The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Images of Beijing shrouded in an eerie yellow haze as sandstorms hit northern China with a vengeance this week led to a rush of memes comparing the country’s capital with scenes from dystopian film Bladerunner 2049.
The disaster also led to the deaths of six people, while dozens more (mainly herdsman from rural areas) remain missing.
Now, questions are being asked by reports in China’s local media about the role of the cashmere industry and the overgrazing it has caused in neighbouring Mongolia (where the storm originated), in the disaster.
Mongolia is the world’s second-largest producer of cashmere (behind only China), accounting for approximately a third of global supply. Its cashmere industry employs 7,000 people, according to figures from the Mongolian Cashmere and Wool Association.
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According to International Monetary Fund (IMF) data, in the 30 year period to 2020, Mongolia’s livestock numbers tripled, leading, the IMF said, to increased degradation of grassland and feed shortages.
This degradation is now seen as a leading culprit in an increase in the number and severity of sandstorms likely to continue to be seen in Mongolia, China, Japan and South Korea, if nothing is done to reverse the trend of increasing herds and decreasing grasslands.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.