Interesting Read
http://source.ethicalfashionforum.com/article/survival-of-the-sustainable-why-fashion-brands-must-adapt-or-die
8 April 2013
Survival of the sustainable - Why fashion brands must adapt or die
Contributor Responsible Trade Worldwide: Expert Columnist
Expert columnist, Responsible Trade Worldwide weighs up how retailers
and suppliers of all sizes, faced with less profitable manufacturing
options and the risk of reputational damage, will have to works towards a
more sustainable business practice or lose vital profit.
The combination of increasing pressure from consumers and rising
supply costs in Asia has prompted a call to action for fashion brands.
Retailers and suppliers of all sizes, faced with less profitable
manufacturing options and the risk of reputational damage, will have to
re-evaluate their approach to doing business or lose vital profit.
As we move towards a future standard of sustainable business
practice, trading ethically will no longer function as a unique selling
point, and this is where brand development plays a key role in
maintaining customer loyalty in the long term.
Today’s trillion-dollar
[1] fashion industry can be regarded as a microcosm for all commercial
enterprise, with examples of businesses trading at every point along the
sustainability spectrum. But they all have one thing in common: the
need to generate profit for survival and growth. The question is, at
what cost? Historically, it has been possible, perhaps even necessary,
for fashion retailers and suppliers to compromise on ethical values in
order to stay afloat and draw profit away from the competition.
“ A principle driver behind recent moves to locally sourced materials and products comes down to straightforward economics
”
”
But the tide is turning. New and existing forces converging on
retailers are prompting a re-evaluation of business models from the
ground up. No longer able to turn a blind eye to the murkier end of
their supply chains, fashion brands in the developed world and emerging
markets will have to adapt or lose vital profit. John Anderson, Chief
Executive of Levi Strauss & Co, points out: “For the fashion industry to be sustainable [2] economically, it must be sustainable socially and environmentally too.”
The question is no longer whether it is possible for a business to be
ethical and turn a profit, but whether it can survive at all without
embracing sustainable and ethical practices. Happily for those of us in
support of ethical fashion, we’re seeing an emergence of popular,
eco-conscious brands paving the way towards a new standard, marrying
ethical values with locally sourced, well priced stylish clothing.
A principle driver behind recent moves to locally sourced materials
and products comes down to straightforward economics, as it must. A real
benefit to sourcing locally is no longer having problems working with
suppliers, distribution, transport, workers, materials in others
countries. According to the BBC, China may lose its position as the global leader in clothing and manufacturing and exports: “Factories in China are not competitive [3] anymore because of increasing wages of labourers and a sharp hike in overall production costs.”
Even multinationals, such as Dow Chemicals, Caterpillar, GE and Ford,
with their increased resources and economies of scales, are moving some manufacturing back to the U.S.
[5], because of rising labour costs, concerns over government-sponsored
I.P. theft and production time lags. Digital economics magazine,
Quartz, credits “the surging costs of transporting finished goods in
recent years and the rising cost of Chinese workers [4],” with the exodus.
The increased attention towards what is happening behind the
shopfront is exposing some brands to negative perception (most recently,
Zara
[6]) and the pressure to quickly clean up their act. The reality is
that many retailers are simply not aware of unethical practices in their
supply chains, hence the need for assessment tools such as Responsible Trade Worldwide [7] to achieve greater transparency and enable positive action.
What we’re seeing is the convergence of consumers voting with their
feet with a less attractive supply offering from Asia. This has created a
‘natural selection’ scenario where only those with long term vision and
values will survive.
But let’s not get ahead of ourselves; the road ahead is a long one.
Opening a clothes shop with ethically-made garments isn’t enough to
attract droves of customers. In reality, we have ethical clothing
options available on a par with some of the most desired international
labels. The key challenge is in moving past the trend of being green, to
embedding ethical buying choices into the fabric of our cultures.
Media exposure is hugely important to changing customers’
preconceptions about ethical fashion and those combining an ethical
underpinning with clever brand development and a keen eye on operations
are well positioned to compete in the market of today and tomorrow.
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