Overproduction has long been the industry’s playbook: Manufacture large volumes at a low piece rate, made possible by chasing the cheapest needle. But the results of this strategy are becoming harder to ignore.
In some parts of the globe, mountains of textile waste can now be seen from space. And the outcomes for the workers who are powering this production are also evident, with forced overtime, low wages and other labor injustices.
If the industry continues on this path, the textiles in the trash will only accumulate as brands aim toward constant growth. However, as Suzanne Ellingham, director of trade show Source Fashion, explained in a recent fireside chat, there is an alternative path available for companies to scale back production and better support the value chain. Dubbed de growth—or more recently post-growth—this concept uncouples profits from production volume, transforming companies’ operations so they can maintain their bottom lines while selling less merchandise.
“How do we reverse mass consumerism, mass production?” Ellingham told Sourcing Journal’s climate and labor editor Jasmin Malik Chua. “How do we get to a stage where we can produce less but actually still make the same margins?”
An example of this model in action is Uniqlo, which recently had its fifth year of record profitability despite smaller production runs. The retailer is focusing on basics, allowing it to bulk order fabrics, and it is creating durable designs that will last. The other piece of the puzzle is sharing these sustainability stories with consumers. “When you’re messaging on durability and this will last, generally consumers are prepared to pay a bit more for it,” Ellingham said.
To create the force to move the entire industry in this post-growth direction, it’s going to require regulation. Namely, Ellingham said, financial disincentives can be motivators. This could come in the form of extended producer responsibility laws or other legislation around waste, which would put the onus on companies for their products beyond the factory or store floor.
In a risky climate, it’s important for companies to diversify their sourcing, and that includes having a mix that incorporates nearshore production. Countering the commonly held idea that it’s cost-prohibitive to manufacture closer to home, Ellingham cited an example where producing in Bangladesh was 1.8 pounds per piece and a UK-based manufacturer could have done the same job for 2.4 pounds. In that case and in many others, the slight expense increase discouraged buyers, despite the added benefits that come with shorter transportation routes.
Nearshore and ethical manufacturing businesses need support if they’re going to continue to survive, requiring retailers to look beyond a few cents’ difference at the bigger picture. Otherwise, the industry in regions like Europe will dry up—along with jobs.
“While Source Fashion is growing, we doubled down on really making sure that the right kinds of manufacturers are coming into the show—ones that do invest in the workers, ones that do have great relationships, ones that are doing business in in generally the right way, in a way that you want them to win business,” Ellingham said. “And over the last kind of 18 months to two years, it’s become increasingly more difficult for those businesses that are doing things in the right way to continue to operate.”
Watch the video to hear more about how the industry can break out of its fast-fashion cycles.