Retailers Taking Action

Some retailers are stepping up and providing detailed information about how and where their products are made, a shift that was once considered unthinkable.

Everlane’s Commitment to Transparency

Everlane, an online boutique, recently updated its website to include descriptions of the factories where its products are manufactured.

Nordstrom’s Considerations

Nordstrom has stated it is exploring the possibility of adding information about the humane working conditions under which its clothing is produced.

Detailed Cost Breakdown

An online boutique is now breaking down the number of workers involved in making each item and the costs associated with every component. Additionally, a textiles company plans to highlight the fair-trade origins of its robes when Bed Bath & Beyond begins selling them this month.

Industry Collaboration on Standards

A coalition of major retailers and apparel companies, including Nike and Walmart—companies with a history of controversial manufacturing practices—are working on developing an index that will encompass labor, social, and environmental measures.

Research Highlights Consumer Preferences

Recent research indicates a significant consumer demand for transparency regarding the origins of goods. A study conducted by professors at the Massachusetts Institute of Technology and Harvard revealed that some consumers, even those primarily focused on low prices, were willing to pay more for clothing that indicated fair-labor practices.

Expert Insights

“There’s real demand for sweat-free products,” stated Ian Robinson, a lecturer and research scientist at the University of Michigan. He emphasized that consumers often lack the necessary information but do care deeply about labor practices.

The Impact of Tragedy

The garment factory collapse that killed over 800 workers in Bangladesh has intensified calls for accountability, with retailers receiving an influx of inquiries from concerned customers.

Awareness of Product Origins

“In the clothing industry, everybody wears it every day, but we have no idea where it comes from,” remarked Michael Preysman, Everlane’s chief executive and founder. “People are starting to slowly clue in to this notion of where products are made.”

Challenges to Transparency

Major retailers have historically hesitated to disclose their full supply chains, citing the complexity involved in sourcing materials. For instance, a sweater produced in Italy may contain thread, wool, and dye from various locations. Additionally, maintaining workplace protections can be costly, and cheap clothing continues to sell well, as evidenced by the rapid expansion of brands like H&M and Zara.

Consumer Pressure for Change

Labor advocates point out that the growing consumer appetite for transparency could create competitive pressure on retailers that are less forthcoming. Recent calls for fair-trade standards or labeling have been amplified by government officials and labor advocates in response to the Bangladesh collapse.

Everlane’s Response to Consumer Concerns

In direct response to the tragedy in Bangladesh, Everlane added detailed factory information to its website. One description for a T-shirt notes, “This factory is located 10 minutes from our L.A. office. Mr. Kim, the owner, has been in the L.A. garment business for over 30 years.”

Everlane is also planning to provide cost breakdowns for all its clothing alongside photographs of the factories where production takes place.

Honest By: A High-Fashion Example

Honest By, a high-fashion site launched last year, provides even more specific information about its products. For example, a cotton shirt priced at approximately $320 took 33 minutes to cut, 145 minutes to assemble, and 10 minutes to iron at a Belgian factory.

Founder Insights

Bruno Pieters, the site’s founder, argues that as long as consumers continue supporting unsustainable and unethical companies, these practices will persist. However, he believes there may be a shift happening as sales have reportedly spiked in response to concerns raised by recent overseas sourcing disasters.

Lush Cosmetics’ Initiative

Lush Cosmetics has begun sharing videos from its factories and photographs from buying trips to countries like Kenya and Ghana on its Facebook page. Simon Constantine, head perfumer and ethical buyer at Lush, expressed interest in linking to the factories it collaborates with to encourage other cosmetics companies to support fair practices.

Nordstrom’s Considerations for Improvement

Nordstrom has provided factory information in response to customer inquiries and is contemplating additional steps toward transparency. Tara Darrow, a spokeswoman for Nordstrom, stated, “Hearing from customers and knowing they care definitely compels us to want to do more.”

Collaborative Efforts Toward New Standards

Various groups are working towards establishing new labor standards within the apparel industry. The Sustainable Apparel Coalition includes major brands such as Nike, Walmart, Gap, J.C. Penney, and Target. This coalition has been testing an index called the Higg Index, which began with environmental goals but will soon include social and labor measurements.

History of Controversy

The coalition was formed with the aim of creating a unified industry standard for sustainability and labor practices instead of a fragmented approach. Some supporting companies have faced scrutiny over their sourcing practices; for example, Walmart subcontractors were linked to the Tazreen factory fire in Bangladesh that resulted in 112 fatalities last November.

Future Goals for Transparency

Currently, the index is intended for internal use by companies. However, Jason Kibbey, executive director of the coalition, mentioned plans to eventually provide this information to consumers through labels or online platforms. Labor advocates like Scott Nova argue that self-regulation may not be sufficient.

Fair Trade USA’s Expansion into Apparel

Fair Trade USA originally focused on coffee before expanding into apparel. PrAna is among the first American apparel firms to receive fair-trade certification. The certification process included tours of its cut-and-sew plant in Liberia and other facilities as well as assessments of workers’ pay relative to local salaries.

Consumer Reception of Fair-Trade Products

PrAna offers nine fair-trade products now compared to just one in 2011. According to CEO Scott Kerslake, these items are priced about 10% higher than comparable products but have been selling well despite concerns about alienating price-sensitive consumers.

Navigating Consumer Perceptions

For some shoppers, however, the fair-trade message may only resonate so far. Marci Zaroff, founder of Under the Canopy, which is introducing a fair-trade certified bathrobe at Bed Bath & Beyond this month, noted that conveying this message can be challenging. “That’s why we sell on style, quality, and price,” she stated.

Study Insights on Labor Practices

Neeru Paharia from Georgetown University recently completed research on consumer attitudes toward sweatshop labor. Her findings suggest that the complexity of retail supply chains makes it easier for consumers to rationalize poor labor practices.

Paharia observed that while consumers might not directly support exploitative labor practices if they were aware of them—“Most people probably would not hire a child…to make their clothes”—the abstract nature of supply chains makes it difficult for them to connect these issues with their purchasing decisions.

The Shift in Consumer Attitudes Post-Bangladesh Collapse

The collapse in Bangladesh may be altering consumer perceptions. A glance at Joe Fresh’s Facebook page reveals customer dissatisfaction with the brand’s connection to the factory disaster. In response, Loblaw Companies (Joe Fresh’s parent) has pledged to conduct more thorough audits of factories and provide compensation for victims’ families.

Empowering Consumers for Change

Consumers like Lauri Langton from Seattle plan to hold retailers accountable for transparency regarding product origins. “You should be able to tell right away where the product is produced,” she asserted. “That’s where we have power as consumers.”