Purpose
Cashmere wool is made from the fine winter undercoat of certain breeds of goats such as the Zalaa Ginst white goat, the Tibetan Plateau goat and the Hircus goat. The wool has been used for centuries - well before Marco Polo discovered it in the 13th century. Napoleon’s wife, Josephine made the fabric popular when she began to wear pashmina-style shawls brought home to her from her husband’s travels. Empress Josephine’s love of the shawls made cashmere the height of fashion among the French upper class. Cashmere remained a luxury item because of its light, soft texture, and its ability to retain heat and because it was a low-yield crop it was expensive. But the cashmere industry is “outgrowing the luxury apparel market” according to Frederica Lavato, a consultant at Bain and Company who points to the “casualization of the market and the democratization of fashion” as the main driver of demand (Business of Fashion, 2022). Once a luxury for the wealthy, casual cashmere has flooded the market and is now available in box stores and shopping mall retailers for under $100.00. I don’t think that anyone should be priced out of owning comfortable clothes, but the shift in the cashmere market has resulted in problems for goat herders and the environment.
Secondary Purpose
Significant increases in cashmere production have put pressure on herders to increase their herd size and focus on quantity instead of quality. Cashmere goats are tough on the fragile grasslands where they graze. They destroy plants by eating close to the root and damage the soil with their sharp hoofs; they cause extreme environmental distress. The destruction of the soil by their stiletto-like hoofs has caused dust storms in the northern regions of Mongolia! The grasslands of Mongolia are already at risk because of climate change. A 4 degree increase in temperature has caused droughts and tempered the bitter, cold winters that are necessary for the cashmere goats to produce the soft, long hairs on their bellies (EcoCult, 2019). Combined with climate change, overgrazing has led to an estimated 70% of grazing lands being degraded (EcoCult, 2019). Other materials can be produced by modified farming practices, but cashmere production requires natural grasslands in a particular climate. It is therefore very vulnerable to environmental change. The cashmere industry must shift from mass production to sustainable production if the industry is to survive.
Key Players
The key players in the cashmere industry are the goat herders, the hair-combers, buyers, the mills and the garment factories and fashion labels.
Innovative Players
There are several innovative players in the cashmere industry that are actively promoting sustainability. Two are not-for-profit organizations: the Sustainable Fibre Alliance and the Good Cashmere Standard. And, the South Gobi Cashmere Project also known as the “Goat to Coat” project which is run by Kering - a French luxury house that owns Gucci, Yves St. Laurent, and Balenciaga.
1. Sustainable Fibre Alliance
Formed in 2015, this global multi-stakeholder initiative promotes the adoption of responsible production practices with minimal environmental impact and works to safeguard herder livelihood and a high animal welfare standard. Their approach is inclusive and includes educating herders, traders, processors, manufacturers, brands and retailers. Their membership includes brands, processors and manufacturers from around the world. They aim to establish a sustainable cashmere standard which would appear on qualifying garments in the form of a seal or hang tag so that consumers can make responsible decisions( Robb Report, 2022).
2. Good Cashmere Standard
This is an independent standard for cashmere that was developed by the Aid by Trade Foundation. The standard outlines a set of criteria for sustainable cashmere production including animal care and wellness and the ecological and social conditions experienced by herders and their families in Mongolia. Regular checks are done by independent auditors to monitor compliance with the criteria. They have partnered with a wide range of brands and retailers. Currently, they work only in Inner Mongolia (China) and have no plans to expand into Mongolia(Robb Report, 2022).
3. Kering
The luxury brand owner has partnered with the Wildlife Conservation Society, mining company Oyu Tolgoi, NASA and Stanford University on a project to improve the sustainability of cashmere farming in Mongolia called Natural Capital Project. The focus is on animal husbandry, weather and ecological forecasting, improving goat combing techniques, teaching the herders how to sort fibre, helping them to breed higher quality goats, supporting veterinary services, optimizing grazing areas that can support goats and helping the herders' access markets for goat meat, cheese and milk so they can earn more income on fewer goats. They are also working on developing a certification system for sustainable cashmere for their own brands (EcoCult, 2019). This all came about because Kering wanted to secure a sustainable and high-quality source of cashmere for their supply chain. Mining company Oyu Tolgoi is involved because their financial backers required them to make a 15% improvement to the area’s conditions.
Context
For centuries, nomadic families have wandered the Mongolian steppe with their herds of cashmere goats. They carefully tended their goats - hand combing them - because, with no agriculture and little vegetation, goats were their life source. But despite its global popularity, and the fact that Mongolian cashmere is the highest quality cashmere, herders have never enjoyed the financial success of cashmere. It was the buyers and then the textile mills and fashion labels that profited. China began its quest to become a cashmere superpower in the 1990s. It is now the largest producer of cashmere followed by Mongolia, Iran and Afghanistan. The Nature Conservancy estimates that China is home to over 100 million cashmere-producing goats (Business of Fashion, 2022). Not only are they the leading producer of raw materials, but they also make about 70% of the world’s finished cashmere products. China has also taken control of cashmere flowing out of Mongolia - buying over half of its raw material - and ramped up its spinning and knitting technology opening large factories capable of producing 20 million cashmere pieces a year. Chinese workers are paid more than 25% less than workers in other countries which results in low-priced production. Cashmere production in China is often not ethical with underpaid workers in poor working environments. Further, concerns have arisen about the poor treatment of the cashmere goats. And, the quality of the cashmere is questionable. The degradation of grasslands from climate change and overgrazing results in undernourished goats that produce coarser hair causing the supply of high-quality cashmere to shrink. The cashmere is often bulked up and blended with merino wool or camel hair. This keeps the price down making cashmere blend garments much more accessible to the mass market. That in turn spurs higher demand. Growth in the cashmere industry is limited not just by the quantity of materials available, but also by the quality. Environmental factors such as climate change are limiting the amount of quality raw materials that can be produced. The future of the cashmere industry will depend on innovation to achieve sustainability at the level of the goat herders.
SWOT Analysis
1. Strengths
Consumers are becoming more aware and conscious of the origins and manufacturing processes of their purchases. There is a movement, driven in large part by social media, to make the public aware of how and where items are produced and of the size of their carbon footprint. The fashion industry in particular has been exposed as being wasteful and involved in unethical labour practices. Environmental issues are top of the current public and political agenda and therefore it is likely that there would be a groundswell of consumer support for sustainable cashmere in socio-economic groups that are more politically and socially aware and less price sensitive. Public awareness is always good. And, even if it is a slow process, it will eventually generate change.
2. Weaknesses
China has a reputation for being a difficult global citizen. Its environmental and human rights infractions are well known. Its citizens do not have access to all social media platforms and news so it would be much more difficult to affect change at the grassroots level in China. Also, many of the mills and garment factories are owned in part by the government and as such will be tightly controlled. China does respond to economic pressure and so a drop in market demand would catch its attention. However, that could take a long time and would also negatively affect the herders and their families.
3. Opportunities
The threat of quality cashmere becoming endangered presents a unique and urgent opportunity for the industry. Every component of the industry is affected by this crisis and therefore the desire to make changes should be unanimous and the willingness of all the stakeholders to engage should be strong. Everyone involved in the cashmere industry recognizes that their business depends on the raw material or natural capital of quality cashmere. The incentive to help those at the base of their supply chain is understood - animal welfare, the livelihoods of the herders and the health of the grasslands are imperative to the industry’s survival. Out of this crisis emerges the opportunity to create resilient production systems such as sustainable herding and management of pasture lands while also supporting the livelihoods of millions of people who may otherwise face poverty.
4. Threats
The biggest threat to the cashmere industry is the potential inability to unify and agree on strategies and solutions to the current crisis. The three innovative players that I have identified, while working towards a common goal, have very different approaches. Two of the players are not-for-profit and the third is profit driven: potentially opposing philosophies. And, all three have partnered with different members of the industry. It would be terrible if while pursuing their goals, they pulled the industry apart rather than unifying them. The Sustainable Fibre Alliance and the Good Cashmere Standard both work to unite governments and industry players to tackle sustainability issues in the cashmere industry. The Kering project takes a different approach. It collaborates with the scientific community and partners with a mining company located in Mongolia for financial support to secure quality cashmere for its brands. The potential for disagreement among these players is indisputable.
Change and Evolution
Kering’s approach to the cashmere crisis is innovative and could be replicated in other areas of the fashion industry. I am not aware of other fashion companies doing this, although I am new to studying the fashion industry. Kering has essentially taken the responsibility of securing quality cashmere upon itself. Over a decade ago, Kering launched its EP&L (Environmental Profit and Loss) program to track the eco-impact of its production. In 2016 it even developed an app that shoppers could use to learn the production history of individual items. Kering was initially part of the Sustainable Fiber Alliance but broke away for “internal strategic reasons” (Robb Report, 2022). Kering then partnered with Rio Tinto, the company that owns the Oyu Tolgoi copper and gold mine in Mongolia. They helped finance Kering’s South Gobi Cashmere Project as part of its own carbon offsets around its mining operations. The project uses high-tech methods to establish sustainable standards on the ground. Partnering with NASA and Stanford University, satellites are used to monitor rainfall and weather patterns. That data is shared with Stanford University scientists who use computer modeling software to predict deluges or droughts. Program managers with the South Gobi initiative are given the forecasts and they work directly with the herders to move their livestock accordingly. This keeps the goats fed and allows the grasslands to regenerate. The South Gobi initiative also funds veterinary services, works to improve hair combing practices and helps herders access markets for goat milk and cheese so they can earn more income from less goats. It is also working toward establishing a certification system for sustainable cashmere for their own brands. At this point, an industry-wide benchmark is almost impossible to establish because of the rivalry between the two cashmere producing countries, Mongolia and China. (Robb Report, 2022). At present, Kering has no other partners and it is focused solely on Mongolian herders. While some may argue that this initiative is self-serving, it serves as a model for research and implementing sustainable practices and forming partnerships with the ground level of the supply chain and ensuring their livelihood. It is also actively involved in goat breeding programs to ensure that herders have the most productive goat breed. Then they can have smaller herds with higher yields. Perhaps in the future Kering will partner with other brands. Or, it may not. It has however shared its practices and information with the industry. Its collaborative approach is noteworthy - using funding from another industry that wishes to buy carbon offsets is brilliant. While the South Gobi Cashmere Project does not help the entire cashmere industry, it does provide a blueprint for other brands to follow. I predict that the innovative work done by the Gobi Project will play a big part in saving the cashmere industry by providing strategies for making its practices sustainable. The lessons learned from the cashmere industry are transferable to other fashion industries such as cotton.
The other change that the Kering group, the Sustainable Fibre Alliance and the Good Cashmere Standard are advocating is for accountability throughout the supply chain - from herders to hair combers, sorters and dyers to buyers, producers, mills and garment factories and fashion labels or retailers. Each player in the supply chain would be accountable for their processes whether it be sustainable practices or ethical labour standards. The Kering group has managers on the ground in Mongolia working with people at each step of the process while the Good Cashmere Standard sends individuals out to the field and to mills and garment factories to do audits. However, it is crucial that it is not just the herders that are held to a standard of ethical sustainability, but everyone involved in the cashmere industry. I believe that this standard, while challenging to implement and secure, will someday be an industry standard in the fashion industry. Just as food items can have a “certified organic” seal, someday, garments will have an industry standard seal ensuring sustainable practices. That may be a while off yet, but the work being done by the South Gobi Cashmere Project, the Sustainable Fibre Alliance and the Good Cashmere Standard will be agents of change that will spur an evolution in the fashion industry.
References
Atkinson, K. The History and Future of the "Cashmere Crisis." The New York Times Style Magazine: Australia. Retrieved October 14, 2022, from https://taustralia.com.au/the-history-and-future-of-the-cashmere-crisis/# (https://taustralia.com.au/the-history-and-future-of-the-cashmere-crisis/#)
Ellwood, M. Cashmere in Crisis? Why the World's Most Luxurious Wool Is Under Threat. Robb Report. Retrieved October 15, 2022, from https://robbreport.com/style/menswear/worlds-cashmere-supply-under-threat-1234583232/ (https://robbreport.com/style/menswear/worlds-cashmere-supply-under-threat-1234583232/)
Abnett, Kate Solving the Cashmere Crisis: How do businesses respond when a raw material they depend upon is under threat? Retrieved October 16, 2022 from https://www.businessoffashion.com/articles/sustainability/solving-the-cashmere-crisis/ (https://www.businessoffashion.com/articles/sustainability/solving-the-cashmere-crisis/)
Wicker, Aiden Are We Allowed to Like Cashmere? EcoCult. Retrieved Oct 16, 2022 from https://ecocult.com/sustainable-ethical-cashmere-mongolia-fair-trade-review/ (https://ecocult.com/sustainable-ethical-cashmere-mongolia-fair-trade-review/)