Challenges Faced by Fashion Sustainability in the Current Economy
Fashion sustainability is encountering obstacles as material companies striving to offer better solutions struggle to gain sufficient support. Despite the promising developments in innovative fashion materials, such as mycelium-based leather alternative Mylo, certain factors hinder their commercialization and widespread adoption.
The Rise and Pause of Mylo: Bolt Threads, the American firm behind Mylo, unexpectedly announced the suspension of Mylo production in July 2023. Mylo, an alternative leather derived from mushrooms, had garnered attention for its sustainability and had been utilized by renowned brands like Stella McCartney. However, the material failed to reach commercialization beyond the Frayme bag, which carried a high price tag of $2,000.
Meeting the Three Ps: Price, Performance, and Planet: Material innovation brands often face challenges in meeting the requirements of price, performance, and sustainability. Startups may struggle to achieve scalability and affordability, limiting their potential for mainstream adoption. Brand buy-in is contingent on meeting these crucial metrics.
Creating the Right Agreements: Offtake agreements have become common between startups and brands/manufacturers, ensuring a stable supply chain. These agreements protect brands and provide stability for startups, fostering collaboration and encouraging risk-taking. However, the conditional nature of such agreements can hinder material development.
Managing Risk in a Tough Economy: In the face of a challenging economic climate, brands must recognize that the cost of not investing in new technologies and sustainable materials will outweigh the current pain points. European brands are often quicker to embrace sustainability, while some U.S. brands are still grappling with the concept. Failure to innovate can lead to penalties and increased costs in the long run.
Embracing Risk for Sustainable Rewards: Amid the macroeconomic environment, brands that take calculated risks and prioritize sustainability are more likely to thrive. Investing in scalable material innovations has the potential to yield remarkable rewards, as demonstrated by Coach's successful Coachtopia products. Recognizing the urgency of the climate crisis, true category leaders understand the importance of taking risks and driving change.
Fashion sustainability faces challenges in achieving widespread adoption due to various factors, including meeting price-performance-planet requirements and creating agreements that balance risk and collaboration. However, brands that embrace innovation and sustainability are well-positioned to thrive in the evolving fashion landscape, reaping long-term rewards while contributing to a more sustainable industry.