Chanel’s Heir Places Brazil on Its “Sustainable Fashion” Radar

RIO DE JANEIRO, BRAZIL – Heir of the French brand Chanel, one of the world’s leading luxury labels, David Wertheimer believes that Brazil can be a granary to export sustainable practices applied to fashion worldwide.

A member of the family’s fifth generation at the head of the luxury empire, the executive leads an investment fund that will prospect sustainable practices for the production of clothing, shoes, and accessories – and already has his eye on at least two businesses in Brazil.

Although the contracts are not yet closed, the fund that Wertheimer set up in partnership with Swiss bank Mirabaud is interested in technologies extracted from sugar cane that can replace other materials used in shoes, such as plastic and non-organic rubber. “We are looking for a set of brands that are fully sustainable, linked to sugar cane, using recyclable leather and other recycled materials,” said the entrepreneur in an interview.

The fund, which is in an advanced capturing phase, should focus the equivalent of R$1.3 billion. Wertheimer’s sights are on brands already established and on initiatives in a more embryonic stage, which would receive lower investments, within the concept of venture capital. To find good practices in the country, the fund sought the help of the E Institute, led by entrepreneur Oskar Metsavaht, owner of Osklen, which has been developing environmentally correct practices for over 20 years.

The fund’s search for sustainable fashion will also spread throughout Europe and Asia. And sales channels that strengthen the brands’ sustainable positioning are also in Wertheimer’s sights. “We are also looking for new ways to sell online, of communication to ease negotiations and we are looking at how people will approach consumption from now on,” said the entrepreneur. Among the entrepreneur’s references in this respect is the French footwear brand Veja, which has set up a sustainable production line in Brazil (here, the brand is called Vert).

The effort to combine fashion with sustainability makes sense since the sector is the second most polluting in the world. According to an article published in Nature magazine in April, 20 percent of water pollution by the industrial sector is found in the production of textiles, which accounts for 35 percent of plastic microparticles that end up on the ocean floor every year. Fast-fashion networks, which promote a fast and disposable fashion, have contributed to the production of clothes doubling in 20 years – which amplifies the challenge of discarding materials.

Affordable luxury

While not completely dissociating himself from Chanel’s DNA, Wertheimer wants to focus on what is called “affordable luxury” – a concept that will increasingly be linked to companies with a reduced impact on society and nature. “The new luxury is to be sustainable. My point of view is that sustainability is the key to all future brands.”

Wertheimer monitors the debates on the Amazon deforestation but did not want to comment directly on the topic. “What I can say is that, in my sector, I will try to make the best investments, the most sustainable and those that have a better impact on the population.”

Osklen, Vert and possible sustainability

One of the main references when it comes to the association of fashion and sustainability, entrepreneur Oskar Metsavaht, founder of Osklen, says that brands should embrace the sustainable cause while not losing sight of the business’ financial viability. It is better to climb the mountain gradually than to try to reach the peak in one shot – this way, one does not regress in the search for less polluting practices, nor is the company forced to close its doors.

The concept advocated by Metsavaht is an operation “as sustainable as possible”. He recalls the case of the development of an Osklen t-shirt made of 100 percent organic cotton years ago, but the end price of which – even for a premium brand – was unfeasible for the clients. After that, he realized that it is better to take shorter steps.

“We had two options: either to stop the project or to do it differently. And with 80 percent regular cotton and 20 percent organic, we realized it was feasible,” recalls Metsavaht. “The important thing is to be transparent: a person has to see and be informed about the composition of that item.”

Osklen’s sustainable approach started in 1998, through a partnership with EMBRAPA to plant organic cotton. Since then, the company has evolved its production chain to work with a variety of raw materials and alternative processes – such as fabric made from recycled PET bottles, “leather” from fish scale, and development of natural dyes – and has received several international acknowledgments for its work.

Although Osklen has been sold to the Alpargatas group – which also owns the Havaianas sandals – Metsavaht continues to work as the brand’s creative director. He not only gives direction on the latest fashion trends, but continues to work on projects to expand the company’s sustainable “footprint”.

Brazil + France

Transparency is also the name of the game for the French brand Veja – which is known in Brazil as Vert. The company, which is a success among youths in Europe, has developed its whole production chain in Brazil. The cotton is organic, planted in the Northeast, and the rubber is extracted in a sustainable way in the Amazon forest. “But that doesn’t mean we are perfect. And we make this clear,” says Beto Bina, the brand’s innovation and production chain manager.

In addition to looking closely at its production chain, Vert is also careful that its sales success does not ultimately create a disproportionate impact on the environment. “The growth was very organic, the company was never leveraged by external investors or invested in marketing to attract consumers artificially,” he says. “We will never have paid advertisement.”

The concept also extends to the issue of governance and handling of employees. The fact that Brazil has solid labor laws influenced Vert’s decision for the country. “This would be more difficult to do in China or in India, for instance,” explains Bina.

Source: O Estado de S. Paulo