It’s a scorching hot July morning in Guimarães, northern Portugal, at the Somelos textile mill. Machines pump and clack in a joyous frenzy as they produce classical navy and blue striped cloth or eye-popping colour combos reminiscent of Bridget Riley’s artwork. Workers standing in front of large mechanical light boxes closely check fabric for any imperfections as it cascades in front of them.
I’m with a small group of about 15 people taking part in a tour organised by Portugal-based brand ISTO, which produces some of its shirting in the factory. Nuno Fernandes, a quality controller, is explaining that machines are programmed to weave only the exact amount of fabric required to complete specific orders, to ensure minimal waste.
In a radical move, since 2022 ISTO has hosted free factory tours, open to anyone interested in exploring where and how its clothing is made. The brand includes transport within Portugal — usually from Lisbon or Porto — and lunch, though the plan is to develop this offer for customers internationally.
It’s an initiative that seeks to underline the brand’s transparency credentials, according to Pedro Gaspar, 41, and Pedro Palha, 33, who co-founded ISTO in 2017. “Many brands are talking about how they’re making things sustainably, but we thought, let’s show our clients how we actually do this,” says Palha.
All of ISTO’s factories and suppliers are listed in detail on its website and comply with the highest industry certifications, including GOTS (Global Organic Textile Standard), OEKO-TEX (harmful textile testing) and GRS (Global Recycled Standard). The brand illustrates online costings per garment for fabrics, labour, transport, logistics, labels and buttons. It also publishes additional annual price breakdown intel as part of a customer communications programme, which the founders refer to as Transparent Week (the next one is in September). It will include an explanation of all of the other contributing business costs, such as rent, marketing and salaries, for six of its best selling items.
“We have found that publishing these costs once a year is the most effective and reliable way to keep our customers informed about wider business costs and their effect on the price of our products,” explains Palha. QR codes inside garments, which illustrate a traceable production journey from fibre extraction to finished product, along with its environmental footprint, have also recently been introduced.
Consuming fashion is increasingly a tale of extremes, from the increased prices within the luxury sector to fast fashion where you can buy a men’s T-shirt from Shein for about £2. Last month, a probe was launched by the Italian Competition Authority over concerns that factories producing for luxury designer brands were being underpaid and experiencing sweatshop conditions. In this context, ISTO’s approach to a timeless wardrobe of menswear staples — also worn by women — that are made to be price and environmentally conscious feels particularly pertinent.
Jason Blanche, a 32 year-old sales executive from France who joined the factory tour, says he is tired of luxury brands overpricing their products. He thinks what ISTO is doing should be welcomed. “I like how they seem to take care of those that work with them, which in my experience in fashion can be rare,” he says.
Another participant, Filipa Silva, 39, a winemaker from Aveiro, was intrigued to see the garment manufacturing process while also being interested in sustainable practices. “I wanted to investigate whether the idea of transparency was indeed more than just marketing,” she says over lunch. “I came with a lot of trust and I don’t think its been misplaced. Consumer behaviour is political behaviour and where you put your money is a statement.”
Despite not hitting its targets, ISTO is growing; Palha says sales are 30 per cent up year-on-year. The aim is to reach €3.5mn in 2024. Earlier this year it opened a permanent store in Berlin; the brand currently has four stores in Lisbon. Celebrity interest is bubbling: Ethan Hawke is a fan of its co-ordinating jacket and trouser, Zac Efron wears its jeans and Ryan Reynolds recently wore its linen trousers.
ISTO means “this” in Portuguese and the initials reflect the brand’s pillars. “Independent thinking — no investments or middle men — we only sell directly to our customers,” explains Palha. With its transparent pricing and use of high quality and organic materials, the duo liken their approach to that of running a top restaurant. “The ones that source the best local ingredients from the best suppliers and design a seasonal menu,” Gaspar says.
In the past, brands with a strong sustainable perspective have often been considered a bit dry; ISTO’s output is full of personality. One of the best fashion photos I’ve seen this year is a shot from its Património summer collection — based on 1980s leisurewear — featuring a lounging mature man in a baseball cap and white short-sleeve shirt open, showing off a proud round belly.
Before launching ISTO Palha studied business in Lisbon, played tennis semi-professionally and dabbled in start-ups. His curiosity for clothing and sustainability was sparked by US clothing retailer Everlane, which has positioned itself as a leader in “radical transparency”. Vasco Mendonça, a third founder no longer involved, introduced Palha to Gaspar, who was working in design and advertising. They set up the business with €13,000.
While products are relatively simple in design (the founders name-check Ralph Lauren, Drakes and Aimé Leon Dore as their fashion inspirations), they are often rigorously tested. A wool coat, for example, was left in a forest in the Abrantes region for 94 days to see if it could sustain various weathers. In September the brand will launch a trenchcoat with an organic water-repellent material developed in partnership with Somelos.
Plans include opening a store in London in 2025 (the UK capital is its fourth biggest market). The company is also considering a spin-off factory tour whereby clients are invited into its office and allowed to contribute ideas to the design process. That could be another radical next step.
Sign up for Fashion Matters, your weekly newsletter with the latest stories in style. Follow @financialtimesfashion on Instagram and subscribe to our podcast Life and Art wherever you listen
