The phrase "Diet Starts Monday" has become a ubiquitous saying, often used humorously to postpone healthy eating habits. However, in the context of fashion and streetwear, "Diet Starts Monday" represents a specific brand with a unique identity. This article explores the meaning of "Diet Starts Monday" as a streetwear brand and connects it to the sustainable finance journey of PUMA, a global sportswear giant.
Diet Starts Monday: A Streetwear Brand
Co-founded by Davin Gentry in 2017, Diet Starts Monday began as an experiment involving Gentry and footwear designer John Geiger. The brand has cultivated a dedicated following through limited-edition capsules sold via its online store and pop-up events worldwide. Previously, it operated a retail and restaurant concept space in Washington, D.C.
PUMA: A Leader in Sustainable Practices
PUMA, a major player in the sports apparel industry, is actively working to improve its environmental, sustainability, and governance (ESG) performance. Frank Waechter, Vice President of Treasury and Insurance at PUMA SE, highlights the company's commitment to reducing its environmental impact. By 2030, PUMA aims to decrease absolute Scope 3 greenhouse gas emissions from its supply chain and logistics by 33% compared to 2017 levels.
In 2023, PUMA demonstrated significant progress towards its climate goals, achieving its first science-based greenhouse gas reduction target seven years ahead of schedule and reducing greenhouse gas emissions by 24% compared to 2022. This commitment has been recognized by Time Magazine and Statista, which named PUMA one of the World’s Most Sustainable Companies in 2024, ranking it 67th overall and first in the Apparel, Footwear, and Sporting Goods category.
Sustainable Finance as a Tool for ESG Improvement
PUMA has identified sustainable finance as a valuable tool for enhancing its ESG performance. Supply chain finance and sustainable finance initiatives help suppliers bridge the payment gap between production and payment.
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Supply Chain Finance: Bridging Payment Lags
Suppliers often experience payment lags between producing goods and receiving payment, which can lead to cash flow problems. Supply chain finance helps address this issue by enabling suppliers to receive early payment on invoices through a finance company, albeit with an associated fee. The standard payment term in the industry is typically Net 90, requiring payment within 90 days of the invoice date after the order has been delivered to the port of origin.
Factoring vs. Supply Chain Finance
Suppliers can also obtain financing through factoring, where they present their receivables to a bank and receive a loan based on the financial arrangement. However, these loans are risk-based, and suppliers to large companies, particularly those in developing countries, often face lower credit ratings and higher loan costs. Factoring can also be a manual, paper-intensive process, contributing to higher fees.
In contrast, buyer-enabled reverse factoring, also known as supply chain finance, is generally less expensive. Interest rates are based on the buyer's risk, and companies like PUMA typically have higher credit ratings than their suppliers. PUMA uses the Infor Nexus digital platform to support its suppliers, creating a digital collaboration network that connects buyers, suppliers, contract manufacturers, carriers, and banks. This platform provides an accurate, electronic record of supply chain activity, ensuring transparency and reducing manual work. PUMA's banking partners on Nexus include HSBC, BNP Paribas, Standard Chartered, and the International Finance Corporation (IFC), enabling suppliers to get paid within five days of delivery.
Frank Waechter emphasizes the value of the Nexus platform, stating, "Collaboration with suppliers is much more than a digital exercise. But without digital enablement, it’s nothing!"
PUMA’s Sustainable Finance Journey
PUMA's sustainable finance journey began in 2015, with a program designed to reward suppliers with better sustainability performance with better financial terms. The initial implementation faced challenges due to the Basel III framework, which focused solely on risk without considering sustainability issues. The International Finance Corporation (IFC), a World Bank subsidiary, played a crucial role in changing the interpretation of these rules to include sustainability loans. The IFC's mission is to promote private-sector investment in developing countries, with a particular focus on social issues (the "S" in ESG) such as preventing child labor, promoting gender equity, and ensuring safe working conditions.
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In 2016, PUMA launched its ESG-linked supply chain finance program. Suppliers with an above-average sustainability rating were eligible to participate, with incentives offered to those who demonstrated further improvements in sustainability. Initially, securing the participation of private banks was difficult. However, PUMA eventually convinced BNP Paribas to join the program, adapting the Nexus platform to incorporate additional quality control process steps.
Today, the program is voluntary, and suppliers are grouped into tiers based on their key performance indicators (KPIs), including sustainability performance. Higher-performing suppliers receive better rates. Over time, the KPIs have expanded to include environmental issues in addition to social ones. Participation in the program has increased significantly, particularly during the COVID-19 pandemic, when financial stress led more PUMA suppliers to utilize the ESG-linked SCF solution.
Supporting Black-Owned Businesses
The Black Lives Matter movement in 2020 spurred many major brands and companies to invest more in Black-owned businesses. This led fashion retailers and brands such as Kith, Moda Operandi, Gap, and Matchesfashion to take the 15 Percent Pledge-an initiative which calls on major retailers to commit a minimum of 15% of their shelf to Black-owned businesses.
While these efforts are commendable, many fashion brands still profit from Black culture without ensuring diversity within their organizations or addressing related issues directly. Despite the significant influence of the Black community on streetwear and fashion, independent Black creators are often overlooked.
Notable strides have been made, such as the appointment of the late Virgil Abloh as the first Black creative director of Louis Vuitton Men’s in 2018. Brands like Abloh’s Off-White and Heron Preston’s eponymous label received investment from New Guards Group. Jerry Lorenzo’s Fear of God has been a key player in the streetwear-meets-luxury fashion transformation, and Tremaine Emory now leads creative direction for Supreme.
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However, there remains a lack of Black ownership in streetwear. Consumers can support Black designers by celebrating their work and dedicating a portion of their budget to Black-owned businesses. Resources such as Black Fashion Fair can help consumers discover more Black-owned brands.
Examples of Black-Owned Fashion Brands
Here are some examples of Black-owned fashion brands:
- 10 Deep: Founded by Scott Sasso in 1995, this pioneering New York City streetwear brand influenced many contemporary brands.
- 4Hunnid: Relaunched in 2017 by YG, this clothing label offers seasonal collections ranging from cut-and-sew jackets to graphic T-shirts.
- All Caps Studio: Founded by Saeed Ferguson, this emerging streetwear brand is known for its unique designs.
- Wata: Jasmine Plantin's brand, known for its hand-dyed, long-sleeve cotton T-shirts, draws inspiration from her Haitian roots and upbringing on Long Island.
- Walker Wear: Founded by April Walker in 1987, this line was one of the first streetwear brands to achieve mass distribution and was worn by celebrities like Tupac and Biggie.
- Baby Phat: Launched by Kimora Lee Simmons in 1999, this sister line to Phat Farm was one of the first women’s lines in the "urban" streetwear space.
- Billionaire Boys Club: Originally launched in 2003 by Pharrell Williams and NIGO, this brand helped define an era of streetwear with its bold prints and bright colors.
- Bephie’s Beauty Supply: Founded by Beth Gibbs, this label serves as a retail platform dedicated to brands by people of color and queer creatives.
- Bianca Saunders: This line investigates the nuances of black male masculinity through classic menswear pieces.
- Bricks and Wood: Founded by Kacey Lynch in South Central, Los Angeles, this brand aims to give a platform to unheard voices.
- Brownstone: Founded by twin brothers Warner and Waverly Watkins, this brand has been making waves within streetwear since 2016.
- Carlton Yaito: Carlton Yaito creates standout pieces, including cropped jackets pieced together from different fabrics and oversized faux fur bags.
- Carrots: Founded by Anwar Carrots in 2014, this brand has established itself as one of the West Coast’s best streetwear brands.
- Cross Colours: Founded in 1989, this brand produced "clothes without prejudices" and became omnipresent within hip-hop.
- Come Back as a Flower: Founded by Esper in 2018, this brand focuses on sustainability and black spiritualism, using recycled cotton and hand-dyeing techniques.
- Free the Youth: Founded in 2013 by Jonathan Coffie and Kelly Foli, this rising streetwear brand from Ghana highlights Ghanian musicians and local skate culture.
- Denim Tears: Founded by Tremaine Emory, this label promotes "positive Black propaganda" through items like Pan-African flag rings and Black Jesus trucker hats.
- Daily Paper: Based in Amsterdam and founded by Jefferson Osei, Abderrahmane Trabsini, and Hussein Suleiman, this brand is influenced by the founders' Moroccan, Ghanaian, and Somali backgrounds.
- Who Decides War: Founded by Everard Best, this ready-to-wear line tells stories about conflicts, choices, and faith.
- Fat Tiger: This Chicago brand, operated by Joe Freshgoods, Rello Jones, Vic Lloyd, and Des Owusu, is a cornerstone of the city’s streetwear community.
- Fear of God: Founded by Jerry Lorenzo, this brand has helped push the luxury/streetwear relationship forward with its baggy silhouettes and remixed vintage T-shirts.
- FTP (Fuck The Population): Founded by Zac Clark in 2010, this brand has developed a loyal following with its gritty and provocative streetwear.
- FUBU (For Us, By Us): Founded in 1992 by Daymond John, J. Alexander Martin, Keith Perrin, and Carlton Brown, this brand was a major player in the streetwear market.
- Gallery Dept.: Founded by Josué Thomas, this Los Angeles-based brand creates quality products without sacrificing artistic integrity.
- GOLF: Founded by Tyler, the Creator, this clothing brand has become widely recognized on its own accord.
- The Good Company: Founded by Kumasi Sadiki and Quinn Arneson, this brand has been a leader in the Lower East Side’s streetwear scene since 2012.
- Ih Nom Uh Nit: Founded by Chaz Jordan, this brand mixes luxury items with hoodies and T-shirts referencing pop culture.
- Infinite Archives: Founded by Easy Otabor, this line brings the past to the present through special graphics inspired by yesteryear.
- Just Don: Founded by Don C, this brand is known for its python-brimmed snapbacks and premium quality takes on mesh basketball shorts.
- Karl Kani: Founded by Karl Williams in 1994, this brand was worn by celebrities like Sean "Puffy" Combs and Tupac.