Thursday, November 11, 2010

Rag trade 101: Sweat-shop labor, you get what you pay for


In my morning walk through the Internet I came across this piece on MISS asking consumers if they would boycott a company because they use sweat-shop labor. As I was writing my lengthy response, I remembered that I have a blog to tackle such issues with as many words as I need.

The usage of sweat-shops in the manufacturing of apparel is more widespread than most of us would like to acknowledge and there are several contributing factors that keep sweat-shops in business. At the end of the day money is the deciding factor on whether a company like Nike goes with a cheaper manufacturer whose factories may have unsavory working conditions or a more costly less sketchy factory.

Most of us know that the garments we buy are not purchased at cost, meaning markups are built in to allow for everyone involved to make a profit from the wholesaler to the retailer. Depending upon the price point of a say a pair of jeans, the markup could be anywhere from 60%-200% which accounts for the fact that they may go on sale and the retailer needs to make a profit off of that transaction as well. That said, when a company sends their team out to source everything from fabrics to labor, the team is focused on keeping the costs down and the profit margins high. They also have to take into consideration the turn around time on the garments they are sourcing, although fashion operates almost a year ahead retailers need to be ready to produce those "inspired by pieces" the second they debut on the runways giving them a shorter than normal lead time. Don't get me wrong, sourcing teams are not out there looking for sweat shops that can produce garments cheaply and quickly, they are looking for factories that fit into specific budgets and timelines and occasionally pick based on those parameters not based on human rights. (Also the production team that deals with factories and such tends to work in an office in the company's home country and only make scheduled visits to factories, and we all know that if you tell someone when they're having company over they tend to put things in perfect order.) With everything focused on the almighty dollar, is it no wonder that the majority of companies busted for sweat-shop labor tend to be at the mid to discount price range.

Companies like Forever 21, who was recently accused of using sweat-shops to produce their blatant knock-off that disintegrate in the wash, make big money by mass producing cheap products and reselling them at a price point that attracts their core customers, teenage girls. With $7 tank tops and $20 skirts, its no surprise that they are working with factories that pay their workers little to nothing and ask them to work in unsafe conditions. I'm not saying that Gucci or Louis Vuitton have never used cheap labor, but I am saying that with higher prices you'll usually find bigger budgets for things like labor and the quality of the products will tell the tale. Like the saying goes you get what you pay for.

What can consumers do to discourage sweatshop labor? Well first of all stop buying stuff for quantity instead of quality, usually high quality goods are made by adults in factories that keep them somewhat happy. If you can spend money replacing those $7 tops every other month because they don't last, you can afford to purchase one $15 top that will last you at least a year. Think of purchasing quality goods that may cost more as an investment, not as you paying too much for something that you can get cheaper somewhere else. Also look for goods that are made in the US. Yes, we do have sweat-shops  here however our labor laws require closer federal monitoring for things like safety and workers rights, and purchasing goods made in the US go a long way to stopping outsourcing, generating more jobs at home, and helping pull us out of this recession mess.

If you tried boycotting every company that uses sweat-shop labor you'd have very few places to shop in your local mall, and I'm not asking you to do that. What I am asking is for consumers to be better educated on where their goods come from and how they are produced, that way instead of behaving like mindless purchasing machines you can at least know what went into your Forever 21 top before you fork over your babysitting money.

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