PULSE OF THE
FASHION INDUSTRY

2019 UPDATE2019 UPDATE

Publisher
Global Fashion Agenda, Boston Consulting
Group, and Sustainable Apparel Coalition
Authors
Morten Lehmann, Gizem Arici, Sebastian
Boger, Catharina Martinez-Pardo, Felix
Krueger, Margret Schneider, Baptiste
Carrière-Pradal, and Dana Schou
Copywriter
Christine Hall
Cover
Good for You
Art direction
Thomas Blankschøn
Graphic design
Daniel Siim, IDna Group

Acknowledgments
The authors would like to thank all of those
who contributed to this update.
Special thanks go to Global Fashion Agenda’s
Strategic and Associate Partners, as well as
the industry experts and the broader fashioncommunity who have contributed their time,insight and expertise to this update and/or
took part in the Pulse survey and interviews.
Global Fashion Agenda teamThomas Tochtermann, Jonas Eder-Hansen,
Alice Roberta Taylor, Anne-Lieke van
Leeuwen and Eva Kruse
Boston Consulting Group team
Dr Javier F. Seara, Christine Barton, Pascal
Enohnyaket, Kelli Gould, Imogen Price, Mario
Simon, and Sarah Willersdorf
Sustainable Apparel Coalition teamAlexandra Rosas and Veronique Tjon

2019 Copyright © Global Fashion Agenda, Boston Consulting Group, Inc. and Sustainable Apparel Coalition
All rights reserved. Reproduction is strictly prohibited without prior written permission from the publishers.
Every effort has been made to trace the copyright holders for this publication. Should any copyright holders
have been inadvertently overlooked, Global Fashion Agenda, Boston Consulting Group and Sustainable
Apparel Coalition will make the necessary changes.

CONTENTINTRODUCTION

TAKING THE PULSE
OF THE FASHION
INDUSTRY

THE PULSE CURVEAND THE ROADMAPTO SCALECONSUMERSENTIMENT

P. 01

P. 03

P. 07

P. 11

PRIORITIES TO DRIVEFUNDAMENTAL
CHANGEENDNOTESAPPENDIXGET IN TOUCH

P. 15

P. 19

P. 20

P. 25

PULSE OF THE FASHION INDUSTRY

2019 UPDATEPULSE OF THE
FASHION INDUSTRY
2019 UPDATECONTENTThe 2019 Pulse Score1 shows that the fash-widen. About 40% of the industry haveion industry has improved its social andnot yet reached beyond Phase One of thePulse Curve.2 As a result, if the industry
does not implement changes at a faster rate, it will not be able to achieve theUnited Nations Sustainable Development
Goals3 or meet the Paris Agreement.4
Global Fashion Agenda, Boston Consulting Group and Sustainable Apparel Coalition call upon industry leaders to increase
their pace towards a deeper and more
systemic change. Companies must pushharder, with more focused and coordinated efforts, to overcome technological andeconomic limitations that hinder progress.

environmental performance in the past
year, but at a slower rate than the previous
year. Despite this improvement, the fashion industry is still far from sustainable.
Furthermore, the findings demonstratethat fashion companies are not implementing sustainable solutions fast enoughto counterbalance negative environmental
and social impacts of the rapidly growing
fashion industry. If the Pulse Score stays
on its current trajectory, the gap between
industry output and the Pulse Score will

EXHIBIT 1

Ø+5% p.a.
(+81%)

Growth rate projected to increase by 10%

Industry trajectory over past
3 years and projection
Gap between industry
growth and Pulse Score
improvements increasing

$3.3T

+4-5%

$1.9T

$1.8T

$1.7T

+4pt
+6pt

Risk that the gap will widen if industry does
not increase the speed of finding, developing
and implementing measures to improve theirenvironmental and social sustainability practices

Growth rate decreased by ⅓

?

42pt
38pt

32pt
Apparel/Footwear Industry Size

Pulse Score
2017

2018

2019

2020*

2021*

2022*

*Note: Numbers for years marked with an asterisk mark are projections. Industry size and growth rates for apparel and footwear RSP value in USD based on fixed 2018exchange rates. Growth rates until 2023 based on Euromonitor data, growth rates between 2023 and 2030 extrapolated based on Euromonitor data at CAGR 5%.
Source: BCG analysis: Euromonitor; GFA: CEO Agenda 2018

2023*

2024*

2025*

2026*

2027*

2028*

2029*

2030*

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PULSE OF THE FASHION INDUSTRY

Pulse Score growth slowed by
one third in 2019
The 2019 Pulse Score increased four
points from last year, from 38 to 42 (outof 100), compared to six points in 2018,
which means that the speed of measurable progress has decreased by a third.
Although the continued progress is
encouraging, its decreasing speed isconcerning. In the last two years alone
the apparel and footwear industry grew
between 4 to 5%, in line with projections
through 2023 that show annual growth ofapproximately 5%. This is largely driven
by increasing demand in Asia-Pacific anddeveloping countries.5 By 2030 the global
apparel and footwear industry is expected
to grow to 102 million tonnes in volume
and USD3.3 trillion in value.6 Moreover, theSustainable Development Goals estimated that global carbon emissions need tobe reduced by 45% from 2010 levels by
2030 if global warming is to be limited toa 1.5°C increase and net zero carbon emissions are to be reached around 2050.7
Even under optimistic assumptions, theindustry’s existing solutions and speedof progress will not deliver the impact
needed to transform the industry. Fashionneeds deeper, more systemic change.

2019 UPDATE+4pt

improvement
since past year
but measureable
progressdecreased by ⅓

Without growth in environmental and social practices through scaling up existingsustainable practices, adopting more efficient business models and implementing
transformative changes, the gap between
the growth of the industry and the Pulse
Score will widen further. This could have adire effect on the long-term environmental, social and financial prosperity of theindustry and planet.8
The majority of improvements camefrom two segments: small-size players
in the mid-price segment, and medium
and large-size players in the entry-pricesegment. Efforts spreading among thesmaller companies in the entry-pricesegment are encouraging to see. This
movement along the initial phases of thePulse Curve was achieved by firms adopting sustainability strategy development
and governance, setting targets, implementing best practices and aligning theirassociation affiliations. These important
preparatory changes will take time—typically around two years—to translate into
trackable success further along the Pulse
Curve. Meanwhile, frontrunners displayed
lower measurable progress, as their workin scaling up solutions and bringing proven initiatives deeper into the value chain
does not necessarily immediately translate into Pulse Score gains. In addition,
tackling issues which require innovationor changes in business models require
collaborative action.
Consumers more aware of sustainability,
an increasingly important driver in purchasing decisions
As news outlets and social media shine alight on social and environmental responsibility in the fashion industry, consumer
concern is growing. Mentions of sustainability in social media increased a third
faster than overall social media growth
between 2015 and 2018. Awareness ishighest among younger people, especially
Millennials.9

CONTENTThis awareness is beginning to have agreater effect on consumer purchasing decisions, with more than a third ofsurvey respondents reporting they havealready switched from their preferredbrand to another for reasons related toresponsible practices. More than half ofthe respondents said they anticipate that
their next purchase decision will be basedon these practices. For the first time, thisdata confirms that most consumers include sustainability considerations in theirdecision-making framework. These results
indicate a shift in importance of these
considerations and represent a strong
signal to the industry.10 This clear trend
will continue to grow. It is just a matter oftime before responsible practices become
pivotal to decision-making factors whenpurchasing a product.
However, consumer considerations ofsustainable practices are not yet powerful enough to be the most importantdriver of purchasing behaviour. Quality
and aesthetics still dominate decision
making.11 Nevertheless, for 7% of consumers sustainability is the most important
decision-making criteria. Yet, the industry
cannot wait for the consumer to lead thismovement—it is up to fashion leaders totake bolder moves today to transition to asustainable industry.

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PULSE OF THE FASHION INDUSTRY

2019 UPDATECONTENT

TAKING THE PULSE OF
THE FASHION INDUSTRY
EXHIBIT 2
Evolution of industry-wide Pulse Score
Speed of measurable progress slowed vs. last year

2019 vs. 2018

+4pt

2018 vs. 2017

+6pt
This section takes an in-depth
look at the Pulse Score
results to examine the main
drivers of progress and roadblocks the industry faced
during the past year.

42pt
38pt

32pt

In the past year the Pulse Score of the
fashion industry increased from 38 to 42(out of 100), showing progress towardadvanced social and environmental
performance with companies historically
performing lower than average representing the main driver of progress. This
four-point improvement represents aslower rate of measurable progress thanprevious years and indicates the increasingly difficult challenges companies facein advancing their Pulse Scores.

3/25

EXHIBIT 3
Pulse Score improvements byperformance quartile along thePulse Curve
3rd quartile with biggest upward
development during the last year

PRE-PHASE

PHASE ONEPHASE TWOTaking Uncoordinated Actions

Building the Foundation

Implementing the Core

2nd quartile

3rd quartile

PHASE FOUR

Expanding to Scale

Unlocking the Next Level

1st quartile:
Top Performers

42

>70

PHASE THREE

47
(+4)

65
(+1)

43
(+11)

60-69
50-59
40-49
30-39
20-29

4th quartile:
BottomPerformers

16
(+4)*

<20

*Note: Pulse Score 2019 (vs. 2018)

Pulse Scores by performance quartile
To provide an overview of the industry’s
progress companies are ranked in performance quartiles based on three segments:
premium, mid-price and entry-price,according to their Pulse Scores.12
Players in the first and second performance quartiles slowed in improving
their Pulse ScoresCompanies in the first quartile (the highest performing segment) slowed in theirtrajectory along the Pulse Curve this year
due to increased challenges in scaling
up proven measures into deeper tiersof their supply chains, in inventing andscaling transformative technologies and inachieving tangible results from collaborative initiatives. This result, however, needs
to be viewed with nuance since players

at this level already have high scores and,
historically, have made strong progress.
Their ongoing work toward advancing andscaling their proven measures or investingin new technology does not necessarily
immediately translate into Pulse Score
gains. It will take further investments andtime until new transformative technologies are at a stage in which they generatemeasurable progress at scale.
In the second quartile progress also
slowed. Nevertheless, their efforts arevisible: companies report that they are
dedicated to sustainability, and they are
investing in supplier relationships, supply
chain traceability, an improved material
mix and changes to their business model
towards circularity. Yet, they face additional challenges, as the required resourc-

es, capabilities, funding and advanced
technologies in the aforementioned areas
are not yet fully established.
For both quartiles, finding and deploying
scalable technology and identifying thenext set of disruptive solutions to facilitate further systemic change has provenelusive. Finding innovations to reach thenext phase of the Pulse Curve takes time.
It requires the industry to innovate andto invest jointly to target the unsolved
challenges in the value chain with new
solutions. Fashion companies must join
forces with suppliers, investors, regulators,
NGOs, academia and consumers to create
an ecosystem that supports transformational innovation and disruptive businessmodels.

Players in the third performance quartilesaw the largest year-on-year improvements
In the third quartile, improvements weremainly driven by small mid-price and medium-entry-price players. They achieved
this movement along the initial phases of
the Pulse Curve by adopting sustainablestrategy development and governance, bysetting targets in energy, chemicals andwater savings, and by aligning association
affiliations. In other words, those players
are putting in place the measures which
are part of the first and second phase of
the Pulse Curve.
Unfortunately, there is still a significant
part of the global fashion industry (1015%) that has not yet embarked on any
advances towards more responsible
practices.

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PULSE OF THE FASHION INDUSTRY

Key results by segment and size
For a more nuanced understanding of
the industry’s progress, the Pulse Scoreis broken down by segment and size toreveal patterns and to incorporate tailored
recommendations.
Premium segment
The premium segment saw solid scoresof 52 to 54, with Pulse Scores increasing
by one to three points over the last year.
Innovative brands made notable achievements through collaboration with otherfashion players and also other industries,
such as the agricultural sector.13 Again,
some of these advances are not reflectedin Pulse Scores, but this does not meanthat projects are unsuccessful, but rather
that they are at a stage that does not yet
yield measurable impact at scale.
Mid-price segment
In the mid-price segment, the Pulse Score
shows that many small players caught up.
They increased their score from 37 to 45
points in 2019. This is especially encouraging given the large share of the global
fashion market (20%) they account for.
Their improved score was mainly driven
by putting strategies and proven tools inplace. The high variation of scores among
the different players in this segment isimportant to note. Giant sports players have a long tradition of focusing onmaterials and in-depth collaboration withvarious tiers of their supply chain, whichis reflected in higher scores. Giant fashion
players, which have the financial means,
are already at a stage of scaling up proven initiatives in their supply chains, follow
with a score of 58.

2019 UPDATEEXHIBIT 4

CONTENT

Pulse Scores by segment and size
Strong improvements made in previously low-performing segments

Premium segment

SC*

Mid-price segment

Entry-price segment

Pulse Score 2019 (vs. 2018)

Revenue Size

GlobalMarket Share$0-$1B

2%

Small players - Luxury

52 (+1)>$1B

5%Large players - Luxury

54 (+3)$0.1B-$1B

3%

Sustainability Champions<$0.1B

20%

Small players$0.1B- $1B

10%

Medium players$1B-$10B

7%

Large players - Fashion$1B-$10B

2%​Large players - Sports

>$10B

2%

Giant players - Fashion

>$10B

6%

Giant players - Sports<$0.1B

10%

Unregulated<$0.1B

19%

Small players$0.1B- $1B

7%​Medium players$1B-$10B

4%​Large players - Fashion

>$10B

3%

Giant players - Fashion

0

10

20

30

40

50

60

70

80

90

100

80 (±0)45 (+8)47 (±0)44 (±0)48 (+1)58 (±0)85 (+1)0 (±0)
26 (+6)
48 (+18)
55 (+10)67 (±0)Ø 42

Entry-price segment
Small, medium and large players show thelargest improvements in the entry-pricesegment. The giant companies in this segment are finding it increasingly challenging to improve their Pulse Scores. Finding
solutions for the unresolved problems is
becoming tougher, and impact and returns
are receding. Small players improved theirscore to 26 (from 20 in 2018), as they built
their foundations. Medium-size players increased their score by 18 points (from 40
to 48), while large players improved theirscores by 10 points (from 45 to 55).

*Note: Sustainability Champions - Sustainability is part of their core strategy and decision-making framework. These typically smaller companies regard
sustainability as a key differentiator in their strategy and align their actions, products, and communications behind it.

Two factors explain the significant
progress seen by these segments that
increased their Pulse Score more significantly than other groups.
•

The power of foundational steps
Companies progressed by integrating sustainability in their strategy,
corporate identity, decision making,governance, reporting and tracking,which is reflected in the positive leapsin their scores.

•

Association membership
Given the knowledge building andcollaborative nature of associations
like Sustainable Apparel Coalition,joining them can strongly contribute to a company’s ability to set
targets, define strategies and build
governance foundations, which areespecially valuable for companies
getting started with their sustainability efforts.

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PULSE OF THE FASHION INDUSTRY

2019 UPDATEKey results by value chain step

this section are not comparable to the

Examining Pulse Scores along specificprevious years.

sustainability that involve target definition, strategy setting and governance.
The latter step essentially encompasses
the production of garments and footwear.
As for other steps in the value chain,
Product Development showed average
performance, whereas Packaging, Transportation, Distribution, Retail, and Use &End-of-Use showed lower performance.

steps of the value chain that require more
attention reveals performance differenc-

Two steps within the value chain thates. Since the enhancement update of theshow above-average performance areindicators in the value chain section in theManagement & Target Setting and Sup-

Higg Brand & Retail Module beta version,

ply Chain. The former covers enabling

the scores along the value chain steps inactivities and overarching aspects of

EXHIBIT 5

CONTENT

Pulse Scores by value chain step: Management & Target Setting and Supply Chain show strongest scores

Weak

Strong

<20

20-29

30-39

40-49

50-59

60-69

>70

Management& Target Setting

Product Development

Supply Chain

PackagingTransportation

Distribution Centres

Retail Stores

Product Use& End-of-Use

Normalised total

56

38

42

32

30

31

28

31

1st quartile

75

53

68

54

46

48

45

47

2nd quartile

68

45

46

23

22

22

28

35

3rd quartile

59

41

42

30

32

33

24

34

4th quartile

21

11

14

19

19

19

17

9

SpreadTop/Bottom

54

42

54

35

27

29

28

38

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PULSE OF THE FASHION INDUSTRY

2019 UPDATECONTENTTHE PULSE CURVEAND THE ROADMAP TO SCALE

The Pulse Curve showcases a five-phase trajectory of theindustry’s social and environmental performance, providing guidance for fashion companies as they assess theircurrent standing, locate themselves against their peers
and map out their next steps.
Each phase defines a set of priorities and milestones forcompanies to focus on, which are summarised by the CEO
Agenda.14 The Roadmap to Scale15 captures these priorities along the Pulse Curve and offers actionable guidance
for the sustainability journey of fashion companies.

Pre-Phase: Taking Uncoordinated Actions
Companies in the weakest performancesegment show little progress. With alack of visibility over environmental andsocial performance along the value chain,finding the right starting point proves
to be a challenge. Most companies here
have yet to commit fully to sustainability
and lack a clear strategic direction andcorresponding internal structure. Many,
however, engage in initial actions that are
mostly uncoordinated and opportunistic.
The Roadmap to Scale does not cover
this pre-phase, when companies are still
becoming aware of the possibilities forchange and lack a clear strategic direction
and corresponding internal structure. The
roadmap begins with Phase One, after
fashion companies have formally committed to improving their environmental andsocial performance.

Phase One: Building the Foundation
Building the foundation usually starts witha formal commitment to sustainability.
Companies in this phase start to build
the enablers by empowering dedicatedresources, setting targets and directing efforts toward creating visibility inthe supply chain. They have mustered
the organisational will and resources toinitiate activities. Fashion companies inthis phase have a clear view of their own
performance, responsibilities and overall
footprint, while seeking knowledge fromoutside experts and associations. This
foundation lifts the individual Pulse Score
and will prove crucial for later success, as
it facilitates all efforts undertaken. Companies in this phase focus on key enablers
that lay the groundwork for any initiatives
implemented along the Roadmap to Scaleand determine the brand’s ability to scale
sustainability efforts later.

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PULSE OF THE FASHION INDUSTRY

2019 UPDATE

Phase Two: Implementing the Core
Targets, dedicated resources, budgeting and established traceability enable
the industry to implement collaborative
initiatives that address core businessprocesses and impact areas within their
supply chain. Both environmental andsocial issues are preferably tackled using
a standardised measurement tool andreporting framework. In parallel, improvements to the material mix are undertaken. All exemplary initiatives create
positive momentum in the organisation,
unlocking further resources. As they progress, fashion companies start to realise
their preliminary positive environmental,social and financial impact.

Phase Three: Expanding to Scale
Companies amplify their efforts and taketheir initiatives to scale while reaching
deep into their value chains. In close
collaboration with their suppliers, they
implement improvement measures andadvanced solutions that increase profitability as well as environmental and social
performance. At some point these initiatives also begin reaching their limits andattainable impact. Fundamental, trailblazing solutions are not broadly available. The
majority of large sportswear and fashion
players operate in this phase. Their efforts
to scale up activities in their supply chains
have only led to small, incremental returnsin Pulse Score improvements.

CONTENT

Phase Four: Unlocking the Next Level
Pulse Scores rarely rise above 80 because
doing so largely depends on technological and business model innovations thatgo far beyond what is currently available and what individual companies canaccomplish. This further proves that the
fashion industry needs to invest in transformational innovations and disruptive
business models. Scaling these technologies will depend on leadership, a fit-forpurpose ecosystem and industry cooperation among regulators and consumers.
Only with a strong commitment can theindustry push the Pulse Curve upward toa greater degree.

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PULSE OF THE FASHION INDUSTRY

EXHIBIT 6
Pulse Curve and Roadmap
to Scale
Guidance for brands tobenchmark themselves andunderstand next steps

2019 UPDATECONTENT

PRE-PHASE

PHASE ONEPHASE TWOPHASE THREE

PHASE FOUR

Taking Uncoordinated Actions

Building the Foundation

Implementing the Core

Expanding to Scale

Unlocking the Next Level

20

40

60

80

>70
60-69
50-59
40-49
30-39
20-29
<20

•

Companies in the weakest
performance tier takeinitial uncoordinated andopportunistic actions.

•

They have not yet fullycommitted to sustainability
and due to lack ofperformance visibility,
finding the right starting
point remains a challenge.

Continues next page••

Building the foundation
depends on a formal
commitment tosustainability. The aim is tobuild a strong groundwork
based on dedicatedemployees, a strategy, andcommunication.

•

Efforts to increase
traceability result in
improved visibility
over performance,
responsibilities, and overall
footprint.

•

Continues next pageThe previously laidfoundation enables
companies to carryout the core efficiency
programmes—which, inturn, bring environmental,social, and financial
improvements.

•

The industry accelerates
efforts, takes initiatives
to scale, and integrates
targeted programmes
deep into the value chain
with tier-two suppliers andbeyond.

•Frontrunners areexperiencing the limitationof existing solutions.

•

These programmes
generate proof-points tocreate positive momentum
in the organisation andunlock further resources.

Implementing newtechnologies and process
upgrades will raise
profitability as well as
environmental and social
performance.

Only with transformationalinnovations and disruptive
business models can theindustry move forward
to the future. But scaling
the new technologies will
depend on leadershipand cooperation acrossthe industry, including
regulators and consumers.

Continues next page

Continues next page

Continues next page

•

9/25

Continued from previous page

Continued from previous page

Continued from previous page

Continued from previous page

Continued from previous page

PRE-PHASE

PHASE ONEPHASE TWOPHASE THREE

PHASE FOUR

FOURTH
INDUSTRIALREVOLUTIONPROMOTION OF
BETTER WAGE
SYSTEMS

Joining global platforms topromote better wage systems

CIRCULARFASHIONSYSTEM

Training designers, reducing preand post-consumer waste andengaging customers

SUSTAINABLE
MATERIAL MIX

Baselining and improving material
mix starting with high volume andhigh impact materials

Increasing share of non-conventional materials and implementing
sourcing guidelines

COMBATING
CLIMATECHANGE

Setting science-based targets,
implementing efficiency programmes
and increasing the use of renewableenergyCollaboration along value chain and with industry peers, manufacturers,
investors and policymakers

RESPECTFUL AND
SECURE WORKENVIRONMENTS

Implementing collaborative
initiatives to enhance working
conditions in main facilities

Expanding collaborative initiatives in supplier base and increasing worker
engagement and skills

EFFICIENT USE OF
WATER, ENERGYAND CHEMICALS

Implementing collaborative
resource efficiency programmes
in main facilities

Scaling efficiency programmes across supply chain and investing intargeted, high-impact initiatives

SUPPLY CHAIN
TRACEABILITY

ENABLER

TRACEABILITY

Increasing supply chain visibility starting with tier-one/tier-two, gradually extending to tier-three/tier-fourRESOURCES

Dedicated resources with management mandate growing into a full team embedded in organisation

STRATEGY

Measurable targets leading to a full sustainability strategy closely tied to the corporate strategy

COMMUNICATIONInternal and external communication with stakeholders

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PULSE OF THE FASHION INDUSTRY

2019 UPDATECONTENTCONSUMER SENTIMENT
Consumers are increasingly aware andconcerned about social and environmental responsibility in the fashionindustry. Proprietary research by Boston
Consulting Group16 shows that 75% ofconsumers in the five countries surveyedview sustainability as extremely or very
important. This is further substantiatedby an increase in sustainability mentions
on social media, which was a third higher
than the overall growth of social media
posts. As the growth of positive mentionsof sustainability is more than proportional, brands have an opportunity to leverage their work toward better practices,
contribute to the positive momentum and75%

of consumers in
the five countries
surveyed viewsustainability as
extremely or very
important.

maintain a competitive edge with consumers. As more digital and social media
natives come of age, with their expectation and desire for information, brands
must increasingly connect with themwhere they are most engaged.
Raising awareness drives consumers toswitch to brands they trust
Research shows that 38% of consumers
report actively switching from their preferred brand to another because it credibly stands for positive environmental and/or social practices.17 Drilling down further,young consumers are more interested
in social and environmental practices infashion, with 48% of the Founders generation18 stating they have switched brands
based on these considerations, comparedto just 28% of Baby Boomers.19 More than
50% of consumers plan to switch brands
in the future if another brand acts moreenvironmentally and socially friendly thantheir preferred one. The question is nolonger whether it is necessary to improvesustainable business practices, but rather
how long it will take before consumers
stop buying from brands that do not act
responsibly.

EXHIBIT 7

Importance of sustainability for consumers and its triggers
Importance of sustainability mostly triggered by climate change and natural disasters

42%

Importance of sustainability when purchasing fashionI
33%

18%

3%

4%

Not at all important

Somewhat important

Very important

NeutralExtremely important

Triggers of sustainabilityII
Climate change awareness efforts

50%

Natural disasters in the world

49%

Reading about sustainability

44%

Watched a documentary on sustainability

32%

Flooding in many parts of the world

29%

Tsunami in Asia

16%

Factory fire in Bangladesh
Other

13%
4%

I. Question: How important is sustainability to you when purchasing fashion products, on a scale of 1 to 5?
II. Question: Which of the following, if any, triggered you to become conscious of sustainability as an issue?
Source: BCG Sustainability survey March 2019, N = 703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)

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PULSE OF THE FASHION INDUSTRY

For

2019 UPDATE

		of consumers,
7%
		sustainability

is the key purchasing
criterion, but

23%

Overall consumer expectations can bedivided into table stakes, or basic requirements, and the differentiating attributes
they are willing to pay a premium for.
Taking a stand against child labour, animal
cruelty and unsafe working conditions,for example are aspects that consumers
expect as a baseline. Examples of differentiating attributes that consumers
potentially find worth paying more for include the use of responsibly sourced andrecyclable materials, and biodegradable
packaging. Consumers expect brands tobe concerned about those issues and act
accordingly.

However, sustainability considerations
are not yet powerful enough to be themost important purchasing criterion. For
7% of consumers, sustainability is the
key purchasing criterion, but 23% prioritise high quality, 17% looking successful
and 16% receiving good value for money.
Consumers nevertheless expect brands tobe concerned about environmental, socialand ethical issues and to act accordingly.
Sustainability considerations are seen asa prerequisite rather than a driver of purchasing decisions.

17%prioritisehigh quality,

CONTENT

looking
successful
andThe strongest triggers for conscious
behaviour concerning sustainability are
climate change efforts (50%) and natural disasters (49%). Consumers mostly
acquire information about sustainability
issues through online search (35%), social
media (31%) and non-digital print media(29%).
Sustainability carries different meanings and associations, depending on the
fashion category. For clothing (excluding
outerwear), the strongest associations are

16%

receiving goodvalue for money

to change lives for the better, reduce thecarbon footprint and be a role model. For
outerwear, the strongest association is toestablish oneself as a community leader.20
Furthermore, the importance attributed tovarious aspects differs geographically. For
example, in the US social aspects havea relatively higher importance, whereas
in China, environmental aspects have arelatively lower importance.

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PULSE OF THE FASHION INDUSTRY

Three consumer segments and six nested
subgroups21
Three broad segments emerged in thesurvey data regarding consumer perception on the importance of switching to abrand with more responsible practices.
Open (16%): These are consumers who
have a high interest and knowledge about
production conditions. Their knowledge
goes beyond the superficial, and they ask

EXHIBIT 82019 UPDATE

brands difficult questions, for example
how a brand ensures that labelling requirements are met. For these consumers,
responsible practices are a key purchasing
criterion, on par with style and quality.
The demographics of members of thisgroup range from high-income Gen Xers
with graduate or professional degrees
and retired Baby Boomers with medium
income to Millennials who are employedfull-time with medium income. Geograph-

Six key segments of sustainability consumers
Majority of fashion consumers are in the middle ground100% of population

Resistant (35%)

CONTENT

ically, the open segment has a proportionally strong representation in Brazil (20%)
and the US (18%).
This segment can be further broken down
into three subgroups: The enthusiasts(3%), for whom sustainability is a key
purchasing driver; the subgroup highinvolvement (10%), where sustainability
plays a major role in purchasing decisions; and the believers (3%), who takesustainability into account in purchasing
decisions.
Middle ground (49%): These consumers
express a mild interest in sustainability
in fashion and other product categories.
Their knowledge about it is superficial,
and they view sustainability as a niceto-have factor. They also expect brands
to take action and communicate about
it. These consumers follow the recom-

The exhibit shows an aggregated percentage of population in subsegments
The circles are an indicator for sustainability practice level i.e. how important sustainability is for the consumer segment

Open (16%)

Middle ground (49%)

Enthusiasts (3%)

High involvement (10%)
Low involvement (42%)

Supporters (7%)

Believers (3%)

Rejectors (35%)

Over-index: Demographic
characteristics that occur
over-proportionally insubgroup compared
to total sample

Sustainability practice level:

Sustainability practice level:

Sustainability practice level:

Sustainability practice level:

Sustainability practice level:

Sustainability practice level:

Summary• Not interested insustainability in fashion• Do not practicesustainability in othercategories• Seek to stretch fashion
incomeSummary• Mild interest in
sustainability in fashionand in other categories• Some attitudes show
certain interest in
sustainability

Summary• Mild interest in
sustainability in fashionand in other categories• Purchasing decisions
with sustainability in
mind• Support sustainability inother categories

Summary• Interest in sustainability
in fashion and in othercategories• Several attitudes
show some interest in
sustainability• Consider sustainability inpurchasing decisions

Summary• Sustainability is key
driver when choosing
products• Over-indexes insustainability on all othercategories

Profile over-index:• Lower income• Female• Self-employed

Profile over-index:• Founders and Millenials• Medium income• Full-time employed

Summary• Interest in sustainability
in fashion and in othercategories• Have chosen brands
based on sustainability inthe past and will do so in
the future• Sustainability plays
major role in purchasing
decisions

Profile over-index:• Boomers and Silent
Generation• Lower income• Mostly high school
education• Retired, home maker, notemployed

Profile over-index:• Lower income• Home maker, notemployed

Profile over-index:• Millenials and Boomers• Low/Medium income• Retired or self-employed

Profile over-index:• Gen X
• Male• High income• Graduate andprofessional degrees

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PULSE OF THE FASHION INDUSTRY

mendations of brands or people they
trust. For this middle ground, a common
standard (which does not yet exist) would
ensure that the recommendations they
follow are backed by action. In terms ofpurchasing practices, they view a company’s attitude about responsible practices
as being important, but the key purchasing drivers are aesthetic and price. Typicalmembers of this segment have medium
income, are often female and may be
self-employed, homemakers or otherwise
not employed. They have a proportionallystrong representation in China (54%).
The middle ground can be broken down
into two subgroups: supporters (7%) and
low involvement (42%). While the former
supports sustainability in fashion andother categories but does not consider itupon purchase, the latter pays attention
to the topic without concretely supporting it.
Resistant (35%): These are consumers
who are not interested in the topic ofsustainability in fashion, or in other categories, such as food and furniture. They
might even feel deterred from purchasing
products marketed as more responsible,

2019 UPDATE

because they expect them to be more expensive. Price is their first purchasing criterion. Among the other criteria they use
to make purchasing decisions, sustainability is not one of them. The typical member of this segment is a Baby Boomer, has
low to medium income, usually has a highschool education, and is either retired, ahomemaker or unemployed. They have a
proportionally strong representation in
the UK (42%).
Implications for brands: Take further
action and openly share progress
Improving social and environmental conditions in their value chains is becoming atable stake for brands. Not only is taking
action inevitable, communicating about
the actions is also essential. Brands needto understand how to target the rightconsumers with their communication regarding their efforts to address social andenvironmental issues.
Brands can use these segments to refine
their messaging, with the goal of making their communications relevant to thebroader middle ground and the believer
subset of open consumers. Together
these groups make up 52% of consumers.

CONTENTIn addition, although the fact that 35% ofconsumers in the resistant segment rejectsustainability outright appears to be an
insurmountable hurdle, the industry cannot afford to take the same view. Since
the responsibility for driving change falls
to brands, so too does the job of figuring out how to get resistant consumers
on board to see sustainable products as
a new and necessary normal. To do this,brands will have to understand the specific needs of these consumers and create
an overlap between them and sustainability drivers.
For both messaging as well as actions,brands need to understand the use cases
and business models that their customer
groups are most interested in. Additionally, brands need to understand exactly
what consumers expect from their products in terms of social and environmental
responsibility. Building onto their actions,brands must create offerings and messages that respond in alignment with theircustomers’ interests and main drivers forsustainable purchasing practices, hence
promoting more responsible practices
that resonate with their customers.

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PULSE OF THE FASHION INDUSTRY

2019 UPDATEPRIORITIES TO DRIVE
TRANSFORMATIONALCHANGEThe fashion industry must overcome its
roadblocks to achieve more substantial
improvements that lead to a systemicchange. Solving the challenges of scaling
and innovating disruptive technologies isa necessity for future progress. Collaboration is therefore a prerequisite to advancethe sustainability performance of theindustry, which requires not only fashioncompanies but the wider eco-system tobe on the same playing field.
A closer look at the playing field reveals
that about 40% of the industry did not
move beyond the Pre-Phase and Phase
One of the Pulse Curve, highlighting theurgent need for these players to laying
the foundation and move toward targeting core business processes and impact
areas for improving their social and environmental performance. The critical initialsteps for these companies have been
identified. Key enablers are the first stepto lay the groundwork for any sustainability initiative as they determine the brand’s
ability to scale their initiatives down theline. These enablers include dedicated resources, strong support from top
management, measurable targets closelyaligned with corporate strategy, communications that clearly convey efforts
internally and externally, and the use ofstandardised reporting frameworks.
Once these fashion companies have laid
the foundation, they can then focus on
the four core priorities in the CEO Agenda
by:•Increasing supply chain traceability
by tracing tier one and two manufacturers•

Combating climate change by implementing measures that reducegreenhouse gas emissions•

Improving efficient use of water, energy and chemicals by implementing
efficiency programmes in processing
stages•Deepening efforts to establish
respectful and secure work environments by upholding standards for therespect of universal human rights for
all people employed along the value
chain

CONTENT40%of the industry that
did not move beyond
the Pre-Phase andPhase One of thePulse Curve has
to address the key
enablers and thefour core prioritiesof the CEO Agenda
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PULSE OF THE FASHION INDUSTRY

60%

of the industry should
focus on scaling up
core priorities
and accelerate efforts
on transformational
priorities of the
CEO Agenda

2019 UPDATEThe other 60% of the industry, which
already has the aforementioned enablers
in place, should focus on scaling up theirimpacts on the core priorities for immediate implementation.
As a next step for companies moving forward with the core priorities, the industry
should accelerate collective action to thenext level of transformational priorities,
also described in the CEO Agenda, tocreate fundamental change by:•

Establishing a sustainable material
mix by reducing the negative effects
of existing fibres and developing new
innovative, more responsible fibres•

Building circular fashion systems bydesigning, producing, selling andcollecting products that enable thereuse and recycling of post-consumer
textiles at scale•

Promoting better wage systems bycollaborating with industry stakeholders to explore opportunities todevelop and implement better wage
systems•

Leveraging the fourth industrial
revolution, by embracing the opportunities in the digitalisation of thevalue chain and engaging with otherbrands, manufacturers, and governments to prepare for the transition of
workforce.

CONTENT

Calling on the broader ecosystem to step
up to the challenge
Even the most advanced brands face
limits to what they can achieve in isolation. To master the significant roadblocks
lying ahead, a strong ecosystem of collaboration is required to drive impact byidentifying best practices and inspiring
innovative solutions.
Two of the key players in the eco-systems are governments and policymakers.
While there is much to be done, there isalso increased momentum to create a
supportive regulatory framework, which
the industry should seize and seek tofurther develop.
Governments and policymakers are increasingly keen to play a more dominantrole in advancing the environmental andsocial practices of the fashion industry,
for two reasons. The first is that the callfor sustainability comes from citizens, ormore specifically, the electorate (e.g. theGlobal Climate March). The second is thatthe pace of the fashion industry’s work
toward better practices is not happening
fast enough— policy intervention can help
accelerate it by, for example, applying
incentive structures in favour of sustainability actions.
Some governments have already launchednational initiatives. To name two examples, the multi-stakeholder initiatives inGermany22 and the Netherlands23 led bygoverning bodies bring together numerous stakeholders. Governments in

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PULSE OF THE FASHION INDUSTRY

partnership with companies, businessassociations, trade unions, civil society
groups and standards organisations provide a platform from which more progress
toward sustainability can emerge andscale. However, the question is whether
national approaches are the right answer
to an international issue. Instead of asking
brands to join a separate initiative in every
country, which often involves different approaches, creating unnecessary
burdens for industry, government actionneeds to align with businesses and takea more international approach. Moving
forward, coordinated action is crucial to
overcoming the challenges of the fashionindustry, given its global nature. An overall
policy approach, timelines and incentives
must thus be aligned at an international
level. Progress is already underway toalign these initiatives with the industry
using OECD Due Diligence Guidance for
Responsible Business Conduct24 as the
backbone, as for example, the Sustainable
Apparel Coalition joining forces with theDutch and German national initiatives.25
To pave the way for effective policy, governments and businesses need to work
together. As a prerequisite for close collaboration, policymakers need to be clear
on what the role of governments shouldbe. Business should define its commitment to change. One factor that contributes to the ongoing lack of clarity in thisarea is the traditionally low overall policy
engagement from the fashion industry
itself. Active political scrutiny emerged
after the Rana Plaza disaster;26 the industry should seize this as an opportunity to2019 UPDATECONTENT

contribute their knowledge to help shapeincoming legislation. A smart political
approach will ensure a level playing fieldand clearly define sustainability measures. It will avoid additional reporting andauditing initiatives, instead incentivisingsocially and environmentally responsible
business practices, assisting in proving
the business case. Helpful policy measurements could entail competition regulationas part of future trade agreements toensure human rights are respected. Or tax
incentives to create reward systems forthe use of sustainable materials to generate demand.
The industry itself can proactively approach regulators on the supranational
level and call on national regulators to engage in international cooperation, helping
these policymakers understand the needfor common frameworks and rigorous
standards. Other industries within theEuropean Union, such as packaging27 andconsumer electronics,28 have achieved
common standard setting.
NGOs and media must continue pushingbusinesses and consumers to support thistransformation strongly by encouraging
consumers to find and exercise their voice
and urge businesses to supply high-quality sustainable products. NGOs focusedon consumers have a significant role toplay in educating them via tools such as
the Fashion Transparency Index29 or GoodOn You.30 These tools provide consumers with ethics ratings and sustainability
information about factories and suppliers
involved in the manufacturing of garments from the brands and retailers theypurchase from.

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PULSE OF THE FASHION INDUSTRY

Similarly, investors have important responsibilities. They can serve as a catalyst
for change toward better ways of doing
business if they prioritise sustainability
in their investment decisions. Investors
should agree to standard disclosure requirements, driving impact and helping topush for common reporting frameworks.
For example, by joining the consortium ofinvestors led by Mirova, which has called
for such a framework31, and support the
Sustainable Apparel Coalition and Global
Reporting Initiative’s efforts toward common sustainability reporting frameworks32
In addition investors should engage theirinvestees on the topic of improved socialand environmental practices and ask themto join the push for a common framework,
potentially working together with legislators.

2019 UPDATE

place to take a bold stand is urgent. The
situation demands that industry players
both jointly lead and push these efforts
toward common standards and collaborative efforts on transformational priorities.
This will unleash the forces that the fashion industry needs to be able to close thegap between its own growth and its effort
to achieve a neutral, or even positive footprint, moving toward more sustainablebusiness practices.

FOR A
WORLD
BEYONDNEXT
SEASONAs for co-investment, the fashion industry
can learn from the best practices of othersectors to inspire them on ways to collaborate. For example, the car manufacturers
BMW and Daimler teamed up to jointly
confront new players and regulation byworking on five joint ventures at the sametime.33 This offered them a level of scale
they could not achieve on their own toaddress disruptive businesses, such as car
and ride-sharing and electromobility, butalso the regulation that is likely to ensue.

We call on industry leaders to react now
to the findings highlighted in the Pulseof the Fashion Industry 2019 Update anduse them as a driving force for immediate
action.

Given the plateau where the industry finds
itself—with 60% of companies struggling
to find a way past the technological andeconomic hurdles, and 40% still working
to catch up— the call for players in theecosystem who have all core priorities in

The fashion industry has shown progress
toward better social and environmental performance over the year, but theslackened pace is alarming. We must
increase the momentum to establish
lasting impact. Businesses need to solve

CONTENT

the challenges of scale and utilise disruptive technologies that will lead to new
ways of doing business. Governments andbusinesses must also collaborate closely
to establish widespread policies, and investors should engage their investees on
the topic of improved socially responsible
practices. Fashion players who have all
the foundational priorities in place to takea bold stand should both lead and pushthese efforts toward common standards
and work with others to tackle the transformational priorities. The industry should
also harness the increasing prevalence ofsustainability in the consumer consciousness by communicating their developments, which will encourage consumers
to actively purchase more responsible
products.
Global Fashion Agenda, Boston Consulting Group, and Sustainable Apparel
Coalition hope the fashion industry will
respond to the call for future collaboration and innovation. This research was
conducted with the aim to ultimately
advance the sustainability agenda andconsequently help to safeguard the futureof the fashion industry, our people andour planet.

18/25

PULSE OF THE FASHION INDUSTRYENDNOTES

2019 UPDATE

6

Global Fashion Agenda and Boston Con-ion Industry. Retrieved 13 April 2019, fromnership-for-sustainable-textiles-cooper-

sulting Group (2017). Pulse of the Fashionhttps://www.globalfashionagenda.com/

ate-to-align-on-674445443.html

Industry. Retrieved 10 April 2019, frompublications/#pulseofthefashionindustryre-

https://www.globalfashionagenda.com/

port

wp-content/uploads/2017/05/Pulse-of-the7

8

1
2

3

4

5

CONTENT

16 Research conducted in March 2019 with

Fashion-Industry_2017.pdf

almost 3,000 participants spread out be-

IPCC (2018). Global Warming of 1.5°C.

tween Brazil (523 participants), China (514Retrieved 11 April 2019, from https://report.

participants), France (529 participants),

ipcc.ch/sr15/pdf/sr15_spm_final.pdf

the UK (703 participants) and the US (703

Global Fashion Agenda and Boston Con-participants). To complement the results, asulting Group (2017). Pulse of the Fashionsocial media listening has been conducted.

Industry. Retrieved 10 April 2019, from

17 Ibid.

https://www.globalfashionagenda.com/

18 Founders are defined as being born be-

26 E.g. European Parliament (2017). Report on
the EU flagship initiative on the garment
sector. Retrieved 12 April 2019, from http://
www.europarl.europa.eu/doceo/document/A-8-2017-0080_EN.pdf
27 European Commission (2018) Packaging
and Packaging Waste. Retrieved 19 April
2019, from http://ec.europa.eu/environment/waste/packaging/index_en.htm
28 European Commission (2018) Waste Elec-wp-content/uploads/2017/05/Pulse-of-the-tween 1997 and the mid-2000s. The survey

trical & Electronic Equipment (WEEE). Re-

Fashion-Industry_2017.pdf

sample only includes individuals aged 18 or

trieved 19 April 2019, from http://ec.europa.

Consumer sentiment survey conducted byolder and the Founders in the survey werein Appendix.

Boston Consulting Group in March 2019 forborn between 1997 and 2001.

See Global Fashion Agenda and Boston

the Pulse of the Fashion Industry Update

Consulting Group (2018). Pulse of the Fash-with 2,900 participants from Brazil (523

ion Industry. Retrieved 16 April 2019, fromparticipants), China (514 participants),

20 See exhibit 10 in Appendix.

https://www.globalfashionagenda.com/

France (529 participants), the UK (703

21 See exhibit 11 in Appendix.

publications/#pulseofthefashionindustryre-

participants) and the US (703 participants).

22 Partnership for Sustainable Textiles (n.d.).

port

Survey complemented by a social media

Socially and Environmentally – we’re on the

United Nations (n.d.). About the Sustain-

listening analysis based on posts on Insta-

right track. Retrieved 16 April 2019, fromable Development Goals. Retrieved 16 Aprilgram, Twitter, reviews, blogs etc.

https://www.textilbuendnis.com/en.

See Taking the Pulse of the Fashion Industry

9

19 Baby boomers were born between 1947
and 1966.

eu/environment/waste/weee/index_en.htm
29 Fashion Revolution (n.d.). Why transparency matters. Retrieved 18 April 2019, fromhttps://www.fashionrevolution.org/about/transparency
30 Good On You (2019). Who made my
clothes? And other important questions.
Retrieved 18 April 2019, from https://goodonyou.eco
31 Mirova (2018). Sustainability requirements

2019, from https://www.un.org/sustain-

10 Ibid.

abledevelopment/sustainable-develop-

11

Netherlands (2016). Agreement on Sustain-in the apparel industry Retrieved 10 April

ment-goals/

12 The top quartile comprises 25% of the mar-able Garment and Textile. Retrieved 16 April

2019, from https://www.mn.nl/en/publica-

United Nations Climate Change (2015).

ket with the highest Pulse Scores, the other2019, from https://www.ser.nl/-/media/ser/

tions/sustainability-requirements-in-appar-

Paris Agreement. Retrieved 16 April 2019,

three quartiles following in succession.

downloads/engels/2016/agreement-sus-from https://unfccc.int/sites/default/files/

13 Stella McCartney (2019). Circularity – re-See exhibit 9 in Appendix.

english_paris_agreement.pdf

generative farming. Retrieved 13 April 2019,

Boston Consulting Group calculation based

from https://www.stellamccartney.com/

on Euromonitor data (worldwide apparelexperience/en/sustainability/circularity-2

and footwear industry production value,

14 Global Fashion Agenda (2019). CEO

23 The Social and Economic Council of thetainable-garment-textile.pdf
24 OECD (n.d). Retrieved 16 April 2019, fromhttp://www.oecd.org
25 Sustainable Apparel Coalition (2018).
Sustainable Apparel Coalition and German

el-industry/
32 GRI (n.d.). GRI Standards. Retrieved 18 April
2019, from https://www.globalreporting.
org/standards
33 BMW Blog (2019). BMW and Daimler Confirm Five Joint Ventures for Mobility Ser-historic 2018 fixed exchange rate, USD).

Agenda 2019. Retrieved 12 April 2019, from

Partnership for Sustainable Textiles Cooper-

Projection until 2023 based on the same

https://www.globalfashionagenda.com/

ate to Align on Supply Chain Due Diligence.

vices. Retrieved 10 April 2019, from https://ceo-agenda-2019/#

Retrieved 18 April 2019, from https://www.

www.bmwblog.com/2019/02/22/bmw-and-prnewswire.co.uk/news-releases/sustain-

daimler-confirm-five-joint-ventures-for-mo-

able-apparel-coalition-and-german-part-

bility-services

Euromonitor data; projection until 2030,
Boston Consulting Group analysis by extrapolation of Euromonitor projections.

15 See Global Fashion Agenda and Boston
Consulting Group (2018). Pulse of the Fash-

19/25

PULSE OF THE FASHION INDUSTRY

2019 UPDATECONTENTAPPENDIX

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PULSE OF THE FASHION INDUSTRY

2019 UPDATE

Taking the Pulse of the Fashion Industry

WHY A PULSE SCORE?
The Pulse Score is a global and holistic
baseline of the sustainability management, target setting and implementationof sustainability initiatives of the fashion
sector. It is based on the Sustainable Apparel Coalition’s (SAC) proprietary Higg
Index and extends its scope to extrapolate its findings to the entire industry.
The Higg Index is the most extensive
and representative existing transparency
measurement tool of the industry.
The Pulse Score creates transparency anda common understanding of the industry’s most critical issues. This serves as afoundation for the landscape to change,
channeling investments and innovation
into those areas that smart businesses willcapture and benefit from.
METHODOLOGYThe Pulse Score was developed based on:
SAC Higg Index Brand & Retail Module(BRM) as the underlying data source,
clustered into segments to detect patterns1 and is complemented by:

CONTENTThe Pulse Score

1.

Expert interviews going through Higg
BRM questions to test patterns andvalidate and pressure testing answers
live with sustainability managers

2.

Pulse survey answers to reconfirm
sustainability patterns and performance to increase sample size andfair market representation further

3.

Expert sounding board to validate
and discuss results

To get a representative view of the entire
market, results were analyzed by company size and price positioning, and reweighted according to the overall market
structure based on revenue contribution.
ABOUT THE HIGG INDEXThe Higg Index, developed by the Sustainable Apparel Coalition, is a suite ofsustainability assessment tools that empower brands, retailers, and facilities of all
sizes, at every stage of their sustainability
journey, to measure their impact on environmental and social dimensions and to
identify areas for improvement. The Higg

Index has a brand, a facility, and a productmodule.
Last year, the Brand & Retail Module has
been renewed, incorporating the users’
feedback and experiences. The new version is holistic, provides an understandingof key impacts, is actionable and supportsbusiness integration in clarifying internalinterdependencies.
This version sets a new benchmark, withresults by value chain step not being
directly comparable to the previous years.
The overall scores remain comparable.

The Pulse is a baseline score, powered by the Higg Index, for measuring and tracking the sustainability
management and target setting of
the global fashion industry on key
environmental and social impact
areas. It is measured on a scale from0 to 1002.
+4pt
+6pt

38pt

42pt

32pt

2017

2018
Strong

2019
>70
60-69
50-59
40-49
30-39

The Higg Brand & Retail Module beta module is unverified, meaning in this context that it is based on a self-assessment that has notbeen audited or reviewed externally.
By design it is impossible to achieve a score of 100 on sustainability, as this is intended to be aspirational.

20-29
Weak

<20

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PULSE OF THE FASHION INDUSTRY

EXHIBIT 92019 UPDATECONTENTTop fashion purchase criteria
For 7% of consumers, Sustainability is their top criterion when making a fashion purchase

23%

7%

17%

Stand out with style

High quality

Popular with influencers*

Makes me feel successful*

16%

7%

15%

7%

Good value for money

Manufactured sustainably

Brand for me

Timeless*2%

7%

Fashion forward

Totals do not add up to 100 due to rounding.
Based on need sizing through factor analysis offunctional decision criteria for fashion purchase*
Original wording: Brand makes me feel successful /Timeless, doesn’t go out of style / Recommended
by celebrities, experts or bloggers
Source: BCG Sustainability survey March 2019, N =703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)22/25

PULSE OF THE FASHION INDUSTRY

EXHIBIT 102019 UPDATECONTENT

Emotional factors of sustainability
Quantitative analysis deconstructs sustainability into 11 emotional factors

Question: Thinking about sustainability, which emotional fulfillment do you
seek when purchasing products infashion categories?
Source: BCG Sustainability survey
March 2019, N = 703 (US) ; 703(UK) ;529(FR) ; 514(CN) ; 523(BR)Reducing my carbon footprint
Feeling less guilty
for wearing luxury

Be a role modelfor those around me

Shaping mission ofbrands and companies

Changing lives
for the better

Establish myself as a community leader

Emotional
hooks forsustainability

Fighting for social justice

Providing advantages
I had to others

Paying it forward

Doing somethingother than work

Fulfilling myfaith/believe
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PULSE OF THE FASHION INDUSTRY

EXHIBIT 112019 UPDATECONTENT

Emotional factors of sustainability
Quantitative analysis deconstructs sustainability into 11 emotional factors

Source: BCG Sustainability survey March 2019, N =703 (US) ; 703(UK) ; 529(FR) ; 514(CN) ; 523(BR)Average descriptors

Resistant (35%)

Middle ground (49%)

Open (16%)

Age

47 years

41 years

42 years

IncomeGenderSegment sizes per country

Top table stake attribute

Top differentiator attribute

H

18%

M

49%

F

51%

M

49%

FR

US

36%

UK

42%

CN

31%

BR

30%

L

33%

35%

H

22%

M

46%

F

49%

M

51%

FR

US

46%

UK

45%

CN

54%

BR

50%

L

32%

50%

H

23%

M

48%

F

48%

M

51%

FR

US

18%

UK

13%

CN

15%

BR

20%

L

29%

15%

No child labor, 46%

No child labor, 50%

No child labor, 62%

Cruelty free, 43%

No animal testing, 48%

Safe working conditions, 58%

No animal testing, 39%

Cruelty free, 47%

No animal testing, 58%

Sustainably sourced materials, 36%

Made in country known for sustainability, 39%

Brand donates rev. share to charity, 42%

Manufacturing w/o excessive waste, 35%

Manufacturing w/o excessive water usage, 39%

Only natural/organic ingredients, 40%

Biodegradable packaging, 34%

Brand donates rev. share to charity, 38%

Recycled materials, 40%

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GET IN TOUCH

GLOBAL FASHION AGENDA
Frederiksholms Kanal 30-C
1220 Copenhagen K
Denmark
GLOBALFASHIONAGENDA.COM

MORTEN LEHMANNMORTEN@GLOBALFASHIONAGENDA.COM

THE BOSTON CONSULTING GROUP, INC.
200 Pier 4 Boulevard
Boston, MA 02210
USA
BCG.COM
JAVIER SEARA
SEARA.JAVIER@BCG.COM
SEBASTIAN BOGER
BOGER.SEBASTIAN@BCG.COM

SUSTAINABLE APPAREL COALITION
PO BOX 237
San Francisco, California 94104
USA
APPARELCOALITION.ORG
BAPTISTE CARRIÈRE-PRADAL
BAPTISTE@APPARELCOALITION.ORG

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PULSE OF THE
FASHION INDUSTRY

2019 UPDATE