The worldwide economic slowdown has definitely hit all industries including the luxury market. Although the wealthy have more money than the middle class and poor, even they have been cutting back on spending. The result has been the luxury markets have also seen a steep drop in sales.

So as the economy bottoms out and begins to rebound, what needs to happen for the fashion industry to return to growth and profitability? But more importantly, is the growth sustainable?

The Huffington Post did an article titled, “The New Face of Fashion: Sustainable Luxury” and discusses the past failures of the fashion industry and what they need to change to be successful. The “Rules of Retail” over the last 20 years include several obsolete practices including:

• Aggressively developing a network of branded stores even in questionable markets
• Building flagship locations that were unnecessarily large and existed only for their advertising value
• Creating stores intended to have a short life span, and then relocate or significantly renovate them within 5 years

As the fashion industry looks forward, some of the new strategies they need to follow include:

• Grow Organically
• Build Stores that Last
• Edit the Product
• Be Fun and Accessible

A good example of adapting to change is the focus on environmental sustainability in the fashion industry. Here’s a previous article on on EcoChic in Hong Kong.

The key to the fashion industry’s success is learn from your past mistakes, be flexible and adjust to the ever changing consumer demand. Read the full article – Click Here

Last month in Shanghai, China, over 40 designers from around the world shared a catwalk for the first time in mainland China at the EcoChic Shanghai fashion show www.ecochicfashions.com. The celebratory event, supported by leading financial firm UBS, seeks to promote environmental sustainability in the fashion industry.

EcoChic was developed by the Hong Kong-based non-profit organization www.green2greener.com, to display and promote eco-fashion. The EcoChic Shanghai gala evening is part of the UBS Greater China Conference which this year focuses on sustainable development.

We initially did a story on the Hong Kong EcoChic event. Click Here to read that story.

“Style is about attitude and behaviour – not about the way you dress,” according to international designer, Nathan Jenden, who includes in his portfolio a cocktail dress made of recycled Indian saris. “More and more mainstream designers are using eco-fashion in their collections. Eco-fashion is not just about the future of fashion – it is about the future of the world!”

The fashion industry is the second only to agriculture in terms of the consumption of water worldwide while the production of cotton alone is responsible for the use of 25 percent of the world’s chemical pesticide.
Eco-fashion not only makes use of eco-friendly textiles, such as organic cotton, silk and hemp, but also seeks to use reconstructed clothing, with an eye to making the fashion industry more environmentally friendly.

The event in Shanghai focused on three different types of fashion: ready-to-wear, eco-couture and vintage. Around 15 eco-friendly ready-to-wear labels from around the world including three from China, showcased eco-friendly clothing alongside eco-couture designs from international superstars, Diane von Furstenberg, Thakoon and Nathan Jenden. Promoting vintage clothing as the epitome of recycling, the show also featured edgy and glamorous fashion favored by celebrities including Kate Moss and Maggie Cheung.

“This amazing and collaborative event is the fashion industry’s response to increased concerns for the environment,” says Dr. Christina Dean, founder of www.green2greener.com. “The fashion industry is often seen as being inherently un-eco-friendly because it encourages us to consume more and more new fashion. But we are showing that we can still love fashion, look great and also consume in an environmentally-friendly way.”

Nicole Yuen, Head of Equities China, UBS Investment Bank, said: “A focus of our Greater China Conference in Shanghai this year is sustainable development. I’m delighted that EcoChic is a part of the conference. It has proved to be highly effective in raising awareness of environmental issues among the investment community. A sustainable business does not need to compromise profits, technological advancement and competitiveness, but rather seeks to combine business strategies that meet its financial needs with measures aimed at protecting, sustaining and enhancing human and natural resources.”

EcoChic Shanghai has drawn support from leading Chinese designers, including Jenny Ji, Lu Kun and Dorian Ho, who all used textiles produced in China and made from bamboo, hemp or organic silk that do not require as much pesticide as conventional textiles.

“I am using certified organic silk from China, my Motherland,” says Dorian Ho, who has designed an iconic ‘EcoChic’ red organic-silk eco-couture dress with a distinctive East-meets-West look.

“This is a fantastic opportunity to raise awareness about using fashion to attain a more eco-friendly lifestyle,” says celebrity Josie Ho.

At the EcoChic Shanghai gala evening, following the fashion show, Sotheby’s auction house will conduct a live auction to raise funds for WWF (World Wide Fund For Nature) China.

Further funds will be raised by the sale of some of the clothes that appear on the catwalk via online trading platform www.green2greener.com.

EcoChic HK is an environmentally friendly fashion show and cocktail party promoting eco fashion and the concept that luxury living – from fashion to art, food and wine and financial investments – can be ecologically and socially sustainable.

It’s not everyday that Hong Kong’s glitterati are alchemized into green gems, but this was the case in October when celebrities Rain Li, Ivan Wang, Lisa S, William So Wing Hong, Ella Koon, Chau Kai-bong and Mrs Brenda Chau gathered at the hip new W Hong Kong for EcoChic HK – www.ecochicfashions.com

This eco fashion event, supported by UBS, showcased some of the hottest sustainable fashion labels currently on the scene from a host of international and local designers. These ready-to-wear labels wowed the most selective aficionados, serving as a celebratory, fashion-forward occasion to promote environmental sustainability.

Along with ready-to-wear, guests enjoyed vintage fashion – the grandest form of recycling – much of which was donated by Hong Kong’s high society, putting a new and glamorous spin on second hand clothing.

The finale of the show was the eco-couture section, where world-famous designers such as Diane von Furstenberg, Thakoon, Nathan Jenden, Arrogant Cat and Madame Marie made eco-couture dresses using eco-textiles or reconstructed clothing. Local designers Barney Cheng, Dorian Ho, Johanna Ho, Ruby Li and Cecilia Yau showed the enormous talent that Hong Kong designers have in highlighting the push towards a more sustainable fashion industry.

With fashion as the second largest industrial consumer of water worldwide, behind agriculture, and cotton responsible for 25 percent of all chemical pesticide use, designers and their followers are realizing it’s time to make a change. Designers in EcoChic HK used a variety of textiles, such as bamboo, organic silk, hemp and recycled textiles, such as saris and kimonos.

The Hong Kong event shows the positive influences that designers can make. With China, the ‘factory of the world’ on Hong Kong’s doorstep, there is perhaps no better place to exert positive moves towards sustainability.

Off the catwalk, guests enjoyed organic food, wine and cocktails, recycled art installations. Never a dull moment, the venue was decorated with over 50 mannequins clad in second hand clothing or eclectic recycled dresses ranging from lottery tickets to cling film.

As no fashion event can be complete without fashion, Sotheby’s conducted a live auction to raise funds for WWF HK – including a slinky pink bikini donated by Rain Li that resulted in heated bidding.

The star-studded event was organized by the Hong Kong non-profit, www.green2greener.com, and many of the looks in the show were available to buy online after the show.

EcoChic also encouraged guests to get into the spirit of the night by bringing with them items of their own clothing to donate, which will be sold on www.green2greener.com to raise funds for Hong Kong charities. Along with this, the site also sells for charity, luxury recycled tote handbags, designed by Kotur, that are made from table coverings from the Ritz Carlton Hotel.

EcoChic HK was the second EcoChic event – EcoChic Jakarta was in March 08. Following the great success of the event, organizers www.green2greener.com, are continuing to take the show on the road with EcoChic Shanghai taking place in January 09 and EcoChic Sydney in April 09.