Many consumers are happy to buy clothes based solely on their own rubric: Does it fit? Does it work with other items in my wardrobe? Does it make me look and feel good? But lately, an increasing number of shoppers want to understand their purchase on a deeper level: What is the environmental impact? Who is making the clothes? Are they getting paid enough? Is the brand transparent about its manufacturing process? A recent report by Oxfam titled Shopping for a Bargain examines those questions by h
s by having factory workers rate their employer. The result reveals how similar or different a retailer’s perception of its manufacturing practices to its reality.
Consistently, the report found that brands rated themselves higher than its factory partners would, indicating a failure to understand the impact of its behaviour. And, this year in particular, that failure has cost hundreds of thousands of people their livelihoods.
Much of this stems from the impact of the Covid-19 pandemic, the report said. The initial shock caused many retailers to cancel orders as well as payments to many of their suppliers, putting hundreds of thousands of people out of work.
“This initial failure to pay for work already completed, and the subsequent consequences for workers, exposes how the ways that retailers do business with the factories that supply their clothes have profound impacts on the lives of workers in low paid, precarious employment,” the report reads.
Oxfam used the report to call on brands to urgently improve their purchasing practices, not only to improve their supply chains but also to reduce exposure to potential human rights issues.
Traceability experts Oritain told Inside Retail that it’s great to see brands being held accountable for their supply chains, but that it’s important not to start a witch hunt and dissuade other brands from even trying. Instead, it’s better to celebrate those who are doing a good job.
“I think all brands nowadays have some level of traceability in place, and that how robust these systems are differs brand to brand, but doesn’t necessarily imply that a brand isn’t taking it seriously,” Oritain told Inside Retail.
“We find that many at the start of their journey underestimate the fragmented nature of the fashion supply chain and just how opaque it is and, therefore, have a lot of work to do in understanding their exact supply chain.”
The more effort a business puts in to create visibility and understand its supply chain, the better the benefits are. Brands can protect themselves against the risk of fraud, Oritain said, which can have serious reputational, financial, legal and ethical implications.
The more certain a business is that its practices are ethical, the more it can comfortably promote itself.
“From a customer perspective, they can shop a brand knowing exactly what they’re getting, where it came from and how it was made, allowing them to make informed purchasing decisions that align with their ethics and values,” Oritain said.