Counting the cost of fast fashion

This fascinating article touches on fashion psychology and was originally published in The Conversation

By Alice Payne, Queensland University of Technology

There’s a polyester mullet skirt gracing a derrière near you. It’s short at the front, long at the back, and it’s also known as the hi-lo skirt.  Like fads that preceded it, the mullet skirt has a short fashion life, and although it will remain potentially wearable for years, it’s likely to soon be heading to the charity shop or to landfill.

The mullet skirt may not last more than a couple of months as a fad, but the fast-fashion trend has shown considerably more longevity.  With Spanish brand Zara compressing lead times to as little as 13 days, and the UK’s Topshop releasing 300 new styles a week, fashion trends are being captured and sold far quicker than ever before.

Catwalk styles can become high street fashion within weeks. AAP

In Australia, although Zara and Topshop only arrived in 2011, many local retailers have been following an accelerated fashion cycle since the early 2000s. Valleygirl releases 65 new styles per week, Supre has daily deliveries, and the mid-market Witchery boasts 400 new styles per month.

Fast fashion has enabled a democratic engagement with the luxury of constant novelty, once only the domain of the very wealthy. Now high fashion trends are instantly accessible online, and the physical garments are for sale at prices which have never been lower.

However, the garment’s price tag does not acknowledge the environmental and social cost of overconsumption.

In the UK, some 30 kilograms of textile products, per person, per year go to landfill. What isn’t sent to landfill goes to charity. A single Smith Family sorting centre in New South Wales sorts 10000 tonnes of donated clothing each year. Much of this will be sent to developing countries, a trade that can be disruptive to local textile industries.

Cotton requires a large amount of water to grow – but often ends in landfill. AAP

The two most popular fibres for fashion apparel – cotton and polyester – each have considerable ecological impacts in production. Conventional cotton alone accounts for one quarter of global pesticide use, linked to poisonings and air and groundwater contamination. In addition, cotton requires a global average of 11,000 litres of water per kilogram, to produce.

With a world population of seven billion, and a projected nine billion by 2050, food security and water security will become increasingly pressing policy concerns. The volatility of cotton prices in 2010/11 is possibly a foretaste of this, with cotton prices rising to their highest level in the history of the New York Stock Exchange.

The launch of Spanish retailer Zara in Australia has seen lead times compressed to a mere 13 days. AAP

Australian fast-fashion retailers face additional short-term challenges. In 2011, bricks-and-mortar retail was at its lowest ebb in Australia since 1962, and across the fast fashion market, clothing was reduced up to 70%. Local labels are affected by the rising fibre prices (not only cotton but polyester of cotton quality) and rising Chinese manufacturing costs. The forthcoming carbon price may also lead to rises in the cost of freight and raw materials. In addition, a greater number of consumers are choosing to buy clothing online from cheaper overseas e-tailers.

Australian designers and retailers can adapt to these challenges through examining the garment life cycle to identify points of intervention. For example, more efficient use of resources would see disposable faddish items such as the mullet skirt collected at end-of-life for closed-loop recycling, in which its polyester can become feedstock for new textiles. (See Kate Fletcher and Matchilda Tham’s Lifetimes project, or Patagonia’s Common Threads program.)

Crucially, fast fashion is not merely fast material throughput of garments, but a sophisticated global image and information system which, to some degree, is weightless. As fashion is intangible, it is not necessarily tethered to the purchase of new clothing. An example is The Uniform Project, in which blogger Sheena Matheiken wore the same dress for a year, styled in 365 different ways.  With this perspective, a fast-fashion company’s role may evolve into that of a service provider, not simply a retailer. These services may include styling advice, alterations, clothing libraries or collection of the garment at end-of-life.




In Australia, Supre and Sportsgirl have followed the lead of Topshop and American Apparel in offering a small selection of vintage clothing alongside their new stock.

There is no contradiction in fast-fashion retailers selling second-hand clothing, as the speed of trends mean that styles come in and out of fashion so frequently that some version of “vintage” style is always in style. Within the context of fast fashion as ‘post-brand’, second-hand styles simply become additional grist for the mill, as consumers will mix and remix the product (of whatever provenance) in their personal, restless search for novelty and individuality.

Fast-fashion principles also drive the success of online marketplaces such as eBay, in which second-hand clothing can be circulated again and again, revalourised by individual consumers. Similarly, the Salvos charity stores in Australia and Oxfam in the UK, now sell second-hand fashion online, grouped into ‘lookbooks’, complete with fashion shoots.

While the Rococo excess of a new frock a week may be unsustainable, a different fast fashion – one that relies less on overconsumption of new garments and more on the inventive reuse of existing materials – can emerge.
Alice Payne does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.
This article was originally published at The Conversation.
          Read the original article.
       

CHANGING CULTURE IN OUR BANKS

A GUEST BLOG FROM DO SOMETHING DIFFERENT ABOUT WHY IT'S TIME FOR OUR BANKS TO CHANGE - AND QUICKLY:

It’s been a rough week for the UK banking sector. Again.

Fines for Barclays fixing the LIBOR rate, with at least two other major banks rumoured to have been up to the same tricks. Mis-selling interest rate swaps to small and medium sized businesses. A new proposal for a European banking union, setting the rules from outside London.

The Radio 4 chatter this morning was about culture change. Separating investment banking from retail banking – taking the casino out of the supermarket – is considered a step in the right direction, but banks need to refocus their culture. They need to put ethics back at the heart of their operations.

This was then picked up by Bank of England governor Sir Mervyn King, who said: “We can see we need a real change in the culture of the industry.”  Prime Minister, David Cameron, speaking from the EU summit in Brussels, also added his weight to the argument: “British people are crying out for a return to good old-fashioned banking… That’s why the governor is so in favour of changing culture at the banks and so am I.”

So if you are in charge of change management at a big bank, how do you do that? Change management consultants are fond of telling us that it takes seven years to change a culture. The banks simply don't have that long.

What is culture change?

Essentially, it’s people taking different actions. 

That may be based on a new set of values. Or, as is more often the case, it might be about trying to get people to behave in-line with existing values that have been forgotten or ignored in the commercial frenzy. 

Either way, the key is – actions. For culture change to be real and sustainable, it has to be about what people physically do, not just what they think.

Reminding people about old values, or teaching then new ones, and then letting them go back to their desks, their trading screens or their customer service counters is not enough. We’re habit machines. The old ingrained behaviours will soon rise to the top. Most people will go back to doing the same things they’ve always done and nothing will change.

Culture change is not about telling people about new values. It’s about getting them to live new values. 

To evolve a new culture by doing things differently. Put ‘doing’ at the heart of a culture change strategy, and change can happen in seven weeks. Not seven years.

Do you know how much you are paying for your ISA investments?

(SPONSORED POST)

We (rplan) did some research and found that 89% of people had no idea how much they were paying for their ISA investments (and that's excluding the 30% who thought it was free.) 
In reality, you are most likely paying two sets of charges: when you buy the investment (the initial charge), and then on an ongoing basis (usually calculated annually.)
Why is this important? The charges can have quite an impact on your investment. 

ISA charges can seriously affect your investment

For instance, the initial charge can be up to 5% of your investment; the ongoing charge is usually around 1.5% for funds, and less for passive funds or ETFs. Over 10 years, these charges add up.
We found that the difference between the most expensive and a cheaper option could be up to £6,300 if you invest the full ISA amount each year. That's a big difference.
This is why we created a tool to see how much you could save on your investments by switching service provider. 

The tool is available here - it is free and easy to use. 

Simply enter how much you have invested currently and your current provider, and see how much you could save.
The charges you pay go to the fund manager (you are paying them for performance) and to the service provider (you are paying them for service.) Your service provider could be a financial adviser (IFA or bank), a broker, or an online service. In the case of a financial adviser, you are paying for the quality and frequency of the advice; in the case of a broker or online service, for their tools and customer service.
The key to understanding whether you are getting good value for money is understanding how much you are paying. Armed with that knowledge, you can then decide whether you are truly spending with power; and the savings could be significant.


Blog post by rplan.co.uk

The psychology of shopping: how men and women shop

(SPONSORED POST)

Did you know that every time you step into a shop, there are a million and one things that are designed to make you part with your cash? 

Have you ever popped to the shops to buy milk and come home with a bag full of shopping?

 It's annoying how they place the milk at the back of the shop, isn't it!

An international bestselling book 'Why We Buy - The Science of Shopping' gives an insight into some of the ways retailers use psychology to make people buy more, and it seems that men and women are targeted in very different ways.

Its author, Paco Underhill, has spent years observing shoppers in retail environments. If you want to shop smarter, you might be interested by some of the book's insights.

First of all, not everybody who walks into a shop knows whether they will buy anything. 60 to 70% of purchases in supermarkets are 'unplanned'. A store's success depends on how many shoppers it can convert into buyers.

Frugal tip: Don't go shopping unless you need something

Merchandise, where products are placed on the shelf (eye line products sell the most) the smells and lights, the blast of warm air as you enter the shop, the layout of the aisles: it can all determine whether you buy - and lead you towards a product you never even knew you wanted.

Targeting Women

Mr Underhill says shopping environments are geared towards women, as women generally choose most of the purchases, including mundane things like groceries.

Family-friendly shops have wide aisles for prams and push-chairs, some provide crèches or children's play areas and special parking spaces for mums. These shops want to attract the 'decision makers'.

Cosmetics and toiletries are generally a woman's domain and women like to take their time to read the packaging before they buy. In one study, 63% of women who bought something in a chemist read the packaging. So you'll find that the cosmetics aisle is usually secluded and private to give them time - so they'll buy more! In department stores, greater pressure tactics are used - most of the beauty products don't have price tags, and women feel embarrassed to ask the lady behind the counter how much something costs, and end up buying it anyway.

Frugal tip: Don't be embarrassed to ask how much an unlabelled item costs before you buy it.

Targeting men

According to Mr Underhill, 65% of men they observed who tried on an item of clothing bought it, whereas only 25% of women did so. Women enjoy the experience of trying different clothes on, whereas men seem to find it stressful. Retailers try to make the men's changing rooms easy to find - as they're likely to get a higher conversion rate.

Frugal tip: Men - if you try on an item of clothing - you're statistically more likely to buy it.

86% of women look at price tags, whereas only 72% of men do. While Mr Underhill believes that men ignore price tags to 'prove their virility' - what it really means is that retailers find it easier to upgrade men to more expensive products, whereas women are more cautious.

Frugal tip: Look at the price tag before you buy and decide whether you really need it.

It's interesting to see how retailers use the psychology of shopping to make us spend more - they're well aware of how we will behave in certain conditions. Next time you're out shopping, think about whether the purchasing decision you make is one you came to by yourself, or whether someone pushed you along a little bit. You may be surprised!

This article was provided by Lucy Bower from thinkmoney.co.uk, where she's been writing frugal tips for almost a year now, and is thoroughly enjoying the frugal lifestyle because of it!

10 reasons why men need Sheconomics

Don't let our pinkness put you off - we have lots of bloke-friendly stuff going on. Here's why we think men need Sheconomics too:

·      1. Because research shows your investments would surge if you used your feminine side a tad more. No need to greet your latest dividend with a tearful acceptance speech, it's just about not being over-cocky, a risk-taker or one of the boys. More diverse portfolios, caution and not over-reacting to a volatile market explain why female investors outperform men consistently.

·     2  Because you could learn how to dress for success. Drop that favourite well-worn brown suit off at Oxfam and let someone with a tape measure get intimate with your inside leg. Seriously, people do judge you by what you wear. A lot. Men in bespoke suits are judged to be more successful, confident, trustworthy, flexible and higher earners than their off-the-peg counterparts.

·     3. Because you could suss out how to have cool, non-confrontational conversations about money. And you could have a better, happier home-life if you did so. There are tricks and strategies we can all learn that will make money-chat nicer. No issues. No arguments. Hugs optional.

·    4.  Because you could be a better Dad.  Without realising it parents play more roughly with boy babies than with girls. They let boys explore more than girls and use more emotion words with their daughters than with their sons. Swat up on the significant but subtle ways you can give your daughter the kind of start in life you are unconsciously giving your son. Get wind of some good Sheconomics strategies for raising kids.

·      5. Because you’ll do the right thing by her in the event of the unmentionable happening.

     When multi-million selling author Stieg Larsson died suddenly at 50 his estranged family, and not his life-long partner Eva, inherited his fortune. Eva's even having to fight a legal battle to stay in their apartment. No-one wants to think about death but not thinking of those you'll leave behind is dumb.

  

·     6. Because you overwork your logical left brain and neglect the poor old right. Ever thought about which side of your brain is managing your money? Intuition can be a useful tool, but seems to be the reverse of logic. The field of behavioural economics is obsessed by these concepts because humans are rarely rational decision-making machines. They fall victim to flawed logic, emotional reactions and cognitive biases.

·      7. Because you could realise some of the hidden forces behind financial success, and why it helps to be tall, left-handed and tidy. 

      Yes, we said tidy. No, we’re not nagging. It's just that taller people earn more than shorter people and left-handed people earn more than right-handed people. Things that are hard to change. But people with tidier homes do earn more than people with messy homes. Reason to not drop those socks on the floor?

·      8. Because if you’ve ever suffered death-by-dinner-party you’ll see how company boards make the same mistakes as very dull hosts. Mixing up the guests brings livelier conversations and new perspectives. About 10 years ago Norwegian boards were mostly made up of men with very similar views and backgrounds who went hunting and fishing together. This meant there was a huge risk of group-think in the boards’ decision-making processes, and a real lack of diverse perspectives.

     Adding just 3 women to boards has been shown to increase the company's bottom line by 40% and boost the country's economy.

·      9 . Because emotional intelligence is just as important as IQ. You’ve always known that IQ isn’t all it’s cracked up to be - there are better ways of selecting the right bunch of people to work with.

     Studies show the most effective groups listen to each other, share constructive criticism, have open minds, are not autocratic and use conversational turn-taking to good effect.

·      10. Because we can all learn something from the bagel man. You can tell how much people like their bosses and their work from how much dosh they drop in the honesty box. It could be a good metric for getting to know the health of your company and the happiness of your employees. Honest. 

 Final word from a lovely friend of Sheconomics, Alan Newman of the Finance IT Network:

• "There's probably some merit to the accusation that the financial services sector is 'male, pale and stale'. The insights from this book - co-authored by a Professor of Psychology and a Financial Coach (who left IFA boredom behind her) - should be compulsory reading for us blokes."                        

Simonne's a guru!

Yes, it's official.

Simonne's not just a gorgeous girl with get-up-and-go but she's also a guru! Isn't that ggggreat?!

She's featured in the Daily Express today as THE person to go to for financial advice.

They feature her TIPS FOR A BETTER FINANCIAL LIFE. She suggests you:

• Identify the emotional triggers that make you spend
• Keep a diary, note the time of day and how you were feeling when you spent
• Find alternative ways of filling that time, emotional gap or need

- So if guilt about not spending time with your children motivates you to splash out on gifts for them, play a game with them that evening instead

- If shopping is a lunchtime habit turn in the opposite direction instead of heading for the shops, you never know what you might discover!

There's lots of other life advice in the article but don't neglect your financial health, when we're financially secure it affects our whole sense of well-being.

Reasons to be loyal – and not

Women are big on loyalty. Sometimes that’s good for us. Other times it isn’t.

(image David Palmer)

Reasons to be loyal:

• when someone criticises a colleague behind their back, it’s good to stick up for them
• when your best friend’s going through a tough time, even if she forgets your birthday, stay in there
• when no-one likes your husband’s Boris-Johnson-lookalike hair style, you think he’s gorgeous

Reasons not to be loyal

• when you repeatedly get crap service from your bank
• when the credit card you pay off every month doesn’t reward you (in cash back, points, air miles or similar)
• when the introductory bonus deal on your savings has run out and been replaced by a paltry rate of interest
• when the value of your endowment policy has dwindled to a teeny fraction of what it promised to be

So whereas women are loyal to their loved ones, it doesn't always pay to be loyal with money.

And maybe that’s why more women than men lose out.

Ali Hussein’s article in the Sunday Times today - on how some insurers, energy and savings providers actually punish loyalty is quite an eye-opener!

Do you have the money gene?

So asks Anna Moore in YOU magazine today, with the tantalising notion that some of us have it and some of us haven’t.

Nice idea but when it comes to money management, our learned behaviour trumps our genes every time. Why’s that good? Because learned behaviour can also be unlearned. Restructuring your own DNA is a darn sight harder.

I’m quoted in the article a lot, particularly commenting on Kerry Katona’s dire financial circumstances.

I admit I had to be told who she was. Then again, I never let lack of knowledge stand in the way of having an opinion.

If only she'd read Sheconomics...

SIX TIPS FOR TWENTY TEN

This week the media have been dipping into Sheconomics for solid advice - see us on motley fool.co.uk, in Oprah's magazine 'O', in Times on-line and Cosmopolitan to name just a few......

Check out our fail-safe tips for a sheconomical 2010 on handbag.com or read the extract below......

Want to be better with your money? Answer the questions that Karen and Simonne have devised below. If you answer ‘yes' to any of them, take note of the tips and put them on your 2010 to-do list.

1. Are you financially immature?

We think we're grown-up, running a home, holding down a job. And then a money problem comes along and our inner child is unleashed. It's a common problem with women and it can stem from being over-protected when young, or from naively believing things will just work out somehow. The first step to being financially savvy is to be in charge of your money. Make financial independence your goal this year.

Tip: Find out about what you earn and what you owe. Sign up for online banking and monitor your finances regularly. Open bills and statements as soon as they arrive and deal with them.

2. Are you secretly scared of money?

Money is an emotionally loaded topic. Lots of women have fears about money. They can remind us of the doom-laden warnings from our parents. Or can be triggered by the technical language and jargon used by the finance world. Fear stops us taking action, so resolve to be ahead of the game this year.

Tip: Break big goals down into small, manageable steps and take one action now. Own up to the gaps in your knowledge and buddy up with someone who knows. Visit a plain speaking, friendly money website regularly, such as moneymadeclear.fsa.gov.uk. Or talk to a financial coach. If you want to empower yourself - find out how compound interest works (see www.fool.co.uk).

3. Do you have a shopping habit?

Shopping has become the way many women regulate their emotions. Research for sheconomics.com found that women use shopping to cheer themselves up, relieve stress or anesthetise themselves against painful emotions. That heady buzz from spending quickly wears off though, leaving only feelings of shame and guilt. Resolve to get high on life, not high on shopping, this year.

Tip: Know why you shop when you do. Spend only when you need the goods, not the buzz. Find alternatives to shopping that boost mood, like exercise, cooking for friends, dancing or gardening. Deal with your emotions, don't take them shopping.

4. Are you afraid to ask for money?

Women are still paid less than men and are far too reluctant to ask for money. If you undervalue yourself then you will be under-paid. Watch your self-limiting beliefs. Just because you hated maths at school doesn't mean you shouldn't have money. And working your socks off doesn't necessarily mean you'll get rewarded. Payback is more likely if you're upfront and ask for it. Be bolder this year. That includes negotiating for better deals and refusing to pay for bad service.

Tip: Ask for what you're worth and don't be fobbed off. Prepare your case and be proactive. If you've hit an earnings barrier, consider moving. If you're self-employed make sure your rates reflect what you're giving and the time you put in.

5. Are you a ‘live now, pay later' person?

Most women today will out-live the men in their lives. Many will also out-live their own savings. What will you do when you can no longer earn money? The earlier you start putting money away for your dotage, the less it costs you. If you haven't begun, resolve to make a gift to your future self this year.

Tip: If your company has a pension scheme, join it now. Or find out about pension options. Pay yourself first: automatically divert a set amount from your account into a savings or pension scheme every month. Confused by all the options? Just remember, doing nothing is the worst possible option.

6. Are you spending more than you earn?

Being financially savvy isn't about what you earn, it's about what you keep. Salary creep is when our spending rises with our salary, and even overtakes it. Aim to save 10% of your salary consistently. Be ready for those unexpected expenses (the boiler blowing up, car repair, job loss or even pregnancy) otherwise they'll plunge you into debt.

Tip: Track your spending for a month and plug the leaks. Shop around for the best deals on your mortgage, utilities, mobile phone etc. Deal with debt now. Seek help if you're in too deep (see cccs.co.uk for free counselling and assistance). Cut up your credit card until you can afford to pay it off in full every month. Have an emergency cushion equivalent to three months' expenses.

For more tips see sheconomics.com, or read Sheconomics­­ by Professor Karen J Pine and Simonne Gnessen, published by Headline, price £7.99.

Win a copy of Sheconomics - we've got 10 copies to give away! Stay tuned for our Sheconomics money webchat with Karen and Simonne later in January.

Article appeared on handbag.com 31.12.10

Sheconomics Tip Sheets

Happy New Year!

If one of your resolutions is to gain a few pounds (that's £££s) and put your finances on a fitness regime, we've got the perfect solution.

Our new Sheconomics Tip Sheets deal with everything from asking for money to curbing the urge to splurge. There are ten in total and they're the ideal toolkit to see you Sheconomically through the next decade.

Download the Tip Sheets from here.

Women get a grip on money in 2010, while men get ahead

The recession has certainly made us focus more on money management, but whereas women hope to get a better a grip on their finances in 2010, men are set on making as much as they can.

Men and women differ in their financial resolutions, according to our recent research. Men will be focusing on maximising income, with almost three quarters of them concentrating on making more money in 2010.

Although roughly half the women said making money was a priority for 2010, many more of them said taking charge of their finances was their uppermost goal for the coming year. Our survey revealed:

Women’s top 3 money resolutions for 2010:

1. Take charge of my finances more (66%)

2. Get better value for money (63%)

3. Plan my financial future (62%)

Men’s top 3 money resolutions for 2010:

1. Plan how to make more money (73%)

2. Plan my financial future (70%)

3. Get better value for money (70%)

The fact that more women want to get a grip on their finances is great news. But making money shouldn't only be a male domain, so why not unleash your inner entrepreneur in twenty ten?

My Budget Day - AXA's inspired idea

I love Axa's idea of My Budget Day, this week.

If only more of us just put aside a bit of time for financial planning, we could be a load better off.

Another brilliant idea they have is to rename pensions! If the very word 'pension' strikes fear to your soul can you come up with something better?

In Sheconomics we reckon on reframing your pension as 'a gift to your future self', but renaming is also an effective way into tricking your brain into associating it more with pleasure than pain -

what would the word be though?

To enter go to Axa's site - you could win a cash prize.

Simonne's tip for tracking your spending

Here’s an easy way of staying in control of your money while you’re on the move.
There’s a great tool you can download on your iPhone for free - called ExpenseIT.
It allows you to keep track of spending against budgets you set for everything from food to frivolity.

We’ve had great feedback on it so far, but have a play with and let us know what you think... Simonne.

Your financial fitness regime from Simonne

I’ve just started getting into a habit of jogging most days (well – it’s only a tad faster than walking, but it’s a start!).

I’m noticing how it’s getting easier by the day and that, just by maintaining it, I’m able to stick to a level of fitness which is pretty much what I hoped I’d achieve.

It got me thinking about the similarities with getting into good money habits.

It’s just as hard getting started (all too easy to find excuses), and then keeping things up can be challenging.

But once you’ve found the right financial fitness regime I’m sure you’ll share the experience of finding it easier to maintain by the day and never having to experience the pain of getting started.

And it doesn’t have to be perfect to make it worthwhile.

So if money management is something you’re putting off, what can you do today to get started?

Reminder from Simonne....

Did you know that the rules for ISAs (Individual Savings Accounts) are changing tomorrow for anyone over the age of 50 (and from April 2010 for all other adults)? That means you can now pay up to £10,200 each tax year (6th April one year to 5 April the next), £5,100 of which can be in the form of cash (bank/building society accounts earning tax-free interest). If you want to compare different cash ISAs, try http://www.moneysupermarket.com/savings.