Fashion has tread carefully with the US presidential election. Few brands have made an endorsement, let alone incorporated politics into their marketing. Where they have engaged, it’s typically been along the lines of “vote” campaigns or exhortations to make a positive impact, presumably by supporting Harris, though the candidate herself is rarely named. Willy Chavarria, with his nods to migrant workers and collaboration with the American Civil Liberties Union, is a prominent exception. Anna Wintour is also a longtime Democratic fundraiser, in August hosting an event for Harris alongside Tory Burch. LVMH maintains ties to both camps; Bernard Arnault and his wife attended a Biden-hosted state dinner in June, while his son, Tiffany executive Alexandre Arnault, visited Mar-a-Lago last year.

Businesses don’t want to alienate customers, and there’s been a general retreat from strident social stances as the energy from 2020 dissipates. There’s also the possibility of a second Donald Trump presidency to consider. Trump has made rewarding his supporters, and punishing his enemies, a staple of his campaign rhetoric. Avoiding politics altogether, or at least the appearance of being stridently partisan, has always been seen in many boardrooms as the low-risk option, now more so than ever (that doesn’t mean they stay neutral; large fashion retailers lobby politician directly and through industry groups on a number of issues).

But even as retailers avoid outward displays of partisan politics, they’re working overtime behind the scenes to prepare for the next administration. And not just in the US. Though it’s Americans voting, their choice will have a profound impact on the global fashion industry.

The extent to which Harris’ playbook will affect fashion is fairly straightforward, as the candidate is expected to stick to the general contours of President Joe Biden’s policies, with one exception flagged below. Trump is another matter entirely.

At the top of the list is Trump’s promise to slap tariffs on a staggering range of imported goods, which will instantly change the economics of where and how apparel is manufactured. The US imports the vast majority of its apparel, accessories and footwear, and lacks the capacity to manufacture significant volumes domestically. In a recent Washington Post interview, the CEO of Columbia Sportswear didn’t mince words: “we’re just going to deal with it and we’ll just raise the prices.” Expect many other brands to do the same should Trump follow through on his campaign promises. Given that consumers are already pushing back on the last round of hikes tied to inflation, adding the cost of tariffs without losing significant sales won’t be easy.

One counterweight would be an extension of tax cuts the Trump administration passed in its first term, as well as a long list of tax breaks Trump has promised on the campaign trail. If passed — a big if, given most of these measures would likely require at least some Democratic support — they would theoretically put more money in consumers’ pockets to pay for their suddenly more expensive imported goods.

Climate policy would also take a major detour, with the Trump administration almost certain to quickly undo much of its predecessors’ work to promote renewable energy and curb emissions. Fashion hasn’t exactly been leading the charge on these fronts. Other governments, particularly in Europe, will continue to apply pressure on the industry to reduce its impact on the planet. But a second Trump presidency would end hope for more ambitious global emissions targets and policies.

The future of fashion dealmaking is more of a wild card, whoever wins. The Federal Trade Commission under commissioner Lina Khan has blocked numerous high-profile mergers, including Tapestry’s proposed acquisition of rival handbag maker Capri earlier this month. Khan, whose three-year term ended in September but will stay on until a replacement is appointed, has fans and detractors in both the Harris and Trump camps. It’s no guarantee that Harris will stick with the FTC’s current track, or that Trump will go back to the anything-goes era.

There are plenty of additional what ifs keeping many people, fashion executives included, up at night. Would Trump really deport tens of millions of undocumented immigrants? How would he handle the escalating conflict in the Middle East? What becomes of Ukraine? Will Trump accept defeat, and if not, what will he and his supporters do? The list goes on and on.

The uncertainty is compounded by the fact that this election is a genuine toss-up. Polls haven’t been so tight this close to a presidential election in a generation, if ever. That means we likely won’t know who won Tuesday night, or possibly even this week. And the ramifications of that outcome will take even longer to unfold.

The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to brian.baskin@businessoffashion.com.

Boohoo Group Plc appointed Debenhams boss Dan Finley as its new chief executive officer, rejecting billionaire Mike Ashley’s bid to lead the retailer.

The shares advanced after the British fast fashion company said on Friday that Finley will replace John Lyttle as CEO with immediate effect. Finley became CEO of Debenhams in January 2022 after more than a decade heading JD Sports.

Shares in Boohoo rose as much as 6.7 percent in London. The stock has lost 28 percent in the first 10 months of this year.

Finley’s appointment stymies an attempt last week by Ashley, who founded Frasers Group Plc, to appoint himself as a director and CEO of Boohoo. Frasers accused Boohoo’s board of presiding over an “abysmal” trading performance.

At the time, Boohoo said the process to replace Lyttle was already underway. It said that Frasers has a similar stake in its rival Asos Plc, which could raise governance concerns.

Frasers, the parent of Sports Direct, is Boohoo’s largest shareholder and currently owns 27 percent of its stock, according to data compiled by Bloomberg.

Boohoo, which owns the Debenhams, Karen Millen and PrettyLittleThing brands, announced last month that it’s undertaking a strategic review — a move that could potentially lead to the breakup of the company.

“We are undertaking a process to consider all options, look at each business unit and see what the best way forward is,” Finley told Bloomberg News in a call.

Boohoo bought Debenhams for £55 million in 2021, succeeding against Frasers, which had long sought to acquire the department store chain. Debenhams achieved a gross merchandise value annual run rate of £800 million under Finley, the group said Friday.

By Jennifer Creery

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Boohoo Rejects Criticism From Frasers Group as ‘Inaccurate and Unfair’

Boohoo has criticised Frasers Group’s attempt to install founder Mike Ashley as CEO, defending its debt refinancing strategy and emphasising the need for careful governance in leadership decisions.

Over the last two weeks, thousands of policymakers, conservationists and business leaders descended on the Colombian city of Cali for COP 16, the UN’s biennial nature-focused summit.

Though historically less high-profile than its climate counterpart, “nature COP” is gaining more attention amid a growing push from businesses — fashion included — to address their impact on the natural world.

It’s a complicated, but increasingly urgent topic. The world is already facing an ecological crisis with significant implications for global supply chains and the natural resources they require.

Here’s what every fashion executive needs to know about this month’s meeting:

What is COP 16 and why does it matter?

Nature COP — more commonly known as the UN biodiversity summit — takes place every two years. This is the first one since world leaders reached a landmark agreement in Canada in 2022 to halt biodiversity loss by 2030. The agreement has been framed as a Paris Agreement for nature, referencing the global treaty to combat climate change. Key targets include a goal to protect and restore 30 percent of land and oceans by 2030.

Things aren’t going well so far. Global wildlife populations have shrunk by an average of nearly 75 percent over the past 50 years, according to a report published by the World Wildlife Fund. Nearly one million animal and plant species are under threat of extinction, according to the UN.

That’s a serious risk for business. Over half of global GDP — $58 trillion — is dependent on nature in one way or another, according to consultancy PWC. Fashion, for one, relies on farming for raw materials like cotton and leather. The beauty industry is dependent on natural ingredients from palm oil to shea butter. At the same time, both sectors are partially responsible for the ongoing destruction of the natural landscapes on which they depend.

More than 300 million trees are cut down every year to make raw materials like viscose, according to forest conservation campaign group Canopy. Supply chains for leather and palm oil are major drivers of deforestation, while crops like cotton can require dangerous levels of pesticides and large amounts of water.

What role did business play at this year’s meeting?

Though companies still aren’t showing up to nature COP with the same force as at the UN’s annual climate summits, their engagement is increasing. More than 3,000 businesses attended this year, compared to around 1,000 in 2022, according to The Wall Street Journal.

That’s important because more private investment is needed to galvanise the hundreds of billions of dollars that will be required annually to meet global nature goals. It’s an area where fashion has made some moves already. Companies from North Face-owner VF Corp to Allbirds and Citizens of Humanity are working on supporting regenerative farming programmes, with a view to reducing their carbon footprints and improving biodiversity in their supply chains. Big groups including Kering, LVMH and Zara-owner Inditex have committed tens of millions of dollars to restore tracts of land, forest and water (though all these efforts are dwarfed by the industry’s overall scale).

This week, Gucci-owner Kering became one of the first three companies to adopt science-based targets to protect nature, with initial efforts focused on reducing fresh water usage and land impact. Other companies are expected to follow the example.

“Climate and nature are interlinked and it cannot be clearer — especially during COP16 negotiations — that the business community needs to put as much effort into reducing and restoring their impacts on nature as they do on reaching their climate ambitions,” Kering chief sustainability officer Marie-Claire Daveu said in a social media post announcing the new commitments. “Science-based targets for nature will help enable companies to do their part in reversing nature loss and I hope other companies in our industry and beyond will commit to these targets.”

Where do things go from here?

As has been made painfully clear by lagging progress towards corporate climate targets, setting goals is just the first step in a long and challenging process to actually address and mitigate the fashion industry’s environmental impact.

In many ways, addressing biodiversity loss is an even more complicated challenge than tackling carbon emissions. Opaque and fragmented supply chains mean most brands have very little idea where the raw materials they use come from. Meanwhile, healthy soil and water levels will look different on a cotton farm in India than in Brazil or the US, for instance.

The industry is making efforts to set clearer frameworks to help brands deliver on their nature-based targets. Earlier this week, nonprofit Textile Exchange announced an upgrade to its system of standards for lower-impact materials, intended to ensure certifications widely used by the industry are underpinned by robust environmental data.

Investors are also stepping up their engagement on the topic, with a coalition of financiers with €5.85 trillion ($6.35 trillion) in assets under management announcing plans to push the fashion sector to address its impact on nature during COP 16.

But efforts to deliver on big climate ambitions are bumping up against a chaotic moment of economic and political uncertainty that’s making it more challenging than ever for such a short-term industry to prioritise long-term strategic investments. The risk is that fashion’s ambitions to become “nature positive” go the same way as many of its climate pledges, offering a green veneer to an industry that continues to operate in the same way it always has.

Add another job to the list that artificial intelligence might replace — fashion models.

The Spanish fast-fashion chain Mango is eliminating some human models and using AI-generated avatars to create advertising campaigns more quickly, chief executive officer Toni Ruiz said in an interview. The garments these AI models are wearing are real and available to customers for purchase.

Among Mango’s main rivals are retailers including Inditex’s Zara and H&M, brands that swiftly jump on fashion trends to produce items that sell at affordable prices. To compete, Mango is using AI to pick up speed across different areas of the business.

“It’s about faster content creation,” Ruiz said.

Mango piloted its first AI-generated campaign in July, which featured a limited-edition collection geared to teenage girls.

The most recent AI-generated advertising campaign, released this month, is also teen-focused. Some imagery appears on the Mango website with a disclaimer that AI was used to create the visuals. Mango plans to expand its use of the technology to its women’s and men’s collections, but hasn’t made any final decisions yet.

AI is driving a shift in the $2.5 trillion modelling industry. Mango joins other retail brands, such as Levi Strauss & Co., Louis Vuitton and Nike Inc. that have already teamed up with AI modelling companies. The financial benefits are clear, with AI models typically costing a fraction of the price of a human model.

Mango’s use of AI goes beyond marketing and advertising. AI is also helping the company design collections, providing inspiration for fabrics and more. A bot is now capable of creating clothing that conforms to the Mango design aesthetic, Ruiz said.

The retailer, which is expanding in the US, said it’s still creating human jobs. The company currently employs around 640 workers in the US and plans to double that number by 2025. Mango aims to grow its US footprint to nearly 70 stores by the end of 2025, up from 42 at the end of this year.

By Julia Fanzeres and Crystal Tse

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Fashion’s AI Dilemma Is Getting Worse

Baggu and Collina Strada are the most recent targets of ire among consumers opposed to the use of generative AI designs, and they won’t be the last. What does it mean for an industry that has already embraced the innovation with open arms?