Tunisian Brand Turns Sea Plastic into Green Couture

Feb 08, 2024

The two men in bright overalls rooting for plastic on a Tunisian beach do so to make a living, but also in the knowledge that they are helping the environment.

What they do not know is that the waste will become part of a synthetic plastic fiber used to make blue denim cloth to create a dress for the eco-friendly fashion label Outa, AFP said.

The pair are among around 15 "barbeshas", or informal rubbish collectors, taking part in the Kerkennah Plastic Free program, backed by the European Union.

This aims to recover the 7,000 tons of plastic waste each year that end up littering beaches on the Kerkennah Islands 20 kilometers (12 miles) off the port city of Sfax.

Jean-Paul Pelissier, of the International Centre for Advanced Mediterranean Agronomic Studies (CIHEAM), is coordinating the EU-funded project.

He told AFP that on the archipelago, "we have an exciting environment in terms of nature and tranquility. It's ideal for green tourism".

Pelissier said the islands were a passage point for migratory birds, and that its waters were abundant in Posidonia oceanica seagrass, or Neptune grass.

"But there's one thing you never see in the pictures -- the plastic," he said. Marine currents carry the waste from Europe into the Gulf of Gabes, and there it washes up to be collected by the barbeshas.

They take their daily harvest to a sorter which passes it on to a collection company and then it is fed into a crusher to be baled.

A partnership has been established with Seaqual Initiative, an international consortium which buys the marine plastic "at a remunerative and stable price all year round", Pelissier said.

New opportunitiesThe initiative's website says it "works with ocean clean-ups around the world to bring value to the waste that they recover".

Omar Kcharem is the boss of Kerkennah Plast, which compacts and crushes plastic, and he said working with Seaqual has created new opportunities, since marine plastic "does not have much value and does not bring in any money".

The plastic granules recovered after grinding the waste are transformed into "Seaqual Yarn" nylon fiber in Portugal, in one of just four factories in the world equipped with the technology.

"This is innovative," said Pelissier. "Four or five years ago, you couldn't recycle marine plastic because of its lengthy exposure to salt water and the sun."

He said Seaqual Yarn comprises around 10 percent of recycled marine plastic, but the aim is to increase this.

Apart from the Portugal side of the operation, the rest is definitely "Made in Tunisia".

In the coastal town of Ksar Hellal southeast of Monastir, a huge machine in the ultra-modern Sitex plant makes an infernal racket as it transforms the Seaqual Yarn into denim.

Sitex is a denim specialist that has supplied brands such as Hugo Boss, Zara and Diesel. Now Anis Montacer, founder of the Tunisian fabric and fashion brand Outa, has entered into a partnership with it.

He chose Sitex "for its sensitivity to the environment, because in 2022, 70 percent of their manufacturing was based on recycled fibers".

"We worked together to determine the proper yarn strength and the right indigo dye," he told AFP, adding that their collaboration will continue to expand Outa's color range to include natural dyes.

Higher costs"The entire process takes place in Tunisia, from the denim transformed in Ksar Hellal to the Tunisian seamstresses who work on the tailoring" for Outa, Montacer said.

Production costs are 20 percent higher, though, than for denim without the marine plastic content.Despite this, Montacer believes he can "bring together other entrepreneurs and inspire designers to produce eco-responsible collections".

He called on renowned French designer Maud Beneteau, formerly of Hedi Slimane, to design Outa's first haute couture collection.

"We chose a high value collection because the production cost is higher than with normal thread to create denim fabric," Montacer said.

Outa creations first graced the catwalk during Tunis Fashion Week in June.

Beneteau saw the first Outa collection as "a challenge, a human dimension in this wonderful project that aligns with the idea of saving the planet".

She does say there were some difficulties working with a fabric that was "a little thick and stiff, originally designed for sportswear and ready-to-wear, rather than haute couture".

More used to fine silks, linen and cotton, she admits having some qualms working with the new fiber, even though like her peers in the fashion industry she tries to recycle and buy back unsold stocks in the fight against overconsumption.

But "when you think that this is recycled and ecological, that jobs have been created, people who pick up the plastic... it's a whole interesting chain," Beneteau said.

It's also a great yarn. Plastic fantastic: from sea waste to see waist, you might say...

British fashion retailer Next raised its guidance for annual profit by 10 million pounds ($12.7 million) to 845 million pounds on Thursday, after full price sales and the end-of-season summer sale came in ahead of forecasts.The upgrade from Next, which is considered a barometer of how British consumers are faring as it trades from about 500 stores and online, came just six weeks after its last upgrade and shows shoppers continue to defy tough economic conditions.A year of high inflation and consecutive interest rate rises in Britain have squeezed household incomes, but high street spending has held up, and Next said it sees annual full-price sales 1.8% higher than in its 2022-23 financial year.Value-retailer Primark and Sports Direct-owner Frasers Group have both in recent weeks issued positive updates, Reuters reported.Next's forecast for profits of 845 million pounds in its statement on Thursday means they will come in 2.9% lower than it made in 2022-23.

German fashion house Hugo Boss on Wednesday raised its full-year outlook after reporting a double-digit jump in second-quarter sales, driven by market share gains thanks to its recent brand revamp and marketing push.

The company expects its annual sales to grow between 12% and 15% and reach 4.1 billion to 4.2 billion euros ($4.5-4.6 billion), compared with its previous forecast for about 10% growth to 4 billion euros, Reuters reported.

It expects 2023 operating profit to grow between 20% and 25% to a level of 400 million to 420 million euros, versus its prior range of 10% to 20%.

Hugo Boss's 2022 brand revamp has helped the luxury group stay resilient in the slowing US and Europe, Middle East and Africa (EMEA) markets while boosting sales in Asia, despite a sector-wide sluggish recovery in China.

Quarterly sales rose 20% to 1.03 billion euros on a currency-adjusted basis, from 878 million a year earlier. This was aided by worldwide market share gains for both its brands, Boss and Hugo, especially among younger consumers, the group said.

The sales were broadly in line with analysts' estimate of 1.0 billion euros in a poll provided by the company.

Shares of Hugo Boss were seen up 2.1% in Lang & Schwarz premarket indications.

Adidas will sell more of its stocked-up Yeezy products in August, it said on Friday, and reiterated a pledge to donate part of the proceeds to groups fighting discrimination and hate.

Adidas had stopped selling Yeezy shoes and abandoned its collaboration with rapper Ye after the artist, formerly known as Kanye West, made a series of antisemitic comments.

The fate of a large stock of unsold shoes from the once highly profitable Yeezy line has weighed on the company's sales, but the prospect of offloading them has narrowed its projected losses for the year.

"Today Adidas announced a further release of YEEZY inventory with a range of existing products being available in phases throughout the month of August across the world," the company said in a statement.

"As previously communicated, Adidas will donate a significant amount to selected organizations working to combat discrimination and hate, including racism and antisemitism."

Adidas said it was supporting the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change, and also announced its support for Robert Kraft’s Foundation to Combat Antisemitism (FCAS).

The company did not specify how much it would donate.

As with a previous batch of stock released in May, the second round in August would feature products from 2022, the statement said.

"The range available will include some of the most popular existing designs including the YEEZY BOOST 350 V2, 500 and 700 as well as the YEEZY SLIDE and FOAM RNR," it said.

Unexpectedly strong sales of Yeezy shoes left over from the Ye collaboration will likely help reduce the company's operating losses this year.

Adidas this week said the potential impact of a Yeezy stock write-off was now 400 million euros, down from 500 million euros expected previously.

The company did not say exactly how much of its estimated 1.2 billion euros in Yeezy stock it had sold but analysts estimate that around 15% of it has been liquidated.

Sales at Birkin bag maker Hermes accelerated in the second quarter, lifted by continued growth in the United States and a sharp acceleration in China, showing the resilience of global demand for the group's high-end leather goods despite a clouded economic backdrop.

Group sales for the three months to the end of June came to 3.32 billion euros ($3.65 billion), up 27.5% at constant exchange rates, above a Visible Alpha consensus for 22% growth, with double digit growth in all regions.

Hermes' results come as luxury stocks have come under pressure due to uncertainty over the pace of China's post-pandemic recovery while a months-long spending frenzy in the US market cools amid rising inflation.

Lackluster economic figures for China and more cautious outlooks from Cartier-owner Richemont and industry bellwether LVMH pushed down shares of luxury companies down in recent days.

Hermes, which targets wealthier consumers with handbags like the coveted $10,000 plus Birkin model, is known for weathering economic turbulence better than rivals.

"We've seen no interruption in (growth) trends," Hermes Executive Chairman Axel Dumas told journalists, adding there had been a "flight to quality" by shoppers preferring to buy at the very top end of the luxury market.

French luxury conglomerate Kering has reached a cash deal to purchase a 30% stake in Italian fashion house Valentino for 1.7 billion euros from a Qatari investment firm.

With the purchase, Kering is seeking to shore up its revenue stream as it struggles to turn around former powerhouse Gucci. Kering on Thursday reported first-half revenues of 10.1 billion euros, up 2%, as Gucci sales stagnate.

Under the deal announced Thursday, Kering has the option to buy 100% of Valentino no later than 2028. The partnership could lead to the Qatari investment firm, Mayhoola, becoming a shareholder in Kering, as well as other potential “joint opportunities,” the statement said.

Kering Chairman and CEO Francois-Henri Pinault expressed admiration for “the evolution of Valentino under Mayhoola ownership,” which Kering said turned Valentino “into one of the most admired luxury houses in the world.”

“I am very pleased of this first step in our collaboration with Mayhoola to develop Valentino and pursue the very strong strategic journey of brand elevation,” citing the role of Valentino CEO Jacopo Venturini, who “will continue to lead.”

Gucci, which accounts for nearly half of Kering revenues, is in the throes of a relaunch, with a new management team and a new creative director, Sabato De Sarno, who will unveil his first collection during Milan Fashion Week in September.

Valentino, founded by Valentino Garavani in 1960, recorded revenues of 1.4 billion euros in 2022. Pierpaolo Piccoli has been creative director at Valentino since 2008, working alongside Maria Grazia Chiuri from 2008-16.

With its corporate base in Milan and design studio in Rome, the fashion house is a mainstay of Paris fashion week with its womenswear and couture collections while recently returning menswear to Milan.

Shares in LVMH fell sharply on Wednesday as analysts said that an in-line increase in sales at the world's top luxury indicated the overall sector was moving towards a less impressive path of growth.

"While this is a solid growth rate in absolute terms...whether we are now at the end of the positive earnings revision cycle for luxury and on the drivers of sector growth going forward" wrote analysts at JP Morgan.

LVMH shares were down 3.7% in early session trading, also dragging down the shares of its rival Kering.

The French company, whose 75 brands include fashion labels Louis Vuitton and Dior as well as Hennessy cognac and US jeweller Tiffany, said on Tuesday it made 21.2 billion euros ($23.4 billion) of sales in the three months to the end of June.

The 17% increase at constant exchange rates was a touch better than analyst expectations for 16% growth. LVMH's leather goods division, home to Vuitton and Dior, grew revenues by 21%, also just above the expected 20% increase.

The narrow beat for a company that had routinely delivered results ahead of expectations, and is regarded as a bellwether for the luxury industry, flagged the "normalization" of the sector after years of stellar growth driven by post-pandemic euphoria, Luca Solca at Bernstein said.

LVMH also reported a 1% fall in US sales as appetite for high-end fashion and leather goods slowed there, particularly among less wealthy shoppers, and lower-than-expected margins due to high marketing spending.

German sportswear retailer Puma on Wednesday said second-quarter sales grew by 11%, slightly ahead of market expectations thanks to stronger revenues from Asia and Europe.

The sportswear sector is struggling to bring down inventory levels in the face of weakening demand in North America and a slower than expected recovery in China, a market the industry was betting on to boost sales.

Puma stuck to its financial targets for 2023 but sounded a cautious note on market conditions, including an "uncertain" recovery in China.

"The macroeconomic environment and volatile retail demand remain challenging, particularly in North America and Europe, as recession risks weigh on consumer sentiment."

Puma's shares, which fell in early trading in Frankfurt, were up 1.6% by 0712 GMT.

Puma said it saw strong demand for its new terrace sneakers Palermo and Super Team.

The first products from a renewed partnership with Rihanna will showcase the Grammy-winning Barbadian singer's take on the terrace trend, Puma said, when they launch in September.

These are styles from the 1970s and 1980s named after the standing section at soccer stadiums.

Puma' sales came in at 2.12 billion euros ($2.34 billion) in the quarter, up from 2 billion a year earlier and above the 2.05 billion expected by analysts polled by Refinitiv Eikon.

The company confirmed its full-year outlook for currency adjusted revenue growth in a high single-digit percentage rate, and an operating profit of between 590 million and 670 million euros. It said it would be able to adjust the guidance if things went well in the third quarter.

Operating earnings of 115 million euros for the quarter were down 21% from a year earlier but still above the 110 million expected by analysts.

Amid the rhythmic clatter of traditional wooden looms, artisans at a workshop in rural Burkina Faso spin indigo-dyed cotton into sprawling lengths of cloth, destined for modern suits designed by the nation's foremost couturier, Reuters reported.

Twenty years ago, Paris-based fashion designer François Yameogo returned to his native Burkina Faso to build a facility specializing in making Faso Danfani, the country's traditional fabric, for use in his signature indigo sport coats.

That workshop is now at the center of a Faso Danfani resurgence, after a recent edict by the nation's military leaders named the hand-woven material the official state dress, mandating its use at state functions and in school uniforms.

"We've been inundated with thrift store products...(but) our cotton is pure," said Yameogo, sitting behind a cluttered workbench in his shop, about 100 km (62 miles) west of the capital Ouagadougou. "It is up to us to value it and to use it."

The West African country's economy leans heavily on its cotton industry, often termed its "white gold" for employment opportunities and export revenues.

But the import of used clothing from wealthier countries offers inexpensive alternatives to locally produced materials, effectively pricing them out of the market.

This keeps domestic fabric prices artificially low, deters investment in modern technology and exacerbates poverty, according to the United Nations food agency.

Yameogo, a former intern under renowned American fashion designer Marc Jacobs, began integrating Faso Danfani into his collections in hopes of endowing them with a neo-contemporary flair capable of drawing the fabric into the global fashion spotlight and securing higher returns for local artisans.

"We process only 3% of our cotton locally, but we want to reach 20 to 25%," he said. "I think we're going to get there."

The ruling junta's Faso Danfani mandate is already visible among officials sporting Yameogo's creations, including the prime minister. The trend will intensify come October when schools reopen after summer vacation.

Meanwhile, the fabric's international presence is expanding.

Yameogo's most recent collection was the highlight of a Faso Danfani-themed catwalk event in Paris last month, hailed by a diverse audience clothed in the age-old fabric.

The trend for low-rise rubber-soled "terrace" sneakers could give Adidas and Puma an advantage over Nike this summer, but may not offset weakening US and Chinese demand.

German sportswear giants Adidas and Puma have trawled their archives to re-release old styles in new colors, driving renewed interest in the shoes from the 1970s and 1980s named after the standing section at soccer stadiums.

The number of searches for "Adidas Samba", one of the brand's main terrace styles, has surged worldwide over the past year and hit a peak in mid-June, Google Trends data shows.

Puma is likely to benefit less from the trend than Adidas because its terrace range doesn't have as much name recognition, said Adam Cochrane, analyst at Deutsche Bank. But it's certainly an area where the brand can compete.

"If there's a loser from this it's Nike, which doesn't have the track record from the 80s so you don't have the historic shoes to fall back on and the back catalogue to revisit," he said. Nike is more known for chunky basketball shoes, like the hugely successful Jordan range.

Still, while terrace shoe sales are growing, they're a small fraction of the overall business. Investors will be pushing Puma and Adidas on broader strategies to navigate weak consumer demand at second-quarter results on July 26 and Aug. 3 respectively.

"We believe the US market is now (following on from China) at the heart of the worries for investors in Adidas and Puma," said Robert Schramm-Fuchs, portfolio manager at Janus Henderson, which holds shares in Adidas.

Nike last month reported its slowest sales growth in four quarters in North America, its biggest market, highlighting a weaker than expected US consumer. Weak GDP figures from China last week also raised alarm about the world's second-biggest economy.

Adidas, however, has got a big boost from selling some of its stock of discontinued Yeezy shoes. On Monday it slashed its expected 2023 operating loss to 450 million euros from 700 million euros, citing unexpectedly strong Yeezy sales.

Adidas, led by ex-Puma CEO Bjorn Gulden since the start of the year, said in May it would donate proceeds from Yeezy stock sales to non-governmental organizations including the Anti-Defamation League but has not yet said what share of the proceeds will go to NGOs.

Puma, whose shares have lagged Nike and Adidas over the past year, should update investors on strategy as the brand aims to up its game in performance sportswear after what some saw as an over-emphasis on lifestyle.

Sportswear has the potential to grow further with a "casualization" of fashion and consumers' increased focus on health and fitness, said Edouard Aubin, analyst at Morgan Stanley.

"However, the cost to compete for sportswear brands is very high, and barriers to entry are low, making retailers quite vulnerable to 'boom and bust' cycles as trends change," said Aubin.

Adidas got orders worth more than 508 million euros (about $565 million) for 4 million pairs of unsold Yeezy shoes, better than the company's "most optimistic forecast," the Financial Times reported on Monday.

Strong demand for the first batch of online sales would potentially save the German sportswear company from having to take a big writedown on its remaining stock, the newspaper said.

Adidas stopped selling Yeezy shoes from its defunct partnership with Ye in October after the rapper formerly known as Kanye West made a series of antisemitic comments.

Losing the highly profitable line hit first quarter sales at the company by around $440 million.

However, robust demand for the unsold sneakers has quelled fears at Adidas' headquarters that Ye's outbursts and a drop in marketing in the recent past would have made the Yeezy brand too toxic, FT said, citing sources.

Adidas declined to comment saying it was in a "quiet period" ahead of its quarterly results due Aug. 3.

The company had said in May it would donate some of the proceeds from the sales to organizations fighting antisemitism and racism.

Discussions over how much will be donated to individual charities are ongoing, the FT reported, adding that the company has chosen five charities in the US and China as a first step.

"Making donations of more than 8.5 million euros across the five charities has been discussed but no decision has been made," FT said, citing people familiar with the matter.

The final amount donated from the sales will be much larger as the company is willing to pay a significant share of the profits from the Yeezy inventory, the report said.

Adidas had forecast a loss this year before announcing its intentions to sell leftover Yeezy stocks.

انشئ حساباً خاصاً بك لتحصل على أخبار مخصصة لك ولتتمتع بخاصية حفظ المقالات وتتلقى نشراتنا البريدية المتنوعة