Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Thematic (Sector/Industry)

Fashion industry is a leading polluter of water, air and land and its rapid growth has inflicted serious environmental damage in manufacturing bases across Asia. With increased consumer awareness and public scrutiny, leading brands globally have committed to adopt sustainable practices. This can mean a rise in operating costs, margin pressures which can lead to higher prices and/or lower volumes. What does that mean for corporate earnings growth and stock valuations? Our report attempts to arrive at some ballpark estimations based on a scenario analysis. Leading branded apparel companies can suffer market value destruction ranging  up to 30% if their long term margins and growth assumptions are reset at lower levels following a shake-up of their existing low cost model. And, those who refuse to adapt and adopt sustainable processes could soon be shunned by ESG-led investors and environmentally mindful consumers alike, leading to valuation discounts. Investors Beware.
Over the past decades, corporate growth and profitability agenda overshadowed environmental considerations, and apparel brands have grown in an environmentally unsustainable manner. Beneath the façade of glitzy fashion magazines lies the dirty underbelly of pesticide use, water mismanagement, irresponsible effluent discharge, chemical poisoning, greenhouse gas emissions, energy overuse, micro-plastic pollution and landfill dumping. Until recently, the notion that apparel retailers should be responsible and accountable for the environmental infringements in their highly fragmented but globalised supply chain was an unwelcome idea. Under pressure from consumers and activists, this is now changing. With ESG-led investing going mainstream, investors too may start to take notice.
The detailed report below includes:
<ol class="">
<li>Summary and conclusions from the study on Fast Fashion's environmental footprint in Asia and impact of rise in consumer awareness on global apparel companies</li>
<li>Understanding Fast fashion</li>
<li>Fast Fashion trends in Asia – Survey findings on consumer attitudes to shopping and environmental issues</li>
<li>Environmental issues in Asia due to Fast fashion</li>
<li>Sustainable clothing – an emerging trend, and what can turn it mainstream</li>
<li>
Investing in Fast fashion: between a rock and a hard place - a Valuation vulnerability analysis
</li>
<li>
Sustainability &amp; 13 leading fast Fashion players - how future ready are they?
</li>
</ol>
<div class="content-highlight">
This report was prepared jointly by the team at Investory - <a href="https://www.smartkarma.com/profiles/1913" target="_blank" data-smartkarma-citation="accounts:1913">Devi Subhakesan</a> , <a href="https://www.smartkarma.com/profiles/1912" target="_blank" data-smartkarma-citation="accounts:1912">Rohinee Sharma</a> and Shilpa Krishnan. Investory commissioned an exclusive survey for this report to understand young urban Asian consumers' attitude towards fast fashion and their understanding of environmental issues.
</div>

Fashion industry is a leading polluter of water, air and land and its rapid growth has inflicted serious environmental damage in manufacturing bases across Asia. With increased consumer awareness and public scrutiny, leading brands globally have committed to adopt sustainable practices. This can mean a rise in operating costs, margin pressures which can lead to higher prices and/or lower volumes. What does that mean for corporate earnings growth and stock valuations? Our report attempts to arrive at some ballpark estimations based on a scenario analysis. Leading branded apparel companies can suffer market value destruction ranging  up to 30% if their long term margins and growth assumptions are reset at lower levels following a shake-up of their existing low cost model. And, those who refuse to adapt and adopt sustainable processes could soon be shunned by ESG-led investors and environmentally mindful consumers alike, leading to valuation discounts. Investors Beware.
Over the past decades, corporate growth and profitability agenda overshadowed environmental considerations, and apparel brands have grown in an environmentally unsustainable manner. Beneath the façade of glitzy fashion magazines lies the dirty underbelly of pesticide use, water mismanagement, irresponsible effluent discharge, chemical poisoning, greenhouse gas emissions, energy overuse, micro-plastic pollution and landfill dumping. Until recently, the notion that apparel retailers should be responsible and accountable for the environmental infringements in their highly fragmented but globalised supply chain was an unwelcome idea. Under pressure from consumers and activists, this is now changing. With ESG-led investing going mainstream, investors too may start to take notice.
The detailed report below includes:

Summary and conclusions from the study on Fast Fashion's environmental footprint in Asia and impact of rise in consumer awareness on global apparel companies
Understanding Fast fashion
Fast Fashion trends in Asia – Survey findings on consumer attitudes to shopping and environmental issues
Environmental issues in Asia due to Fast fashion
Sustainable clothing – an emerging trend, and what can turn it mainstream

Investing in Fast fashion: between a rock and a hard place - a Valuation vulnerability analysis


Sustainability &amp; 13 leading fast Fashion players - how future ready are they?



This report was prepared jointly by the team at Investory - Devi Subhakesan , Rohinee Sharma and Shilpa Krishnan. Investory commissioned an exclusive survey for this report to understand young urban Asian consumers' attitude towards fast fashion and their understanding of environmental issues.


Fast Fashion in Asia: Trendy Clothing’s Toxic Trails - Investors Beware

China

Shanghai Metersbonwe Fashion and Accessories Company Ltd designs, manufactures and sells apparels and accessories. The Company's major products include coats, sweaters, T-shirts, down coats, jackets, jeans, knit jackets, accessories and shirts, among others. Shanghai Metersbonwe also provides logistics and commodities distribution services.

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Shanghai Metersbonwe Fash A (002269 CH)

Fast Fashion in Asia: Trendy Clothing’s Toxic Trails - Investors Beware

Fashion industry is a leading polluter of water, air and land and its rapid growth has inflicted serious environmental damage in manufacturing...

Devi Subhakesan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)