DENIM BUBBLE Designers are enjoying consumers’ willingness to try new fits, but how long can the good times roll? w o r d s _____AN G E L A V E LAS Q U E Z

Mother Denim

FASHION

“This is the first time in my 30-year career where there are multiple denim trends happening all at once,” said Mary Pierson, Madewell senior vice president of denim design. “The exit from skinny jeans seems to have accelerated so quickly. Now, we are seeing a range of leg shapes and rises trending as well as heavier, less stretchy and non-stretch denim gaining popularity.”

Though consumers found physical and emotional comfort in dressing in cozy loungewear during the early months of the pandemic, Covid-19 is not the singular factor in the evolution toward roomier fits. “The skinny trend was dominant for so long that a shift was ready to happen,” Pierson said.

The first signs of wider fits emerged on the runway years prior as designers like Virgil Abloh and Heron Preston with roots in streetwear gained their footing in the luxury market, which applied a pricey designer label to the genre’s signature aesthetic.

Add the mainstreaming of genderless design (which leans heavily on boxy workwearinspired silhouettes), coupled with millennials’ fixation on ’90s nostalgia and the rise of “ugly” sneakers—chunky styles that call for wider proportions—and it’s clear that skinny jeans’ fate was written long before sweats became the universal work-from-home uniform and a 15-year-old TikToker ever griped about the “cheugy” fit.

The plot twist, however, is how being cooped up for months Kondo-ing closets and scrolling through social media drove consumers of all ages toward a whole new denim persona as they emerged from quarantine—and the speed at which this evolution unfolded. “When the pandemic happened, it pushed trends forward and faster,” Pierson said. “People are seeing things faster and are adapting to newness quicker as opposed to earlier times when a few people would adopt trends slowly and the masses would follow.”

The resulting trend cycle means anything goes in denim, from low-rise and mid-rise jeans to flare, bootcut, cargo, balloon, straight, mom, relaxed and more. And everything old is new again, particularly to Gen Z consumers and much to the delight of brands with a desirable design vault.

“We’re not pulling inspiration from anyone but ourselves in this moment in time,” said Zihaad Wells, creative director of True Religion the low-rise, baggy-fitting 2000s jeans brand worn by Jessica Simpson and Paris Hilton

during their Y2K heyday, and more recently by Bella Hadid. The Ricky straight jean remains True Religion’s No. 1 because it nods not only to the brand’s original style but also to fashion’s current mood.

“It’s evident that denim’s new trend cycle in 2022 sees a welcoming reappearance from the past,” Wells said, adding that True Religion is delivering on this demand for nostalgia with archival styles like low-slung fits for women and baggy silhouettes for men. “Consumers are really fascinated with the fashion of the early 2000s and I believe it’s because trends at the time were unhinged in the best possible way. People were getting creative with selfexpression through their fashion choices, and we are seeing that movement once again. It just looks a little different.”

In terms of silhouettes, Favorite Daughter design director Carla Calvelo said the ’90s and 2000s are big influences this year, naming relaxed, oversized, flare, bootcut and straight leg styles as fits to watch. The brand is continuing with high-waisted and elongated silhouettes and seeing interest in a “tailored” denim trouser with a rinse wash based on raw denim.

“I love the idea to continue exploring the tailored fits—elevated pieces that can be recognized as Favorite Daughter,” she said.

The same era filters across Joe’s Jeans collections for 2022—and it’s a comfort zone for Alice Jackman, the brand’s design director.

“I’ve been working in the denim industry for over 20 years, so a lot of the late ’90s and early 2000s design influences happening now are familiar to me from the first time around,” she said.

Joe’s next collections will offer looser and wide fits in line with the trend cycle. The brand also has a new fabric called “Heirloom,” which Jackman says has a prominent denim twill line with a super soft hand feel and “the perfect amount of stretch.”

“I have great resources for vintage here in L.A. so I’m always discovering amazing wornin pieces to replicate for wash on all our modern denim fabrications,” she said.

Meanwhile, old-school skate culture is guiding Hudson Jeans’ new direction, according to Steffan Attardo, the brand’s men’s design director. Paint splatter, destruction and coated fabrics add edge to the label’s upcoming collections, but the real focus is on creating voluminous fits.

“Wider leg fits are the new mainstream,” Attardo said.

“Consumers are really fascinated with the fashion of the early 2000s and I believe it’s because trends at the time were unhinged in the best possible way.”

—ZIHAAD WELLS, TRUE RELIGION

SOCIAL NETWORK The past provides inspiration, but Gen Z is copying and pasting it back into relevance through their social megaphones on Instagram and TikTok. Though social media’s stronghold on fashion dates to the 2000s with Tumblr, current platforms gained greater importance to consumers and brands when pandemic restrictions shut down other traditional sources of sartorial inspiration like street style, red carpets, in-person events and even the option to browse stores.

“Social media has really become the catalyst for new trends emerging all the time,” said Sarah Ahmed, DL1961 co-founder and chief creative officer. “New information and innovations are shared so quickly and so easily that it’s no wonder denim trends are changing more than ever.”

The rapid pace at which denim trends are moving plays in vertically integrated DL1961’s favor. In February, the New York-based brand bowed its first line of jeans made with Recover’s post-consumer waste cotton fiber. Styles centered on wide leg, bootcut, flare and straight fits. “Because all of our manufacturing happens under one roof at our family-owned factory in Pakistan, we can easily make changes and adapt to new styles and trends when necessary,” Ahmed said.

“I think the trend cycle is ever-evolving as long as we continue sharing our lives and our 27

FASHION

“The skinny trend was dominant for so long that a shift was ready to happen.”

—MARY PIERSON, MADEWELL

wardrobes on social media,” Ahmed said. “It’s all about the spread of information, the speed at which that happens, and the technology advancements within denim manufacturing that will allow us to keep up.”

“The way we experience trends is completely different now and it will never be the same,” Wells added. “When you know that, you can kind of do whatever you want.”

BUBBLE BURST All winning streaks eventually come to an end, and designers anticipate that this denim bubble may pop sooner that the industry norm for trends.

In the past, Pierson said it was standard to expect a denim fit or trend to last at least five years, possibly longer, but as trends in denim change so do the trends in the tops and footwear consumers wear with them. While it is uncertain how quickly consumers will want another wardrobe refresh from top to bottom, Pierson said she expects to see trends around straight, wide, and flare-leg denim continue for the “next year or two.”

Attardo echoed that sentiment, estimating that the focus on these fits is likely to continue “through the next couple years, at least.”

Where jeans shift to next, and when, remains a mystery that only the next generation of consumers can determine, but if the resilience that the denim industry has shown during the pandemic has proven anything, it’s that there will always be a customer hungry for jeans.

“People’s love for denim is consistent and that’s a great thing,” Wells said. “However, we are always keeping one eye on the future and making sure that we are that brand that continues to have a unique point of view. We want to stay on the pulse of what the younger generation is doing, and if we do that, I think we won’t be as focused on chasing the trend because we’re just doing what feels right.”

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FASHION

Veronica Beard

Wrangler

DL1961

WIDE APPEAL The breadth of slouchy, bootcut, flare and wide-leg jeans in the market means consumers can reinvent their denim style any way they choose. words _____ ANGELA VELASQUEZ

Frame

Guess Free People 7 For All Mankind

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Lee

Levi's

Hudson

True Religion

American Eagle

Mango Joe's Mavi

31

Christian Siriano

Blumarine

Versace

Des phemmes

Denim bounced back onto the runway with upcycled fabrics, Y2K themes and laser prints. w o r d s _____ ANGELA VELASQUEZ

CELINE HOMME No Sesso Brandon Maxwell

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FASHION Derek Lam

Nicole Miller

The pared-back presentations that designers opted for in the first year of the pandemic gave way to snow-filled sets, city-wide installations, and statements on Russia’s war on Ukraine that started during Milan Fashion Week. In show notes, Balenciaga creative director Demna reflected on his own experiences as a Georgian refugee.

“In a time like this, fashion loses its relevance and its actual right to exist,” he wrote.

The show, however, went on. In fact, fashion weeks in New York, London, Milan and Paris returned to their pre-pandemic levels of excitement from February to March with back-to-back physical shows, celebrity-filled front rows and crowds of onlookers gathered outside venues.

Denim also returned to the runway as a key element in designers’ storytelling— be it centered on sustainability, punk, Y2K or versatile looks fit for the office.

NEW YORK

The playful and practical sides of denim showed up to New York Fashion Week, where Fall/Winter 2022-2023 collections spanned versatile, work-friendly staples to bedazzled showstoppers.

Area continued to delight with its glamorous renditions of rhinestone-covered statement pieces. Along with Y2K-era butterfly motifs, the label’s designers Piotrek Panszczyk and Beckett Fogg presented a cropped jean blazer trimmed with cascading crystals, feather-trimmed micro jean shorts and embellished jeans with one pant leg.

PatBo was part of the bling ring as well.

Designer Patricia Bonaldi showed blue jeans and elongated Trucker jackets with diamondpatterned embellishments and clear crystal fringe. Simon Miller also sprinkled light-wash jeans and cropped jackets with glittery crystals.

Chains of frosted pink beads were strung through Khiry’s denim jackets and jeans. For a moodier look, black floral appliques and beadwork decorated the side of wide-leg jeans by Frederick Anderson.

Levi’s, lacing and zippers were key parts of No Sesso’s collection of unisex designs. The range of upcycled fabrics made in collaboration with the heritage brand included wide-leg jeans that unzipped to expose flares and jackets with a corseted bodice.

Maisie Wilen’s artful approach to destruction resulted in wide-leg jeans with a trendy checkboard pattern. Peter Do cut into jeans to expose snippets of skin. Rentrayage’s use of deadstock fabrics resulted in pieced jeans with uneven hems, two-tone halter tops and a chopped jean skirt with a black lace underlay.

Batsheva

A jean jacket and bomber jacket were also Frankenstein-ed into a unique piece.

Rips were central to Telfar’s collection of long skirts, slouchy jeans and cropped jackets, as well as Western-inspired pieces with dark wash and signature hardware. Elements of workwear filtered across Commission’s collection of cargo jeans, sturdy denim-pleated skirts and flare jeans.

Khaite zeroed in on the denim-and-blazer cool-girl uniform with jeans that had a tapered balloon shape. Loose-fitting looks—some

33

BIRDS OF A FEATHER Building women’s confidence is not the only thing that Christian Siriano has in common with the late Gloria Vanderbilt.

When size inclusive designer and “Project Runway” judge Christian Siriano sent denim-clad models down his traditionally red carpet-worthy runway at New York Fashion Week last October, he was not only commenting on the state of casual fashion in a pandemic but also shining a spotlight on one of the original women’s jeans designers: Gloria Vanderbilt.

Vanderbilt, who died at 95 in 2019, was a descendant of the shipping and railroad magnate Cornelius Vanderbilt, but she was better known to the fashion world as the “Jeans Queen”—a throne she claimed in the 1970s and 1980s by selling millions of pairs in partnership with entrepreneur Mohan Murjani. The Gloria Vanderbilt brand, owned by One Jeanswear Group since 1993, continues to dress women in jeans and is sold by retailers like Amazon, Kohl’s, Macy’s and more.

In September, the label will launch the first styles from its two-year partnership with Siriano—a contemporary take on archival designs that includes jeans, dresses and tops available in sizes 26-34 as well as petite and extended sizing. Expect to see embroideries, patchwork and, of course, the brand’s signature swan emblem.

“We’re taking it up a notch and selling the better department stores in the industry,” said Jack N. Gross, One Jeanswear Group CEO. “I call the runway ‘the romance’ and the product you see at retail ‘the finance.’ And I think that what Christian was able to do with the Gloria Vanderbilt brand in this collaboration is combine both of those and really make a big idea for the retailers and for my company.”

For Siriano, the opportunity to explore Gloria Vanderbilt’s archives and design for the label tugged at sentimental heartstrings. One of Vanderbilt’s original fans is his mother, Joye, who is a front row mainstay at his shows. “I was going through a nostalgic thing, looking at old photos,” Siriano said. “I grew up and my mom had a lot of Gloria’s jeans. My mom also got married in a DVF wrap dress. She was kind of eccentric and I didn’t give her credit.”

Giving credit where credit is due became part of Siriano’s motivation to collaborate with the Gloria Vanderbilt brand. In a category that relies on heritage names like Lee and Levi’s to

34

inspire vintage designs, a survey of Gloria Vanderbilt’s archives says more about the future of fashion than the past.

“Man, she was really ahead of the game,” Siriano said about the Jeans Queen. “She had a really amazing open mind about people and beauty. She was doing a curve jean before anybody was doing a curvy jean, which I thought was really interesting.”

The collection arrives at a time when women are stepping back into jeans after months of loungewear, but Siriano sees no reason for jeans to not be part of their everyday wardrobes. “I always thought that denim could be your casual, cool goto,” he said. “Living life in stretch pants is a bit extreme. If you have a great jean, that’s really what you can live your life in. That was our goal—to make jeans your comfortable go-to—not sweatpants or leggings.”

What’s Siriano’s go-to jeans? “I have a pair of jeans from Cheap Monday. I only bought Cheap Monday jeans when I was in college in London,” he said. [Editor’s note: the H&M Group-owned brand closed down in 2019.] “I was obsessed with them, and I have one pair left that’s still hanging on. I actually wore them the other night and they’re still my favorite jeans.”

—A.V.

Christian Siriano

with asymmetrical back pockets—added a downtown vibe to Tibi’s line. Cuffed boyfriend jeans in washed-down black enhances Nicole Miller’s polished take on New York punk.

Jeans with split hems and belted shackets were among Veronica Beard’s office-friendly pieces. D-ring belts cinched Derek Lam 10 Crosby’s two-toned button-front jean dress and tunic denim top, while Batsheva applied its modest aesthetic to denim with midi-length peplum skirts and high-collar, puff-sleeve button-front jean dresses.

Casual elegance was a key element in Brandon Maxwell’s eponymous line, which focused on lightly distressed straight-leg jeans.

The designer, who also serves as the creative director for Walmart’s Free Assembly and Scoop brands, paired the staple bottoms with elevated quilted coats and blazers with a single buckle closure.

Ulla Johnson zeroed in on versatile pieces in her first denim collection. Designs featured front creases, deep cuffs and pops of neutral colors. The line will begin to ship in July and retails for $395-$650.

Gloria Vanderbilt Fall 1978 show

FASHION LONDON

London Fashion Week (LFW) is renowned for fostering fresh talent, and many are exploring their creativity through denim. F/W 22-23 denim designs, however, were notably wearable in comparison to the fantastical looks of marquee designers like Simone Rochas, Richard Quinn and Harris Reed.

Huishan Zhang zeroed in on the trend for wide-leg jeans as the laidback companion to strapless crystal-embellished tunic tops. The designer also presented a denim drop-waist party dress with a ruffled hem.

Rejina Pyo keyed into pandemic trends for comfort and versatility. A pair of straight leg, button-fly jeans was tucked casually into tall boots. A denim suit featured subtle shading and a roomy fit. For a pop of dopamine, a washeddown lavender jacket and jeans played with workwear constructions and seams.

Vintage floral prints added romance to Molly Goddard’s light-wash jeans. The fabric was also used for midi- and mini-skirts. The juxtaposition of delicate prints with long and chunky frays nodded to the collection’s eclectic ’80s story.

Ahluwalia made its LFW debut with a collection exploring creative director Priya Ahluwalia’s connection to both Bollywood and Nollywood. The designs are a “love letter to the films that informed her youth, placing them on a shiny pedestal for all to enjoy.” The result is jean jackets and slouchy straight fit jeans with laser print motifs that represent Ahluwalia’s crosscontinental heritage, combined with patchwork and piped details.

Laser printed denim was a part of Conner Ives’ ode to ’90s fashion. A shacket and low-rise jeans with cut waistbands featured an abstract design that highlighted the subtle shading effects achievable with the sustainable technology.

Stefan Cooke’s cable knit-printed jean jacket offered one of the most whimsical denim offerings from LFW, while Vivienne Westwood’s deconstructed logo was laser printed onto highwaisted jeans.

Powder blue, faux-fur boots and fuzzy knits softened House of Sunny’s collection. Oversized jeans featured Tetris-like patchwork in various shades of indigo. A pair of blue jeans featured color contrasting paneling and tonal embroidery.

Patchwork and contrasting fabrics added dimension to Nicholas Daley’s denim jackets, jeans and skirts that exuded ’60s and ’70s rock ‘n’ roll coolness.

In a collection dedicated to his father, Daniel W. Fletcher combined ’70s silhouettes and football club themes with jeans and jackets made from denim scraps sewn into checkerboard patterns. Sports were also the inspiration for David Koma’s collection that spanned rugbystriped mini dresses to pleated denim miniskirts, bustier tops and relaxed jean jackets.

House of Sunny Molly Goddard

Ahluwalia

Huishan Zhang

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FASHION MILAN

Without hindering creativity or style, designers at Milan Fashion Week treated denim with the same level of attention and craftsmanship Italy’s tailoring and leather industries are renowned for.

And in the case of Bottega Veneta—leather was used to create trompe l'oeil jeans. Under the new guidance of creative director Matthieu Blazy, the brand leaned into its leather heritage by presenting made-you-look jeans and white shirts made with printed nubuck leather. The seemingly pared-back designs stole the show, despite the rest of it being filled with platform heels and fringe skirts with plenty of wow-factor.

For Fendi, dark wash trouser jeans with front creases were the go-to companion for leather bustiers. The brand also presented a chic denim and leather handbag.

Other styles showcased fashion houses’ knack for traditional sewing techniques. Etro elevated baggy jeans with crisp tonal patchwork designs.

Colville approached the look by piecing dark wash fabrics with light. A glittery top upgraded Palm Angels’ ripped and patched loose-fitting jeans.

While there was no shortage of casually cool blue jeans—Cormio, GCDS and Missoni were among the brands that supplied the staples—

the event filled the space for statement pieces that New York and London left mostly empty.

Alongside cropped jean jackets and shirting, Act N.1 spliced denim apart and put it back together again with safety pins and tailoring fabrics in a show that included a diverse cast.

The brand also included a denim bustier, which has become a new ‘It’ item.

Pink and swirl-printed jeans by Des Phemmes nodded to Y2K without plunging into the era, which is exactly what Diesel did at its first Milan Fashion Week show. Creative director Glenn Martens presented a denim-rich collection—including evergreen styles from Diesel Library—in a scandalous set filled with giant inflatable “models.”

Highlights included a denim bralette, lowrise jeans with shredded waistbands, wrap skirts with micro lengths, a denim trend and a coat swathed with “denim fur.” Clear coatings added luster to jeans and shirting, while other pieces featured 3-D Diesel logos.

“The power of Diesel is that we talk to so many people,” Martens stated. “We can push sustainability and innovation, and we can push experimentation and concept.”

MILAN

Clear coatings enhanced the liquid-like look of Versace’s low-rise wide-leg jeans. The fashion house paired a denim corset top and miniskirt with deconstructed tweed boucle. Another advocate for Y2K fashion, Blumarine, returned with low-rise jeans in pop-star pink and blingedout belt buckles. MSGM opted for sparkles and star motifs, as well as metallic green coatings.

Meanwhile, Ferrari vouched for Y2K colors applying by yellow and pink filament prints to light wash denim jackets, jeans and skirts.

Two-tone jeans were a part of Dhruv Kapoor’s “Soul Tech” collection that included a combination of new, upcycled and custommade textiles. A cropped jacket and long wrap skirt featured a digitized floral print. Kapoor was one of several designers to find inspiration from the ever-increasing virtual world.

In a metaverse-inspired collection, Annakiki presented baggy jeans decorated with random pleats, material mixing, rips, cargo pockets and horizontal frays that served as a subversive pinstripe alternative.

Trussardi added pouch-like cargo pockets to skinny jeans, while Diesel applied the utilitarian detail to denim pant-boots.

Germanier

ACT N°1

Versace Bottega Veneta

Vtmnts

Coperni Balmain

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PARIS

Only the bling that decorated Germanier’s jeans and jackets could compete with the star power of Rihanna, Kim Kardashian and Zendaya at Paris Fashion Week.

In his first runway show, maximalist designer Kevin Germanier presented straight fit jeans, slouchy low-rise jeans and denim jackets covered in crystals and multicolored beads. A washed black denim miniskirt featured a wavy hemline, trimmed with baubles.

While Germanier’s denim designs were among the most colorful that Paris had to offer, there were plenty of blue jeans. Unraveled hems added an effortlessly cool look to Celine’s slouchy fits. Kenneth Ize opted for a more tailored look with a center crease and Calvin Luo kept it simple and clean with classic straight leg jeans.

Brands balanced the loose fits with corsetinspired tops, including Dior which presented a form-fitting bodice with traditional denim buttons and wheat-color stitching to emphasize the shape. Balmain keyed into the corset look as well with a high-waisted jean that zipped up to the bust. Padded jeans and jackets mirrored the moto theme seen in the first Yeezy Gap Engineered by Balenciaga drop, while black Velcro taping added a streetwear vibe to Balmain’s ripped jeans.

In general, deconstructing jeans with taping, belts, garters and sexy cutouts were trending themes. Along with a mini wrap skirt, Coperni presented a hybrid legging with denim legs— complete with a belt cinching each thigh.

Weinsanto added trompe l'oeil garters to cuffed wide-leg trousers. Gauchere punchedout front pockets of jeans to reveal a hint of hip, while Vien offers this season’s rendition on denim chaps.

Retro washes and exaggerated elements added dimension to Vaquera’s range. A cropped jean jacket was punctuated by an oversized collar and buttoned front pockets.

A pair of slouchy jeans had an extra-wide waistband. Washed down black and indigo jeans were also a part of Isabel Marant’s pocket-heavy jackets and jeans.

High contrast washes added a ’90s looks to Vtmnts’ oversized fits.

And in a nod to Elsa Schiaparelli’s U.S. clientele, Schiaparelli creative director Daniel Roseberry continued his exploration of denim, this time with white cotton embroidery on black denim.

Y2K PARTY Fashion’s Y2K revival played out on the F/W 22-23 runway.

The futuristic, pop star-inspired fashion that swept the early 2000s ranked No. 3 on Tagwalk’s list of global trends for F/W 22-23. The fashion search platform used the tag “2000s” for 336 looks, including Y2K crop tops by Aniye Records, Collina Strada’s bodycon dresses and Marine Serre’s take on the “Penny Lane” coat, which belongs to both the ’70s and ’00s.

“While some designers gave us a peek into the future, referencing the metaverse and Space-Age dressing, several were still looking to the past, reliving the Y2K era’s glory days,” Edited stated.

In some cases, style and color references are specific to moments of pop culture. “Polly Pocket pink” and baby blue washed over designs at Blumarine and 16 Arlington, while Coperni was among those channeling “Euphoria” with crop tops, lowwaists and cutouts, Edited added.

Indeed, “Euphoria” has gripped the attention of Gen Z and TikTok users.

The hashtag “euphoriaoutfit” has 58.4 million views on the video platform. The controversial HBO high-school drama was recently named the most inspirational TV show for viewers makeup looks and fashion choices by marketing research firm Uswitch, which analyzed Google search data from the last 12 months.

During the first couple of weeks of February, fashion search platform Lyst reported that searches for “cutout dresses,” a style frequently worn by “Euphoria” actress Alexa Demie’s Maddy Perez character, increased 42 percent and searches for cropped cardigans increased 18 percent.

While the Y2K trend is already being adopted by retailers across every market sector, Edited said the noughties revival is showing no signs of slowing down.

Despite the pleas of high-rise-loving millennials, low-rise jeans were central to Diesel’s Milan Fashion Week debut, and they have already been copped by trendsetters like Dua Lipa and Julia Fox. Connor Ives chopped off the waistbands for a sexy, undone look, while Christian Siriano went ultra-low with a pair of patchwork jeans for Gloria Vanderbilt.

Low-rise jeans are a Y2K hallmark, but another signature silhouette is coming into play: the low-rise miniskirt.

“Micro miniskirts were a hero piece at Versace and Christian Cowan,” Edited stated. Leather, ombre and furry-trimmed

miniskirts were featured in 16 Arlington’s collection. Blumarine added tiers of ruffles and cutouts to miniskirts.

The miniskirt was the piece de resistance in Miu Miu’s collection for a second consecutive season. Low-rise miniskirts in white were part of the label’s tennis-inspired collection. The style was also interpreted in black leather.

Meanwhile, the label’s ultra-low and ultra-cropped pleated miniskirts from its S/S 2022 collection have been magazines’ go-to cover look in 2022.

Nicole Kidman wore the Miu Miu skirt and matching bra top in Vanity Fair’s Hollywood Issue. Zendaya wore it in an editorial for Interview Magazine. Paloma Elsesser wore the skirt and Miu Miu’s chopped sweater in the cover of i-D. During the week of Feb. 23—the week Elsesser’s cover was released—Lyst reported that there were 900 searches a day on the shopping platform for Miu Miu skirts. In fact, demand for miniskirts on Lyst is at a three-year high.

Y2K’s zany side is also revealing itself through colorful furs and rhinestone embellishments. David Koma decked out models in crystal-embellished rugby shirts and racing stripe dresses, while MSGM and Patbo applied crystals to loose-fitting jeans.

The 2000s trends are already making an impact in retail. Edited reported that arrivals of bedazzled tops have increased 313 percent year-over-year, thanks in part to fast-fashion retailers like Shein and Zara offering a variety of going-out tops.

Embellished dresses at Lulu’s attributed to the style's 364 percent overall growth.

The blingy look is also on track to dazzle in the accessories and footwear categories this year. —A.V.

Euphoria

Q&A

Y2K REWIND

True Religion CEO Michael Buckley shares how he’s repositioning the 2000s brand for all ages. w o r ds _____VICKI M. YOUNG

True Religion’s CEO Michael Buckley not only went home again, but in his second tour at the brand he's managed to reposition it for a wider audience and make it profitable once more.

The brand filed for Chapter 11 bankruptcy court protection in 2020 during the Covid-19 pandemic, a time when many fashion brands lost cash flow due to governmental mandates in connection with temporary store closures.

The filing, the second one in three years, marked the dreaded Chapter 22 in bankruptcy parlance.

The first filing for the premium denim brand founded in 2002 Jeff Lubell was in 2017, when the private equity owned firm found itself getting crushed under a hefty debt load. The company exited its first tour of bankruptcy and restructured its finances but didn't solve all its problems on the creative or organizational side.

Buckley, who was the brand’s president during its heyday, re-entered the picture in November 2019, this time as CEO—but then the pandemic hit. Most companies at the Chapter 22 stage tend to fade away. Not True Religion, which was able to maintain its brand identity and restructure its debt load during its second bankruptcy process.

With a renewed lease on life, Buckley has been hard at work effecting a turnaround of the brand's fortunes. This time, the creative and organizational side of the business seems to be in sync with the company's financial structure.

Here, Buckley talks about the new True Religion, how he and his team have repositioned the brand, and why it’s working.

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Rivet: Tell me about True Religion's positioning in 2006 through 2010 when you were the company’s president. Back then, premium denim brands were the rage.

Michael Buckley: It was certainly the heyday of premium denim at luxury prices. I was president of True Religion, and it was one of the fastest growing and most profitable publicly traded apparel companies in the market. We were positioned in the luxury denim sector, really focused on attracting that $200,000-plus household income consumer.

True Religion jeans then were priced between $200-$300 and were worn by countless celebrities and customers who shopped at upscale department stores like Fred Segal, Saks Fifth Avenue, Nordstrom and Neiman Marcus.

Once I left the business, it became obvious that this consumer had changed dramatically.

Rivet: You rejoined the company in November 2019 as CEO and embarked on a repositioning of the brand. What changed? Was the premium customer no longer buying the brand? Was it because there was a lull in the denim cycle? Or were there other factors as play?

MB: When I left True Religion in 2010, the consumer was already beginning to change and by 2013 it was evident that the brand was struggling to evolve with it. The brand was trying to find its way to attract a luxury consumer. It had lost its way and was even struggling with the brand identity when the team got rid of True Religion’s iconic horseshoe and Buddha [logo].

We know that fashion, especially denim, is cyclical, and today denim is making a comeback.

When I rejoined the brand in 2019, I was very focused on restoring the brand heritage while also understanding and reimagining its new consumer to drive growth. One of the first things I did was to bring back Zihaad Wells as creative director. We had worked together at True Religion in 2006 and he knows the brand’s image better than anyone.

Together with Zee, we got the product back to where it once was, with a nod to its past but an understanding of its future. We also undertook a survey to find out more about our customers.

We discovered that True Religion appeals to a broad demographic range of diverse men and women from ages 15-60-plus. The average household income today is about $65,000. We believe there are over 150 million people in the U.S. alone that fit into the new True Religion demographic, which obviously gives us a much broader reach as a brand. Trust me, when we were selling $300 jeans in 2010, my audience was nowhere the size of what it is today.

Rivet: What is the average price point for True Religion now? How much of the product mix is denim-focused?

MB: It was imperative that we re-engineer

True Religion CEO, Micheal Buckley

the supply chain to reduce manufacturing costs so that we could drive gross margin and profitability. We adjusted our price points and are now selling products with an AUR of $79-$99 on jeans, $29 on T-shirts and $59 on hoodies. Although our garments are at a lower price point, True Religion is still a status symbol, and our consumers want a mix of jeans, T-shirts, hoodies and branded accessories at an affordable price. This price positioning penetrates 50 percent of the market share of the apparel industry as compared to True Religion’s previous luxury positioning that comprised just 5 percent of the apparel industry. Jeans make up about 40 percent of our sales, and I expect that to increase to 50 percent of the total merchandise mix soon. Our consumer base is roughly 60 percent men and 40 percent women.

I’d say that our new brand positioning is a success based upon the fact that we used to sell 2-3 million garments per year, and we are now selling in excess of 8 million. We have 3 million customers in our database, which continues to grow by double-digits. We’ve had some extremely successful collaborations this past year with Supreme and many diverse new influencers who truly reflect the values and lifestyle of our customers. Communicating in a relevant way to our customer base is the foundation of our marketing strategy, which has evolved from simply transactional communications to more emotionally connected messages and community support across social causes, small businesses and charitable causes.

with around $250 million in total sales and an EBITDA margin of approximately 30 percent.

Improving our channel penetration mix has started to pay off. This past year, e-commerce has grown to 40 percent of sales, while wholesale and physical retail are at 30 percent. Over the next five years, our goal is for e-commerce to increase to 50 percent, with wholesale at 40 percent, and vertical retail at 10 percent.

Rivet: Why do you think we're now back in a denim cycle? And to that point, what are some of the brand's popular denim finishes, washes and silhouettes?

MB: We like to offer different silhouettes for everyone, whether they are skinny or slouchy.

Like everything, the denim sector is constantly evolving and these cycles typically last between 3-5 years. We’re in the beginning of a new cycle, a very strong one, and I think part of this is due to the pandemic. We saw sweatpants make a comeback as people were forced to stay home; however as we all return to a new normal and go back to in-person workplaces and events, people are looking for new jeans and a reason to dress up.

We pride ourselves on being authentic and staying on top of trends while at the same time designing denim that reflects the original styles of True Religion. New processes that we’re seeing include brands relying on recycled denim and yarns as well as waterless washes and laser technology, which is a highly impactful and sustainable mechanism for developing denim these days. For us, we are leaning heavily into the culture of upcycling. It’s no secret that much of True Religion’s resurgence comes from those who are thrifting our original denim. What’s great is that it’s getting into the hands of creatives who are breathing new life into our denim, True Religion collaborated with rapper 2 Chainz in 2021.

Rivet: Is True Religion profitable?

MB: Yes, we’re one of the most profitable businesses in this sector and 2021 was a great year for us. We saw the True Religion business grow at a double-digit rate and finished the year 39

Q&A True Religion dropped a Fall 2021 capsule collection with Supreme.

and we are partnering with them to provide additional support on a larger and wider scale.

Our collaboration with Jaffa Saba was all about repurposing deadstock garments, while creatives like Elijah Popo and Madeline Kraemer are repurposing our denim to meet current trends and the desires of new customers. Additionally, this year marks our 20th anniversary—so we will be launching our Vintage Marketplace, an opportunity to reintroduce original product in one place and continue the lifecycle of some of our most popular silhouettes.

Rivet: Now that the brand has more accessible price points, are you sourcing differently from your first tour at True Religion?

MB: Part of my transformation strategy was re-engineering True Religion’s supply chain from the onset to reduce manufacturing costs in order to drive gross margins and profitability.

Today, we source globally in Mexico, China, Bangladesh, India and Pakistan. This is quite different from when I was previously with the company, when 100 percent of the brand’s jeans were made in Los Angeles. We’ve been able to make garments such as tees, hoodies and joggers in North America and jeans in Mexico.

If we need products quickly, a lot of our chase is from the U.S. or Mexico, where we can receive items in 45-60 days.

Rivet: How has True Religion’s distribution changed since the early 2000s?

MB: A key component of True Religion’s growth strategy is a diversified distribution strategy. Like many brands, we’re seeing the most growth year over year through our e-commerce site, but wholesale and physical retail are both very important components to 40

apparel and accessories market are sold at, we believe True Religion can grow to a $1 billionplus revenue brand.

our overall growth strategy. We are in 4,000 wholesale doors globally, which include major retailers such as Macy’s, Dillard’s, Downtown Locker Room (DTLR) and Urban Outfitters.

It’s vital that we continue to offer a rich in-store experience while also supporting our wholesale partners. One of our most prominent markets is our international business, and with very limited physical stores abroad, it is a necessity to make sure our e-commerce site supports all retail partners in the U.S. and overseas. We are a promotional brand today; however, this strategy works for us and performs very well in those retailers.

Rivet: True Religion's store base is significantly lower today than during your first tour as president. Of total sales, how much volume is from your stores?

MB: When looking at our transformation strategy, reducing store count was a key component of this. Of total sales, 30 percent of our volume is in our 50 stores. We will look selectively at opening new stores in power outlet centers where our consumer shops.

Rivet: What about True Religion's growth runway? What do you see as the major opportunities for the brand going forward?

MB: We are focused on our 5-year plan to get the brand to $500 million in revenues, really driving the growth of our e-commerce channel, which will represent half of the business. With this strategy, wholesale will represent 35-40 percent and our brick-and-mortar stores will represent 10-15 percent. Based on the 150 million-size of our addressable market, the size of our product range and the fact that our price points are where 50 percent of the $250 billion

Rivet: Let’s talk about social media? What is the brand doing to attract and keep the attention of your targeted customer base? And what about the metaverse?

MB: How we show up in the digital sphere is ultimately backed by our audience wanting two things: branding and product in its most organic element. They want to see the brand on real people, which is why we prioritize usergenerated content and influencer-generated content. Additionally, we tap young creatives to creative direct shoots for our drops and bring to life their perspective of the brand—allowing us to show our product on real people out in the world. We show up for a generation that is speaking for themselves and ultimately, we want to give them the partnerships they want, too. As far as the metaverse is concerned, it is something we are exploring but it’s also something we are not concerned with rushing. We want it to be impactful, and, of course, to amplify a cultural moment. However, we are not looking to jump on the trend for the sake of keeping the trend alive. Circling back, our audience is extremely vocal and if we don’t enter the metaverse in an authentic way—they will have no problem telling us.

Rivet: September 2021 saw the launch of the True Religion x Supreme collaboration. How did that come about, and will we see more collaborations in the future?

MB: Supreme works with brands that reflect their values of being unique and original, so we were honored when they reached out. That’s probably why the collection sold out in three minutes. They were supportive and enthusiastic about our Super T stitch, the horseshoe design, and the Buddha logo, all stapes in the True Religion aesthetic. Partnering with Supreme was an exceptional opportunity for True Religion to reach a new audience. The process was very simple, we helped design the product, and they controlled the distribution through their websites and stores. The partnership was such a terrific experience overall and served as a fantastic reminder of what made True Religion so special. We will continue to partner with the brands, designers, and influencers that are important to our consumers.

Rivet: What would you say keeps you up at night?

MB: What kept me up at night when I came back in 2019 was being able to transform True Religion into the amazing apparel brand I knew it could be. Now that we did that and are one of the most profitable apparel brands in the U.S. once again, I sleep great.

EB DENIM DRESS; LIBERAL YOUTH MINISTRY BODYSUIT; STELLA MCCARTNEY SANDALS; MANSUR GAVRIEL BACKPACK; BLUMARINE NECKLACE; CELESTE STARR RINGS; ALISON LOU RINGS; MISHO RING; AND ACCHITTO RING (RINGS WORN THROUGHOUT).

!"#d$ !"#$i%$&'c( photography _____ SHXPI R H UAN G styling _____ ALEX B AD I A

THIS PAGE: ETRO TOP AND JEANS; AND BLUMARINE JACKET. OPPOSITE: GUESS JACKET; NIKITA KIRIZMA BUSTIER AND PANTIES; ABRAND JEANS; ISABEL MARANT SANDALS; BLUMARINE HANDBAG; AND JOOMI LIM NECKLACE.

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Model: Alexandra Elizabeth @ Kollektiv MGMT; Hair: Izumi Sato; Makeup: Ayami Nishimura Visual Media Director: Jenna Greene; Market Editors: Luis Campuzano, Emily Mercer and Thomas Waller; Fashion Assistants: Kimberly Infante and Ari Stars; Photo Assistants: Ed Singleton and Vince Cai; Casting: Luis Campuzano.

THIS PAGE: OH MIGHTY TOP; FAITH CONNEXION JEANS; MISSONI SANDALS; AND BURBERRY SUNGLASSES.

OPPOSITE: MISSONI TOP AND SKIRT; AND BLUMARINE BELT.

ME TAV ERSE

Fabricant Studio

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( Virtual ) Reality Show Is the metaverse denim’s next frontier? w o r d s _____CHUCK DOBROSIELSKI

Though the metaverse of Meta CEO Mark Zuckerberg’s dreams remains years away, analysts are already predicting a multi-trilliondollar revenue opportunity.

In November—just weeks after Facebook’s Meta rebranding—Morgan Stanley identified the metaverse as an $8 trillion addressable market. Goldman Sachs analyst Eric Sheridan echoed that forecast on the bank’s “Exchanges” podcast in December.

“We see the digital economy continuing to grow and on top of that we see a virtual economy that can grow within and alongside this digital economy,” Sheridan said.

Every “expert” has their own nuanced understanding of what the metaverse is and will be, but the definition crafted by Matthew Ball—a venture capitalist who has been described by Zuckerberg as “one of the most sophisticated thinkers about the metaverse”— stands out as one of the most comprehensive out there.

“The Metaverse,” Ball wrote in the lengthy “primer” he published last summer, “is a massively scaled and interoperable network of real-time rendered 3D virtual worlds which can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.”

Though Ball believes this “full vision of the Metaverse” is decades away, virtual worlds like Roblox, Decentraland and The Sandbox offer a preview of what might be. Referred to by some as individual metaverses—according to Ball, equating a platform like Roblox to the capital-M Metaverse would be like conflating Facebook with the internet—they provide a place where users can walk around, socialize and create and play games.

Roblox is far and away the largest of these lowercase-m metaverses. In the final quarter of 2021, the platform recorded nearly 50 million daily active users (DAU), far more than the tens of thousands who populate Decentraland and The Sandbox, the two most well-known blockchain-based virtual worlds. Over the past year, brands and retailers have flocked to Roblox, setting up their own environments where users—preteens account for roughly half

of the platform’s DAU—can play themed minigames and buy virtual clothing.

The degree to which users have embraced these branded worlds varies. After two months on Roblox, Forever 21 Shop City had hundreds of thousands of visits and more than 1,600 “favorites.” Ralph Lauren, meanwhile, launched its ski-themed experience leading up to the 2021 holiday season and received millions of visits and tens of thousands of favorites. Vans World managed to rack up tens of millions of visits and hundreds of thousands of favorites since its September 2021 debut.

Tommy Hilfiger has also chosen to engage with Roblox. Instead of launching its own siloed environment, however, it selected eight designers from the platform’s community and collaborated with them on a collection of 30 digital fashion items. Released via Roblox’s “Avatar Marketplace” in December, the items reimagined Tommy Hilfiger jeans, tops and accessories.

THE ‘DREAM OF INTEROPERABILITY’ Though Roblox has become the testing ground du jour for brands eager to experiment and “enter the metaverse,” it is just one part of the larger picture.

Morgan Linton is the co-founder and chief operating officer of Bold Metrics, a technology 53

ME TAV ERSE

it’s worn—not to mention the complications company that is using its body modeling that arise if one’s avatar is anything other technology to create non-fungible tokens than humanoid. At The Fabricant, this means (NFTs) that will remember a consumer’s that the garments its community creates in specific body measurements. A long-time Fabricant Studio—an interactive platform it believer in NFTs’ potential, Linton was an launched this winter that allows users to create early investor in Ethereum, the six-year-old and mint unique apparel NFTs—are only blockchain on which the vast majority of NFTs wearable in The Sandbox for now. are secured today. When the Bored Ape NFTs “The dream of interoperability is what dropped last spring, he was there, snagging we’re going with,” Larosse said. “We have to, his own ape just two days after the collection obviously, negotiate with as many different was minted. environments as we can to get them in the In Linton’s view, the big rush to get in on places that we’d like them to be to live up to the metaverse ties back to NFTs. He pointed the idea of an interoperable garment that’s in to Second Life, a 19-year-old virtual world multiple places for you to wear.” that he considers the best example of an early metaverse, as an example of how things typically work without NFTs. “The challenge EXPERIMENTING WITH NFTS was all the assets in that were only usable in The best way for a brand to learn about NFTs Second Life, they were all technically owned and the blockchain “is to get hands-on,”

by Linden Labs,” the platform’s creator, he said. NFTs, on the other hand, open up the possibility of someone, like an apparel brand, creating a token that a consumer could own and then use to redeem the same item, such as a pair of digital jeans, across platforms.

“There’s a lot of new games coming out constantly,” Linton said. “If I’m Adidas and I did a collab for a skin in Fortnite and then five years down the road, that game goes out of business or is deprecated, well now my users lose those assets, whereas with an NFT, they can actually go, ‘Oh, OK, well maybe I can use it in Battlezone, maybe I can use it in Counter-Strike.’”

Though this sort of use case remains hypothetical for the most popular video games—for now, very few allow players to connect a crypto wallet—Under Armour put this idea of interoperability into action in December with an NFT that gave owners access to digital replicas of blue Curry Flow 9 sneakers Fabricant Studio that could be worn in Decentraland, The Sandbox and Gala Games’ flagship Town Thomas Kasemir, the chief product officer at Star game. the product-to-consumer e-commerce platform The Fabricant, a virtual fashion house that Productsup, said. sold the world’s first-ever digital-only dress “Companies should challenge and NFT in 2019, is a big believer in interoperability, encourage their technical teams to experiment Michaela Larosse, the firm’s head of content with generating NFTs with generative art and and strategy, said. “You should be able to port then minting them on the blockchain at a small your garments from platform to platform and scale,” he said. “Just by taking a stab in the choose where you want to wear them on your dark, you’d be surprised at how much you can own terms,” she asserted. learn about the untapped opportunities and Following through on this idea, however, is unsolved problems of the NFT space.” complicated. Different platforms have different And though truly interoperable, aesthetics and mechanics, meaning that any blockchain-based fashion has yet to scale in a given article of digital clothing could look meaningful way, plenty of brands and retailers and behave differently depending on where have dived right into NFTs.

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When Diesel unveiled its Prototype sneaker in November—the $395 kicks were creative director Glenn Martens’ first with the denim brand—it simultaneously revealed plans to launch the shoe as a limited-edition NFT. Created by The Fabricant, the token hit Neuno in mid-March. Around the same time last year, Diesel’s parent company OTB unveiled a new business unit—Brave Virtual Xperience (BVX)—dedicated to developing products for the metaverse.

“BVX has the ambition to drive the digital transformation at OTB Group and its brands toward the future of our society, which will merge the life in the real and virtual world,” said Stefano Rosso, member of the OTB board of directors. “Unlocking the potential of our brands in the gaming world and metaverse is definitely the most exciting experience to work on.”

In fact, the new must-have for any launch is an accompanying NFT. In January, Levi’s invited shoppers in France to take part in a drawing for 10 pairs of its new Circulose 501 Original jeans—each backed by an NFT. The denim maker described the launch as its “first series of Levi’s jeans guaranteed for life by NFT certification.”

Wrangler, for example, marked its 75th anniversary in February by teaming with singer Leon Bridges to auction off 75 NFTs. Each token gives the owner access to digital communities, virtual wearables, and a VIP pass to a private performance by the Grammy-winning artist at New York Fashion Week in September. With this experience in hand, Tom Waldron, the global brand president at Wrangler, said the brand will be looking at ways to continue to build digital components into physical products and vice versa.

Of course, as a new technology that burst into the mainstream in a relatively short amount of time, NFTS have their flaws. Tokens minted on the proofof-work blockchains like Ethereum use up enormous amounts of energy. For this reason, many retailers have chosen to use proof-ofstake chains like Cardano or Tezos that are less popular, but more energy-efficient. At Wrangler, the denim brand has committed to offsetting—Waldron said it is doubling the recommended offset target—all emissions associated with its Leon Bridges NFT collection.

“As the metaverse becomes more important in our lives, we want to grow our online community and give everyone the confidence to thrive in new frontiers,” Waldron said.

Celebrating 30 years of sustainable fiber innovation

Discover TENCEL™ Denim in Amsterdam Kingpins Amsterdam April 20–21 Denim Days April 22–23

To learn more, visit carvedinblue.com or email denim@lenzing.com TENCEL™ is a trademark of Lenzing AG

HISTORY

COWBOY COOL Wrangler’s 75th anniversary shines a spotlight on the heritage brand’s future. w o r d s _____KATE NISHIMURA

Few labels stand the test of time. Even fewer can claim the distinction of being among the country’s most enduring heritage brands.

Wrangler celebrates its 75th anniversary this year, and in the seasons leading up to that milestone, the denim pioneer has been taking stock of its history, its community and its impact.

While one might assume that a brand built in 1947 might simply be focused on preservation in 2022, Wrangler is intent on making progress.

In a retail landscape now teeming with directto-consumer upstarts aiming to strike gold on Instagram, the company is eager to evolve, meeting consumers where they are instead of banking on continued loyalty.

“This is a brand that has never sat still,” said Holly Wheeler, Wrangler VP of global marketing. Championing innovation, whether it takes the form of new product lines, silhouettes, fabrications or marketing strategy, has been central to Wrangler’s staying power. What’s more, she said, the shifting values of modern consumers—who are eschewing fast fashion trends in favor of quality and function—are aligning more closely with the brand’s founding ethos than any time in recent history.

“Our brand was founded, basically, on meeting the needs of working cowboys,” she explained, filling the need for a jean “that could withstand the rugged lifestyle of the West.” In today’s market, there’s a “growing curiosity” among young shoppers who are looking for “real, authentic, American workwear brands,” Wheeler said, “not necessarily because they want to wear them to a job site, but because they’re enamored by the origin and the inspiration behind the product.”

Vintage styling and secondhand shopping continue to snowball in influence among the Gen Z and millennial set, and she believes that these consumption trends run deeper than an appreciation for the aesthetics of bygone eras.

Consumers, now aware of the impact that their 56

HISTORY purchases have on people and planet, are seeing value in purchasing pieces that hold up to wear and tear, even changing hands over the years.

The idea of a garment living multiple lives is not just a romantic notion—it’s becoming a new, sustainable reality, and one that can’t come fast enough. For Wrangler, “durability and value are things that have continued to propel the brand forward,” Wheeler said, “even as times have changed, and fashion trends have come and gone.”

It’s undeniable, however, that “cowboy cool” is having a moment, she admitted, pointing to cult TV hits like “Yellowstone”—which recently released a collaboration with the brand—or Beyonce’s Western-inspired collection for her Ivy Park line of athletic apparel. “There’s an aspirational quality to this space that’s translating to mainstream culture,” she said.

Wrangler is basking in the warmth of the fashion spotlight amid the growth of the Western trend and using it as an opportunity to broaden its appeal. According to Wheeler, the company’s focus “is really on making sure that we open the aperture for the brand” in the coming seasons. Wrangler will continue to champion the unique look and feel that has made it beloved over the years, while becoming more accessible to new consumer groups.

“From a distribution standpoint, from a price point standpoint, from a geography standpoint, from a diversity standpoint, we want to make sure Wrangler is a brand [shoppers] can see themselves in,” she said.

BREAKING GENDER BARRIERS That has meant broadening the range of women’s styles and infusing them with modern appeal. While Wrangler’s core consumer base was once decidedly male, that breakdown has shifted, mirroring society’s evolution. Offerings for both men and women have strengthened across all categories, Wheeler said, from workwear to everyday denim and other apparel staples. Still, the women’s line in some ways represents an opportunity not fully realized, and she hopes to see a fresh generation of consumers adopt the brand as their own.

“I think the evolution has been really exciting,” echoed Vivian Rivetti, the brand’s global vice president of design. “When I started here about five years ago, there was no women's to be worn because we really didn't have a women's contemporary lifestyle brand.” The brand’s Western women’s offering complemented the men’s line, but Rivetti longed to expand beyond utility and capture a side of the market that was more playful. “It's all about building out our lifestyle business and casting a wider net,” she said, “and we’re doing it through strategic designing.”

That doesn’t mean revamping the brand to be something it’s not—or creating a watereddown version of the styles for which Wrangler

has become famous. In fact, broader trends in denim—like the movement away from skinny jeans, for example, have played into the brand’s hands, with many of its classic silhouettes being boot cuts and straight-leg silhouettes.

“I'm excited about looser fits both the women's and men’s market,” Rivetti said. “A lot of the new fabrications that are being used don't necessarily have that stretch,” she said, like many of the more form-fitting styles that have been waning in influence, especially amid a pandemic. “Wider fits are trending, and we’ll also see lighter-weight fabric,” she said. “If you have a looser leg, you can do a fabric without stretch.”

“Comfort is something that the consumer does not want to give up,” she added, “But, comfort doesn't mean only that it has to have Lycra or spandex.”

In recent years, Wrangler has forged partnerships with retailers like Free People, Nordstrom, Shopbop and Billabong as a means of forging connections with young shoppers— especially women. Urban Outfitters also sells a curated line of vintage Wrangler favorites, from denim to flannel button-downs. “We have pretty heavy criteria for how we evaluate collaboration partners,” Wheeler said, explaining that the brand looks for retailers with similar values, along with those with the right retail footprint, hitting regions where Wrangler can have the greatest sales impact. But, as evidenced by its more recent roster of distributors, Wrangler is not opposed to exploring “unexpected” relationships that can expose the brand to new audiences.

OUTDOOR OPPORTUNITIES The brand has also doubled down on its AllTerrain Gear (ATG) assortment, which blends the durability of Wrangler workwear with

outdoor styling and versatility. The line of men’s and women’s outerwear, leggings and pants, which launched about four years ago, is loaded with functional features and fabrications imbued with UV protection and water resistance.

ATG has seen accelerated growth throughout the Covid crisis, Rivetti said, because shoppers have spent more time grounding themselves in nature. “You’ve got to take the temperature of the market and some of these leading indicators that are happening, and go for it,” she added.

While consumers may not have previously pegged Wrangler as a brand built on outdoor exploration, the brand’s focus on functionality and practical styling makes the category a natural fit. “I'm a big believer of giving the consumer what they never knew they wanted,” Rivetti said. “As long as you ground yourself in your DNA and your personality, you can a build upon it and push further towards that North star.”

Amid the pandemic, the brand’s e-commerce channel has also seen accelerated growth, bringing a brand once sold chiefly by independent retailers and small franchises to the world wide web. “There’s obviously a lot of focus there,” Wheeler said, as many shoppers are just beginning to venture back out to stores after two years of intermittent lockdowns and social distancing guidelines.

DIGITAL FUTURE Wrangler, which worked with an agency to manage its web channel previously, brought the effort in house and built up its team of experts amid the global screen-time boom. The brand’s e-commerce aficionados have been working closely with its DTC team on “everything from content creation to launches, post-purchase consumer care and social,” Wheeler said. “Digital was a focus for us before, and we had started to 57

HISTORY put the pieces in place to make sure that we were building the right internal resources to be able to support a really robust strategy,” she added.

Alongside a burgeoning digital strategy, Wrangler is taking its first steps into the virtual realm. In February, the company announced the launch of its first NFT alongside musician and brand ambassador Leon Bridges, who also worked with the Wrangler on a collaborative collection as a kickoff to the brand’s 75th year in business. The limited-edition metaverse wearable, a denim suit designed for Bridges and dubbed “Mr. Wrangler,” is available to just 75 Wrangler customers.

Throughout the year, Wrangler is slated to launch pieces from an anniversary capsule that includes about 15 pieces, including reissues of favorite heritage styles and storytelling pieces from pivotal moments in the company’s history.

“We were going through like some of the archived ads recently,” Wheeler added, “and we really have been there for all of these incredible cultural moments”—from the return of soldiers after World War II and the rise of denim workwear thereafter, to the cultural revolution of the 1960s and 1970s, which changed the fashion landscape forever. “There was the coining of the term ‘teenagers,’ and it became this phase of true personal expression,” she added. “When I look back, I really feel like the ’70s was a fundamental time for the brand,” she added, noting its role in rock and roll music culture and its importance in bringing denim jeans to a female audience.

A 20-year-old C.C. Hudson leaves Spring Hill Farm in Williamson County, Tenn. to work in the emerging textile town of Greensboro, N.C. He finds work in an overall factory, sewing on buttons for 25-cents a day.

"This is a brand that has never sat still.”

—HOLLY WHEELER, WRANGLER

These moments could all be referenced throughout the drops seen in the coming months, Rivetti teased. “We’re honoring some of the jeans that made us famous, that we’re still rolling out today,” from original cowboy cuts like the 13 MWC, 11 MWC, and the 14 MWC, along with some of the “Lady Wrangler” styles popularized during the ’70s. “We’re showcasing them in a new, celebratory way,” she added.

2022 won’t be a year spent gazing in the rearview, Rivetti said. While 75 years marks a significant milestone for the brand, the focus is always on what’s next. “We’re taking from the past and colliding it with the future.”

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TIME TRAVELER How Wrangler went from the rodeo to the world stage by becoming an early adopter of sustainable technologies.

1897

1904

1919

A 20-year-old C.C. Hudson leaves Spring Hill Farm in Williamson County, Tenn. to work in the emerging textile town of Greensboro, N.C. He finds work in an overall factory, sewing on buttons for 25-cents a day.

Hudson’s workplace closes but he and a few others buy several of the sewing machines. Hudson and his brother, Homer, form the Hudson Overall Company, operating from a loft above Coe Brothers Grocery in Greensboro.

Sales of Hudson’s overalls boom. The company moves to larger headquarters and changes its name to Blue Bell Overall Company.

1962

1947

1943

1936

Blue Bell opens a plant in Belgium and the Wrangler brand is launched in Europe.

Wrangler authentic western jeans, designed by celebrity tailor Rodeo Ben, are introduced.

Blue Bell acquires workwear manufacturer Casey Jones Company and the rights to its rarely used brand name, Wrangler.

Blue Bell introduces Super Big Ben Overalls, featuring 100 percent sanforized fabric that reduces shrinkage to less than one percent, setting a new standard for the industry.

1974

1985

1986

Wrangler jeans and shirts become the first (and still only) western wear brand to be officially endorsed by the Pro Rodeo Cowboy Association.

Freddie Mercury wears Wrangler jeans during Queen’s 1985 Live Aid performance.

Wrangler jeans Blue Bell merges with VF Corporation, making VF Corp. one of the two largest jeans makers in the world.

2022

2021

2020

2019

Wrangler debuts its first NFT.

Wrangler introduces jeans made with Infinna Fiber Company’s regenerated and recyclable fiber to the European market.

In collaboration with Pottery Barn Teen, Wrangler introduces its first-ever home décor collection.

Following VF Corp.’s separation of its jeanswear division, the independent, publicly traded company becomes Kontoor Brands, Inc.

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THE PLANT BASE Fans of Lenzing Group’s Tencel lyocell reflect on the fiber’s 30-years of impact. words _____ANGELA VELASQUEZ

Orta

60

SUSTAINABILITY It’s not easy for a new fiber to make a dent in an industry as cotton rich as denim, but after 30 years Lenzing Group’s Tencel lyocell has a first-row seat in the category’s sustainability and comfort overhaul. Made with sustainably sourced natural raw wood and produced using environmentally responsible processes, Tencel lyocell have become an ingredient brand synonymous in the denim sector for its low amounts of water, low carbon footprint and softness.

“Today, many brands are committing time and effort to sourcing innovative materials that are durable and ethically made. But not every innovative material fits the bill,” said Berke Aydemir, head of R&D and technical sales at Naveena Denim Mills. “Tencel fibers are made using more environmentally responsible processes than artificial fibers such as nylon and polyester, and they deliver comfort and durability. Plus, they look good.

These attributes fit the changing lifestyle and expectations of consumers.”

Tencel lyocell’s journey began in 1992 with production in Alabama, followed by Lenzing launching the first full-scale lyocell production plant in Austria in 1997. Lenzing acquired the Tencel brand and its production sites in the U.S. and U.K. in 2004, and production was further expanded in 2011 when Lenzing established the first lyocell fiber plant in Lenzing, Austria.

As closed loop processes gained importance, the company introduced Tencel lyocell with Refibra in 2017, a technology that utilizes a mixture of wood from sustainable sources and cotton waste from garment production.

Turkish mill Orta was the first company to get exclusivity of lyocell in Europe (before Lenzing bought the Tencel brand), and then lost it to Spanish firm Tejidos Royo, which Orta’s marketing and washing manager Zennure Danı man said “very wisely” used the fiber in lighter weights and created a new market.

“Still, it’s a nice story and good experience for Orta, and we should really give credit to Tejidos Royo for their success of using Tencel as a first in our industry,” she said. Orta’s journey with Tencel lyocell resumed in the 2000s and the fiber is now part of 20-25 percent of its production.

Tejidos Royo started to produce Tencel fabrics in 1991. Initial tests were almost impossible to spin, but because it was such an important novelty it captured a lot of interest, said Jose Rafael Royo Ballesteros, Tejidos Royo VP and sales manager. “We had a lot of quality problems, but we knew how to handle it and we were able to become the leader in the Tencel market by being the biggest buy of the fiber,” he said.

Royo Ballesteros added that this “green fiber of the 21st century” is now used in 40 percent of the mill’s current collection. Of this 40, 20 percent of the fabrics are 100 percent Tencel.

In an era where comfort and sustainability are must-haves, Genious Group president and founder Adriano Goldschmied said Tencel

Tencel lyocell

branded fibers are essential. The “Godfather of Denim” was introduced to the fiber at its onset when he was looking to “give denim a more feminine and friendly style.” He was so impressed by Tencel that he designed a complete collection, which went on to revolutionize the textile and denim industries.

A who’s who of denim brands have followed suit including Boyish, Guess, Kings of Indigo, Levi’s, Madewell, Mavi, Mother, Rag & Bone, Reformation and more.

“Tencel opened a whole new window and perspective to the denim world,” said Noman Nadir, Soorty VP of research and product development. “It brought the ability of denim designed to be more premium and popular.”

Alberto Candiani, president of Candiani Denim, echoed this sentiment, describing the fiber as one of the “most significant” recent innovations in denim. “We first used Tencel in our blends back in 2014,” he said. “It was a 60 percent Tencel, 38 percent cotton and 2 percent elastane [fabric] with a beautiful look and touch.

It is still in production today; it became a core

fabric for many Californian premium brands.”

Tencel was part of DL1961’s 2008 launch and it remains a key piece in DL Ultimate, the brand’s line of fabrications with regenerative fibers. “Tencel has allowed the denim industry to transform its manufacturing and product quality,” said Sarah Ahmed, DL1961 co-founder and chief creative officer. “Jeans incorporated with Tencel are not only beneficial for the environment, but the consumer benefits too because of improved fit and function.”

SUSTAINABLE SOLUTION

With its circularity and solution for low-carbon emissions, Goldschmied described Tencel as the “answer to an eco-strategy in fashion.”

“I think once you get to know the fiber and its characteristics, Tencel adds a layer to denim. It’s like denim on its own is bread, but add Tencel, and it is now avocado toast,” said Suzie P. Lee, Black Orchid VP of operations and production. “I have always been fascinated at the ‘life’ that Tencel has. It breathes and grows as if it was alive and as challenging as that was when we first worked with the fiber, no other 61

SUSTAINABILITY fabric can give you the luxurious and buttery hand that Tencel does. Best part of it all is that it is sustainable and organic.”

It’s for those reasons that Vietnamese spinning and denim mill XDD Denim opened its facility in 2020 with Tencel x Refibra being a part of its production. The blend is featured in Ecology Denim, XDD’s 5-in-1 concept that combines it with GRS-certified recycled cotton, organic cotton, textile waste and Hyosung’s Creora bio-based spandex. “Our vision is to provide marketable fabrics and trends to our customers with sustainability methods.

Therefore, Tencel will [play a role in the development] of our hero product,” said Man Ng, XDD’s denim director.

XDD’s capacity is on track to reach 4 million yards by 2023, and one-third of products will be using fiber from Lenzing. Ng anticipates that XDD’s use of the fiber will increase following the launch of Tencel’s new $450 million production facility in Thailand. The new plant, which Lenzing said is the largest of its kind in the world with a capacity of 100,000 tons per year, started production on schedule and will help to better meet the increasing customer demand for Tencel branded lyocell fibers.

Tencel exists in 80 percent of Boyish’s collection of sustainable jeans, with fabrics containing anywhere from 18-40 percent of the fiber.

Naveena Denim Mills

Azgard9

“With the recent sustainability boom, Tencel has become a huge player,” said Jordan Nodarse, Boyish founder and creative director. “I’ve visited their factory in Austria several times and I’m always impressed at the level of efficiency behind the manufacturing process of Tencel. They even monitor the rivers and wildlife of the surrounding areas of their manufacturing plants. That’s rare for fiber companies to ever care more about anything than just bottom-line profit. Tencel does it all.”

SOFT SPOT As denim companies increase ways to entice consumers away from loungewear and activewear, so has its use of Tencel.

“Denim was traditionally seen as sturdy, if a bit rigid,” said Baber Sultan, Artistic Milliners director of product development. “The spectrum has grown and Tencel has played a big role in that by bringing another dimension to it, adding comfort and luxe, and to be able to do that while being sourced responsibly is a huge win.”

The fiber has gone on to become a major part of the Pakistani vertically integrated denim manufacturer’s production; it uses over 350 tonnes Tencel a month.

Chinese mill Blue Diamond started its use of Tencel in 2012, beginning with lightweight woven shirting in both 100 percent Tencel constructions and Tencel/cotton blends for the European market. About 20 percent of its total production now includes Tencel fibers.

The mill’s LZ-45 fabric (79 percent cotton, 21 percent Tencel) is the largest order volume that it runs. The fiber gives the 12 oz. denim a soft hand without compromising the authentic 3x1 twill

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favored by denim heads. “It looks rugged and authentic, but sophisticated and modern to the touch,” said Gary You, Blue Diamond’s VP of business and product development.

“Tencel not only brought another cotton alternative to the denim narrative but leveled it up on how traditional workwear can be elevated,” he added. “When blended with other natural fibers, it made it fancier, smarter and sexier.”

Soorty Enterprises’ production with Tencel ballooned 128 percent in the last year, and Nadir said further increases are expected.

“When we look at the past five years, we see all our best sellers are woven with Tencel fibers, including the launch of completely new concepts,” said Alper Cataloglu, Soorty’s senior manager, product development. “Consumers appreciate the added value that comes attached with materials that are innovative by nature.”

The Pakistani manufacturer’s first trial with the fiber, a 10 oz. 2x1 shirting fabric made with 100 percent Tencel, was developed in March 2009. The prototype bares similarities to “Reload in Blue,” a brand-new elevated loungewear

concept developed by Soorty and Tencel to make denim more comfortable for home.

“Tencel gave us an opportunity to make the big impact in women’s denim market,” Cataloglu said. “Being able to construct and weave authentic and luxurious fabrics with softness and comfort was a big change maker with a big impact.”

Indeed, Tencel branded fibers are known to be soft to the skin, smooth to the touch and contribute to breathability, offering specialty fiber solutions across all segments, especially women’s.

“Tencel covers a broad range of aesthetics— from looking good to feeling good,” said Munir Alam, Azgard9 COO. The Pakistani mill designed its first fabric with it in 2005 to meet the “soft touch requirement” from its customers.

Azgard9 now produces one million meters of fabric using Tencel a year.

Approximately 10 percent of Global Denim’s fabric styles contain Tencel. The fiber was brought to the Mexican mill’s attention in 2016 for its ability to enhance the strength, softness and drape of fabrics—qualities that were especially important as the mill sought ways to further explore the women’s market.

Tejidos Royo

“Tencel opened a whole new window and perspective to the denim world.”

—NOMAN NADIR, SOORTY

“Our first fabric was the Love Agean blue and hot is still one of our best sellers,” said Anatt Finkler, Global Denim creative director.

“Tencel has managed to turn raw denim into a sophisticated and attractive denim for sectors where 100 percent cotton would have been difficult to enter,” Royo Ballesteros said. “Silk is not in the world of denim, but Tencel is.”

INSPIRING PARTNER

To many, Lenzing’s Tencel exemplifies the supply chain partner of the future—a provider of raw material and an innovation partner. The company has a history of developing inspirational capsule collections with mills, designers and other industry creatives to demonstrate its endless possibilities and how it complements other fibers and sustainable technologies.

“Denim is an innovative and competitive industry with multiple big players investing in R&D, newness and purpose,” Cataloglu said.

“We all can count multiple examples where it has pioneered and led innovation for the better.” While cotton remains the dominate fiber in the denim industry, he said the success of Tencel reveals how it is open to solutions and innovations.

The fiber has also become a catalyst for collaborations and education through its Carved in Blue platform, a network of editorial content, videos and podcasts that pull back the curtain on denim production and sustainability.

As an “agent of change,” Finkler said Tencel has become a “pillar in the denim industry” by keeping the community connected and inspiring positive change.

“Tencel made us realize there are other natural alternatives to cotton gives us the look we love with the hand we can’t live without,” You said. “But it also made us rethink traditional denim, much like stretch fibers did for denim. It made us think out of the box to create new again.

We can't wait to see the other new projects Lenzing has in store for the denim industry.”

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LABOR

FINDING A VOICE

Nien Hsing Textile Co. was a tipping point in the denim industry's history of violence against women. w o r ds _____JASMIN MALIK CHUA

Msebabolo Chosti was into her second year making jeans at one of Lesotho’s largest denim manufacturers when she was raped by a supervisor. Chosti, who was 29 in 2017, recalls the events of the day vividly. It was Sunday and she and her Global International co-workers had just participated in a concert outside the capital city of Maseru, where they lived and worked. Her supervisor, part of a group of men responsible for getting the women home safely, was assigned to her.

“When we got off the bus, he asked me if he could go and wear something warm at his house first,” Chosti said. “When we got there, he said I am not leaving without having sex with him. When I refused, he turned up the radio and raped me.”

Complaining to the shop steward didn’t help, she said, and her supervisor mocked her for “complaining for nothing” because nobody believed her. Transferring to other departments didn’t improve the situation, either. “You can’t wrong one supervisor and get away with it; [it’s like] they [have] a pact,” Chosti said. She left Global International in anger and frustration.

Denim’s connection with violence against women runs deep. In 1992, the Italian Supreme Court sparked fury after it suggested that a woman cannot be raped if she is wearing tight jeans because they are “impossible to pull off” without her assistance and therefore consent.

Since 1999, the last Wednesday of April has been recognized as “Denim Day,” with supporters donning jeans as a visible symbol of protest against misconceptions around sexual assault, including the so-called “denim defense.”

Two decades later, just before Chosti resigned, the Worker Rights Consortium released a bombshell report, based on interviews with 140 workers, that described a systemic pattern of gender-based violence and harassment at factories operated by Nien Hsing Textile Co.— Global International included. The allegations couldn’t be brushed off or buried as so many

64

before them had before. The #MeToo movement had unleashed an unprecedented reckoning about sexual abuse and harassment in the workplace, and the Taiwanese-owned manufacturer supplied jeans to some of the world’s biggest brands, including Levi Strauss, The Children’s Place and Lee and Wrangler owner Kontoor Brands.

Women like Chosti, the WRC found, were regularly pressured by their managers for sex to secure jobs or gain promotions. Being groped and catcalled by male co-workers was also “common practice,” the report said. Despite an “abusive behavior hotline and mailbox” that workers could use to report misconduct or coercion, workers said that their complaints frequently led nowhere. For the most part, the women stayed quiet because they feared retaliation or they distrusted management to act. Others did not even identify what they were experiencing as sexual abuse, while those who didn’t comply with demands were swiftly ejected.

Botlenyane Riba had just started working in Global International’s packing department in 2017 when her supervisor wrote her a note that said, “I miss you.” The then-22-year-old thought he was joking, but the messages persisted.

“When I was not responsive, he harassed me at work, shouting at me and sometimes ignoring work-related requests,” Riba said. Things quickly escalated. Riba’s supervisor accused her of refusing to follow instructions, which he said that “according to company policy was against the law.” Soon, Riba received her marching orders for “insubordination.”

Nien Hsing, she added, didn’t listen to her side of the story. After that, she was unemployed for an entire year.

Part of a continuum of abuse, genderbased violence and harassment isn’t new to the fashion supply chain, nor is it unique to Lesotho.

According to a 2017 report by Care, one in three female garment workers in Cambodia said they experienced sexually harassing behaviors in the

workplace over the past year. A 2019 report by ActionAid estimates that 80 percent of garment workers in Bangladesh have faced or witnessed sexual violence and harassment in their factories.

The phenomenon, which is employed as a means of control, punishment or exploitation, is so ubiquitous it gets its own acronym, GBVH, short for gender-based violence and harassment.

Because sexual abuse occurs most frequently in sectors where the power differential between employers and employees is the greatest, where men hold the majority of oversight over women, and where wages are low and employment is precarious, garment workers are especially susceptible, said Rola Abimourched, deputy director of investigations and gender equity at the WRC. Often, GBVH thrives where workers are unable to exercise their rights to freedom of association and where factory management actively cracks down on these rights, she said.

Nien Hsing, which employed 10,000 workers across multiple factories at the time of the investigation, the majority of them women, stood out not only because of its size but also the frequency of the complaints. The WRC’s original research brief, in fact, only had to do with general labor-rights violations, not sexual abuse specifically. But the workers the organization interviewed kept bringing up the subject, which prompted a change in focus. “In all of these factories, this was the norm and not the exception,” Abimourched said.

When the WRC raised the issue with Levi’s, Kontoor and The Children’s Place, the companies initially balked. Their factory audits and inspections hadn’t picked up any issues and their relationship with Nien Hsing was a long-term and fruitful one. Nien Hsing’s initial reaction, too, was to deny any of the allegations.

But the severity of the issue and the potential reputational fallout proved too great to ignore, Abimourched said, and it was subsequently determined that the old ways—a top-down,

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Workers attend a training session on gender-based violence and harassment

voluntary and impersonal approach to due diligence—would no longer suffice. They would need all stakeholders at the negotiation table, the workers themselves most of all, to determine what accountability would look like.

To their credit, Nien Hsing and the brands listened. (Nien Hsing didn’t respond to emails for comment, and Levi’s, Kontoor and The Children’s Place declined requests for interviews, instead referring to statements they previously made.) “The people who are best suited to design an intervention are those who are disproportionately experiencing it,” said Robin Runge, equality and inclusion co-director at labor-rights nonprofit the Solidarity Center, which helped broker what would be known as the Lesotho Agreement alongside the WRC and Workers United. “And the voice that has been lacking in this all these efforts over the years is the workers.”

What sets the agreement apart is that it’s binding and enforceable, not unlike the International Accord for Health and Safety in the Textile and Garment Industry, a successor to the Accord on Fire and Building Safety in Bangladesh. Five Lesotho trade unions and women’s rights organizations—Independent Democratic Union of Lesotho, United Textile Employees, the National Clothing Textile and Allied Workers Union, the Federation of Women Lawyers in Lesotho and Women and Law in Southern African Research and Education Trust-Lesotho—signed contracts with each of the three brands, plus Nien Hsing, that covered all the manufacturer’s facilities.

Nien Hsing is now obligated to take disciplinary action against misbehaving managers 66

flagged by an independent oversight organization known as the Workers' Rights Watch. The brands have agreed to fund, for a period of two years, worker and management training spearheaded by the unions and women’s rights organizations.

A robust complaints mechanism has been put in place, complete with a toll-free hotline and a pathway for the determination and execution of punishments and remedies, again as decided by the independent body. Equally important, any of the trade unions and women’s rights organizations, along with the Solidarity Center, the WRC and Workers United, have the ability to press a case against any of the brands or Nien Hsing if they sidestep offenses.

“We are grateful to everyone for their input and ideas over the past several months, which allowed us to reach an agreement that should benefit and protect people—and women in particular—who are so important to the work we and our brand customers do,” Richard Chen, chairman of Nien Hsing, said at the time.

In a joint statement released at the same time, Levi’s, Kontoor and the Children’s Place said they were committed to making all workers, women especially, feel safe, valued and empowered.

“We are pleased to be collaborating with Nien Hsing Textile, the Worker Rights Consortium, the Solidarity Center and local trade unions and women’s advocacy groups in Lesotho on a comprehensive program intended to prevent and combat gender-based violence and harassment in the workplace,” they said. “We believe this multi-faceted program can create lasting change and better working environments at these factories, making a significant positive impact on the entire workforce.”

The Lesotho Agreement was a “first-of-akind deal,” said Nhlanhla Mabizela, South Africa program officer at the Solidarity Center, noting that the brands didn’t just throw money at the problem but helped shape the structure of the program by providing input and feedback.

There is a desire to bring the Lesotho Agreement to other factories, though companies are naturally cautious about entering bargains where they don’t wield most of the influence.

One label that voiced interest in participating was athleisure purveyor Fabletics, which courted headlines last summer after nearly 40 workers complained of rampant sexual and physical abuse that left them in a state of constant anxiety and stress at Hippo Knitting, a factory also located in Maseru. Three women accused their male supervisors of sexually assaulting them, while more than a dozen said daily searches by supervisors frequently left them exposed.

The revelations, made by Time in partnership with The Fuller Project, a global nonprofit newsroom that focuses on women’s issues, made it “crystal clear” that Hippo Knitting needed to make a “serious and binding commitment to thoroughly overhauling the way it views and treats its workers,” said Meera Bhatia, president of expert services for the brand, which actress Kate Hudson co-founded in 2013.

While it would have been all too easy to drop the supplier and bump production to one or more of the other 50-plus factories Fabletics works with, the label didn’t want to leave Hippo Knitting’s 1,000 workers in the lurch, Bhatia said. Since then, Fabletics has “worked diligently” to “chart a new path forward” for the factory, though it ultimately decided to craft its own framework. with local unions and humanrights organization Africa Rising. The ensuing 39-point corrective action plan included a new grievance procedure for reporting workplace violations, a new anti-intimidation and antiretaliation policy, a new process for noninvasive searches in dedicated privacy screening areas and a new third-party grievance line for complaints relating to security searches.

Supervisory and HR personnel began receiving regular training on their role in protecting worker rights by organizations that Fabletics and Africa Rising identified and vetted.

Since production at Hippo Knitting kicked back up in August, personnel from Africa Rising have been on-site during working hours to oversee the plan’s implementation, Bhatia said.

Re Mmoho Compliance Solutions, a Lesothobased nonprofit that specializes in social and environmental compliance, provides an “additional layer” of oversight by ensuring that workers are receiving the full benefits, rights and training to which they are entitled, she added.

“Fabletics made a commitment to only allow Hippo Knitting to restart production of the company’s products when a safe and healthy

LABOR

Photos provided by Worker Rights Consortium

workplace could be assured for all,” Bhatia said. “We are cautiously optimistic with the progress, although much work remains to be done by Hippo Knitting to consistently execute on the 39-point plan and earn back our trust.

Ensuring worker protections and wellbeing requires constant vigilance, and only time will tell how effective our approach has been. But we take pride in the fact that we confronted the issue head-on and rallied various stakeholders together on solutions.”

Abimourched from the WRC said, however, that the organization does not see Fabletics’ strategy as sufficient to address GBVH at the factory. “Fabletics has not made any binding and enforceable commitments, the Lesotho unions and women’s rights organizations are not involved in the design of the program or its implementation, and workers cannot take their complaints to an independent entity that can investigate complaints and issue determinations, she said, adding that the company should sign up for the Lesotho Agreement instead.

Back at Nien Hsing, progress is happening, if slowly. Covid-19 has dampened some of the initial momentum, said Thusoana Ntlama, program coordinator at the Federation of Women Lawyers in Lesotho. Pandemic restrictions have made it difficult to conduct in-person training, she said, and last year, Nien Hsing shuttered two of its factories and laid off half its workers, requiring a further recalibration of schedules.

Translating educational materials into Mandarin and engaging a facilitator that speaks the language is also taking time more time than expected. Because of the delays, Ntlama said she hopes Levi’s, Kontoor and The Children’s Place will continue funding the program for at least

Nien Hsing

another year. “There’s a lot going on that has to be done,” she said. “We cannot train workers for two days and then come up with results.”

Riba, the worker who was fired, but later won her job back with the help of her trade union and the WRC, albeit in another department, would agree. (Her supervisor has since resigned.) Though she said she is happy to be able to access the complaints hotline, she is skeptical that harassment will end because the factory “keeps hiring new supervisors who know nothing about” GBVH. “They speak about their personal problems to other workers,” Riba said. “Especially my new supervisor, [who] likes talking about sex and relationships, which is another form of harassment. I am not sure if he has been to the workshops or not.”

Chosti, the worker who was raped, also returned to Global International after she called the Workers' Rights Watch hotline and made her case. (Her abuser, too, has been removed.)

She’s no longer in the sewing unit, however, but cleans toilets outside the factory. Her new supervisor, Chosti said, “dishes out warnings a lot.” Still, she is grateful, if cautiously so.

“Our situation [has] changed a lot; we can now report incidences of GBVH,” Chosti said. “But unfortunately, some workers have not gone through the workshops. I hope they can take this matter seriously and report [problems]. Nien Hsing workers now [have] a haven; we do not have to report to the managers who were unable to assist. I speak openly to workers about how the [Workers' Rights Watch] assisted me in my case and how grateful I am for them.”

For Nien Hsing’s female workers, there’s a clear demarcation between pre- and post-Lesotho

“When we got there, he said I am not leaving without having sex with him.

When I refused, he turned up the radio and raped me.”

—MSEBABOLO CHOSTI, GARMENT WORKER

Agreement. One of them is Masebotseng Motimi, a 23-year-old worker at Formosa Textile, a denim mill run by Nien Hsing, who said her male supervisor was fondling her and “proposing love” as late as last year. An investigation by the Workers' Rights Watch, during which the supervisor was put on leave, directed the factory to fire him, which it did, even though Motimi asked that he only be reprimanded.

The man is back at work in another, nonsupervisory position and meeting him every day has been difficult. Still, Motimi said she was luckier than another of his previous targets who experienced the same harassment but did not have any recourse for her grievances. “There was nowhere to report such matters then; this is what the program is helping people like myself to report,” she said. “I am still at work, and she is not.

Nien Hsing was definitely going to fire me. But now my rights are protected by this agreement.”

Mabizela from the Solidarity Center counsels patience, saying that cultural change doesn’t manifest overnight. “We really need to overhaul the cultural practices within Nien Hsing and that will take some time,” he added. “But we are beginning to see some results in terms of people beginning to adjust and trust the process, because there have been similar initiatives before and they were not sure if this was one of those that, for lack of a better word, entrapped workers.”

There’s also a larger mindset shift that needs to take place in Lesotho, he said. “It’s not like you’re working with a subject that people can sit down and study,” Mabizela added. “You’re dealing with ways and norms of people and some of it is really internalized. But change, it’s slowly coming in.”

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T R U T H

R A W

T H E

Bossa

w o r ds _____DEBORAH BELGUM

SOURCING

Denim mills around the world gamble on the cost of cotton – and everything else.

When Cone Denim president Steve Maggard

talks to customers about the rising raw material costs the company’s mills have struggled with this last year, he comes prepared with a succinct slideshow presentation where each graph looks like a trail going up a steep mountain.

Everyone seems to be concentrating on the precipitous rise in cotton prices, but the slides Maggard shares with his customers show that everything is going up. Cotton prices have risen 40 percent, indigo dye costs have jumped more than 100 percent, Lycra has increased 60 percent, polyester prices are up 45 percent, black/brown sulfur inched up 25 percent, acetic acid prices have skyrocketed 3,000 percent, caustic soda is up 120 percent and sodium hydrosulfite mushroomed 50 percent, he reported.

“We’ve had a rough year in terms of margins,” Maggard said from his office in Greensboro, N.C. While the company is headquartered in the United States, it no longer makes denim in the U.S. It has two denim mills in Mexico with about 1,100 to 1,200 workers and one in China with 750 to 800 employees. About 75 percent to 80 percent of the company’s clients are in the U.S., however.

Ballooning prices don’t stop with just raw materials. Freight costs are sky high. “Ocean freight is up five times more than what it was before,” Maggard noted. “Before [the pandemic] we were paying $4,000 to $5,000 for a container from China to arrive in Charleston [N.C.], and now we are paying $24,000 to $26,000. On top of that, it is hard to get bookings and containers.”

And there you have a perfect storm leading to denim fabric prices inching up at least 20 percent to 30 percent in the past year. While denim labels know that input costs aren’t going down soon, they aren’t too happy to be paying more either. “The customers say they can’t pass those costs on to their consumers and that their customers won’t accept price increases of this magnitude,” Maggard said. “We’ve walked away from some programs because we can’t sell fabric at a huge loss.”

To help customers absorb the rising fabric costs, Cone Denim has worked with manufacturers to reduce costs by using a lighter weight denim or going from a darker shade to a less expensive lighter shade.

In the past, polyester might have been added for a less costly denim, but polyester prices are up

just as much as cotton prices—not to mention it can be less aesthetically pleasing and comes with its own environmental consequences. “Most of my customers don’t like a lot of polyester because of the hand, and the appearance is shiny and has a luster,” Maggard explained.

NO ONE IS EXEMPT FROM HIGH PRICES If customers are unhappy with denim prices at Cone Denim, they don’t have much choice because the situation is the same around the world.

Cotton, no matter where it is grown, has seen its price zoom to its highest level in a decade. Cotton experts describe it simply as a matter of supply and demand. Clothing factories are producing at capacity, adding to the need for more cotton, and investors are making speculative purchases of the commodity.

“Speculators have been taking their money out of the market,” noted Jon Devine, senior economist at Cotton Inc. Politics has played a role, too. In December 2020, the Trump administration blocked U.S. companies from importing cotton and cotton products that came from China’s western Xinjiang region over concerns it was produced using forced labor by the Uyghurs, a predominantly Muslim ethnic group. That was reinforced in late 2021when the Biden administration passed into law the Uyghur Forced Labor Protection Act, which goes into effect June 21 and keeps any cotton or products made with Xinjiang cotton from that region from coming to the United States.

The act is forcing Chinese companies to buy cotton from the U.S. or other regions, manufacture goods with that cotton, and then sell it back to the U.S. to legally enter the country.

All these factors have led to a spike in cotton prices Currently, the Cotlook-A index, which is considered representative of a world cotton price, increased to $1.41 a pound, its highest since 2011. One year ago, it was around 98 cents to $1 a pound, showing a 40 percent rise in one year.

In other parts of the world, cotton for some mills is a little more expensive because of fluctuating currency prices and higher inputs.

At Artistic Milliners in Karachi, Pakistan, CEO Omer Ahmed has seen his global cotton prices rise 40 percent while his Pakistani cotton is up 69

SOURCING

45 percent. Artistic Milliners buys 70 percent of its cotton from Pakistan and the rest comes from the U.S., Brazil and parts of Africa.

Ahmed saw all prices starting to rise in the latter part of 2020, but they have “really zoomed in the last few months,” he said. “Indigo prices used to be quite stable over the years, but they have gone up 68 percent in the last 12 months.”

In the past, Ahmed has tried to take long positions in buying raw materials but that has grown difficult. “Long positions of three or four months would be best, but yarn producers are not giving prices for over a month because there is so much volatility,” he said.

Trying to keep pace with the rise in raw material costs makes it challenging for Artistic Milliners to figure out how much to charge customers. “We did a 5 percent upcharge for one season, but by the time we produced the fabric, our prices had gone up 10 percent to 15 percent,” he said. “The cost to produce has outpaced the selling price even with the upcharges.”

To cut costs, Artistic Milliners, which employs 24,000 people in its mills and its cutand-sew factories, has been working with a lot of blends and incorporating more recycled cotton. “We have been looking at ways to reverse engineer our products to made them more cost efficient,” Ahmed said.

Artistic Milliners is not alone. Halfway around the world in Belo Horizonte, Brazil, the centuries-old textile company Santanense has been grappling with skyrocketing cotton prices and other inputs.

Santanense gets all its cotton from Brazil.

And in Brazil, like everywhere else, it is an expensive commodity. “Cotton prices have increased 80 percent in the last two years,” said Annette Walkers, a senior executive at Companhia Tecidos Santanense. With that in mind, Santanense has raised the price of its bull denims, cotton twills and cotton/Lycra blended fabrics by 30 percent.

To keep costs down, the Brazilian textile company has reduced its line of fabrics to improve the efficiency in its plants.

Engineers have been working to find other dye combinations while adjusting their color palette to lighter shades.

“We are making some finer/lighter cotton fabrics, which are more comfortable and where the customer recognizes they have better value,” Walker said. “And we have developed other blends. For example, we are increasing the percentage of some other synthetic fibers to add value and offset the cotton price. We are adding more Lycra T400 and sometimes a little polyester, modacrylic, aramid and other fibers.”

At the same time, the company is focusing on more profitable technical fabrics, such as flame-retardant inputs that command a higher price and higher profit margin.

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Cone Denim

In Spain, Tejidos Royo, located in Valencia, has seen its cotton prices jump 60 percent in one year. Some 70 percent of the company’s cotton comes from Europe to supply a market primarily in Germany and Spain. “This is a drastic rise that inevitably impacts the price of fabric manufacturing and exemplifies the difficult environment and the strong pressures we are facing in the textile sector,” said Rocio Perez de los Cobos, the company’s marketing director. “Unfortunately, we had no choice but to raise prices to our customers.

However, we only increased the price by the same amount as the increase in raw materials, chemicals and energy.”

Nevertheless, customers didn’t take it well.

“It is hard for them to understand but in the end, since it is a general increase worldwide, they accept it,” the marketing director noted.

Tejidos Royo, founded in 1903, is cutting costs by employing more recycled energy with 10 percent of that coming from solar. And the company is using more recycled cotton.

Even before the pandemic and rising input costs, Tejidos Royo was on the path to reduce its water and chemical consumption. All of company’s denim production is dyed with Dry Indigo and Dry Black technology. It reduces energy consumption, uses 89 percent fewer chemicals, and completely eliminates wastewater discharge.

Another mill looking to sustainability to cut costs is Bossa, one of the largest textile corporations in Turkey. Founded in 1951, the company has been employing sustainability for some time now. “It now has become a must for our industry,” said Onur Duru, the company’s general manager. “In addition to sustainable fibers, recycling is of great importance.”

With a new investment, Bossa is adding a recycling facility to its factory as pre- and post-consumer products continue to increase.

This may help offset the 300 percent jump in energy prices the company has experienced as well as the 100 percent rise in cotton and indigo dye costs. That led to the company seeing a 40 percent uptick in fabric costs, but they were only able to pass on 20 percent of that to customers, Duru said.

With so many price increases, everyone is asking whether cotton prices will go down this year. Right now, it is anyone’s guess, but it could stay high for at least the rest of this year until consumer demand declines and speculators move on to other commodities.

The National Cotton Council of America recently predicted that U.S. growers would plant 12 million acres of cotton this year, which is a 7 percent increase over last year’s plantings. If there isn’t a huge drought in west Texas, where 25 percent of the U.S. cotton crop comes from, that could lead to lower prices.

The futures market predicts prices will decrease before the end of the year, noting that values for the December NY/ICE futures contract are trading at 15 cents a pound below those for July.

And consumer demand could gravitate away from apparel and more toward electronics and entertainment.

“There is a lot of uncertainty in the market right now,” Devine added. “Consumers may rebalance their spending back towards services as opposed to goods like clothing. Retailers may feel less inclined to pull orders forward for shipping reasons. As those pressures flatten out, tailwinds for demand experienced in recent months could reverse themselves.”

Rivet magazine is your reference for what’s now and what’s next in the fast-moving denim industry, from the raw materials transforming collections through the bestsellers driving retail sales—and everything in between.

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ME TAV ERSE TK

NEIGHBORING SUPPLIERS As nearshoring surges, Latin America’s denim industry reaps the rewards. w o r d s _____LIZ WARREN

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SOURCING Like virtually every other industry post-

Covid-19, the denim market has changed abruptly and the pandemic was just one factor fueling its disruption. In addition to Covidrelated labor shortages, higher freight costs and the uncertainty related to the reports of forced labor in China’s Xinjiang region all caused apparel companies to reconsider each link of their global supply chain.

For many, this meant easing their reliance on Europe and Asia and instead looking to other regions for partnerships. In December, the Uyghur Forced Labor Prevention Act, which prevents any materials or goods that have been wholly or partially mined, produced or manufactured in the Xinjiang region of the People Republic of China from entering the U.S., was signed into law by President Biden and is set to take effect in June.

Central America—the region bordered by Mexico and Colombia, and home to Panama, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala and Belize—has emerged as a top alternative to Asian sourcing, partially fueled

by Vice President Kamala Harris’ commitment to elevate the region. Supporting more than 1 million jobs throughout the U.S. and Central America, the textile and apparel co-production chain is essential to providing employment and economic development.

Around the same time, a November 2021 McKinsey & Co. survey of 38 chief procurement officers at clothing companies found that 71 percent of respondents plan to increase their nearshoring share, including 13 percent who expect to do so by more than 10 percentage points. Central America and the surrounding region were top choices for many North American companies looking to diversify their sourcing.

LATIN AMERICA’S APPEAL

Latin America’s proximity to the U.S. allows for shorter lead times, more affordable and timely shipments and a lower carbon footprint.

According to Dominic Poon, CEO at Twin Dragon, a denim mill with facilities in Mexico, Nicaragua, China and Vietnam, the region benefits from free trade agreements like the United States-Mexico-Canada Agreement (USMCA) and the Central America Free Trade Agreement (CAFTA), as well as expert craftsmanship.

“Latin America is a leader in producing heavier denim products with vintage character, catered towards the men’s market and more recently towards the women's market as the trends point to more rigid constructions,” Poon said. “Our Mexican mill is also great at creating eco-friendly products with the help and agreements formed with the local government.”

The Mexican government has embarked on a de-colonization campaign to give visibility

its commitment to responsible sourcing. In and a voice to Mexican artisans and create more January, the company extended its partnership sustainable designs in the process. A number of with cotton tracing company Oritain to verify initiatives have launched from this campaign, that all cotton samples analyzed across its including México Creativo, a platform focused on operations in China and Mexico have ethical the training, incubation, project monitoring and origins. It has recently invested heavily in certification processes that help promote diverse the Latin American region with new looms, and sustainable sociocultural ecosystem, as well additional ring spinning capacity, a blend line, as Business Salon, a space that offers support, ozone finishing machines, lasers and a zero encourages collaboration and promotes ethical liquid discharge wastewater treatment facility. and fair production and consumption.

Steve Maggard, president of Cone Denim, Another appeal of the Latin American notes that the company has experienced “very denim supply chain is its ability to accept smaller strong business volume” at both of its Mexico orders in manufacturing and production, facilities over the past year, largely due to allowing premium brands to operate and bigger retailers looking to nearshore. He added that the brands to be more conscious of inventory. region’s success was a long time in the making.

“Even though it is very undersold and “The Latin American denim industry underestimated, Latin America has state of the is uniquely qualified to service the North art technology and is very tech-driven,” said American market due to proximity and speed Anatt Finkler, creative director at Global Denim, to retail,” he said. “There is a significant amount a Mexican mill. of denim produced in Mexico and multiple That sentiment is shared by finishing established suppliers who have serviced the technology firm Jeanologia, which has several market for many years.” demo centers throughout Brazil and Colombia, and a hub in Mexico. The company reported ENVIRONMENTAL FOCUS that 70 percent of the laser solutions used in the In addition to being one of the largest denim Brazilian textile industry are from Jeanologia, producers in the western hemisphere, Latin and more than 1.2 million jeans are produced in America is also a top consumer of the material— Mexico each month with Jeanologia's laser and and in many cases, these consumers are looking eco machines. for locally made products.

“Latin America is one of the major denim “Each country, each region, has a unique producers, and its textile industry is undergoing identity, different customs and lifestyles,” a digital and sustainable transformation,” said said Gérman Silva, chief marketing officer at Carmen Silla, marketing director at Jeanologia, Brazilian textile mill Vicunha. “The jeanswear who specifically called out Mexico as a top culture allows us to think about a 'jeans identity' country. “Mexico is a market that operates for in each of the places where we do business.” the domestic market and, due to its strategic The mill is among the three largest denim position, it also produces for the U.S. market. producers in the world and the largest in Latin It is one of the most powerful countries for Jeanologia, where we are growing a lot and that is why we have strengthened our local team there.”

The Commerce Department’s Office of Textiles and Apparel (OTEXA) recently reported a 39.6 percent increase in U.S. denim imports from Mexico compared to last year, bringing its value to $654.87 million. The February report named Mexico the second biggest supplier of denim for the U.S., following Bangladesh at $798.42 million.

The wave of attention on Latin America—and specifically on Mexico—has undoubtedly had a positive effect on Cone Denim, a Mexico-based denim mill Cone has experienced “very strong business volume” at both of its Mexico facilities. that recently reaffirmed

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SOURCING America. In addition to the three factories on Brazilian soil that supply the domestic market with indigo and serge (a type of twill fabric), it also has a factory in Ecuador that supplies South America, North and Central America (SANCA) and another production unit located in San Juan, Argentina.

Silva considers the company a “glocal” player, working with local relevance and having a global reach. Products are manufactured according to customers’ needs and local specificities—most of which center on sustainability. Vicunha’s Absolut Eco collection made in partnership with industry veteran Adriano Goldschmied was created using pre-consumer denim fabric that reduces water consumption by 95 percent and removes 90 percent of the chemicals used in a typical production cycle.

The denim supply chain’s latest challenges haven’t slowed its sustainability progress, according to Ana Paula Alves de Oliveira, founder of BeDisobedient, a denim consultancy based in Argentina with team members located throughout Peru, Brazil, Mexico and France.

“Despite ongoing headwinds—logistical bottlenecks, manufacturing delays, high shipping costs and material shortages—there are signs of acceleration in environmental and social priorities, with a focus on diversity, equity and inclusion as response,” she said. “The great challenge is to balance the raw material supply for the chain, avoid shortages so as not to suffer the consequent increase in price again.”

Oaxaca’s indigo supply shortage has served as a warning for the rest of the world.

After an earthquake rattled the region in 2017, production of the jiquilite plant responsible for denim’s blue hue dropped 80 percent and continues to be challenged by harsh weather conditions associated with climate change.

Regenerative fashion designer, consultant and an educator with an extensive knowledge of natural dyeing, Carmen Artigas is currently working with the “Micro Producers Cerro Del Jiquilite Oro Azul” cooperative of 10 farmers in the region to establish a system for growing, harvesting and selling indigo. To support the region, the cooperative is encouraging women to participate in artisan preservation and contribute to the local economy by creating dyeing, spinning and weaving workshops to produce a line of handcrafted textile products, therefore creating another opportunity for the community. It’s also attempting to develop an infrastructure for irrigation systems through the Niltepec River in order to achieve two harvests per year, as opposed to the current standard of just one.

WORK REMAINS

Despite the obvious need for sustainability, Finkler stated that the region is lagging in terms of consumer demand for eco-friendlier denim.

“I don’t believe we’re there yet on the customer level of demanding more sustainability

74

in their clothing, and it’s up to the brands and a combined effort in the industry to teach these values so the demand increases,” she said.

Denim-focused organizations are currently working to bolster the Latin American denim sector. Though headquartered in Amsterdam, jeans innovation hub Denim City launched in Brazil in 2019 to raise the quality of denim in the region. The innovation and sustainability center in São Paulo is four times larger than its Amsterdam location, and includes everything from a jeansmaking school, to partner showrooms and restaurants for entertainment.

Canatiba, Covolan, Jolitex Denim, Myr, and Vicunha are among the companies with showrooms at Denim City.

“Latin America is one of the major denim producers, and its textile industry is undergoing a digital and sustainable transformation.”

—CARMEN SILLA, JEANOLOGIA

Transformers: ED, a student- and consumerfacing denim education series organized by Transformers Foundation, expanded to Mexico in 2021 with its first-ever Spanish-speaking event, made possible through partnership with education institution Centro Mexico. The event focused on the supply chain, sustainability and design, covering everything from indigo history to waste management and how denim can be a part of the circular economy.

With a greater focus on elevating the Latin American denim industry, experts are confident that the region will become an even bigger global hub in the years to come.

“Mexico already ranks second in the world for denim,” said Alves de Oliveira. “If we could invest more in research and technology and have the right processes and tools to convert all this creative power into innovation, we would be unstoppable.”

HOT IN

LATIN AMERICA While the U.S. and European markets are transfixed on relaxed fits, opting for straight and wide-leg fits over tighter styles, the Latin American market is only partially stepping away from its beloved skinny jeans. Brands throughout the region look to high-stretch fabrications to achieve the body-hugging silhouette without sacrificing comfort.

According to Ana Paula Alves de Oliveira, founder of BeDisobedient, a denim consultancy based in Argentina, the region is largely “still very attached to elastane.”

“Push-up” styles which accentuate the rear and help sculpt a curvy silhouette are a common choice among women. Printed denim is another common element that helps draw the eye downward.

Anatt Finkler, creative director at Mexican mill Global Denim, stated that local women “love to highlight their figure,” typically opting for flashy, body-hugging styles like those from local brand Oggi Jeans. The Mexican apparel brand offers a variety of fits—bootcut, relaxed, straight, super skinny and slim—but with a greater emphasis on fitted styles for women.

Still, the Latin American market is not insulated. Finkler noted that the market is also heavily influenced by the trends of the U.S. “We live in a very globalized world, so we are seeing more relaxed fits and fashion styles that match the current situation,” she said.

Mom fits and boyfriend jeans are becoming more palatable for a region previously committed to stretch. Mexican denim brand Cuidado con el Perro, which translates to “Beware of the Dog” in English, offers wide-leg, mom jeans, girlfriend and kick flare styles, in addition to its various skinny offerings for women, and 0has wide appeal throughout Latin America.

Finkler added that, while men tend to gravitate toward straight, rigid jeans, the segment is also being swayed by the comfort and practicality of stretch fabrications.

Brands are also amplifying the sustainable qualities of their jeans.

Brazil-based label Renner offers a vast selection of denim, and educates consumers on its sustainable supply chain, which includes its Cleaner Production (P+L) program that aims to encourage eco-efficiency in production processes throughout its supply chain. It also teaches shoppers how to recycle items once they reach their end of life—a concept that is further explored in a clothing recycling program with online thrift store Repassa in São Paulo. —L.W.

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1

MONEY TALKS Inflation and political conflicts wreak havoc on global currencies. word s _____ DE BOR AH BELGUM

Currency exchange rates can make or break a company. They can determine whether revenues rise or fall because they establish how much it costs to import the raw materials required to make denim fabric or blue jeans.

Then take that one step further. Exchange rates fix how much a company receives for a product sold to overseas buyers.

Currency fluctuations are based on several factors, but chief among them is the strength and stability of the country using that currency.

A prime example is Russia, which invaded neighboring Ukraine at the end of February.

Within days, the value of Russia’s currency, the ruble, plummeted by as much as 30 percent while the U.S. dollar grew stronger. Russia was seen as a dangerous place in which to invest while the U.S. became a safe haven for money.

“Military conflicts like this usually lead to a strengthening of the U.S. dollar and euro against other currencies as the U.S. and European economics are viewed as more stable,” said Luciano Racco, co-chair of the trade sanctions and export controls practice at law firm Foley Hoag. “Currencies of less developed economies, including the Turkish lira, often decline during turbulent times. The longer the period of instability, the longer the dollar is likely to remain strong.”

Here’s a look at some of the currency rates that most affect the denim sector.

consistently climbed. He maintains the soaring inflation rate is just temporary.

In January, prices of consumer goods in Turkey spiked 11 percent compared to the previous month, weighing down Turks’ ability to afford food, apparel and electricity. Making things worse, at the beginning of the year electricity rates skyrocketed 50 percent for households and 100 percent for commercial enterprises.

The devalued lira makes it more expensive for Turkish mills to import raw materials including indigo dyes from China and cotton from outside of Turkey. In turn, mills are raising their prices to offset added costs.

TURKISH LIRA

CHINESE YUAN

In the last year, Turkey has seen galloping inflation of 48.7 percent—a 20-year high.

That led the lira to lose 44 percent of its value in 2021. The devaluation has been driven

by President Recep Tayyip Erdogan’s refusal to raise interest rates even though inflation

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RIVET NO.15

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TOP FIVE MOST TRADED

CURRENCIES Investopedia, 2021

1. U.S. DOLLAR 2. EUROPEAN EURO 3. JAPANESE YEN 4. BRITISH POUND 5. SWISS FRANC

The Russian military foray into Ukraine has prompted Russian institutions to diversify away from the U.S. dollar and move toward the yuan.

That move was prompted by worldwide economic sanctions against Russia that include exempting Russian companies from U.S. dollar

transactions and freezing all the Russian central bank’s assets in the United States. Switzerland, in a surprise decision, said it would freeze all Russian assets in its country.

Russia’s move to the yuan was helped by President Vladimir Putin’s recent meeting with Chinese President Xi Jinping to discuss the two countries’ foreign policies and mutual support.

The yuan is one of the few currencies that does not fluctuate much because it is controlled

by Chinese government officials who oversee a non-market economy.

MEXICAN PESO

In recent years, Mexico has seen the value of its currency steadily decline vis a vis the U.S. dollar. By March 2020, the pandemic and ensuing recession caused the peso’s value to drop by 33 percent from mid-December 2019.

This has only been exacerbated by the Russian-Ukrainian conflict pushing markets to gravitate to the U.S. dollar as a safe currency.

Also, rising interest rates in Mexico are leading the peso to slip in value compared to the U.S. dollar. Mexico’s central bank delivered its sixth consecutive interest rate hike in February, bringing the cost to borrow money to 6 percent.

PAKISTANI RUPEE

Since July, the rupee’s value has dipped 12.6 percent due to a rising trade deficit that saw imports total $8 billion in November alone.

The government is hoping to do a better job of controlling imports and is counting on receiving money from the International Monetary Fund to strengthen the rupee.

Economic challenges facing the country include high inflation, sliding foreign exchange reserves and a widening current-account deficit.

The conflict in Ukraine is particularly acute for Pakistan because it imports 39 percent of its wheat from that country. Any disruption in imported wheat or other goods can lead to higher food prices, which hurt fiscal growth and fuel inflation, all bad for a country’s exchange rate. Wheat prices soared in the immediate wake of the conflict.

DATABASE

98 97 96 95 94 93 92 91 90

MAY 2021

JUL 2021

SEP 2021

NOV 2021

2022

MAR 2022

U.S. DOLLAR | Dollar Index EUROPEAN EURO

The 27 countries that make up the Europeans Union are closely monitoring how the RussianUkrainian clash will affect the 19 countries within the bloc that use the euro as its currency.

Trade between the EU and Russia in 2020 totaled $195 billion, making Russia the EU’s fifth-largest trading partner. About 71 percent of those imports from Russia came in as petroleum products. Any interruption in petroleum imports will probably lead to higher energy costs and more inflation across Europe.

Still, the euro is considered a strong currency, which will attract investors seeking stability and safety. In the last year, the euro, which is celebrating its 20th anniversary this year, has dropped about 9 percent compared to the U.S. dollar.

U.S. DOLLAR

After the Russian invasion of Ukraine, the U.S. dollar reached its highest level in nearly two years while the Russian ruble dived to a record low as foreign investors sought out a stable currency.

The U.S. dollar, which accounts for about 88 percent of all foreign currency transactions, was on solid ground in 2021 because of the economy’s robust recovery and the uncertainty surrounding the pandemic around the world. Analysts believe the dollar should remain strong this year.

In addition, the Federal Reserve Bank has indicated it might start raising interest rates in the first quarter of 2022, depending on how the economy is affected by the Ukrainian invasion.

Higher interest rates motivate a stronger currency rate, attracting foreign investors looking for a better return on their money.

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PRESSURE COOKER 78

RIVET NO.15

SPRING 2022

Rising cotton prices are placing pressure on jeans manufacturers’ bottom lines. w ords_____ ARTH UR F R I E D M AN

With cotton still the dominant raw material in denim, jeans manufacturers have faced surging prices in recent months to levels not seen in more than a decade.

U.S. spot cotton prices averaged $1.18 per pound for the week ended Feb. 24. That was down from about 0.5 cents from the prior week, but up from 86.9 cents a year earlier, according to the U.S. Department of Agriculture (USDA).

The Nearby March New York ICE futures contract increased to $1.27 per pound from $1.15 over a month, with current prices for May futures around $1.24. According to Cotton Incorporated’s monthly report for February, values for the December 2022 New York ICE contract, which reflect price expectations after the 2022-23 crop year, rose to $1.06 from 94 cents.

The A Index, an average of global spot prices increased to $1.41 from $1.29 in the last month. Cotton Incorporated said current values are the highest since 2011.

“It could be a bumpy ride for the next couple months, but more supply should be headed to the market,” said Jon Devine, Cotton Incorporated’s chief economist. “Higher downstream prices, the withdrawal of stimulus and rising interest rates could be expected to challenge demand and price momentum in coming months. Any easing in the shipping crisis could also help ease prices.”

In Devine’s “Monthly Economic Letter,” he said the upward trend in cotton prices continues, despite persistent estimates indicating that global cotton stocks are higher than before the pandemic. In 2017-18 and 2018-19, global cotton stocks were 81.2 million and 80.1 million bales. Average prices for the A Index during those two crop years were 88 cents per pound.

“The unprecedented volume of stimulus that followed Covid and the shipping crisis are all distortions that can explain some of the deviation in the historical relationship between stocks and prices,” he said. “Given the size of

China holds

43%

of global stocks.

the discrepancy, some attention should be paid to where global cotton stocks are located.”

China is the world’s largest warehouser and is expected to hold 43 percent of global stocks at the end of 2020-21. USDA figures show that Brazil should hold the second-largest volume of stocks at the end of the crop year. However, that is due to the timing of the Brazilian harvest relative to the end of the international crop year and is not a reflection of surplus fiber available to the market.

India is the next largest location for stocks.

According to Devine, there have been reports that Indian growers have been withholding seed cotton from gins speculatively, with hopes of taking further advantage of the upward trend in prices.

“Delays in the flow of cotton in India and China may be contributing to feelings of scarcity,” Devine wrote. “China and India are the world’s largest spinners. Imports can be substituted for domestic supplies to feed mills.

However, the shipping crisis is an impediment facing shippers around the world.”

Meanwhile, U.S. export shipments are down 43 percent year-over-year. With challenges in securing trucks and ships, it remains to be seen if the U.S. will meet the lowered forecast for exports this crop year.

“High prices suggest an increase in acreage and production around the world in 2022-23,” the report said. “There is more uncertainty on the demand side. Stimulus is scheduled to be withdrawn in several major consumer markets.

At the same time, general inflation and price increases for apparel and other finished textiles threaten downstream demand.”

DATABASE

ONE YEAR OF DAILY A INDEX AND NY NEARBY PRICES February 2021 - February 2022

CENTS / LB

140

A Index NY Nearby

130 120 110 100 90 80 70 60

FEB 2021

MAR 2021

APR 2021

MAY 2021

JUN 2021

MATTERS OF BUSINESS Cotton industry veteran Robert Antoshak, now a consultant for Louisiana-based denim manufacturer Vidalia Mills, said Vidalia’s denim is a premium product, “so we’re a little less price sensitive than others.”

“We also have a pretty good cotton position, so that’s been helpful,” he said.

“We’re vertical–we make the yarn, too–and a lot of the leading mills may not be, and yarn prices have been up a lot.”

Antoshak felt the increased cotton production will support stabilizing prices. “If more farmers are inclined to go after those higher cotton prices, it can create a loop that brings down prices over time,” he added.

Chip Bergh, president and CEO of Levi Strauss & Co. told analysts earlier this year “our strong brand equity is driving pricing power” and that “2021 pricing actions are sticking.”

“We have plans to take additional price increases in 2022 and beyond, helping us to

JUL 2021

AUG 2021

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OCT 2021

NOV 2021

offset inflationary pressures,” he said.

Bergh reported that Levi’s fabric mix is about 15 percent to 20 percent cotton. “Cotton continues to be high, but because we are effectively priced for it, we think our gross margins will be able to offset that even as we think about H1 2023,” he added.

Glenn Chamandy, president and CEO of Gildan Activewear, said the company did not raise prices to cover the total inflation because “we’re leveraging our low-cost manufacturing, which has been the backbone to our success.”

“A lot of the lack of promotional spending is really offsetting the higher cost of raw materials,” Chamandy said. “As cotton prices moved up, we reduced the amount of promotional spending...If raw material prices do come down, we’ll just promote a little bit more.”

Antoshak said he remembers in 2011, when cotton prices last surged, talking to a lot of brands that were caught off guard.

“It took them a while to figure out they

DEC 2021

JAN 2022

FEB 2022

could use blends, particularly with polyester, to moderate their prices,” he added. “Now they already have that experience, and some have it built in, so they will be quicker to use more blends to average the price.”

Unifi Inc., makers of Repreve recycled polyester, has made inroads in many markets and has also been subject to higher costs.

“With the inflation that we’ve seen in other areas of the business, we’ve had to institute additional price increases at the beginning of January,” said Eddie Ingle, Unifi CEO. “This was driven primarily by labor and other durable materials in the polyester and nylon segments.”

Robert van de Kerkhof, chief commercial officer at Lenzing, said the company’s Tencel fiber is often blended with cotton.

“These two fibers are really perfect blending partners and with cotton prices as high as they are today, people like to bring in Tencel as a balance and for its strength,” van de Kerkhof said.

SPRING 2022

RIVET NO.15

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LAST WORD

Happy Birthday As The Smiley Company turns 50, CEO Nicolas Loufrani reflects on the symbol’s connection to denim. w o r d s _____ANGELA VELASQUEZ

Galeries Lafayette

Lee

One of the first examples of Smiley—the universally-loved symbol of happiness—appearing on denim was with Levi’s, which used Smiley patches in the early ’70s. “It was one of my father, Franklin’s, first licenses,” said Nicolas Loufrani, CEO of The Smiley Company. As an iconic global brand, Levi’s set the stage for other brands throughout the decades to use Smiley in new ways, he said. Smiley has been entrenched in the denim world ever since with partnerships including Bershka, Lee, H&M, Kings of Indigo and Pull & Bear.

“I believe denim brands love working with Smiley because innovation is at the core of our brand’s values and the marketing identity,” Loufrani said. “We are constantly working with brands to create unique ways to propel denim further into culture.”

To celebrate its 50th anniversary, The Smiley Company teamed with 50-plus designers for a Collector’s Edition collection that includes dopamine-inducing Dsquared2 hoodies, Palm Angels tees, Alice & Olivia sequin skirts, Carolina Herrera gowns, Schott bomber jackets, Pintrill buttons and more. It also reconnected with long-term “denim culture” partner, Lee, for a jean jacket. The products began to roll out in February and were highlighted in select Pop-In@Nordstrom and Galeries Lafayette locations.

Here, Loufrani further examines Smiley’s connection to denim and why the world needs more smiles.

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and the denim brand and therefore Rivet: Why does Smiley’s message denim brands continue to still resonate with consumers?

Nicolas Loufrani: The last few years collaborate with us.

Over time, we have built have been challenging for everyone.

In honor of our 50th anniversary, we unlimited ways to work with fashion brands, especially denim declared 2022 to be ‘the year of the brands. For example, each season, smiles’ because we found that while we develop more than 30 bespoke 40 percent of Americans admit they smiled less in 2020 and 2021 than in style guides and product presentations for our partners to previous years, 70 percent of utilize based on the latest Americans agree they want to see trends, market segments and more smiles in 2022. These findings consumer insights. show that now more than ever, the Rivet: What’s next for Smiley? world needs more smiles.

NL: At Smiley, our goal is to spread Rivet: What’s the secret to a good positivity through smiles to make collaboration? the world a happier, kinder place.

NL: Our goal is not mass licensing Throughout the last five decades, all and production—it is to ensure our collaborations, partnerships Smiley, and our partners, remain at and experiences have laddered up to the forefront of culture in a strategic this ethos. As we look ahead to the and positive way. Therefore, when assessing a denim partner, we look at next fifty years and beyond, we’re constantly finding ways to show how their brand ethos align with people why smiling back at the ours—will they use the Smiley to world—together—is exactly how spread happiness and positivity or we reclaim what comes next. just to sell their product? Does this partner want to bring Smiley to life in a unique way? Is the brand’s product and culture like ours? And of course, we also look at their distribution strategy to ensure it is not prioritizing mass production and distribution. This level of assessment ensures that the partnership is 1970s Miss Levi's jean from Europe successful for Smiley

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