YKK’s NATULON® Mechanically Recycled Zip is made with recycled yarn and post-consumer plastic bottles

The amount of zips produced by YKK each year far outstrips the number of people currently on Earth. So how can a company mass producing and growing at such scale stay true to values of circularity and sustainability? LUX speaks to Jim Reed, CEO of YKK America, about why he believes cost and speed need not be barriers to a sustainable business

LUX: Can you explain the cycle of goodness and how it relates to the YKK philosophy?
Jim Reed: The cycle of goodness – meaning that no one prospers without rendering benefit to others – was developed by our founder, Tadao Yoshida. One of his inspirations was Andrew Carnegie, a late 19th century early 20th century steel tycoon, who had a philosophy about a business’ obligation to society. As a young man, Tadao Yoshida got hold of a translated copy of Andrew Carnegie’s biography. He was inspired by Andrew Carnegie’s words and he decided that was the philosophy that should drive us. He was always entrepreneurial, but it wasn’t about how wealthy he could get, it was about how he could help. He wanted to contribute to society.

YKK is used by hundreds of major clothing companies including The North Face, Patagonia, Levi’s and Nike

LUX: Your president, Hiroaki Ōtani, said the company’s immediate vision is for ‘better products at a lower cost and greater speed, more sustainably’. How do you plan to chase growth while also racing towards carbon neutrality?
JR: President Ōtani is talking about getting the right materials for the right products to the right customer at the right time. If you think about those concepts, you’re not overproducing. We’re producing over 10 billion zippers in a year, but our objective is that, at the end of the day, every zipper has a perfect spot and nothing gets wasted. On top of that, he talks about better products, lower cost, greater speed, and more sustainability. If we can be more efficient, and some of the obstacles to sustainability – cost – can be reduced, then a sustainable product can match the price of the less sustainable cheaper product and you can match that substitution more easily.

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President Ōtani reorganised our company in a number of different ways five years ago. He created what we call the Technology Innovation Centre. He took all the smartest people in our company and put them in the Technology Innovation Centre, where they were working on pure research, not product development. Innovation and technology have always been an important part of YKK, and particularly now with climate change issues and sustainability, we all need to be making significant changes.

Beyond zips, YKK produces a variety of other products such as snaps, buttons, buckles, and textiles for apparel and industrial use

LUX: How far is the company’s adoption of renewables impacting carbon emissions?
JR: We’re doing very well in that area. We reported at the end of the last fiscal year that we had reduced scope 1 and scope 2 CO2 emissions by almost 47% against our base year. What’s even more significant is that we’re not talking about CO2 emissions per zipper – we’re actually growing our production. Even though our production is increasing, we know our CO2 emissions have to be reduced, and we were able to reduce them significantly. Our 2018 level of CO2 emissions is our base level, by 2030 we’ll cut that in half, and by 2050 we’ll be carbon neutral. Around the world we’re looking at about 32 facilities which are currently using 100% renewable electricity, and very actively working to change the others. That can be a challenge because every facility has a different footprint and has a different source of electricity. But we are continuing to try to find a variety of different mechanisms to employ this.

LUX: What are the pillars for sustainable strategies for textiles packaging and waste management?
JR: For textiles, the main thing is to switch over to recycled thread. We call that NATULON. YKK had been offering to use recycled thread for over 20 years, and we’ve probably had the product for 25 years. Now, the market desires it, and so now we are able to switch over to 100% recycled textile. 26% of our products last year were using it, and that’s going to grow rapidly. We hope that will get up to 41% by next year. We’re working on a complete switchover.

YKK produces more than 3 million kilometers of zips every year

When we talk about waste management, you think about inputs coming into the factory and products coming out, and waste as a by-product of that. You put that waste back into your process. The objective is to get inputs coming into your factory and the only thing that comes out is the product. ECO-DYE technology uses CO2 instead of water to colour the zipper tape. That removes water from the process, which removes the need to take dye out of the water. We also have something called AcroPlating. If you get rid of the need to apply the bad chemicals, then you don’t have to worry about managing the waste on the back end.

Read more: Salomon CEO Franco Fogliato on environmental responsibility in business

LUX: Can you tell us about the partnership between YKK and the Monitor for Circular Fashion? Do you think it could lead to systemic change within the fashion industry?
JR: These partnerships are really important because, just like the UN statement on climate change or the Sustainable Development Goals or the Fashion Charter, all of these statements and actions can really scope the objective to solve the problem. It gives us all targets, and then when we join the Charter, we make promises that we have to stand by. Those are extremely important, because we all need to be speaking the same language and talking about the same objectives. With those statements, the fashion industry can declare to the people of the world that we’re moving in an environmentally-friendly direction and can get the support of their customers, which gives us the inspiration to innovate into that change. Once those goals are clear, then industry can innovate towards it and solve the problem just like we’ve been able to solve any problem when we’re focused on it.

All images courtesy of YKK

Find out more: www.ykkfastening.com/sustainability

The Princess Yachts’ X95 flybridge

Antony Sheriff has transformed the fortunes of Bernard Arnault’s yachtmaker Princess, creating boats that are stylish, in demand and environmentally innovative, for a new generation of consumer. LUX gets his story

Antony Sheriff

“It’s the sports car of the range. The hull reduces drag by 30 per cent, and it has sports-car-like performance and a Pininfarina design.” Princess Yachts CEO Antony Sheriff is enthusing over a projection of the R35, his company’s cool-looking 35-foot yacht, the latest in a series of innovations he has overseen in what is fast becoming known as the most dynamic yachtmaker in the world.

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“Sometimes,” he says, “if you are doing something new and are innovating, customers don’t know what they want until you give it to them.” Sheriff has been responsible for a number of innovations at the company, which is owned by LVMH-owner Bernard Arnault through his private equity company L Catterton, both on the product side and on partnerships.

The stateroom (above) and exterior of X95 yacht

In 2016 he launched a collaboration with the Marine Conservation Society, aimed at helping clean up ocean plastics, conserve coral and aid the conservation of marine creatures such as turtles. The Italian-American, who in his previous job launched McLaren’s hybrid P1 hypercar as CEO of the company’s road-car division, is disarmingly straight talking. “We are an industry which makes beautiful products, but we haven’t always been that mindful of the effects they have. We wanted to do something quietly to reduce the impact of yachts on the sea.”

He says the impetus has not – yet – come from the market, but from his own initiative. “We are trying to do the right thing and would rather be on the front foot than the back foot. People enjoy yachting because of the beautiful environment, and we need to try and maintain the water in the state we found it in.”

Read more: Chelsea Barracks is redefining London’s garden squares

Sheriff says that, as with cars, the need to innovate for environmental reasons has actually ended up bringing better products to market. He points to the example of the X95, which has up to 40 per cent more space than its predecessor while using 30 per cent less fuel and matching it in performance; and the Y95, another super-slick collaboration with Italian design house Pininfarina, which seems to have taken up its unparalleled design of luxury modes of transport where it left off with Ferrari after the end of a collaboration there spanning decades.

The R35 performance sports yacht

Sheriff is a little scathing about some of the bloated products on offer from other yachtmakers, and adds: “We are putting the elegance and refinement back in yacht design, creating yachts that look like they belong on the ocean.”

Ultimately, though, he says the biggest change during his tenure since 2016 has been the change in the nature of the consumer. “Increasingly people are buying yachts not as status symbols but as places to spend a wonderful time with family and friends. You go on a family vacation in a yacht and it’s the best vacation possible: the kids stay together with you for fantastic family time, they can’t run away to the nightclub, and you get to spend time with each other in private in a beautiful place.” And, if some of the latest Pininfarina designs continue in the same vein, on a beautiful place, too.

Find out more: princessyachts.com

This article was originally published in the Summer 2020 Issue.

Louis Vuitton’s strategy to overcome consumer inertia is to develop products, such as this from their 2017 pre-fall collection, which stand out as one-offs

The nature of luxury is evolving fast. Producers and consumers should wise up to the emerging multi-level landscape and never forget the power of the right kind of celebrity, says our columnist Luca Solca

Luca Solca

True luxury is about projecting the impression, or even the illusion, of exclusivity. That is what luxury is about. If you can do that from an accessible price point and if you can do it at a very high standard, that is good enough to be true luxury. What it takes to maintain this perception of exclusivity is interesting, because nothing in the modern luxury industry is really exclusive. If it were exclusive, it wouldn’t be an industry. We are talking about businesses that have to grow fast, and growth is the exact opposite of exclusivity. And true luxury is very subjective. True luxury for Bill Gates is buying a set of Leonardo da Vinci drawings, true luxury for middle class consumers is buying a Hermès handbag – there are a million shades of difference between one definition and the other.

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This is what I have previously referred to as the megabrand bathtub: we have a big bathtub and the tub is producing new consumers coming into the megabrand market. New consumers, especially if they are rich, stay in the megabrand bathtub to the point that they realise that middle-class consumers buy the same brands that they do. Then they either trade up within those brands, or they trade up to more expensive brands that they perceive to be more exclusive.

This is also going to be compounded by what I call the category spend shift in which rich new consumers will go through various categories and at some point, they will have so many products in their wardrobes that they will start spending money on something else. Which leads to the discussion about experiences – going on exclusive holidays and sending their kids to universities in England or colleges in Switzerland, buying second homes and holiday houses and then buying planes to reach them.

Louis Vuitton Autumn/Winter 2017

I think as consumers get closer to what an established rich person does and is, then they tend to spend less on luxury goods products, not more. There is a fundamental misunderstanding that luxury is for the rich. Luxury goods products are for people who get richer. They go through a time when they splurge and they have to buy their products necessary to fill their wardrobes and then they go into replacement mode. I think that many Chinese consumers, many of whom were early adopters, have now moved into replacement mode already. The reason why we are all talking about the shift from gold to steel in watches, and lower entry price points, is because luxury goods today are predominantly relevant for middle-class consumers. The bulk of the new growth is coming from middle-class consumers who may have a lot of ambition and desire but only limited spending power. They buy cheaper and less exclusive products than their earlier peers. The consumption of luxury goods does always penetrate down a market from the top, though. You start with the richest consumers, then you work your way down to the middle class, which is where we are today in China.

Read next: President of LVMH watch brands Jean-Claude Biver on luxury’s new culture

At the top, there is a small number of people who need to have very special services and products specifically for them. And new consumers have upped their learning curve. They buy more frequently than established consumers and therefore their experience grows faster. New consumers also have more sources to learn about their purchases, via social media and the internet, than used to be the case. Far from being a market where consumers are just shifting to high-end brands, which was the case three to four years ago, in today’s market even if you are in the high end, you are doomed if you stay static. If you just sell iconic products, consumers who have been in the market for a while will have already bought them. They will only part with their money if you give them something that they don’t have. That’s why there has been a race to replace directors; and why Gucci has totally thrown away the past and moved on to new aesthetics, taking a huge risk, which is proving successful. And this is why Louis Vuitton, by the way, is successful – because it developed cleverly isolated ‘in your face’ products that have infiltrated the market with capsule collections.

exane.com

Joe Sitt, President and CEO of Thor Equities

Joseph Sitt, President and CEO of Thor Equities, sits atop a luxury property, retail and advisory empire that straddles the western hemisphere. His company owns and develops prime retail property throughout the US, as well as Latin America and Europe. The portfolio and development pipeline of the New York-based company, which he founded in 1986, is in excess of US $18bn.

He is also known as something of a luxury visionary: unlike many property companies, his firms (he also runs Thor Retail Advisors, a leading retail agent and consultant; and others) work closely with fashion and luxury brands to ‘place make’, transforming the areas they are based in. Like LUX, he also believes in mixing high luxury with creative emerging brands to create an atmosphere of discovery as well as indulgence. LUX Editor-in-Chief Darius Sanai caught up with Sitt on one of his whirlwind visits to London about the rise of LA, Mexico, and the future of luxury retail.

LUX: Tell me about the rise of LA as a destination.
Joe Sitt: There is physically no more room in San Francisco for office space and for homes, for rental buildings and retail. So, much of that industry is migrating to LA because it’s also on the coast and it’s got better weather. It’s also got more culture and things happening, so there is a lot of migration there, and a lot of wealth being created in LA. And you are getting a lot of second home owners (from the San Francisco area) who are buying in LA.

Between the businesses migrating their technology and the second home owners there, the revitalisation and reactivation in LA is tremendous. You can see also that new restaurants are incredibly successful. And it’s not just coming into LA proper. It’s also coming from down below for example into Santa Monica and Venice Beach. You have tech companies like Snapchat whose headquarters are based over there.

The other aspect of it is the creative industries in LA. Some real fashion is coming out of there for the first time in quite a while. Secondly, the movie industry. For the first time the movie making business is a real profitable business for film makers, writers – salaries are going up tremendously for all of them and for anybody affiliated with the industry.

The tech industry has so much wealth and power and it has the “funny money”, because their stock prices are so high; for example the FANGs – Facebook, Amazon, Netflix and Google – their stock prices are so high that they are throwing money very aggressively at almost anything. And that is crossing with the fact that the biggest thing that all of those tech companies need, and that they don’t have the ability to do within their tech shops, is actually content.

So now what you have is, if someone is making movies in LA you actually have a shot at a bidding war between Amazon, Netflix, etc. Even Snapchat have announced that they want to be buying and delivering content. That’s creating a really exciting time for the LA market for the people in all forms of the creative industry. A combination of wealth and creatives.

LUX: And in parallel the visual arts has revived there in the last 10 years.
Joe Sitt: Yes. For example, my friends at the [Helly] Nahmad gallery, who are the largest owners of Picassos in the world, now see how many people are coming from the West Coast to consume their products in New York. So they are opening their third outpost: they’ve got London, New York and are now looking to the West Coast. You’ve got [Larry] Gagosian who’s got his New York Gallery, he sees where the zip codes are where he’s shipping his product to. So while people are opening up shop in San Francisco, to get to the wealth proper a lot of them are really looking to the arts district in LA.

Read next: Japanese restaurant, Sake No Hana brings blossoms to Europe 

LUX: Do you see the emergence, despite Donald Trump, of LA and Mexico emerging as one entwined retail and luxury zone?
Joe Sitt: Very much so. I look at Mexico as a big new frontier in luxury fashion. A tremendous amount of wealth has been created in that country. In terms of those people who think that Donald Trump’s policies are going to hurt Mexico…I will throw you a curveball and show you how he’s actually getting the opposite result from what people think would happen and perhaps what he intended. I will give you two examples.

One, is in terms of the border in terms of trade as well as in in terms of immigration and how they actually play out. Sometimes when you shoot a bullet when it comes to policy you don’t know who the victim is going to be. The trade announcement forced a tremendous amount of devaluation in the Mexican Peso. The Peso went from around ten pesos to the dollar ten years ago to twenty two recently; so about half. The net result of doing that was making Mexico as a country and as an exporter more competitive.

As a result of making them more competitive from their currency it increased America’s trade deficit with Mexico dramatically over the last quarter. The opposite of what everyone expected to happen in that first quarter. The second thing that occurred with regard to the second policy, immigration, also had an unintended consequence; which is as a result of being tighter on the border for immigration, US companies have started to create tech centres in Mexico. In Guadalajara, and in Tijuana for those companies in San Diego who just want to be able to cross the border and travel 45 minutes to their foreign teams.

So now you’ve seen an incredible resurgence of business and activity in both Guadalajara and Tijuana in Mexico for the tech industry as a result of those tough policies. It’s a place so close to the United States and you can house all of the greatest foreign minds in the world.

The Ferragamo store on Masaryk street in Mexico City

LUX: Mexico has been seen as an outlier in terms of luxury retail.
Joe Sitt: It takes time for a market to react to some of things I’ve mentioned. It’s now waking up. I feel that the entire luxury market has been sleeping at the wheel regarding the Mexico opportunity. And so now they are just waking up to it. Those who are waking up to it are finding success in the market place. But it takes time for them to mobilise.

LUX: Can you tell us your vision for what you’re doing there, because it’s a long term play.
Joe Sitt: We are attacking it from multiple prongs. One of course is just bringing luxury retail there, and creating a platform for it to come to, for the first time. We sparked the revitalisation a street called Masaryk and in an area called Polanco, in the heart of Mexico City. In the old days it was an Upper East Side kind of marketplace that was starting to become abandoned and is now revitalised.

LUX: And is that now going to be the Rue St Honoré of Mexico?
Joe Sitt: Yes exactly right. You’re starting to see it. Hermès, Ferragamo, Gucci and Goyard just opened there. So you’ve got some great brands already.

LUX: Was this through you?
Joe Sitt: We were the spark that brought it all together.

Thom Sweeney SS17

LUX: Integrating investment in emerging fashion brands and developing districts seems pretty for a property company. What’s behind it?
Joe Sitt: Candidly, it’s more of a passion. Yes, there are financial benefits of being on the ground floor of some of the most exciting brands and investing with them or representing and aiding them. Yes, there will be financial reward, probably in years to come when a Thom Sweeney explodes and goes next level or a Drakes or an Edward Green or a Maison Bonnet. But for me, more than anything else, at this stage in my career I am looking for things that I enjoy personally. And I enjoy young and exciting luxury brands and helping them achieve their potential. I get my personal thrill vicariously through their success.

Read next: Labassa Wolfe on the contemporary tailoring experience

LUX: Is your ideal scenario that they grow up to be the next Moynat, Vuitton, Hermès?
Joe Sitt: In some cases yes, in some cases no. For some, Maison Bonnet, the eyeglasses company, we are going to help them make the move from Paris’s first and only little artisan shop to executing in London. It’s about growing the business but not necessarily overgrowth or creating a Goliath.

LUX: And is the long term that you are buying, building and selling them?
Joe Sitt: I have to be careful in terms of conflict so I can’t say which ones I invest in. Other than to say when I do make investments in them I am focused on very very long term. It’s not to buy and sell. It will go wherever the visionary wants to take it, who’s owning the business, will we ride with this vision. In terms of our advisory business, our goal for these companies is to help them reach whatever their potential is, or is meant to be. Some of them it’s meant to be a very large business, some of them it’s not. We do the same thing with tech related businesses. I mentioned Warby Parker [an eyewear company], we were with them from the start, opening all of their first locations. Helping them understand the challenges of physical retailing versus internet retailing.

LUX: You are a property person. But is retail moving online?
Joe Sitt: There will be challenges in terms of distribution for people to buy things online for many years to come. And buying direct is not a new invention. We had catalogue prior, it was just a different medium for doing it. Someone would get the catalogue to their house and then they would order by telephone; or later order through emaiI. I look at online as another modem to deliver a product to a consumer. When it comes to commodities, it’s easy enough push a button and buy it on the internet. But does the internet mean that Nike should not open up more stores? We’ve found the opposite. I worked with Nike in New York, myself and a partner, for the first flagship store in Soho on the corner of Spring Street and Broadway. They are doing two incredible flagships that are costing them mega millions of dollars to build. Why are they doing that in the year 2017 with all the talk of tech and internet sales? Because they realise for a brand, it works arm in arm. People want the experience of a brand. The same way people are talking about restaurants and experience and enjoying that aspect of it, it’s the same thing when it comes to a brand. I want to go to Nike and not just see pictures on the internet. I want to touch the product, I want to try it on I want to interact with it.

Maison Bonnet’s Palais Royal Salon in Paris. Image by JYLSC

LUX: You have done some transformative retail schemes over the years. What are the challenges when you have an area like this that has got great potential but you need to change things? Do you get resistance?
Joe Sitt: There is always resistance. I always say that the secret to knowing when a project is going to be great is the greater amount of resistance. We enjoy both. We like doing things in established high profile tourist destinations as well as cool emerging areas like Wynwood in Miami, Venice Beach in California, and all of these creative markets all over the world that we think need and deserve luxury exposure as well.

Read next: Luxury in the foothills of the Himalayas

LUX: Do you think that monolithic luxury malls as are opening in China and elsewhere, where everything is a luxury brand and nothing else, will change? Will people want more of a mix in there?
Joe Sitt: Yes. That’s boring. Even if it’s great luxury brands it’s not what the consumer wants. As a consumer it gets more and more sophisticated. You see that in their taste they want something that is more eclectic.

LUX: A bit of discovery?
Joe Sitt: Yes. It could be restaurant discoveries, specialty shops, boutiques, perfumeries, candle shops etc. Intermixed with the luxury brands and that’s what creates the most successful environment for a luxury brand.

LUX: What’s the most exciting area of luxury and fashion for you?
Joe Sitt: Menswear is so exciting, much more exciting than womenswear, still very much an untapped market, with brands we’ve referred to today, Thom Sweeney for example, in years to come that could explode. I think that food, F&B, restaurants etc. have tremendous potential. Look at a market like London, if you were here 15 years ago the restaurant scene was horrific. It’s come along light years. I think other markets are going to expand to a much greater degree.

Last, but certainly not least is destination. I think people are remaking what the word ‘resort’ is, as hospitality and a destination. I think people are stating to get really creative. People crave creative.