GANNI's new skin: Towards responsible fashion (B)

In the fall of 2023, four years after GANNI began to phase out virgin leather from all its fashion collections, the goal was now very close to completion. After internal debates, technical and operational challenges, and the commitment and work from all the people of GANNI, virgin leather had been replaced with more sustainable alternatives, like recycled leather or new, groundbraking, bio-based alternatives.
But one hurdle remained: the Production and Design teams had so far failed to find a viable replacement material for some versions of GANNI?s popular Western boots. These boots were one of GANNI?s best sellers in the footwear category, with 22% of total sales. GANNI had two options: either keep manufacturing these boots in virgin leather, or remove them from GANNI's collections entirely. If GANNI chose to stop production, it would be giving up a very popular item, but if it continued production, it would be failing the goal of its first major sustainability project. What was the best course of action for the Danish fashion company?
The case examines how GANNI carried out the leather phase-out project from 2019 until 2023, putting it in the context of a wider a comprehensive sustainability strategy that required the transformation of the entire business, as well as its suppliers, at a time when the company was also growing at a very rapid pace. The case also presents the sustainability challenges facing GANNI in the coming years, in order to go beyond the leather project to become a brand where sustainability is embedded in the business.
Collection: IESE (España)
Ref: SM-1760-E
Format: PDF
Number of pages: 15
Publication Date: Feb 23, 2024
Language: English

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Description

In the fall of 2023, four years after GANNI began to phase out virgin leather from all its fashion collections, the goal was now very close to completion. After internal debates, technical and operational challenges, and the commitment and work from all the people of GANNI, virgin leather had been replaced with more sustainable alternatives, like recycled leather or new, groundbraking, bio-based alternatives.
But one hurdle remained: the Production and Design teams had so far failed to find a viable replacement material for some versions of GANNI?s popular Western boots. These boots were one of GANNI?s best sellers in the footwear category, with 22% of total sales. GANNI had two options: either keep manufacturing these boots in virgin leather, or remove them from GANNI's collections entirely. If GANNI chose to stop production, it would be giving up a very popular item, but if it continued production, it would be failing the goal of its first major sustainability project. What was the best course of action for the Danish fashion company?
The case examines how GANNI carried out the leather phase-out project from 2019 until 2023, putting it in the context of a wider a comprehensive sustainability strategy that required the transformation of the entire business, as well as its suppliers, at a time when the company was also growing at a very rapid pace. The case also presents the sustainability challenges facing GANNI in the coming years, in order to go beyond the leather project to become a brand where sustainability is embedded in the business.
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Year: 2019-2024
Geographic Setting: Denmark, Global
Industry Setting: Cosmetic, Fashion and Jewelry

Learning Objective

This case is intended for executives, managers, and graduate-level students in a strategy or management course that focuses on issues of sustainability in business at both the strategic and operational level, as well as courses on strategy dealing in implementation and organizational changeand execution of strategy. The core aim of the case study is to present the challenges facing a company that, within the framework of a comprehensive sustainability strategy, wants to carry out a major sustainability project with a significant impact on the business. Concretely, the case's goals are:
- Understand the challenges of sustainable transition for fashion companies in the fashion industry.
- Identify the key drivers of decarbonization in the industry.

GANNI's new skin: Towards responsible fashion (B)

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"GANNI's new skin: Towards responsible fashion (B)"