Fashion Marks Rana Plaza’s 10th Birthday

Remember Rana Plaza

Ten years ago on this Monday, the Rana Plaza building in Dhaka, Bangladesh collapsed, killing more than 1,100 people, mostly garment workers. They make clothes for famous brands around the world. After the disaster, hundreds of brands signed binding agreements with unions to monitor and address safety violations; a small group of mostly US brands form a separate voluntary initiative. These programs help substantially improve safety standards at the factories they cover. But workers’ advocates say the industry is still rife with other abuses, including low wages and other forms of exploitation. It is evident that there has been a setback in these areas, especially since the pandemic. Thousands of factories in Bangladesh are not covered by any of the safety programs, and there has been little change in other manufacturing countries. In addressing one particular humanitarian crisis, the fashion industry has allowed another to worsen.

Dry’s Long Slog

The luxury giant is almost certain to see an improvement from a dismal fourth quarter, when Balenciaga was at its lowest point and sales of Gucci faltered. But the recovery story is still in its early days, and the company’s latest results may not offer much hope. New Gucci designer Sabato De Sarno won’t be showing his first collection until Milan Fashion Week in September, and while his loud March Balenciagas show may have marked a turning point, his scandal has almost certainly weighed on sales earlier this year.

The real question is whether this problem will make it difficult for corporate brands to participate in China’s economic recovery. Dry shares rose along with other luxury stocks earlier this month when LVMH reported a quicker-than-expected rebound in China. However, is that enough to overcome the slowdown in the US? Dried isn’t the only luxury giant targeting America for growth in recent years, but it’s been a bit more reliant on consumers there. North America generates 27 percent of revenue in 2022, compared with 21 percent for fashion and leather group LVMH and 18 percent for North and South America combined at Hermes.

Great Reopening

After four years and two owners, the Tiffany flagship on 5th Avenue will reopen to the public on Friday. The epic renovation, started in 2019 before LVMH acquired the jewelery brand for $15.8 billion in January 2021, is reportedly the most expensive project for the luxury store ever. The Tiffany flagship has an unusual place in the retail landscape, doing double duty as New York’s top tourist attraction while at one point driving 10 percent of the brand’s sales. LVMH is looking to bring back the crowds, and then some, but also wealthier buyers who may be dropping over $1 million on special items in the new private client suite on the 10th floor.

The refreshed store has a lot to offer both tourists and big shoppers, with design touches throughout that speak of old and new Tiffany: lots of nods to Audrey Hepburn, Elsa Peretti, and Jean Schlumbergers Bird on a Rock, but this is Basquiat was featured in a Beyoncé campaign last year greeting visitors as they walked through the turnstiles.

What Else to Look For This Week

Monday

10th anniversary of the collapse of the Rana Plaza building

Tuesday

Dry reports its first quarter results

Wednesday

Steven Madden reports the results

Thursday

Amazon reports results

US first quarter GDP reading

Friday

Flagship Tiffanys 5th Avenue reopens

Saturday

Louis Vuitton shows its pre-fall collection in Seoul

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