Leonie Barrie's apparel and textile industry blog - from just-style.com

Hi-Tech makes a splash with hydrophobic boot

Thu, 28 Aug 2008 09:49:00 GMT

UK footwear brand Hi-Tec has posted a demonstration video on Youtube to support launching the trademarked 'ion-mask' waterproof technology on its boots.

It is billing the technology, which renders footwear either Waterproof (WPi) or Hydrophobic (HPi), as a "quantum leap in hydro management nano-technology".

By the look of this video clip, they are not far wide of the mark either, although tests on a pair of shoes might be rather more compelling than the seamless material samples used here.

Hi-Tec is launching ion-mask this autumn in its V-Lite Altitude Ultra WPi walking boot before extending it to boots, shoes and sandals.

Ion-mask, created by technology firm P2i, chemically bonds water repellent molecules to the fibres of the footwear on a sub-microscopic (nano) scale.

The technology can be applied to leather, fabrics, metals, ceramics, glass, polymers and paper.

By Joe Ayling, news editor.

Ion-mask in action, see the Youtube clip here

Puma takes marketing gold in Beijing

Thu, 21 Aug 2008 12:22:00 GMT

Sportswear giant Nike must be seething at Puma's endorsement deal with Beijing sprint sensation Usain Bolt, after its own Olympic dream quite literally fell at the first hurdle.

After winning the 200m gold medal and breaking the event's long-established world record, Bolt took off his Puma Theseus II golden spikes and faced them to the heavens.

Furthermore, the Jamaican athlete had done exactly the same thing four days earlier in the 100m - even slowing for a celebration before he crossed the finishing line.

Just about visible to around 4bn viewers at the end of both races were a number of deflated athletes brandishing the famous Nike tick and trying desperately to keep up with him.

It was salt in the wounds for Nike after its own one-man show and local hero, Chinese hurdler Liu Xiang, was sensationally forced out of the Games with an injury earlier in the week.

The company has since tried to turn the limelight onto its US basketball team and is certainly not short of exposure at the Games, having outfitted many of the US and Chinese athletes dominating the medal leader board.

However, Xiang's withdrawal is a real blow, not least because he represents a host country that is Nike's second biggest marketplace.

The turn of events has also lent marketing exposure towards other brands at the Games, with Nike's main rival Adidas triumphing as Official Sportswear Partner and outfitter of a surprisingly successful Team GB.

The Olympics has also done wonders for Chinese sportswear brand Li Ning, which was bolstered by the spectacular appearance of its founder as final torch-bearer during the opening ceremony.

Meanwhile, Bolt's success has only been rivalled in the swimming pool, where US swimmer Michael Phelps has tallied up a collection of eight gold medals at Beijing 2008.

One beneficiary of Phelps' success is undeniably Speedo, with its already much-talked about LZR Racer swimsuit helping him cross the line in each race.

When the dust has settled in Beijing though it will be images like the one below that define an Olympics of mixed marketing fortunes for sportswear brands though, and one of triumph for Bolt and Puma.

By Joe Ayling, news editor.

Scan to shop

Wed, 20 Aug 2008 17:33:00 GMT

News that Polo Ralph Lauren is set to become the first US luxury retailer to move into mobile commerce (m-commerce) - that's shopping via a mobile phone - reminded me of an article we published on just-style a year ago looking at this retailing phenomenon in Japan, where m-commerce already exceeds traditional computer-based e-commerce.

In Japan, shopping is the most popular service available on mobile phones, even more so than downloading music, and fashion retail sites are particularly popular with young women. Most young people spend a lot of downtime commuting and so on, so for many women it's a great chance to catch up on - and buy - the latest styles.

And the fastest growing market for mobile shopping in Japan involves the integration of sites with magazines, radio and television programmes which compensate for the phones' small screens.

Polo Ralph Lauren is initially launching its service around the 2008 US Open tennis championships, where customers can buy its special tournament collection and watch tennis videos. It's also going to incorporate Quick Response (QR) codes in its advertisements, store windows and mailers which can be scanned by camera phones so that customers can buy the items they see.

The company sees this as opening up a new channel and providing yet another way of connecting with consumers. The only limitation at the moment is technology, but its' only a matter of time before this gets up to speed too.

And with most people doing a lot more on their mobile phones these days than simply making and receive calls or texts, this could well be the next untapped market for retailers. But for how long I wonder?

US: Polo Ralph Lauren to launch mobile phone shopping

Union puts the boot into high heels

Mon, 18 Aug 2008 15:41:00 GMT

In recent weeks British trade unions have had plenty to say about teachers and students, Portuguese workers in the UK, inflation and female migrant workers. But now the latest group the TUC is rallying to support is female workers forced to wear fashionable high heels as part of their dress code.

In fact the TUC decries slip-on shoes or high heels as "sexist," "uncomfortable or dangerous," and wants employers to drop 'inappropriate' footwear codes and reduce back and foot problems. City bankers and upmarket stores are singled out as the major culprits in a new TUC guide on 'Working feet and footwear.'

TUC General Secretary Brendan Barber said: "Heels may look glamorous on the catwalks and on Hollywood stars, but they're not appropriate for day-to-day work wear. These dress codes - apart from being blatantly sexist - can lead to long-term foot and back problems as women are forced to stand or walk around in high heels or ill-fitting footwear."

More changes in US retail landscape

Mon, 18 Aug 2008 11:41:00 GMT

More changes will be seen soon in the US retail market after teen apparel retailer Tween Brands said it is to convert 560 of its Limited Too stores to its more value-oriented Justice brand. Both sell fashion basics and lifestyle items to 7-14 year-old girls, but after swinging to a second quarter loss of $7.6m, from a profit of $2.1m last time, the retailer believes its focus on one store brand will appeal to customers who are trading down to lower-priced goods.

The retailer says the change to the Justice format - which is priced around 20-25% lower than Limited Too - is supported by strong sales comps at Justice and weaker comps at Limited Too. But analysts ask whether the company is being a bit impulsive in its actions, they are concerned over the disappearance of the Limited Too nameplate altogether, and caution that bad economic times won't last forever.

Also about to disappear is PreVu Inc, the company formed last month after Wilsons The Leather Experts sold its outlet store and e-commerce assets to AM Retail Group, a wholly owned subsidiary of G-III Apparel Group for US$23.3m. The retailer has begun an immediate liquidation of its stores after running short of finances.

Footwear retailer Skechers USA has made a second attempt to buy wheeled footwear specialist Heelys, with its bid of US$142.8m or $5.25 a share tabled last week beating the $4.75-5.10 per share which was offered - and rejected - at the end of May

Just two weeks ago Heelys, whose shoes are often dismissed as a passing fad, swung to a second quarter loss of $0.4m, from a profit of $12.8m in the same period a year earlier, as sales tumbled 75% to $18.2m. But a deal could help Heelys grow internationally as well as boosting Skechers' children's business.

Last week US retailer Gap Inc also confirmed to just-style it will split-up its London-based design team, shifting the workload to New York. Gap, which set up the European design unit less than three years ago, wants to focus its efforts on more American-styled clothing and will now dedicate a small team of New York designers to the European range, guided by new head of design Patrick Robinson.

And as this summer's Beijing Olympics gets underway, we have taken a look at how leading brands are tussling for marketing gold. The 2008 Games has take on extra significance given the economic momentum of host nation China, but will lucrative team deals, official partnerships and timed product releases enable apparel and footwear companies to stamp a lasting impression on the Chinese market?

Skechers bid for Heelys set to roll on?

Fri, 15 Aug 2008 16:46:00 GMT

Skechers seems determined to get a piece of the wheeled action, having just made a second bid for wheeled footwear maker Heelys. Its offer of US$142.8m or $5.25 a share beats the $4.75-5.10 per share which was tabled - and rejected - at the end of May.

So why is Skechers so keen to buy its rival? Just two weeks ago Heelys swung to a second quarter loss of $0.4m, from a profit of $12.8m in the same period a year earlier, as sales tumbled 75% to $18.2m from $74.3m. And Heelys has been beset with problems, not least of which are fears that its shoes are little more than a passing fad. It has also been saddled with high levels of inventory after retailers over-ordered and the sneakers started to fall out of favour with fickle teens and tweens.

On the positive side, Heelys could help Skechers build its children's business, and a deal would help the Heelys brand to grow internationally through Skechers' own stores and global distribution network.

All the indicators, though, seem to suggest Heelys will reject this offer again - perhaps opening the floor for a rival bid. So it really does look as though this deal is set to roll on a while longer.

US: Skechers tables $143m bid for Heelys

Tween Brands pins its hopes on Justice

Thu, 14 Aug 2008 17:06:00 GMT

Plans by Tween Brands to convert its Limited Too stores to the lower-priced Justice format seem to have gone down like a lead balloon. Shares hit an all-time low yesterday, after analysts were less than impressed with the teen apparel retailer's second quarter loss and asked whether it was being a bit impulsive in scrapping its 560 Limited Too stores.

The move was intended to appease the market after it swung to a second quarter loss of $7.6m from a profit of $2.1m last time. An 8% slump in same-store sales was also given as evidence that consumers are trading down to lower-priced goods. Same-store sales dropped 11% at Limited Too but rose 3% at Justice where price tags are 20-25% lower.

Tween Brands said the change is the right one in "tough economic times" when customers are trading down to lower-priced goods. But analysts aren't so sure. They wonder whether the plan could be an over-reaction to the second-quarter earnings miss, whether Tween could have captured more value by selling the Limited Too chain, and whether Justice can drive the same mall traffic without the iconic 'Limited Too' brand name.

But most of all there seems to be concern over the disappearance of the Limited Too nameplate altogether. After all, the chain has nearly 600 stores compared to Justice's 310. Quarterly sales at Limited Too were $145.0m while Justice generated $69.3m. A selective conversion of Limited Too stores and a smaller Limited Too chain would have been a less bitter pill to swallow.

It's easy to see why Tween wants to jump onto the Justice bandwagon, which has generated double-digit comp store sales growth year after year since the first store opened in 2004.

But it's also worth noting that some of Limited Too's problems are due to its merchandise, such as "a lack of spring colour within its sportswear assortment," and "the absence of a meaningful casual bottoms business." And that investments from fiscal 2005 to 2007 to differentiate Justice and Limited Too have suppressed operating income growth to just 2%, even though overall net sales at Tween Brands have increased 34%.

It's equally important to remember that bad economic times won't last forever - and that when consumers eventually decide to trade up they may well have to look elsewhere.

US: Tween Brands to ditch Limited Too on Q2 loss

Trade-downs help TJX

Wed, 13 Aug 2008 18:08:00 GMT

Consumers trading down into the off-price channel have helped TJX Companies more than triple its second quarter profit to $200.2m from $59m last year. And of course a charge of $118m that dented last year's profits to cover a security breach also helped this year's comparatives too.

Company president and chief executive Carol Meyrowitz admitted on a conference call with investors and analysts that: "In down economies, we tend to capture new customers." Proving her point, quarterly revenues increased 7% to $4.6bn from $4.3bn.

But she was keen to emphasise that "TJX is not only a company for tough times for but strong economic environments as well."

The new traffic, she says, provides "an opportunity for us to build our customer base for the future. When times improve, our history has shown that our new customers stay with us because they love our values."

Those values include cut-price deals on branded clothes and accessories that can be up to 60% lower than department stores and specialty retailers.

But as department stores themselves tighten their inventories, how does this impact the TJX chains, which include TJ Maxx, Marshalls, HomeGoods and AJ Wright?

Meyrowitz says this too is an opportunity rather than a threat, and "helps maintain a wider pricing gap between us and the department store and can increase average ticket."

The economic downturn isn't going to make the retailer rein in its expansion plans either. The company currently has more than 2,600 stores - but the vision is to operate more than 4,300 locations.

A new standalone shoe concept, the Shoe Megashop by Marshalls, is being trialled this autumn; while in Canada a new off-price family footwear and accessories concept called StyleSense is being tested.

As if to prove its confidence, the company raised its full-year earnings forecast.

US: TJX recovers from intrusion with Q2 earnings boost

Back-to-school on a budget

Mon, 11 Aug 2008 13:32:00 GMT

A slow start to the back-to-school selling season - the second-biggest shopping period of the year after the December holidays - seems to be on the cards for many US retailers after tax-free sales events in a number of states, the last of the government's tax rebate cheques, and even a spell of warm weather failed to boost July sales for many apparel stores.

A 'mixed bag' is perhaps the best description of last month's sales reports - with the bad news that most consumers are still seeking out bargains or basics as they contend with rising gas and food prices, job uncertainty and the ongoing housing downturn.

Discounters, of course, continue to benefit from shoppers' focus on necessities like food and fuel, with Wal-Mart posting a 3% gain in same-store sales. But even here there are clouds on the horizon, with the world's largest retailer forecasting a sales slowdown in August as the stimulus cheques come to an end. Its main rival, Target Corp, saw its same-store sales slip 1.2%.

Mall-based apparel specialists such as Gap and Limited Brands continue to be disappointed as consumers shun non-essential items like clothes and shoes.

The main worry now is where the next boost in spending is going to come from, particularly when back-to-school shopping is completed in September. The likelihood is that consumers will be looking for bigger discounts to persuade them to part with their money. But deep markdowns will put extra pressure on gross margins in the second half of the year - which is something most retailers can ill afford.

Elsewhere the retail shake-out continues, with US department store chain Boscov's the latest to file for Chapter 11 bankruptcy protection. The retailer is to close ten underperforming stores as it tries to reorganise its business, but has secured $250m debtor-in-possession financing to support it through its restructuring.

But it's good news for casual clothing chain Steve & Barry's, which filed for Chapter 11 bankruptcy protection early last month and has now has received an offer of $163m for some of its assets. This will serve as the opening bid in an auction process due to take place this month, and could be subject to higher proposals.

And it's full-steam ahead for sporting goods giant Adidas which has lifted its full-year guidance after posting an 11.7% jump in second quarter profit to EUR116m (US$179.5m). Sales were up 5% to EUR2.52bn, driven by strong demand for its Adidas and TaylorMade-Adidas Golf brands. The firm, which is an official sportswear partner of the Beijing 2008 Olympic Games, also said it is on track to achieve sales of more than EUR1bn in China by 2010 - and that China will become its second-largest revenue earner after the US by the end of this year.

Bullet-proof bras

Fri, 08 Aug 2008 16:06:00 GMT

German policewomen are being issued with what are being described as bullet-proof bras - to protect them from being injured by their bullet-proof vests.

It's no laughing matter of course, since normal bras can pose a safety risk if the impact of a bullet pushes the metal and plastic components into an officer's body. The new bras look like sports bras, have no under-wires or fastenings, and have the word 'Police' printed at the bottom.

More than 3,000 front-line women police officers across Germany are now being encouraged to wear the new bras on duty.

Germany hails 'bullet-proof bra'

High spirits defy global downturn

Fri, 08 Aug 2008 15:26:00 GMT

They're a cheery bunch, those Dutch. Whether it's the vibrant support of the country's football fans, or the relaxed atmosphere of the country's capital Amsterdam, there is definitely something of the joie de vivre about the Dutch.

They're also apparently pretty relaxed about the global economic downturn. According to research giants Nielsen, the Netherlands is one of the few countries where consumer confidence is on the rise. Over the last six months, consumer confidence has risen by 5%: only the Taiwanese are more optimistic.

Alas, that confidence is in short supply around the world. Nielsen research claims that global consumer confidence has fallen to a record low, with 56% of online consumers believing their country is in a recession.

Alongside New Zealanders and Latvians, it seems the biggest pessimists are in the US. Consumer confidence across the pond is at its lowest level since 1992 and the days of Clinton's refrain: "It's the economy, stupid."

Non-discount retailers, in particular, are "feeling the pinch", according to Nielsen. Private-label sales are growing but only as commodity cost rises fuel inflation; volume sales have dipped slightly.

All is not doom and gloom however, says Nielsen. "There are opportunities in a slowing economy to lead the recovery," the researchers say.

"Category-specific opportunities exist to maximise in-store efforts. For products that are performing strong and showing immunity during a recession, manufacturers and retailers in these industries have the opportunity to increase product exposure even further.

"For products at the other end of the spectrum, companies would be well-advised to target their marketing efforts to shore up performance and maintain traction during tough times.

"Now is the time to plan for recovery."

Bigger picture shows Next success

Wed, 06 Aug 2008 12:57:00 GMT

This week saw a heady mention for Next Plc in The Times newspaper's top ten share price growers - with the UK retailer out-gunning the likes of Nokia and Google.

The Times noted that although Next has suffered a sharp fall in the past year, investors who held GBP5,624 worth of Next shares in December 1990 would have become millionaires by 2007.

Its recent market slide has reportedly cut that that figure in half though, and investors would have been depressed with news last week that like-for-like sales at Next fell by 6% in the first six months of the year.

The the chain has also warning that a similar slowdown is likely in its second half.

The Times list is drawn up on shares that could have been bought for next-to-nothing before later creating a fortune.

Next raises the stakes for fashion

Turnaround plans in a spin

Mon, 04 Aug 2008 14:40:00 GMT

Department store chain Mervyn's is the latest US retailer to join an ever-lengthening list of companies who have filed for bankruptcy this year. The company says it has US$465m debtor-in-possession funding, and intends to remain open during the bankruptcy process. But a long-term turnaround plan put into place earlier this year, which included a focus on markdowns and promotions, has clearly proved to be less then effective in recent months as the retail market has slowed.

Its future, and that of other mid-tier retailers, depends on whether or not it can find another way to draw back consumers who are currently seeking bigger bargains at discount stores.

It's a dilemma also facing women's apparel retailer Christopher & Banks Corporation, which is to shut its loss-making Acorn store chain by the end of this year, with around 80 full-time and 200 part-time workers losing their jobs. Going forward, the move will enable the company to focus on its two core brands, Christopher & Banks and CJ Banks.

Another company that's been forced to evaluate the long-term future of one of its units is footwear firm Stride Rite Corporation, which has decided to close the Canadian headquarters of its Robeez babies' and infants' shoe division. More than 300 jobs will be lost through the closure, including about 250 in manufacturing. It is also switching back-office functions to the US, where it believes there are more opportunities for global expansion and new product lines.

China, meanwhile, has confirmed it is to raise tax rebates on a range of textiles and garments to 13% from 11%, in a bid to boost exporters struggling with surging costs and slower demand. The change, which came into force on Friday (1 August), is designed to provide some respite from a raft of cost increases this year from raw materials to higher labour costs resulting from a new labour law and the strengthening yuan.

Also on the trade front, the Doha round of world trade talks collapsed last week. The round's non-agricultural market access (NAMA) talks were set to reduce protective duties on some textile and clothing products - although there were also fears that bringing down trade barriers would do more harm to the world's poorest garment-making countries than the restrictions themselves. Discussions are likely to continue, observers say, but not until next year.

The sums add up for Adsa

Fri, 01 Aug 2008 18:18:00 GMT

Supermarket group Asda is hoping to win back cash-strapped customers who are shopping at discount grocers like Aldi and Lidl with an offer for what it claims to be the "lowest ever priced school uniform."

Set to hit the hangers this weekend, the George at Asda outfit costs just GBP4 and is available for children aged from 3 to 12 whatever their age. It consists of a polo shirt for just 50p, and trousers or a skirt and a sweatshirt for GBP1.75 each.

Last year Asda was selling the equivalent uniform for GBP6.25, and three years ago it was GBP10.25.

So how does it do it? George says it's able to offer these prices by buying fabric by the mile, using a smaller number of manufacturers and planning significant lead times into the production process.

The offer hits back at Marks & Spencer which last week unveiled its lowest price uniform starting at GBP6.50 for children aged up to six years old and rising to GBP13.50 for those aged 12.

Asda's also trying to stir up a debate on kidswear pricing, which often sees prices go up as sizes get larger. M&S was recently forced to go on the defensive on a similar issue after a Facebook website called on it to axe a GBP2 surcharge on bras above a DD cup.

Flip-flops that grow with you

Thu, 31 Jul 2008 18:23:00 GMT

Sitting here at my desk on one of the hottest days of the year so far, what wouldn't I give to feel the grass beneath my feet? Well, short of downing tools and going outside, maybe a pair of grass flip-flops would do the trick. That's what donut firm Krispy Kreme certainly hopes, and has come up with some innovative footwear to ease the strain for stressed-out London commuters.

Its new shoes will (literally) grow on you, creating an instant grassy park beneath your feet. They take up to three weeks to grow and each shoe is covered with over 5,000 blades of grass. Of course you'll have to look after them properly, but if you do, the flip-flops can remain in season for over four months.

Sounds like a great idea, but the idea of watering your shoes - and, I presume, giving them a trim now and again - seems more than a little weird. They look pretty bizarre too, but I guess that's a small price to pay for a mini walk in the park.

Mervyns' future looks bleak

Wed, 30 Jul 2008 16:43:00 GMT

Mervyn's is the latest US retailer to join an ever-lengthening list of companies who have filed for bankruptcy this year. Steve & Barry's, Shoe Pavilion and Goody's are just three that have succumbed in recent months.

The department store chain says it has a US$465m debtor-in-possession funding, and intends to remain open during the bankruptcy process. But a long-term turnaround plan put into place earlier this year, and which included a focus on markdowns and promotions, has clearly proved to be less then effective in recent months as the retail market has slowed.

It's future, and that of other mid-tier retailers, depends on whether or not it can find another way to draw back consumers who are currently seeking bigger bargains at discount stores.

US: Mervyns files for Chapter 11 bankruptcy protection

A week in the news...

Mon, 28 Jul 2008 14:44:00 GMT

Perhaps the most sensational story on just-style last week was the disclosure that a New York based garment contractor for some of the top US retail brands has been involved in a range of labour law violations including withholding $5.5m in unpaid wages.

Jin Shun Incorporated has operated under a number of different names, and was found to have underpaid more than 100 workers over several years. The Department of Labor stated that the contractor kept false records and coached its workers to lie to inspectors. The investigation also revealed that workers routinely worked 12-hour days, six to seven days a week.

Unfortunately allegations of worker exploitation in overseas apparel factories are all too common. But the discovery of the same problems closer to home has once again fuelled the debate over the adequacy of social responsibility systems and the relentless drive for lower prices.

There's more bad news for UK retailers too, with a new report warning they should brace themselves for a decade of woes, characterised by bankruptcies, job losses and falling sales. This was certainly borne out in June, when UK retail sales posted their sharpest monthly fall since records began - with clothing and footwear sales down nearly 7%.

But it seems some firms are still optimistic that there's growth to be had in the luxury market. Private equity groups Phoenix Equity Partners and Sirius Equity have bought a 70% stake in UK fashion brand LK Bennett and plan to open new stores in the UK and overseas. The owner and chief executive of UK fashion firm Jaeger have purchased a 60% stake in luxury footwear label Beatrix Ong in a bid to expand it into a global luxury accessories brand. And artists and designers Viktor Horsting and Rolf Snoeren have sold a majority stake in their Viktor & Rolf label to the owner of the Diesel brand.

Other top apparel brands including Levi's and Adidas, however, are finding that as they expand their retail presence in markets such as China they are having to face up to a barrage of counterfeiting. According to a new just-style management briefing, they are hitting back by market and shop raids and hiring investigators to probe warehouses.

Meanwhile, there are signs that China is losing its competitive edge in textiles and clothing. Not only is it facing mounting costs on several fronts, but new sources of supply in Bangladesh, Cambodia and Vietnam mean many buyers will not return to China when safeguard quotas are removed at the end of this year.

Crocs down at heel

Fri, 25 Jul 2008 17:49:00 GMT

Can things get any worse for colourful clog maker Crocs? Once the darling of the stock market, its shares plunged by nearly half this-morning on news that its second quarter is likely to be dire and it's full year results will also miss the mark.

There's always been a fear that Crocs would turn out to be little more than a one-hit wonder. Incredibly popular as its footwear has been - and yes, in case you're wondering, I do have a pair - there were always doubts about the longevity of the company once the popularity of its original shoe format started to wane.

About a year ago it seemed to acknowledge this problem, rolling out more upscale shoes and boots and a new clothing line - all featuring Croslite, its patented closed cell resin - as part of a mission to turn itself into a global lifestyle brand.

But yesterday it warned earnings for the year are likely to be "break-even", while second quarter earnings per share are seen at $0.03-0.07 - a massive drop on earlier forecasts of $0.42-0.47. Crocs is blaming the weak US market for its woes, pointing out that international sales are rising. But not, it should be added, as fast as it expected and certainly not enough to offset lower US demand.

The problem seems to be that Crocs is little more than a fad. Its brand isn't strong enough to command prices way above those of its imitators, it's not a wardrobe essential, and once you have a pair you probably don't need another. And now its management have lost so much credibility it's going to be hard for the market to take them seriously again.

It doesn't help either that the company is going to start putting warning labels on its shoes - the second piece of bad news for the firm this week. After a series of incidents where wearers have become stuck on escalators, Crocs has devised hang-tags with tips on avoiding accidents.

So as if it's not bad enough that people are dithering over whether or not to buy its shoes at all, the warning label might just make that decision for them.

US: Crocs shares slashed after profit downgrade

Sweatshop in Queens

Thu, 24 Jul 2008 17:52:00 GMT

All too often we hear about worker exploitation in overseas apparel factories, which perhaps gives us the glow of satisfaction that all's well in those facilities that manage to cling on in the face of adversity in supposedly developed countries.

And the impression that poor working conditions just couldn't happen on our own doorsteps is reinforced time and time again as retailers, brands, and importers chase lower and lower costs abroad, usually at the expense of producers closer to home where higher wage costs and a network of legislation exists to protect employees.

But it's clearly not the case, as a sensational expose by the New York Department of Labor found yesterday.

It has tagged more than 10,000 garments produced by Jin Shun Incorporated, a factory on the outskirts of Manhattan, as 'Unlawfully Manufactured.'

It wants to draw attention to the fact that not only did the manufacturer swindle workers out of more than $5m in unpaid wages, but took extraordinary steps to conceal the violations - including coaching employees to lie to investigators' questions.

The tags are a neat way of drawing attention to the problem. Under the "hot goods law," it is a misdemeanor for anyone other than the Department or the consumer to remove these labels.

And it achieved an almost immediate result, since within hours of the tagging the manufacturer, Urban Apparel, paid $60,000 in underpayments to have the labels removed.

The Department of Labor also had harsh words to say to retailers and manufacturers: "Cursory inspection in monitoring factories is not enough. We in government are getting more aggressive in ensuring that suppliers abide by the law.

"While you may require your suppliers to abide by strict codes of conduct, these codes do workers no good if they are not aggressively enforced."

Perhaps labour enforcers in other countries should take note too.

US: New York garment factory underpaid workers by $5m

A Just deal?

Wed, 23 Jul 2008 17:51:00 GMT

Australian clothing retailer Just Group has issued a cool response to the higher takeover bid tabled today by hostile investor Solomon Lew.

It says the new deal - which offers AUD814m (US$777m) plus additional incentives if Lew's Premier Investments achieves 90% control of the firm - does not improve the core offer and adds conditions that cast doubt on any additional payout.

But Premier is this time putting pressure on investors, and wants 50% of Just shares within the last week of the offer period. Otherwise it won't extend its offer beyond 15 August, it says. This will, at least, put pressure on the Just board to think about it seriously.

One sticking point could be that Just shareholders don't actually want shares in Premier. Up to now, just 1.1% have accepted the original bid in the two months since it was made.

Just Group has previously said the offer undervalues the company, and has again advised shareholders to take no action. But perhaps more significant is what it hasn't done - and that is reject the deal.

AUSTRALIA: Premier makes final offer for Just Group