Outlook 2024–Key Issues to Shape Apparel Sourcing and Trade

In December 2023, Just-Style consulted a panel of industry experts and scholars in its Outlook 2024–what’s next for apparel sourcing briefing. Below is my contribution to the report. Welcome any comments and suggestions!

What’s next for apparel sourcing?

Apparel sourcing is never about abrupt changes. However, fashion companies’ sourcing practices, from their crucial sourcing factors and sourcing destinations to operational priorities, will gradually shift in 2024 in response to the evolving business environment.

First, besides conventional sourcing factors like costs, speed to market, and compliance, fashion companies will increasingly emphasize flexibility and agility in vendor selection. One driving factor is economic uncertainty. For example, according to leading international organizations such as the World Bank and the International Monetary Fund (IMF), the world economy will likely grow relatively slowly at around 2.6%-3% in 2024. However, it is not uncommon that the economy and consumers’ demand for clothing could perform much better than expected. This means companies need to be ready for all occasions. Likewise, geopolitical tensions, from the Russia-Ukraine war and the US-China decoupling to the military conflict in the Middle East, could cause severe supply chain disruptions anytime and anywhere. Thus, fashion companies need to rely on a more flexible and agile supply chain to address market uncertainties and mitigate unpredictable sourcing risks.

Secondly, it will be interesting to watch in 2024 to what extent fashion companies will further reduce their exposure to China. On the one hand, it is no surprise that fashion companies are reducing finished garments sourcing from China as much as possible. However, fashion brands and retailers also admit that it is difficult to find practical alternatives to China in the short to medium terms regarding raw textile materials and orders that require small runs and great variety. Meanwhile, investments from China are flowing into regions considered alternative sourcing destinations, such as the rest of Asia and Central America. These new investments could complicate the efforts to limit exposure to China and potentially strengthen, not weaken, China’s position in the apparel supply chains. And stakeholders’ viewpoints on “investments from China” appear even more subtle and complicated.

Third, regulations “behind the borders” could more significantly affect fashion companies’ sourcing practices in 2024, particularly in sustainability-related areas. While sustainability is already a buzzword, fashion companies must deal with increasingly complex legal requirements to achieve sustainability. Take textile recycling, for example. The enforcement of the Uyghur Forced Labor Prevention Act (UFLPA) on recycled cotton, the US Federal Trade Commission’s expanded Green Guides, the EU’s extended producer responsibility (EPR) program and its strategy for sustainable textiles, and many state-level legislations on textile waste (e.g., California Textile Recycling Legislation) may all affect companies’ production and sourcing practices for such products. Fashion companies’ sourcing, legal, and sustainability teams will need to work ever more closely to ensure “sustainable apparel” can be available to customers.

Apparel industry challenges and opportunities

In 2024, a slow-growing or stagnant world economy will persist as a significant challenge for fashion companies. Without sourcing orders from fashion brands and retailers, many small and medium-sized manufacturers in the developing world may struggle to survive, leaving garment workers in a precarious financial situation. China’s economic slowdown could worsen the situation as many developing countries increasingly treat China as an emerging export market. With shrinking domestic demand, more “Made in China” apparel could enter the international market and intensify the price competition

Another challenge is the rising geopolitical tensions and political instability in major apparel-producing countries. For example, while a broad base supports the early renewal of the African Growth and Opportunity Act (AGOA), which will expire in 2025, the reported human rights violations in some essential apparel exporting countries in the region could complicate the renewal process in US Congress. Likewise, even though the Biden administration is keen to encourage fashion companies to expand sourcing from Central America, political instability there, from Nicaragua to Haiti, makes fashion companies hesitant to make long-term sourcing commitments and investments. Furthermore, 2024 is the election year for many countries, from the US to Taiwan. We cannot rule out the possibility that unexpected incidents could trigger additional instability or even new conflict.

On the positive side, it is encouraging to see fashion companies continue to invest in new technologies to improve their operational efficiency in apparel sourcing. Digital product passports, 3D product design, PLM, blockchain, Generative AI, and various supply chain traceability tools are among the many technologies fashion companies actively explore. Fashion companies hope to leverage these tools to improve their supply chain transparency, strengthen relationships with key vendors, reduce textile waste, accelerate product development, and achieve financial returns.

It is also a critical time to rethink and reform fashion education. In addition to traditional curricula like apparel design and merchandising, we need more partnerships between the apparel industry and educational institutions to expose students to the real world. More direct engagement with Gen Z will also benefit fashion companies tremendously, allowing them to understand their future core customers and prepare qualified next-generation talents. 

by Sheng Lu

Exploring US Apparel Brands and Retailers’ Evolving Sourcing Strategies (December 2023)

The full article is here (Just-Style access required). Below are the key findings:

Based on a content analysis of the annual reports of about 30 largest US fashion brands and retailers from 2018 to 2023, this study aims to identify these companies’ most critical evolving sourcing practices, including their sourcing destination adjustment, primary sourcing factors, and emerging sourcing-related “hot topics.” The findings provide critical market intelligence, informing US fashion companies about their peers’ emerging sourcing trends and popular practices. The results show that:

First, maintaining a relatively diverse sourcing base remains common among US fashion companies. Results show that large-size companies today typically source from more than 20 countries. One critical factor behind fashion companies’ sourcing diversification strategies is that no single supplying country is “perfect,” given the increasingly complex sourcing factors. Sourcing diversification allows fashion companies to balance various sourcing factors. For example, according to company #19, “the (sourcing diversification) approach provides us with the greatest flexibility in identifying the appropriate manufacturers while considering quality, cost, timing of product delivery and other criteria.” On the other hand, sourcing diversification enables companies to adapt quickly to market uncertainties and enjoy supply chain flexibility and resilience.

Second, while US fashion companies are not necessarily leaving any particular countries they source from, many have substantially reduced the number of vendors they work with over the past few years. Specifically, out of the 30 fashion companies the study examined, over 60% explicitly mentioned they consolidated their sourcing base at the vendor level from 2017/2018 to 2022/2023, although the degree varied. For example:

  • Company #4, a leading sportswear brand, cut its contracted factories from 363 to 291 (or down 19.8%)
  • Company #6, which owns several jeans and sportswear brands, reduced its contracted factories from 1,000 to around 340 (or down 66%)
  • Company #9, a well-known specialty clothing store, cut its vendors from 800 to 250 (or down 68.8%)
  • Company #26, a specialty clothing store targeting the youth, cut its vendors from 150 to around 119 (or down 20.7%)
  • Company #28, a discount department store, cut its vendors from 3,100 to around 2,800 (or down 9.7%)

Associated with the trend of “country diversification and vendor consolidation,” US fashion companies are increasingly interested in working with “super vendors,” e.g., those with multiple country presence or vertical manufacturing capability. The use of “super vendor” can also be observed in fashion companies’ willingness to give more sourcing orders to their top suppliers. For example, Company #18, a casual and outdoor wear retailer, reduced its vendors from 200 in 2017/2018 to 110 in 2022/2023, but increased the cap of sourcing orders for its top 10 vendors from 40% to 47% over the same period.

Third, regarding the sourcing base, many US fashion companies have intentionally reduced their apparel sourcing from China, given the US-China tariff war, deteriorating bilateral relations, and the forced labor concerns with China’s Xinjiang region (XUAR). Specifically, more than one-third of the examined companies explicitly mentioned their strategy to reduce finished garments sourcing from China. Furthermore, several US fashion companies indicated their “reducing China exposure” strategy would continue, implying China’s market share in the US apparel import market could decrease further.

Nevertheless, even though fewer finished garments are coming from China, US fashion companies admit that China will continue to play a critical role as a textile raw material supplier as no immediate practical alternative is available. For example, Company #20, a specialty clothing chain focusing on trendy and fashionable items, says, “During fiscal 2022, we sourced most of our finished products with partners and suppliers outside the US and we continued to design and purchase fabrics globally, with most coming from China.”

Fourth, in line with trade statistics, US fashion companies consider other Asian suppliers, such as Vietnam, Bangladesh, Cambodia, and Indonesia, as their top choices as China’s alternatives. In comparison, few fashion companies explicitly mentioned moving their sourcing orders from China to Western Hemisphere countries or other regions.

Additionally, regarding emerging “hot topics” related to sourcing:

  • Geopolitics: the deteriorating US-China relations, escalated trade tensions expanded from tariffs to forced labor, and the potential trade disruptions have concerned US fashion companies significantly. Notably, US fashion companies regard sourcing from China as increasingly risky, with the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) in June 2022. For example, according to Company 2, “The Uyghur Forced Labor Prevention Act and other similar legislation may lead to greater supply chain compliance costs and delays to us and to our vendors.”
  • Near-shoring: due to the decoupling and de-risking from the China movement, US fashion companies have begun actively exploring near-shoring sourcing opportunities in the Western Hemisphere, particularly from members of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). For example, Company #1, the North American manufacturer, disclosed that “(our) Company relies on a number of preferential trade programs (…) including the Dominican Republic – Central America – United States Free Trade Agreement (CAFTA-DR (…) Collectively, these agreements strengthen US economic relations and expand trade with Central America, the Dominican Republic, and Haiti.
  • Sustainability and social responsibility: It is noteworthy that aside from climate change and forced labor, which are typically addressed as risk factors, US fashion companies generally hold an optimistic and forward-looking perspective for sustainability, such as new technologies and endeavors toward more sustainable production and sourcing. Terms such as using preferred or recycled materials, supply chain transparency and traceability, and emerging sustainability technologies have been more frequently mentioned in companies’ annual or ESG reports. For example, Company #17 says, “Increase the usage of environmentally preferred materials to comprise 32.6% of the brand’s global materials footprint.” Company #2 adds, “Our goal is to use preferred materials in 100 percent of our products by 2030.” Company #9 states, “We collaborate with suppliers to increase the supply of preferred raw materials.”
  • Supply chain transparency: US fashion companies attach great importance to improving supply chain transparency and traceability. Compared to the past, fashion companies are more willing to invest in new technologies and digital tools, allowing them to map supply chains and achieve sustainability goals more effectively. Related to this, US fashion companies have actively engaged with industry associations and other industry communities outside the company to stay informed about sustainability trends and learn best practices.

By Emily Delaye and Sheng Lu

Note: Welcome to the webinar hosted by the US Fashion Industry Association (USFIA) on Friday, December 15, 2023 at 2:00pm EST, to hear Emily Delaye discuss the study in detail.

FASH455 Exclusive Interview with Jennifer Pisula, Fabric Sourcing Manager at QVC, about Why Fabric Sourcing Matters

About Jennifer Pisula

Jennifer Pisula is a Fabric Sourcing Manager at QVC. Jennifer is also a member of the Cotton Board, appointed by the U.S. Secretary of Agriculture.

Jennifer has over ten years of experience in the corporate retail industry, where she first started her career as a Buyer at Qurate for QVC, buying for brands such as Isaac Mizrahi, Liz Claiborne, and C. Wonder. Given her love for Product Development and Production, Jennifer shifted her career to Sourcing at QVC where she traveled to China, Hong Kong, and Vietnam for factory and mill visits. Jennifer left QVC to be the Sourcing lead for URBN’s Anthropologie Plus line and the lead for Free People Movement Pre-Production and Production. In 2020, Jennifer returned to Qurate to lead the Fabric Sourcing team for QVC, where she manages sourcing & R&D for over 20 brands, working on both celebrity and core private label brands. Jennifer also works part-time as an Adjunct Professor at Immaculata University, where she teaches Textiles and Fashion Portfolio Development. In addition to her professional positions,

Jennifer Pisula graduated from the Textiles, Fashion Merchandising and Design M.S. program from the University of Rhode Island & earned a B.S. in Fashion Merchandising from Mercyhurst University.

The interview was conducted by Leah Marsh, a graduate student in the Department of Fashion and Apparel Studies at the University of Delaware. Leah’s research focused on​​ exploring EU retailers’ sourcing strategies for clothing made from recycled textile materials and fashion companies’ supply chain and sourcing strategies.

The interview is part of the 2023 Cotton in the Curriculum program, supported by Cotton Incorporated, to develop open educational resources (OER) for global apparel sourcing classes.

Understand the Evolving Production and Trade Patterns of Textiles and Apparel “Made in Asia”: Discussion Questions from Students in FASH455

Students in FASH455 have proposed the following discussion questions based on the videos about the state of textile and apparel in Asia. Everyone is welcome to join the online discussion. For FASH455 students, please address at least two questions and mention the question number (#) in your reply.

#1 We have seen all the improvements and “upgrading” Vietnam has made toward the fashion industry. What can the garment industry in other countries take away from Vietnam’s experiences?

#2 Is Asia’s highly integrated apparel supply chain unique to the region? Can the Western Hemisphere “copy” Asia’s model?

#3 How can Asia’s textile and apparel industry balance the growing demand for sustainability and the need to remain cost-competitive? What innovative strategies can be adopted to achieve this balance?

#4 As Asian textiles and apparel factories continue to improve their efficiency and expand product offers, will it be beneficial for the US to reach a trade agreement with Asian countries? Or do you believe such an agreement might contradict the goals we try to achieve from CAFTA-DR?

#5 Will Vietnam eventually become the next China, or could its labor shortages be a significant barrier preventing its textile and apparel industry from advancing to the next level?

#6 Should textile and garment factories in Asia make more efforts to appeal to the younger generation (e.g., Gen Z)? Or is automation the solution?

#7 To what extent do you think Asian apparel exporting countries (e.g., Bangladesh, Vietnam and Cambodia) will reduce their dependence on textile raw materials supply from China due to the Uyghur Forced Labor Prevention Act (UFLPA)? Or, instead, do you think Asian apparel-exporting countries other than China benefit from UFLPA?

#8 The video shows that Asian countries have begun to invest heavily in new production capacities for textile recycling. Do you believe the region will continue to dominate textile and apparel production in the era of fashion circularity? Or will the emergence of textile recycling shift the world textile and apparel trade patterns in the long run?

FASH455 Exclusive Interview with Beth Hughes, Vice President of the American Apparel and Footwear Association (AAFA), about US apparel sourcing from Central America

About Beth Hughes

Beth Hughes serves as the Vice President of the American Apparel and Footwear Association (AAFA), responsible for supporting the association’s efforts on international trade and customs issues. Beth oversees AAFA’s Trade Policy Committee, as well as AAFA’s Customs Group. Beth is also the spokesperson of the Coalition for Economic Partnership in the Americas (CEPA), a group of prominent American companies, and manufacturers committed to advancing regional trade and employment opportunities in the Western Hemisphere.

Before joining AAFA, Beth served for six years as senior director of international affairs at the International Dairy Foods Association. Beth earned a Bachelor of Arts degree in political science at George Washington University and received a Master of Arts in international affairs from Florida State University.

The interview was conducted by Leah Marsh, a graduate student in the Department of Fashion and Apparel Studies at the University of Delaware. Leah’s research focused on​​ exploring EU retailers’ sourcing strategies for clothing made from recycled textile materials and fashion companies’ supply chain and sourcing strategies.

The interview is part of the 2023 Cotton in the Curriculum program, supported by Cotton Incorporated, to develop open educational resources (OER) for global apparel sourcing classes.

FASH455 Exclusive Interview with Julia Hughes, President of the United States Fashion Industry Association about the Latest US Apparel Sourcing Trends

About Julia K. Hughes

Julia K. Hughes is President of the United States Fashion Industry Association (USFIA), which represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. She represents the industry in front of the U.S. government as well as international governments and stakeholders, explaining how fashion companies create high quality jobs in the United States and economic opportunities around the world.

An expert on textile and apparel trade issues, Julie has testified before Congress and the Executive Branch. She frequently speaks at international conferences including the China & Asia Textile Forum, Fashion Institute of Technology (FIT), Harvard University’s Bangladesh Development Conference, MAGIC, Prime Source Forum, Vietnam Textile Summit, and others.

Julie served as the first President and is one of the founders of the Washington Chapter of Women in International Trade (WIIT) and is one of the founders of the WIIT Charitable Trust. She also was the first President of the Organization of Women in International Trade (OWIT).  In 1992, she received the Outstanding Woman in International Trade award and in 2008, the WIIT Lifetime Achievement Award. She also is a member of the International Women’s Forum.

Julia has an M.A. in International Studies from the Johns Hopkins School of Advanced International Studies and a B.S. in Foreign Service from Georgetown University.

The interview was conducted by Leah Marsh, a graduate student in the Department of Fashion and Apparel Studies at the University of Delaware. Leah’s research focused on​​ exploring EU retailers’ sourcing strategies for clothing made from recycled textile materials and fashion companies’ supply chain and sourcing strategies.

The interview is part of the 2023 Cotton in the Curriculum program, supported by Cotton Incorporated, to develop open educational resources (OER) for global apparel sourcing classes.

Technical Design and Apparel Sourcing: FASH455 Exclusive Interview with Emma Zuckerman (UD & FASH BS16), Technical Designer at Nike

About Emma Zuckerman

Emma Zuckerman, a New Jersey native, graduated from the University of Delaware in 2016 with a degree in Apparel Design. During her time at UD, she actively participated in the FASH program and engaged in extracurricular activities related to her major. Emma conducted research on functional fashion with Dr. Martha Hall and held positions on the executive board, eventually becoming the President of Synergy Fashion Group in her senior year. She also founded a club dedicated to creating adaptive garments for children with disabilities. After graduation, Emma commenced her career in technical design with Under Armour (UA), accumulating six years of experience across various apparel categories and fabrications. She began in youth basketball, then transitioned through a range of products, from underwear to seamless leggings, woven jackets, and pants. In her later years at Under Armour, she played a significant role in the launch of Curry Brand and the introduction of UA’s first inline women’s basketball apparel line (non-uniform). Presently, Emma holds the position of Senior Technical Designer at Nike, where she contributes to the development of ACG and Nike SB product lines.

In her free time, Emma loves working on personal sewing, patterning, and draping projects. She also loves hiking, skateboarding, baking, swimming, and painting!

Sheng: What does a technical designer do? Can you walk us through your typical day as a technical designer? Also, what makes you love your job?

Emma: Technical designers work on developing clothing – we work with factory partners to take a style from a conceptual sketch to bulk production. For each style, we start by working with our design partners to understand their vision. We create detailed construction sketches, measurement charts, and sometimes original patterns, then compile those into a tech pack along with our designer’s garment sketch and a Bill of Materials outlining all garment components. A factory partner uses the information in that tech pack to make a sample to send back to us. We fit that sample with our team, cutting and pinning until we achieve the desired fit and aesthetic. The factory uses our feedback to create a second sample, and this process repeats until the style is finalized and approved for production. Throughout the process, we keep the tech pack up-to-date and ensure it accurately reflects the style we’re developing.

There are so many things I love about my job! The subjects of fitting and patterning are fascinating to me, and there will always be so much to learn about them. I love that throughout my career, there will be no limit to how much I can learn and how much my skills can grow. I exercise my creativity while also exercising the mathematical side of my brain, so my job is constantly challenging me in really interesting ways. I get to work with people around the world, learn about other cultures, backgrounds, and communication styles, and collaborate with amazingly talented teammates.

Sheng: How does a technical designer get involved in a fashion company’s sourcing process?

Emma: A technical designer’s level of involvement in the sourcing process varies from company to company, but it is always extremely helpful to work closely with our sourcing team. Since both technical designers and the sourcing team communicate with factories, we often check in with each other to make sure the information we’re sending is consistent. We (technical designers) can help provide feedback on factory capabilities and sample quality. Understanding the sourcing process helps us gain insight into why our sourcing partners allocate certain styles to specific factories (for example, a factory might have expertise with woven fabrics, outerwear, or embroidery; a style might qualify for a lower duty rate if sourced from a specific region; some factories may reach their maximum capacity for new styles more quickly than others).

Technical designers work most closely with our sourcing partners during costing conversations. Factories send cost sheets for every style at several key points during development. These cost sheets break down every element that contributes to the final cost of making the garment, from materials to trims, to time spent.  One major role of a sourcing partner (or, at some companies, a product developer) is to process these cost sheets and advise the rest of the team on how much cost needs to be saved, and/or what steps can be taken to save cost, to ensure the style is profitable. Technical designers can use our garment construction and patterning expertise to effectively contribute to these conversations (which leads nicely into the next question)!

Sheng: We know production cost is a critical sourcing factor for fashion brands and retailers. From a technical designer’s perspective, what factors affect garment production and its sourcing costs? What strategies can be employed to manage these costs, beyond labor wages?

Emma: So many factors affect production cost – at the top of my mind are material cost (for fabric yardage and individual trims like zippers) and cut/make time (which includes labor cost and factory overhead). Material usage and cut/make time are both factors that technical designers can heavily influence during costing conversations with our design and sourcing teams. 

Material usage: Marker efficiency refers to the amount of fabric used per garment compared to the amount wasted. The more closely pattern pieces can fit together, the less space for fabric scraps between them and the more efficient a marker will be. A technical designer can use their patterning experience to advise pattern shapes that will contribute to marker efficiency. For example, adding or removing a seam may allow pattern pieces to fit more closely together. Choosing where and when to engineer print placements – for example, matching stripes across a seam – will also impact the way pattern pieces can be arranged and, therefore, how efficient a marker can be. An efficient marker will both save cost and minimize fabric waste.

More on material usage, and cut/make time: Each construction choice contributes to the final cost of making the garment. For example, when it comes to finishing seam allowances, binding a seam allowance will take longer and use more material than an overlock stitch. For that reason, binding a seam allowance will also be more expensive. As garment construction experts, we lead conversations about style details, the time it will take to construct them, and other options that could potentially save time and material. This helps our team make informed choices that consider both cost and aesthetics.

Sheng: What are your thoughts on the trend of fashion companies using more sustainable materials like recycled cotton in their products?

Emma: I support fashion companies making an effort toward more sustainable & ethical production, and using recycled materials is an important step. Fabric with recycled fiber content can be more expensive and more difficult to source than traditional fabric, which may discourage some companies from moving in that direction. I’m hopeful that this trend will continue and that as it gains popularity, fabric with recycled fiber content will become easier to source over time.

Speaking of ethical production, I also would like to see fashion industry brands take additional steps toward a more earth-positive and people-positive existence, including:

  • Considering local labor laws, worker wages, and working conditions when selecting factories
  • Implementing garment repair programs to extend the lifecycle of their styles
  • Improving accuracy of demand planning to reduce excess inventory and/or considering donation or upcycling of excess inventory
  • Expanding size ranges and accurately grading sizes to fit well on plus-sized consumers
  • Moving away from gendering clothing as “men’s” or “women’s;” during sample development, checking that samples fit well on lots of body types (including individuals who have had gender-affirming care, individuals who haven’t, individuals who may be wearing gender affirming garments like binders)
  • Diversifying the company workforce at every level, from entry-level to leadership to c-suite
  • Expanding representation in advertising campaigns to reflect the diversity of global consumers
  • Supporting nonprofit agencies whose work aligns with company values

Some companies are doing a great job of fulfilling some, most, or all of the items on my above wish list, but we know that the fashion industry has a long way to go when it comes to impacting our earth and our societies positively. I think it’s our job as newer fashion industry professionals to speak up about all of this and start to push our industry in a better direction.

Sheng: What other key industry trends will you closely monitor in 2023?

Emma: I am so interested in the increased use of 2D and 3D patterning software. Programs such as Gerber, Optitex, Clo, and Browzwear are already changing the design and development process in fascinating ways. Experience in any of these programs has already become a very valuable asset for job applicants. I’m curious whether garments will ever be sold to consumers based only on 3D renderings, and if body scanning will become a more mainstream part of the shopping process.

I’m also curious how the increased use of 2D and 3D patterning software will impact more traditional design processes, like paper patterns and draping. Will these arts be preserved? Are there types of apparel that will always need to be draped or patterned physically? Will students 20 years from now still learn to pattern and drape the way we did, or will these skills be fully computer-based?

Sheng: Any reflections on your experiences at UD and FASH? what advice would you offer current students preparing for a career in fashion after graduation?

Emma: I feel so lucky to have had the experience that I did at UD and within the FASH program. I learned so much in my patterning, draping, collections, textiles, and sourcing classes (big shoutout to Dr. Lu!) that has stayed with me and helped me find success in my current job.

I have so much advice! If you’re looking for a career in technical design, practice any patterning software you can access as much as you can. As you begin applying to jobs, try to reach out to contacts at the companies you’re applying to (even if it means sending a random LinkedIn message to a fellow UD grad, or asking a professor/another student to help connect you with someone). Start your career with curiosity and an open mind – you will learn so much on the job that isn’t covered in school. Try to find a mentor, or several mentors, who’ve had work experiences similar to yours. A mentor who you can trust and rely on for advice makes a huge difference when work gets challenging. Speaking of which – work does get challenging, and that’s okay! Work on learning to identify situations that you can work through and learn from (which are hugely beneficial to your personal growth and career development), compared to work environments that are more consistently unhealthy or not providing what you need (which are an indication that it’s time to make a change). If you have coworkers you trust, sharing salary information openly is a great way to make sure everyone’s skills and contributions are being valued appropriately.

Enjoy your time in college and in the FASH program. I miss it!

–The END–

What Does Sustainable Apparel Sourcing Mean for Generation Z?

Many brands and retailers are trying to make their apparel sourcing more sustainable, from publishing the ESG report to using more recycled textile materials in the products. However, the effectiveness of fashion companies’ sustainability efforts and related communication remain largely unknown, especially among Generation Z, their most important target market.

Students in FASH455 and FASH graduate students recently shared their valuable perspectives on sustainable apparel sourcing with Just-Style, a leading publication focusing on the fashion industry. Below are selected original comments from students:

What “sustainable apparel sourcing” means to you and your generation, Generation Z?

Cecilia Goetz, Fashion Merchandising and Management Major (Honors), Senior

To me, sustainable apparel sourcing means going about sourcing in an ethical way both environmentally and socially and often putting the financial interests of the company on the backburner in order to do so. This can mean a number of things, including a shift towards more local production (nearshoring), the implementation of labor regulations in factories, and the use of more eco-friendly materials. On top of this, it is a matter of companies being entirely transparent with their efforts and being open with consumers about where their products came from and how they were made. Part of sustainability involves doing everything in a company’s power to support people and the environment, and the other part involves telling consumers the entire truth, whether it works in their favor or not. I think a large portion of Generation Z has a strong understanding of “sustainable apparel sourcing,” but there are still so many young consumers who are never faced with the question of how to define it and how to achieve it. My generation is definitely one that is more progressive and well-informed regarding social issues than the Baby Boomers, for example, but there is definitely still a long way to go in terms of educating Gen Z on sustainable practices within the apparel industry.

Emilie Delaye, Entrepreneurship Major, Fashion Management Minor, Senior

It is difficult to share exactly what “sustainable apparel sourcing” means to me and my generation, as I feel the meaning and interpretation of the word “sustainable” itself is changing and expanding rapidly. A few years ago, probably 5-10 years ago, the phrase sustainable apparel sourcing referred to sustainable efforts in terms of the environment. This meant that products were perceived as sustainably sourced when they met some of the following characteristics, including: using inputs that are biodegradable components from natural or recycled fibers, inputs that have no chemical treatment use, or inputs that were produced with the effort to reduce overall carbon footprint. I think now, my generation is viewing “sustainable sourcing” as a phenomenon that is much larger than environmental issues. There are many more intricate issues that intertwine with sustainable sourcing that go beyond purely environmental focuses, including social and ethical factors. Gen Z consumers, including myself, are becoming more concerned with the “who” and “where” questions in sourcing. This means that consumers view sustainable sourcing as things such as sourcing from responsible production facilities that pay fair wages or avoiding sourcing in areas with large social or ethical issues.

Hannah Laurits, Graduate Student, Fashion and Apparel Studies

For Generation Z, the concept of “sustainable apparel sourcing” embodies a commitment to ethical, eco-conscious, traceable, and transparent sourcing practices. Sustainability encompasses various elements that define responsible production. It depends upon the ability to trace the origins and production methods of products, emphasizing fair labor practices across all tiers of the supply chain. Our generation greatly emphasizes environmental preservation and recognizes the importance of protecting our earth’s natural resources for future generations.

A sustainable supply chain operates with a determination to minimize adverse environmental impacts by harnessing emerging innovations in materials and processes. To Generation Z, a product can earn a sustainable label or association by meeting a portion of these criteria. Realistically, we understand that perfection in sustainability remains nearly impossible to achieve today. Nevertheless, as a generation, we actively seek products that align with as many of these sustainability parameters as possible and validate their claims with reliable evidence. To Generation Z, sustainable sourcing is about driving positive change in the fashion industry through our apparel supply chain.

Miranda Rack, Fashion Merchandising and Management Major (Honors) & FASH 4+1 Program Graduate Student

Sustainable apparel sourcing means knowing where textiles and apparel come from and who made it. Consumers are starting to consider this information when buying clothing. The country-of-origin label does not provide enough information to learn anything about the garment. Especially because the country-of-origin tag only displays where the garment was finished, consumers receive no information on where the fibers or fabric was sourced. While it is common for brands to share their tier 1 suppliers, consumers want more information than that. We want to know which factories produced what, and especially who made our clothing. If a brand wants to source apparel more sustainably, the first step is to become more transparent. Brands should be required to publicize all steps of their supply chain. Consumers value supply chain transparency because it builds a sense of trust between brand and consumer. It is the brand’s responsibility to be open and honest about where their products come from, not the consumer’s job to research every time they shop.

Kendall Ludwig, Fashion Merchandising and Management Major & FASH 4+1 Program Graduate Student

It means full responsibility for their supply chain. From start to finish, a company knows who makes their products and ensures that the garment workers they employ have access to basic human rights such as a living wage and the right to unionize. On top of this, the company should ensure that the health and safety of their workers are not at risk. If human rights abuses appear in their supply chain, the company must remediate them. From an environmental perspective, sustainable apparel sourcing also means that a company has implemented a plethora of strategies to minimize the harmful environmental impacts their business creates. Further, social and environmentally sustainable apparel sourcing requires transparency from apparel companies. If a company does not disclose their efforts, it is valid to assume they have none. The more transparent, the better!

Leah Marsh, Graduate Student (4+1 program), Fashion and Apparel Studies

Gen Z has become increasingly aware of the global fashion industry’s harmful effects on the environment. With this, a majority of us have turned towards the topic of sustainability in order to purchase clothing and support companies that cause minimal harm. Our understanding of “sustainable apparel sourcing” includes both environmental and social topics. We believe that companies who sustainably source their apparel products are paying their workers fair wages and, protecting their health and safety, and also respecting their local environments by minimizing their output of pollutants and being mindful of limited resources. These are just a couple of specific examples, but we also care about topics such as economic circularity, local production, and consumer education. Ultimately, to Gen Z, sustainable apparel sourcing means not only producing clothing with minimal negative environmental and social impacts but also being transparent and responsible throughout the entirety of the supply chain. Gen Z consumers are continuously looking for fashion brands and companies to support that align with these values. It is important to me and my generation to support those who make genuine efforts to create a more sustainable and ethical fashion and apparel industry.

Annabelle Brame, Fashion Design & Product Innovation Major, Senior

When asked how we Gen Z interprets “sustainable apparel sourcing” the first thing that comes to mind is sustainability for workers. I think it is so easy to confuse sustainability with environmental consciousness. And while that is a piece of it, the ethical element is wildly important. Since most companies outsource production from other countries with more labor, we are very conscious of how that looks for the workers. We see employees not being fairly paid with poor working conditions, which is not only sickening but wildly unsustainable. And while there is so much talk about the poor conditions, that is how we encourage the shift to more sustainable practices. Sustainability in apparel sourcing starts to look at fair wages, manageable hours, and safe working conditions. This isn’t a one-person job. It takes companies, the government, and factory owners to make that change physically.

Hunter Wills, Entrepreneurship Major, Fashion Management Minor, Senior

Sustainable apparel sourcing means that you know exactly where a garment is coming from, you are able to easily learn about the supply chain if you would like to do further research, and you know everyone in the process is being treated ethically. When brands try to hide information about their supply chain, it usually means they are not practicing sustainable sourcing, whereas companies that are very open and transparent about this process are more likely to be sustainable.

How does a fashion company’s sustainability in apparel sourcing affect your purchasing decisions?

Cecilia Goetz, Fashion Merchandising and Management (Honors), Senior

I am embarrassed to admit that in high school, I shopped at brands like Shein and Forever 21 before taking any classes, especially about fashion and sustainability. As a teenager with little money of my own and virtually no knowledge of what goes on behind the scenes before a garment arrives at your doorstep, the low prices and trendiness of clothing was my main priority. Unfortunately, I think that is the case for a lot of young consumers, which is why brands like Shein perform so well. Now, after years of specially curated classes about the fashion industry, I have learned about the Rana Plaza Collapse of 2013, the chemicals and water used in the production of a single t-shirt, the wages for garment workers in less developed countries, and so much more. As a result, the sustainability of a brand is something I really look into when shopping. Whether it be the hang tags on a garment calling out recycled materials, an online tab about sustainability initiatives, or a hanger made from eco-friendly materials, I am always more inclined to make a purchase from a brand when I see these things. I do, however, also try to weary of vague references to ethical or environmentally sound practices because not all companies tell the whole truth when advertising the sustainable aspects of their products.

Emilie Delaye, Entrepreneurship Major, Fashion Management Minor, Senior

I think that a fashion company’s sustainability in apparel sourcing does affect my purchasing decisions, however, I believe that I am more informed than the typical Gen Z consumer. Though it is becoming increasingly popular for consumers to be educated on the processes, such as sourcing processes, that go into their apparel production, I do not believe we are at a point where the average consumer understands or has the background knowledge to know what the implications of brand’s sourcing decisions have. By studying the fashion industry in school, I have had access to this knowledge, and therefore have changed my shopping behavior. I tend to lean more towards thrifting clothing, as most sustainable brands that seem compelling fall sadly out of the price range of a college student’s tight budget. For me, thrifting from local consignment stores is a way for me to “boycott” the larger fast fashion brands and choose a relatively lesser evil.

Hannah Laurits, Graduate Student, Fashion and Apparel Studies

A company’s reputation and commitment to sustainable sourcing practices significantly influences my purchasing decisions. When I shop, I try to practice conscientious consumption, taking into account that company’s reputation and what the impact of that article of clothing may be. Being well-informed about the practices of the brands I support is crucial to me, as I feel it is my responsibility to ensure I am buying from a company that is dedicated to maintaining a sustainable supply chain. When I am unsure, I tend to do more research into the brand to see how transparent they are about their practices. When purchasing a clothing item, I strategically look for brands that are doing their part in this industry’s efforts to improve their environmental and social impacts. While I don’t expect absolute perfection in a company’s sustainability practices, I remain vigilant for warning signs, such as greenwashing or a lack of information, that may raise doubts about their authenticity.

Miranda Rack, Fashion Merchandising and Management Major (Honors) & FASH 4+1 Program Graduate Student

As a student studying sustainable fashion, a company’s sourcing habits greatly affect my purchase intention. I buy most clothing secondhand because I do not trust many popular retailers to put sustainability over profit. I will not shop from them if I cannot verify that a brand’s sourcing strategies do not harm people or the planet. Because so many brands are not transparent enough, it is nearly impossible to verify that their sourcing practices do less harm than good. For example, I will not buy from Shein because I cannot verify that their products are made without forced labor. Shein, among many other Chinese fast fashion retailers, takes advantage of de minimis policies, which allow many product shipments to sneak through customs. There is a possibility that Shein sources cotton from the Xinjiang region of China, so I do not shop there.

Kendall Ludwig, Fashion Merchandising and Management Major & FASH 4+1 Program Graduate Student

A fashion company’s sourcing sustainability efforts are a huge determinant of whether or not I will buy from them. This is one of the main reasons why I predominantly shop secondhand. Not enough brands live up to my expectations when it comes to supply chain transparency. It is hard for me to buy a new product when I am unsure of where it has been through every stage of its development. Although this is also the case when I buy secondhand clothing as well, I know that I am not directly giving my money to a brand that may be exploiting workers or causing detrimental harm to the environment.

Leah Marsh, Graduate Student (4+1 program), Fashion and Apparel Studies

As a Gen Z consumer who prioritizes ethical and sustainable fashion, there are a handful of different ways that a company’s sustainability in apparel sourcing affects my purchasing decisions. To begin, I believe that research and transparency is the first step I take in order to understand whether or not I should support a specific brand. It is really important to me for a company’s website, or an article of clothing’s tag to disclose as much information as possible. Key information that stands out to me as a conscious consumer is the country of origin, price, fiber content, and even the care instructions.

With this, if I notice that a company sources its materials from a hazardous region or the original retail price is astronomically low, I definitely think twice about purchasing their products. The biggest dividing factor amongst Gen Z consumers is the fact that some see these extremely low prices and follow through with the purchase due to its economic appeal. On the other hand, some see these prices and immediately question how a product could be produced at such a low price, and refrain from supporting the company.

Annabelle Brame, Fashion Design & Product Innovation Major, Senior

Personally, it holds a great deal on how I purchase. While I am a college student I recognize the dramatic harms of shopping fast fashion, which uses a vast range of unsustainable sourcing practices. That leads me not to want to purchase from brands such as Shein, no matter the cost. However, it is important to recognize my background and education. As a fashion student, I have learned so much about what goes on behind the curtain that the masses don’t. I think it is important to remind ourselves when interacting with other individuals shopping at these places, that they are only seeing the surface level of this information, and while we can’t cause them to fully understand it in one conversation, we have to remember creating resources and alternatives that demonstrate sustainable sourcing is what can help make that difference.

Also we have to consider the trade-off. Can we stop purchasing from companies who aren’t making changes in how they source? Not always. So, we have to think critically about how we consume and show ourselves grace as we work towards a more sustainable future. Is it possible to quit shopping at brands that do not pay their workers a living wage cold-turkey?

Honestly, probably not. Many of our brands are not transparent or know fully what is happening where they are producing so it is extremely difficult as consumers to buy into the right places correctly. Also, the key is moderation, just like going on a diet. If you give up all sweets, it makes it more likely you will quit the diet altogether. But what will lead to your success is learning how to consume it in a healthy moderation. For example, instead of spending hundreds of dollars on hauls of clothing, consume less. A purchase every now and again is nothing to feel guilty of. It is all about moderation. The ways these unsustainable companies make their money is from the mass amounts of consumption. By consuming less, it significantly begins to help the problem. That is what I think scares Gen Z so much, the idea that it is an all-or-nothing trade when purchasing.

Hunter Wills, Entrepreneurship Major, Fashion Management Minor, Senior

A company’s sustainability in apparel sourcing is the main driver in my purchasing decisions. This makes it very hard for me to justify buying anything new because there are very few brands that are making clothing with sustainable sourcing in mind and are offered at a price point that I can afford. This usually causes me to look online or thrift stores for second-hand clothing that I know will last.

Are there specific sustainable materials or practices in apparel sourcing that particularly interest you and your peers? Why do you find them appealing or important?

Cecilia Goetz, Fashion Merchandising and Management Major (Honors), Senior

The act of recycling fabrics to create new textiles or upcycling old garments into exciting and fashionable pieces is a practice that definitely resonates with several members of Generation Z, including my peers and me. Overproduction and overconsumption are two very large issues in the apparel industry that have an extremely negative effect on the environment…Upcycling, in particular, is something that Gen Z has taken a liking to. My Tik Tok “for you page” is often filled with crafty teenagers turning a worn down pair of pants from Goodwill that they would never wear into a stylish two-piece set that can be worn in multiple ways. Not only did they spend little money, but they also got the opportunity to show off their creativity and design skills on an app that could allow them to go viral at any moment. In posting these videos, they are helping their personal brands while showing their viewers how they can be sustainable and upcycle clothing themselves.

Emilie Delaye, Entrepreneurship Major, Fashion Management Minor, Senior

The biggest sustainable materials and practices that come to mind would probably be associated with the key terms “organic cotton” and “fair labor”. In terms of sustainable materials, organic cotton has become one that is very popular in Gen Z, and one that brands have quickly picked up on and highlighted in their practices. The other term that I believe highlights some of the most popular practices when it comes to sustainable sourcing is fair labor. This practice I believe is still particularly prevalent in the more “woke” crowds of consumers, however has begun to penetrate mainstream discussion. I believe that Gen Z consumers want to be able to consume clothing, knowing that the production and sourcing was not associated with child or slave labor. Brands have also tended to emphasize this practice for their consumers. Whether their statements are an accurate representation of their sourcing has yet to be seen.

Hannah Laurits, Graduate Student, Fashion and Apparel Studies

Absolutely! Specific materials are very appealing to both myself and my peers. Any time I come across an article of clothing, one of the first things I do is to inspect the inside tags to determine its place of origin and the fiber composition of the fabric. Investigating a product’s origins provides valuable insights into that garment’s potential economic and social impact.

What excites me the most are sustainable fibers, especially new innovations which are more environmentally friendly. When looking at fabrics, I watch for green flags such as organic fibers, hemp, linen, bamboo, and more. Many of my peers are interested in recycled fibers, such as recycled cotton. These fibers are enticing to my peers and I as they are much less harmful to the environment compared to other alternatives.

Miranda Rack, Fashion Merchandising and Management Major (Honors) & FASH 4+1 Program Graduate Student

Sustainable apparel sourcing does not just include supply chain transparency but also the environmental impact of sourcing decisions. Brands often set benchmarks to reduce carbon or water emissions, use more recycled textiles, source only organic materials like cotton, or no longer use animal fur. All these issues are equally important in sustainability, but consumers will prioritize issues that personally interest them when shopping. Personally, I am most passionate about overconsumption and post-consumer textile waste. So, I am more likely to shop at secondhand stores than slow fashion retailers.

Kendall Ludwig, Fashion Merchandising and Management Major & FASH 4+1 Program Graduate Student

I think organic cotton has become quite popular recently with our peers. In the Sustainable Fashion Club (note: a student organization at the University of Delaware), the most popular activity by far is painting organic cotton tote bags. Our members love receiving a product that was made with sustainability in mind. While there are unsustainable elements to organic cotton, it seems to be what our Gen Z peers are most drawn to when trying to consume with intention. I think this is still a step in the right direction because consumers are becoming more informed about sustainability in fashion if they are drawn to organic materials. As their knowledge increases, so will responsible purchasing decisions.

Leah Marsh, Graduate Student (4+1 program), Fashion and Apparel Studies

I believe that the sustainable practice in apparel sourcing that resonates with me the most is ethical labor. The topic of fair treatment and fair wages for workers in the fashion industry is what first got me interested in sustainability as a whole. It is extremely important to ensure that all workers are paid fairly, provided safe working conditions, and have basic labor rights protected. There are a handful of accounts and campaigns on social media that introduced me to this important issue. I follow Labour Behind the Label and Fashion Revolution which are two of the non-profit organizations that advocate for a more ethical and sustainable supply chain. Moreover, two of the most prominent social media campaigns are the #PayUp movement and the #WhoMadeMyClothes movement.

Annabelle Brame, Fashion Design & Product Innovation Major, Senior

As a designer, I have really gravitated to fabrics that are not blends. That allows for fabric to be easily recycled after the product’s life, unlike blended fabrics. Secondly, brands sourcing from the U.S. because I feel confident in our enforcement of labor laws. Being able to have the transparency from just trusting the government policies is comforting and inspires me to want to support businesses that run their brands like that. As other countries begin to make changes in their laws, it opens my mind to implementing sustainable sourcing internationally.

Also transparency. I would rather have a company tell me they pay their worker $68 a month than tell me nothing at all or try to make themselves look better than they are. Having that information allows me to evaluate in my brain, if this is ethically right for me. In doing so, it allows consumers to encourage change.

Hunter Wills, Entrepreneurship Major, Fashion Management Minor, Senior

One sustainable practice that I resonate strongly with is upcycling. Upcycling is taking pre-existing clothing and using it to make new garments. I currently do this with my clothing brand named Funky Rat, where we take older pieces of clothing and add our own designs via embroidery and screen printing to them and then sell them. We could have started the brand by having a completely custom hoodie manufactured for us, but we felt there was no need to have this new garment made when we can find perfectly good quality hoodies at local thrift stores and design on top of these. This also allows us to have a unique selection of products and colors, as opposed to having 50 of the same exact thing.

Another practice that resonates strongly with me and my peers is zero waste design. Last semester I found this concept for the first time and was immediately intrigued. I ended up making a hoodie shortly after using a zero waste pattern from the designers Shelly Xu and Katla. It was incredible to me to see something so simple in terms of a pattern fit so well, while creating no waste. I am currently working with a friend on a few zero waste patterns and design concepts, and I cannot wait to see where this concept moves in the future, especially at scale.

How effectively do fashion companies communicate their sustainability efforts to Generation Z like yourself? Are you concerned about the issue of ‘greenwashing’?”

Cecilia Goetz, Fashion Merchandising and Management Major (Honors), Senior

There is definitely some “greenwashing” and performative language used by fashion companies. Some brands struggle to include every detail of the processes that go into the manufacturing of their products. Although they are rarely lying, they often word things in a way that makes them sound better than they are while excluding important information. Some companies are known for their recent shift towards more sustainable practices and transparency. However, they still fail to include exact information about their factory set-ups and are often called out for their lack of true transparency. Moving towards sustainability in the apparel industry has become a major trend in recent years and I think brands are more-so trying to appease consumers and maintain a certain image of integrity, rather than make genuine changes in their mindsets and overall brand ideals.

The main issue behind greenwashing– besides the fact that it is somewhat unethical and sly– is that it works. Because so many customers are unaware of the lack of social responsibility and environmental practices within apparel production, they have no reason to believe that a brand might be withholding some of the truth on the tag of a garment or the product description online. They instead are excited by the thought of a “sustainable” piece of clothing and are often more inclined to actually follow through with the purchase. I will, however, give Generation Z some credit. I think my age group definitely cares more about sustainability than older generations and would be more likely to notice cases of greenwashing than other consumers.

Emilie Delaye, Entrepreneurship Major, Fashion Management Minor, Senior

I think that greenwashing is a major issue in the industry today. Brands have become more astute and turned into what consumers, such as Gen Z consumers, want and, therefore, have amplified their messages on sustainability and ethical business practices extensively. If you look at even major fast fashion brands, such as Shein, it can be seen that the term “sustainable” is thrown around quite frequently, with very little information to back up the statements. I do think as I have said, however, we are not at the point yet where the majority of Gen Z consumers question the words of the brands they are buying from. If a consumer sees that a brand has a section on its website that is dedicated to sustainability, they are very likely to believe that this brand is infact, sustainable.

Hannah Laurits, Graduate Student, Fashion and Apparel Studies

Honestly, it’s really hard right now for fashion companies to communicate their sustainability efforts to Generation Z, this is because sustainability is such a hot topic. Virtually every brand strives to align itself or its products with sustainability, even when its practices do not genuinely reflect these values. Greenwashing is a deceptive marketing tactic and is a large concern for my generation. As consumers and future industry professionals, we are very much aware and mindful of greenwashing practices.

In the retail setting, when I encounter multiple tags flaunting recycled symbols, excessive claims of environmental friendliness, or any other indications of greenwashing, I am immediately deterred. The best thing that a company can do to communicate sustainability efforts to Generation Z is to do so in a subtle yet thoughtful and thorough way. For example, I look for companies that have a dedicated page on their website that goes in depth about their sustainability efforts and future goals. Levi’s is a great example of a brand that does this well.

Brands that genuinely pride themselves on being sustainable and prioritize sustainable practices, should convey their efforts without resorting to overt marketing tactics which may resemble greenwashing. Instead, they should lead with authenticity and transparency, fostering Generation Z’s trust and loyalty as consumers committed to sustainable lifestyles.

Miranda Rack, Fashion Merchandising and Management Major (Honors) & FASH 4+1 Program Graduate Student

Fast fashion companies do a horrible job communicating their sustainability efforts to Generation Z.  The “sustainability” tab is always super small, all the way at the bottom of the home page. Fast fashion retailers are not forthcoming about sustainability initiatives because there is almost always nothing to brag about. I am very concerned about greenwashing because it is just another way for brands to take advantage of consumers. Most consumers do not study sustainable fashion, so when they read “made with 80% recycled fibers,” they believe it is true without verifying. Most brands do not outright lie about their sustainability efforts, but they do hide how their products and practices are killing the planet. Overconsumption is an enormous issue that is hidden from the public because so much post-consumer textile waste is shipped overseas to developing countries. Countries like Ghana and Chile are drowning in our old clothing, but Shein shoppers know nothing about this issue because it is not communicated to consumers. 

Kendall Ludwig, Fashion Merchandising and Management Major & FASH 4+1 Program Graduate Student

Greenwashing is a huge concern as sustainability continues to be identified as a “trend” that brands need to keep up with. Sustainability is not a trend. As a fashion student focusing on sustainability, it is easy for me to identify greenwashing tactics, especially on a brand’s website. But for consumers unfamiliar with greenwashing and sustainability efforts, they may see a sustainability page on a brand’s website and think the brand is doing their part.

Leah Marsh, Graduate Student (4+1 program), Fashion and Apparel Studies

Since sustainability and ethical fashion have become such a hot topic within the industry, I believe that fashion companies have been extremely successful in communicating their sustainability efforts to Gen Z. Companies are aware that this is currently the top priority for my generation, and they are definitely marketing towards it. For example, fashion brands such as H&M have not only increased the information they provide on individual products, but they have also added an entirely new tab to their website dedicated to sustainability. The new tab allows customers to explore the company’s work and commitment to sustainability. However, this has also raised the concern of “greenwashing.” Greenwashing is when a company claims to be doing something to improve their effect on the environment, but there is no proof of change or improvements. Consumers wonder how companies like H&M can prioritize sustainability when, at the same time, they are still a global fast fashion company that produces a plethora of products at relatively low prices.

Annabelle Brame, Fashion Design & Product Innovation Major, Senior

Quite honestly, extremely poorly. Off the top of my head, I can think of maybe two larger brands that I feel do an adequate job at showing their customers their efforts, which is so heartbreaking. I see the issues with greenwashing everywhere I go. Unfortunately, I don’t even believe it is fully the company’s fault. They themself are just uneducated on the topic. We do not have enough professionals to guide a change and effectively communicate “sustainability”; instead, we have incredible marketers who know how to influence consumers. As Gen Z wants to shop sustainably, we often settle for what we see, because we want to believe change is being made.

Especially with the idea that sustainability has to be expensive when we see a supposed “eco-conscious” shirt with sustainable materials for a good price, we don’t look into it. For example, organic cotton has so many benefits compared to standard cotton. But many people fail to realize there is just as much, if not more water waste in its creation. And just because that shirt was made with a so-called “better” cotton doesn’t mean workers were fairly treated or the textile mills had negative CO2 emissions. There is so much we don’t look into, partially from lack of time, but also the idea that we can’t fathom being lied to. These companies know that stamping an eco-friendly sticker on the tag does inspire customers, and they take advantage of that.

Hunter Wills, Entrepreneurship Major, Fashion Management Minor, Senior

I feel that fashion brands do not do a good job of communicating their sustainability efforts to Gen Z. As hard as they try to tell us what they are doing for sustainability, our generation is able to see right through the half hearted efforts and made up terms to fool consumers into thinking they are being sustainable. I feel that this is part of the reason for the resurgence of thrifting, especially with Gen Z. Our generation is tired of being lied to and decided to take that into our own hands with where we buy our clothes from. Thesad truth is that a majority of Gen Z does not know about the impacts of fast fashion and how much of an impact the fashion industry has on the environment. I feel that this is the case because of greenwashing. Brands want consumers to feel that they are helping, not hurting the world with their purchase and will go to great lengths to put on this facade.

As individuals studying fashion merchandising and design and representing the fashion industry’s future professionals, what role do you think your generation can play in advancing sustainability within the industry’s supply chain and sourcing practices?

Cecilia Goetz, Fashion Merchandising and Management Major (Honors), Senior

As Generation Z is slowly approaching the title of the “largest consumer group in America,” it is clear that we can play a major role in changing the trajectory of sustainability in the apparel industry. Gen Z’s strong social media presence gives us a type of influence that generations in the past didn’t have. This communication and activism on a worldwide scale allows the group to reach so many different people and create a call-to-action. There are lots of Instagram and Tik Tok accounts like @genzforchange or @environment who aim to educate their followers on current issues and events related to sustainability, social responsibility, and more. With over a million followers collectively, the two accounts can teach young consumers about their impact and how they can change their shopping habits. Adjusting their mindsets from a young age can then change the way they carry themselves as professionals years later and make them more likely to consider sustainability with every decision they make in their jobs. This can, in turn, prevent things like “greenwashing” from occurring because the people behind the scenes are educated on the matter and truly care about advancing sustainability within their companies.

Emilie Delaye, Entrepreneurship Major, Fashion Management Minor, Senior

I believe that one major role Gen Z individuals studying fashion merchandising and design can play in the industry deals with legislation. Our generation is being educated on these intricate and delicate issues at hand. With the education, we can provide a framework and legal structure that will define what classifies as “sustainable,” and that actively works against greenwashing. Hopefully, we can build a system that ensures brands are backing up their claims and feel the need to act ethically and transparently rather than simply acting in the best interests of their companies.

Hannah Laurits, Graduate Student, Fashion and Apparel Studies

I’m excited to see the increasing presence of Generation Z in the workforce, particularly because we are all so passionate about sustainability. I expect that my generation will play a huge role in advancing sustainability within our industry, supply chain, and sourcing practices as this is an issue that we genuinely care about.

In the years to come, as our generation takes on roles as designers, merchandisers, buyers, and more, we will advocate for sustainable practices within our workplaces. Generation Z has the ability to take this from just a business practice to a mindset for a company. Our generation will push for the adoption of conscious practices across all departments across many fashion brands and retailers. I truly believe that we as a generation, will make a significant contribution to a positive shift in the fashion and apparel industry.

Miranda Rack, Fashion Merchandising and Management Major (Honors) & FASH 4+1 Program Graduate Student

Students in the fashion field should be learning about sustainability in their classes. Not only should they be learning about it, but fashion students should also be actively practicing sustainable fashion in their everyday lives. We can take this knowledge to the industry and educate the older generations we will be working with. With sustainable fashion being a relatively new buzzword, we cannot expect all current industry professionals to be as well-versed and subsequently committed. The issue is with education. Consumers still support fast fashion because they are unaware of how it affects people and the planet. The fashion industry must focus on consumer education rather than profit to slow climate change. Educating consumers can start with creating a more transparent and accessible supply chain.   Publicizing their supply chain holds brands accountable for using suppliers who uphold their sustainability initiatives.

Kendall Ludwig, Fashion Merchandising and Management Major & FASH 4+1 Program Graduate Student

Our Generation Z is the most environmentally conscious, but at the same time, we buy the most fast fashion products. That being the case, I believe our generation can greatly advance sustainability within the industry’s supply chain and sourcing practices. As avid internet users, raising awareness through social media is one of the most effective and easiest ways to get brands to respond and take action. Gen Z consumers also have the ability to make change through financial means. As the target market for the biggest fast fashion companies, a generation-wide boycott to demand better sustainable sourcing practices would force companies to listen to stay in business. 

Leah Marsh, Graduate Student (4+1 program), Fashion and Apparel Studies

I believe that my generation can play a significant role in advancing sustainability within the industry’s supply chain and sourcing practices. I have noticed that a handful of my peers and I have started exploring additional career opportunities rather than being a merchandiser or designer. We have begun to open up doors within the industry and some of the job positions that we are currently seeking did not even exist when we started the fashion program at the University of Delaware just 4 years ago. The increase in availability and demand of these alternative sustainability-related careers within the global fashion and apparel industry is extremely promising. For example, after I graduate, I hope to work for a non-profit organization that advocates for garment workers’ rights and environmental policy while also working to prioritize supply chain transparency amongst fashion brands and retailers.

Annabelle Brame, Fashion Design & Product Innovation Major, Senior

We have the knowledge. As professionals, it is important we just continue to educate others. We will end up all across the globe with people in a million different fields, so it is important to remember not everyone knows what we do, and keep the conversation going. When it comes to sustainability and sustainable sourcing, we have to assume the people around us have no idea what we are talking about and continue to teach and touch on deeper topics within this industry. Also, incorporating sustainability into all our fields. As a fashion designer, it is easy to think we don’t have an impact on how we source. In reality, we can choose fabrics based on fiber, think consciously about the mills, and start conversations in the workplace about how we can pattern-make smarter.

How can education and awareness about sustainable apparel sourcing be improved among Generation Z, both as consumers and as future professionals in the fashion industry

Cecilia Goetz, Fashion Merchandising and Management Major (Honors), Senior

Social media is a very powerful tool that can be used to educate Generation Z about sustainable apparel sourcing. Not only can advocates make posts with useful information about sustainability in the fashion industry, but they can get in contact with other members of Gen Z and have meaningful conversations about what can be done to make further progress. This helps to make it a more common discussion and helps to encourage Generation Z customers to keep an eye out for sustainability when shopping.

In the professional world, it is important that companies invest in sustainability initiatives and teams who aim to teach other employees about the subject matter. Those who studied sustainability and related topics can bring this knowledge to the workplace and start workshops, discussion groups, and panels about environmental and social improvements and what every employee can be doing in their role to make improvements. With members of Generation Z focusing on and learning about sustainability from both the production side and consumer side, ethical apparel sourcing is bound to improve in fashion brands around the world.

Emilie Delaye, Entrepreneurship Major, Fashion Management Minor, Senior

One major improvement that I think needs to be done is the focus on how to find reliable information and the skill of critical thinking. Social media and media, in general, have taken over many individuals’ lives today, however, it is known that not all information is true. I think that educating individuals on how to successfully identify whether a source is credible will help reduce the spread of mass misinformation. This, along with the development of critical thinking skills, will ensure that each consumer and professional can create their own opinions on a topic at hand, which in turn will allow our society as a whole to come up with more collaborative and informed decisions on how to tackle the issues we face.

Hannah Laurits, Graduate Student, Fashion and Apparel Studies

Education of sustainable apparel sourcing is extremely important for Generation Z. The best way to improve our generation’s awareness of these issues is by exposing them to real world scenarios and keeping them informed on what is happening in regards to sustainability in the fashion industry. At the University of Delaware, our fashion programs do an excellent job of keeping students informed and engaged with sustainable fashion practices. Sustainability is rooted in the course curriculum in every single fashion class. This is how we improve sustainability awareness in the fashion industry, through consistent exposure, our generation will continue to become the experts in sustainable apparel sourcing.

Miranda Rack, Fashion Merchandising and Management Major (Honors) & FASH 4+1 Program Graduate Student

It is up to brands to be honest with consumers about their apparel sourcing, but it is up to consumers to care. Consumer education and awareness start with transparency by the brand. Generation Z must keep fighting to hold brands accountable. Right now, the best thing consumers can do is to educate themselves on how fast fashion is killing people and the planet. We need to stop shopping at brands that cannot prove to consumers that they value sustainability. We must stop shopping at brands that refuse to publicize their supply chain and sourcing practices. We need to stop taking everything brands say at face value and start working to verify claims on our own terms.

Leah Marsh, Graduate Student (4+1 program), Fashion and Apparel Studies

Education and awareness about sustainable apparel sourcing can be improved among Gen Z by establishing industry standards. Every new sustainable term has a handful of different definitions floating around that ultimately confuse consumers and professionals. There needs to be a standard developed, just like for any other area of study or focus. Consumers need to have something accurate to refer to when they need help making important decisions.

Annabelle Brame, Fashion Design & Product Innovation Major, Senior

As cliche as it may seem, social media. It has an astounding amount of power over our peers and can reach large audiences rapidly. One of the really amazing things that has come from platforms like Tiktok is allowing us to share information creatively. We don’t have to just look at a camera and talk about sourcing, but we can create engaging videos with editing to keep the viewer watching. With so many niches, people can gain a platform that allows them to continue telling the story about sustainability in between feeds of crafts, dancing, and comedy. It allows it to be a recurring reminder between their other programming. That is the key, repetition. It takes persistence from people to grasp the gravity of the issues we face within sustainable apparel sourcing. So it takes us showing up– on the news, social media, and in person.

–END–

FASH455 Video discussion: What global trade deals are really about?

Instructions: In the next few weeks of FASH455, we will learn about many technical aspects of free trade agreements related to apparel sourcing and trade, such as the preferential tariff rates, apparel-specific rules of origin, and trade agreement utilization. However, this presentation takes a different perspective on trade deals– why they are NOT solely about job creation, why trade agreements increasingly focus on “measures behind borders,” and why international institutions like the World Trade Organization (WTO) were established.

Feel free to share your thoughts on the video. You may focus on 1-2 specific points that you find interesting, intriguing, controversial, or debatable and then explain your arguments. You could also propose additional discussion questions for your classmates.

Terminologies mentioned in the video and background notes:

  • Quota: A quantity restriction on imports. Before 2005, the global textile and apparel trade was subject to 30 years+ quota restrictions. See here for the background information.
  • Tariff: A tax levied on imports only. Deemed as “import-sensitive,” US still imposes a much higher tariff rate for textile (8.0%) and apparel products (11.6%) than other manufactured goods (2.2%) on average in 2023. See the World Tariff Profile 2023.
  • Non-tariff barriers (NTB): refers to trade barriers other than tariffs, such as technical barriers of trade (TBT), Sanitary and Phytosanitary (SPS) measures, customs procedures, import licensing, and many others. See more examples here.
  • GATT and WTO: The General Agreement on Tariffs and Trade (GATT) was a temporary international treaty signed in 1947 by 23 countries (including the United States). GATT aimed to boost trade-led economic recovery after World War II. Since then, GATT members conducted nine major rounds of negotiations to gradually reduce trade barriers, ultimately establishing the World Trade Organization (WTO) in 1995 as the permanent body governing world trade.
  • Trans-Pacific Partnership (TPP): A trade agreement reached by eleven countries in the Asia-Pacific region (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam) and the United States in 2016. However, the Trump Administration announced the withdrawal of the United States from TPP in January 2017. Afterward, without the US, the other 11 TPP members reached the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which officially entered into force in December 2018.

Used Clothing Trade Debate Continues in Kenya

A new study by the Changing Markets Foundation suggests severe negative environmental and social, economic impacts of used clothing exports to Kenya. However, the Textile Recycling Association, based in the UK, argues strongly in favor of the benefits of the used clothing trade.

Concerns about the used clothing exports to Kenya (viewpoints from the Changing Markets Foundation)

  • Data from the United Nations (UNComtrade) shows that Kenya’s used clothing imports surged by over 500% from 2005 ($27 million) to 2021 ($172 million).
  • An overwhelming volume of used clothing shipped to Kenya is waste synthetic clothing, a toxic influx creating devastating consequences for the environment and communities. It is estimated that over 300 million items of damaged or unsellable clothing made of synthetic or plastic fibers are exported to Kenya each year, where they end up dumped, landfilled, or burned, exacerbating the plastic pollution crisis.
  • Interviews with used clothing traders in Kenya show that 20–50% of the used clothing in bales they purchased was unsellable due to being damaged, too small, unfit for the climate or local styles, and sometimes even with clothing that is covered in vomit, stains or otherwise damaged beyond repair.
  • European sorting companies often skimmed off high-quality used clothing for resale in the local EU market. They exported the lower-quality and lower-graded ones to developing countries like Kenya.
  • It remains challenging to recycle synthetic clothing as it often contains harmful additives or other materials that make the recycling process difficult or impossible. Additionally, the quality of the recycled synthetic fibers is typically lower than that of the original fabric (i.e., using virgin fiber).

Defend the used clothing exports to Kenya (viewpoints from the Textile Recycling Association, TRA)

  • Sorting, trading and selling used clothing “directly employs two million people in Kenya alone , with tens of millions employed globally and supporting many more employment positions in ancillary sectors.”
  • “Used clothing and textiles collected in the UK, should go through a detailed sorting process and can be sorted typically into 130 plus re-use and recycling grades and sometimes this can be more than 200 grades. In the sorting process each garment is picked up and individually assessed by highly trained experts*.  The good quality re-useable products are segregated from the recycling grades.” [*According to Changing Markets Foundation’s report, about 36 million pieces of used clothing were exported from the UK to Kenya in 2021; All EU countries exported about 112 million pieces to Kenya]
  • “It is the buyers in these countries (note: countries like Kenya) that dictate the flows of (used clothing) textiles and which import the goods into their countries.”
  • “TRA members are required to ensure that only good quality re-usable clothing products are sold onto countries in Africa and other non-OECD countries.   Recycling grades and other non-textile/clothing items have to be removed… However, the majority of countries are not subject to the same tight restrictions on trading as the UK..  This is to the extent that some countries allow unsorted used textiles containing a complete mix of re-usable items, recycling grades, and waste to be sold into African countries as a product.” “The qualities of (used clothing) items originating from different countries is likely to vary significantly.”
  • “Kenyan’s buy more than 10 times as much used clothing from China than they do from the UK.”

Discussion questions for FASH455:

  • What is your stance on the used clothing trade? Should the government impose more export or import trade restrictions on used clothing?
  • After considering both sides of the debate, what is your decision regarding donating used clothing? What factors influenced your choice?
  • Any other thoughts or comments on the used clothing trade debate?

Additional reading:

Why the Developing World and All of Us Need Trade and the WTO (Panel Discussion)

CSIS event on Sep 22, 2023

Below are selected comments by US Trade Representative Katharine Tai (Tai) and WTO (World Trade Organization) Director-General Dr. Ngozi Okonjo-Iweala (Ngozi).

What kind of global trade do we want today?

“For decades, the United States has been proud to champion the international rules-based order and the multilateral trading system…But the functioning and fairness of this order are now in question and that is why all of us need to adapt to a more challenging era marked by rapid technological change, increasing extreme climate events, vulnerable supply chains, intensifying geopolitical friction, widening inequality” (Tai)

“The United States is writing a new story on trade. We are pursuing fair competition, addressing the climate crisis, promoting our national security, and ensuring the rules-based system helps all economies, not just the biggest ones.” (Tai)

“how can we harness the effectiveness of our trade tools to be promoting not just efficiency and liberalization, but using those tools to promote what we consider certainly today to be higher goals. And those goals are resilience for our economy and the word economy, sustainability, again, for our economy in the world economy, and inclusivity… we started to see where the concentrations in supply and production started to impact this and spike this economic insecurity on a macro level and also for individuals” (Tai)

Trade and climate change

trade is necessary to disseminate green technologies and through competition and scale efficiencies to drive down the cost of decarbonization. Another reason is that trade amplifies the impact of environmental policy action. Recent research at the WTO demonstrate that just as countries can reap economic gains by focusing on what they are relatively good at, the world can reap environmental gains if countries focus on what they are relatively green at” (Ngozi)

Is trade diversification the future?

A fragmented world economy would not just be bad for already-squeezed household budgets. Without trade, it would become harder, even impossible, to meet the big challenges of our time – resilience, socioeconomic inclusion, and climate change… The problems we encountered in the trading system were less about trade per se and more about excessive concentration for some products and supply relationships. The smart response is to deepen, diverse, and deconcentrate production so there are fewer potential bottlenecks” (Ngozi)

“we believe we can solve the problem by diversifying the supply chains not just to ourselves or to friends but to all over the world where the opportunity exists. Business should look at the possibility of not just doing China+1. It means China plus Vietnam or Indonesia. But they can do Bangladesh. They can do Laos. They can do Rwanda. They can do Senegal. They can do Nigeria. I’m just – Morocco” (Ngozi)

Debate the impact of trade

Technology was generally a big culprit in job losses…U.S. manufacturing output, the volume of products produced here, is about as high as it has ever been. But the sector employs more machines and fewer people than it used to. Nevertheless, import competition was a significant factor and an easier focus, I think, for political anger.” (Ngozi)

“…between 1995 and 2011, while increased goods import from China did eliminate 2 million jobs in the United States, increased exports to China and elsewhere added 6.6 million jobs to the U.S. economy, 4 million of them from higher-services exports…These numbers illustrate the power of trade for job creation. But as we know, those new jobs were not created in the same places. Neither did they go to the same people. That a backlash would result from those left out was perhaps predictable, but it was not inevitable. There are countries that use domestic-policy levers to translate gains from trade into broadly shared growth by providing people security against income loss and support to seize new opportunities.” (Ngozi)

Renew or update the African Growth and Opportunity Act?

“The world is really different from when AGOA was first created…So I think copy-paste is to really lose an important opportunity…we should be practical. Also, we’re on a timeline…The AfCFTA, the African Continental Free Trade Area, that has been concluded, that has that has been brought into being by the countries on the continent. And those continental integration aspirations should absolutely be reflected in our offer to Africa, and something we should try to figure out how to incorporate” (Tai)

African countries appreciate AGOA. They would like to see an agreement that is, you know, at least a decade out so that they have some predictability. What they’re hearing from investors is that with this up in the air, they can’t make up their minds whether to invest or not because they don’t know what will happen. So I think if we can reform and get it done, and people can have a predictable time horizon for AGOA, it would really help” (Ngozi)

How to reform the World Trade Organization?

“The United States wants a WTO where dispute settlement is fair and effective, and supports a healthy balance of sovereignty, democracy, and economic integration where all members embrace transparency, where we have better rules and tools to tackle non-market policies and practices, and to confront the climate crisis and other pressing issues.” (Tai)

“We must recognize the diversity of developing members. We should have flexibilities in the rules that reflect actual needs. But we cannot have economic and manufacturing powerhouses gaming the system by claiming the same development status and flexibilities intended for less-advantaged members.” (Tai)

“people ask me all the time, oh, are you worried because there are so many [Free trade agreement, FTA]? I’m not. Like I said, 75 percent of trade still goes on WTO terms [MFN tariff rates]. And we can learn from them.” (Ngozi)

I don’t have enough time and money to waste resources in Geneva on a process that we don’t actually believe in…When President Biden talks about it from the floor of the United Nations General Assembly, if we still have trading partners who want to question our seriousness, then I think the problem is those partners and it’s not us” (Tai) [note: this comment was mentioned by Politico]

–END–

FASH455 Debate: Is the U.S. Textile Manufacturing Sector a Winner or Loser of Globalization and International Trade? (Updated September 2023)

(note: the following comments are from students in FASH455 based on the video “Textile Manufacturing in America, post-globalisation

Argument: The U.S. textile manufacturing industry has been a winner of globalization

Comment #1: While it is true that many Americans lost their jobs due to the increase in trade, there are more benefits to both importing and exporting rather than the mercantilist view of trade. Increasing trade and globalization, especially during the Clinton administration, was an opportunity to develop strong relationships with other nations. The value of U.S. textile exports since 2000 has risen by 30% for yarn and 15% for fabric, after the establishment of agreements such as NAFTA. Additionally, one of the U.S. apparel manufacturers in the video used machinery for their production from Sweden. Without globalization and trade, they would not be able to use this high-tech equipment. All in all, U.S. textile manufacturing sector benefits from both importing and exporting goods.

Comment #2: Deeper down, the US textile sector seems to be winning in the long run. The squeeze that globalization has placed on them has allowed for innovation within the industry as they fight to stay relevant and compete with overseas goods. Operational slack such as high turnover jobs have been eliminated with automation, and US manufacturers gained a new branding niche that overseas companies do not: a US “personal touch.” Consumers may now be more willing to pay more for a garment just because it says it is made in the USA. USA-made clothing may now be perceived as higher quality and more scarce. The sentiment towards US-made goods and their quality could enact change to reduce overseas reliance, which is a win for US manufacturing in the long run. Additionally, globalization expands the export market for the US textile manufacturing sector.

Comment #3: As discussed in the video, there is a growing trend of reshoring and regionalization in some manufacturing sectors, including textiles. Some U.S. textile manufacturers have seized this opportunity to bring production back to the United States, capitalizing on the advantages of local supply chains, quality control, and speed to market. The video also shows how technology and automation can help streamline production processes and make manufacturing more competitive, even in higher-cost regions like the United States. US textile manufacturers have invested in innovation and automation, making them competitive in producing textiles with advanced features and properties in today’s global economy. It is globalization that is pushing the US textile industry to adopt these new technologies and continue improving its international competitiveness.”

Argument: the U.S. textile manufacturing industry has been a loser of globalization

Comment #4: One of the biggest arguments for globalization is the lower prices & affordability for the consumer. From this perspective, it seemed that the United States was a winner of globalization as a whole. However, when beginning to look at the consequences of moving production overseas, we not only see the textile manufacturing sector being affected, but we also see this impact disperse to the communities in America as well. When brands offshore and outsource production overseas for lower prices & labor, our very own US textile manufacturing industry is losing out on this business. It also forces this industry into a highly competitive environment that does not have equal “playing fields” and does not have insurance/protection in case environmental factors ruin crops. The US has clear labor laws and human rights policies (as well as increasing environmental policies), whereas their cotton-growing competitors, for instance, do not have to follow the same rules. This allows labor exploitation to decrease costs and makes US companies seem unappealing or less competitive.

Comment #5: Over the past few decades, the number of manufacturing jobs in the US textile industry has plummeted after companies began moving production overseas, specifically to countries like China, which have preferential treatment. These foreign facilities can produce things much faster and cheaper because the standards and regulations are completely different than those of the United States. Free trade does not consider these differences in labor and environmental laws, making it much less “free” than it claims. As countries overseas– specifically China and regions like Xinjiang– continue to not play by the rules, the US is forced to keep up by implementing things like the Toyota System…Americans want to be the best in manufacturing and globalization often gets in the way of this. With near-shoring, the US can reclaim high-quality, American-made garments while helping with job security and sustainability.

Comment #6: Overall, I believe that the U.S. textile manufacturing industry is a loser of globalization and international trade, mostly due to the competition from overseas. This competition includes more manufacturers from other countries, but also the competition of pricing since other oversea manufacturers are able to sell their cotton/textile materials at a lower price. Since the U.S. struggles to compete with these lower prices, they are forced to look for another way to have a competitive advantage in the textile manufacturing sector, such as lean manufacturing and technology improvements. At Carolina Cotton Works, Bryan Ashby shares how they have increased efficiency and use high-quality machines (note: imported) for their products. Although this sounds great, this also means that there are fewer workers.  

Comment #7: Globalization creates a trade dependence on imports. It’s important we don’t depend on things for when things happen that we can’t predict like the pandemic where we can’t import anymore. Since there was a lack of local textile manufacturing and sourcing in the United States compared to what was being imported, there was less of a chance for technological advances and improvement in the United States textile manufacturing sector. Post Globalization, however, may be the chance for the United States to bring back the textile manufacturing sector momentum. I think this because the United States has seen the result of heavily relying on other countries for their cheap labor/sources, and this could add extra motivation for companies to want to figure out better alternatives in manufacturing in their own country.

Comment #8: I think currently the US is a loser to globalization only because brands want to get the product for cheap. I think brands think that would create more profit that way. However, I do believe we could get to a future where more things would be created in the US and wouldn’t have to pay that much in tariffs and other external prices. I think it would help boost people to work more. I think people are worried about making things in our country because of the relations we have with other countries.

Discussion questions:

Do you agree or disagree with any particular argument above? Any follow-up comments on the impact of globalization on the US textile manufacturing sector? What should government do with trade given the debates? Please feel free to share any additional thoughts.

Video Discussion: The Global Travels of a T-shirt

For FASH455 students: Please share your reflections on the video. For example, how does the video illustrate the global nature of the textile and apparel industry today? How can we understand the impact of globalization on the many stakeholders involved in the textile and apparel supply chains? Do the textile and apparel trade patterns described in the video support or challenge the trade theories we discussed in class? According to the video, what are the debates and controversies related to apparel sourcing and trade? What is your view and proposed solutions?   

Patterns of US Apparel Imports (Updated September 2023)

First, while US apparel imports gradually recovered, the import demand remained weak overall. For example, US apparel imports in July 2023 increased by 0.9% in value and 2% in quantity from June (seasonally adjusted). However, the trade volume still experienced a decrease of approximately 17-18% compared to the previous year. Meanwhile, the US consumer confidence index fell again in August 2023, suggesting the economic uncertainties are far from over. Notably, so far in 2023 (January to July), US apparel imports decreased by 22.3% in value and 28% in quantity from the previous year, the worst performance since the pandemic.

As a silver lining, the price of US apparel imports has stabilized, although inflation remains an issue for the US economy.  

Secondly, because of the seasonal pattern, Asian countries were able to capture relatively higher market shares since June. For example, measured in value, China, ASEAN, and Bangladesh accounted for over 64% of total US apparel imports in July 2023, a notable increase from 61% in June and 58% in May 2023.

Nevertheless, US fashion companies continue diversifying their sourcing base to mitigate various supply chain risks and rising geopolitical tensions. For example, the HHI Index for US apparel imports dropped to 0.097 in the first seven months of 2023, which is lower than the 0.106 recorded in the same period the previous year (January to July 2022), indicating a greater diversity in the sources of imports.

Third, despite an apparent rebound in exports to the US, China continued to experience a further decline in its market share. For instance, in July 2023, China’s market share was more than 3 percentage points lower in value (27.2% in July 2022 vs. 24.1% in July 2023) and 2.5 percentage points lower in quantity (43.1% in July 2022 vs. 40.6% in July 2023). This marked the worst performance since April 2023. In other words, consistent with recent industry surveys, US fashion companies continue to reduce their China exposure given the adverse business environment.

Fourth, the latest data suggests that US apparel imports from CAFTA-DR members remain stagnant, and some critical problems, such as the underutilization of the agreement, even worsened. For example, about 9.5% of US apparel imports in value and 8.5% in quantity came from CAFTA-DR members in July 2023, lower than 10.2% and 9.0% in the previous year (i.e., July 2022). In absolute terms, US apparel imports from CAFTA-DR in 2023 were about 20% lower than in 2022.

Additionally, CAFTA-DR’s utilization rate (i.e., the value of imports claiming the duty-free benefits under CAFTA-DR divided by the total value of imports from CAFTA-DR) fell from 70.2% in 2022 (Jan to July) to a new low of 69.2% in 2023 (Jan to July). Likewise, the value of imports utilizing CAFTA-DR’s short supply decreased by more than 20%. Thus, how to leverage CAFTA-DR to meaningfully encourage more US apparel imports from the region, particularly in light of US fashion companies’ eagerness to reduce their exposure to China, calls for sustained efforts and probably new strategies.

by Sheng Lu

Primark’s Global Sourcing for Apparel (Updated September 2023)

Primark’s sourcing strategies

According to Primark, it does not own any factories but sources all apparel products from contracted factories. Any contracted factory that manufactures products for Primark must meet internationally recognized standards before receiving the first sourcing order.

As of October 2022, Primark sourced from 883 contracted factories in 26 countries (note: it was a slight decline from 928 contracted factories in 28 countries as of May 2021). Of these factories, 85.5 percent were Asia-based because of the region’s massive production capacity and a balanced offer of various sourcing factors, from cost, speed to market, and flexibility to compliance risks.

Like many other EU-based fashion companies, near-shoring from within the EU was another critical feature of Primark’s sourcing strategies. About 14 percent of Primark’s contracted garment factories were EU-based (including Turkey).

Measured by the number of workers, Primark’s Asian factories were larger than their counterparts in other parts of the world. For example, while Primark’s factories in Pakistan and Bangladesh typically have more than 2,500+ workers, its factories in Western EU countries like the UK, Germany, Italy, and France, on average, only have 64-200 workers. This pattern suggests that Primark mainly uses Asian factories to fulfill volume sourcing orders, and its EU factories mainly produce replenishment or more time-sensitive fashionable items.

Meanwhile, similar to the case of other retailers like PVH, Primark’s contracted garment factories in China were smaller than their peers in the rest of Asia. For instance, while over 90% of Primark’s garment factories in Bangladesh employ more than 1,000 workers, around 43% of their contracted factories in China have fewer than 100 workers. This pattern suggests Primark could use China as an apparel sourcing base primarily for orders requiring greater flexibility and agility and those involving a wider variety of products but in smaller quantities.

Further, reflecting the unique role of the garment industry in creating economic opportunities for women, females account for more than half of the workforce in most garment factories that make apparel for Primark. The percentage was exceptionally high in developing countries like Tunisia (94%), Morocco (91%), Pakistan (69%), Sri Lanka (69%), Myanmar (64%), India (62%), and Vietnam (59%).

According to Primark (as of September 2023), its Ethical Trade and Environmental Sustainability team comprises over 120 specialists based in key sourcing countries. The team conducts around 3,000 supplier audits a year to monitor compliance (i.e., fair pay, safety, and healthy working conditions.) Additionally, Primark says its factories were in line with the company’s environmental code of conduct, and the company “donated any unsold merchandise to the Newlife Foundation in Europe and KIDS/Fashion Delivers in the US.

by Sheng Lu

Discussion questions:

What are the unique aspects of Primark’s apparel sourcing strategies? What role does sourcing play in supporting Primark’s business success? Any questions or suggestions for Primark regarding its sourcing practices?

Is Free Trade Worth the Cost? (Video discussion)

For FASH455 students: Please share your reflections on the video regarding the free trade debate. You can focus on analyzing 1-2 specific debates raised in the video (e.g., comparing the arguments from both sides) and then share your thoughts. Please do not simply state your “opinion,” but use examples, statistics, or trade theories we learned to support your viewpoint.

Further reading: Is Free Trade Worth the Cost?

Video Discussion: Why China’s Banned Cotton Keeps Sneaking Into U.S. Supply Chains (WSJ)

Discussion questions: What factors contribute to the complexity of eliminating banned Xinjiang cotton from the apparel supply chain? How can the current efforts be enhanced to better address the situation and by whom? Feel free to share any other reflections on the video and the graphs.

Further reading:

FASH455 Industry/Internship Stories—Hannah Laurits, Haddad Brands

Hannah Laurits (second from the right) worked as a sourcing intern for Haddad Brands in New York City in the summer of 2023. In the picture, Hannah was visiting the company’s world class distribution center in New Jersey.

About Hannah Laurits

Hannah Laurits is a master’s student in the Department of Fashion and Apparel Studies (FASH) at the University of Delaware (UD). She also received her B.S. from UD & FASH with a double major in apparel design and fashion merchandising and management.

Hannah is passionate about adaptive clothing and making the fashion industry more inclusive and sustainable. She has participated in several related research projects, including working at UD’s Health and Innovation Lab and designing adaptive clothing for children with Down syndrome. Hannah’s master’s thesis explores U.S. retailers’ merchandising and business strategies for adaptive clothing. As a graduate instructor, Hannah teaches FASH133 (Foundations for Fashion Innovation), an important foundational course for FASH freshmen. Hannah is the recipient of the 2023 International Textiles and Apparel Association (ITAA) Sara Douglas Fellowship in recognition of her academic excellence and accomplishments.

During the summer of 2023, Hannah had the exceptional opportunity to work as a sourcing intern for Haddad Brands in New York City. Below, she shared her reflections on this incredible internship experience.

Question: What does a typical day look like during your sourcing internship with Haddad?

Hannah: Each day, I would enter Haddad’s beautiful Manhattan office and make my way up to my desk on the 10th floor, which was home to the design and sourcing departments. I had the opportunity to sit next to my mentor and assist her in her day-to-day tasks as a Fabric and Trim Research &Development (R&D) Manager. This often consisted of maintaining fabric/trim development digital and physical libraries, creating new fabric swatch headers, entering fabric/trim data in PLM, partnering with Product Development to establish fabric and trim codes for PLM, and analyzing new fabric developments. I also assisted in collaborating and developing fabrications, finishes, and trims with our supply chain by communicating feedback via internal emails.

One thing that  I really enjoyed was that each day consisted of working cross-functionally with the different teams. I helped prepare for and sit in on weekly fabric/trim development status meetings with the various Design teams where fabric/trim developments for the upcoming seasons were discussed and designers would make new fabric requests for their added styles. I also sat in on bi-weekly fabric/trim development status meetings with the Product Approval team to ensure the fabric samples from mills were up to standard for development. Here, I was able to help weigh in on fabrics and compare them to our standards to determine if they met our requirements or if they needed to be changed and how. Additionally, some days included meetings with various suppliers to discuss innovations in fiber, fabric, finish, and trim.

Being part of an internship that enabled me to perform meaningful work from day one, provided countless opportunities for personal growth, and exposed me to working with some of the most iconic global brands (e.g., Levi’s) was a truly fulfilling experience.

Question: Any major projects did you work on during your internship? What did you learn from the experiences?

Hannah:Each Haddad Legacy Intern was assigned and worked on a project for their department based upon a real business need. Based on my educational background and my passion for sustainability, my team outlined a project that would best fit. This involved researching innovative sustainable solutions and sourcing practices to further their sustainability efforts.

My research was not only conducted from outside sources but from internal ones as well. I felt an immense amount of support from all of the individuals who helped me accomplish this project and was excited to learn that they also are just as excited about sustainable practices as I am. At the end of the internship, each intern had the chance to present to senior management our individual projects. This experience taught me how to create a visually compelling presentation and relay large amounts of data concisely and effectively.

Question: What insights did you learn about the fashion apparel industry from the internship? For example, the key issues the industry cares about or the challenges it faces.

Hannah:From my internship experience, I was able to see firsthand key topics important to the fashion/apparel industry; specifically, two areas caught my attention.

First, sustainability and social responsibility. Consumers and investors are seeking more sustainable products and better practices from the brands they love. Considering this, sustainability-forward brands are focused on maintaining their high values regarding these areas and keeping their practices aligned with them.

Second, the fashion industry is constantly seeking innovative technology solutions, including in the sourcing and supply chain areas. Technology is evolving faster than ever, helping create efficient solutions to drive the fashion industry forward. Technologies such as 3D printing, AI, laser cutting, and more are being used to improve the industry in various ways such as trend forecasting, supply chain, and consumer experience, just to name a few. Even regarding sustainability, many fashion brands are investing in or actively exploring new technology solutions to help them develop a more sustainable and ethical supply chain and improve sourcing transparency, traceability, and accountability.

Question: How do your learning experiences at FASH help with your internship? Any specific knowledge or skill sets do you find most critical?

Hannah:FASH had a great influence on my decision to pursue a sourcing internship with Haddad Brands. It was through the UD & FASH department’s Fashion Career Meetup that I was able to connect with the amazing HR team at Haddad Brands and learn more about the company.

Specifically, it was FASH455 (Global Apparel Trade and Sourcing) that piqued my interest in the world of sourcing and provided foundational knowledge for my internship. Working in fabric research and development, on a daily basis, I referred back to key concepts from FASH215 (Fundamentals of Textiles I) and FASH220 (Fundamentals of Textiles II) on fiber, yarn, fabric, structures, color, and finish. Additionally, the FASH Social Responsibility and Sustainability certificate courses played a unique role in my experience, helping me bring a sustainability forward perspective into my internship and providing a solid background to further build upon for my internship project.

Furthermore, the FASH department at UD excels at providing students with extensive foundational fashion industry knowledge. Not only is the course curriculum excellent, but so is the faculty who goes above and beyond to help foster student’s education and build critical professional skills.

Question: What’s your plan after graduation?

Hannah:I am currently working on wrapping up my master’s program and am on track to graduate in May 2024. I am seeking a full-time role that allows me to have a hand in developing products that have a positive impact on people and the planet. Potential roles include sustainability, social compliance, sourcing, product development, and product line management related to fashion apparel products. While I am originally from Delaware, I am hoping to relocate to a city on the East Coast such as NYC, Philadelphia, or Baltimore. However, I am open to considering job opportunities and locations beyond this scope. As my graduation approaches, I am eager to begin my career in the fashion apparel industry.

Meanwhile, I am actively seeking winter and spring internship opportunities in the greater Philadelphia area or remote positions to enhance my professional development.

–END—

FASH455 Video Discussion: How Temu Makes Money From $4 Jackets and $10 Smartwatches?

Discussion questions:

#1 What are the examples of globalization in the above two videos about Temu?

#2 Based on the videos, who are the winners and losers of globalization and why?

#3 What role does international trade play in Temu’s business model?

#4 Some suggest ending the “de minimis rule.” Based on the videos, what is your view and recommendation for US policymakers?

#5 Anything you find interesting/surprising/intriguing in the video and why?

(Note: Anyone is welcome to join the discussion. For students in FASH455, please address at least two questions. Please mention the question number in your response, but there is no need to repeat the question).

Note: About de minimis rule.”: Under US customs law, specifically the Trade Facilitation and Trade Enforcement Act of 2015, import duties are generally waived for goods valued at $800 or less per person per day. Therefore, Temu’s shipping from China to US consumers is likely to be eligible for the benefits.

[Discussion is closed for this blog post]

WTO Reports World Textiles and Clothing Trade in 2022

This article comprehensively reviewed the world textiles and clothing trade patterns in 2022 based on the newly released World Trade Organization Statistical Review 2023 and data from the United Nations (UNComtrade). Affected by the slowing world economy and fashion companies’ evolving sourcing strategies in response to the rising geopolitical tensions, mainly linked to China, the world’s textiles and clothing trade in 2022 displayed several notable patterns different from the past.

Pattern #1: The expansion of world clothing exports witnessed a notable deceleration in 2022, primarily attributed to the economic downturn. Meanwhile, the world’s textile exports decreased from the previous year, affected by the reduced demand for textile raw materials used to produce personal protective equipment (PPE) as the pandemic waned.

  • The world’s clothing exports totaled $576 billion in 2022, up 5 percent year over year, much slower than the remarkable 20 percent growth in 2021. The slowed economic growth plus the unprecedented high inflation in major apparel import markets, particularly the United States and Western European countries, adversely affected consumers’ available budget for discretionary expenditures, including clothing purchases.
  • The world’s textile exports fell by 4.2 percent in 2022, totaling $339 billion, lagging behind most industrial sectors. Such a pattern was understandable as the demand for PPE and related textile raw materials substantially decreased with the pandemic nearing its end.

Pattern #2: China continued to lose market share in clothing exports, which benefited other leading apparel exporters in Asia. Notably, for the first time, Bangladesh surpassed Vietnam and ranked as the world’s second-largest apparel exporter in 2022.

  • In value, China remained the world’s largest apparel exporter in 2022. However, China’s clothing exports experienced a growth of 3.6 percent, below the global average of 5.0 percent, positioning China at the bottom of the top ten exporters.
  • China’s global market share in clothing exports dropped to 31.7 percent in 2022, marking its lowest point since the pandemic and a significant decrease from the approximate 38 percent recorded from 2015 to 2018. In fact, China lost market share in almost all major clothing import markets, including the US, the EU, Canada, and Japan. The concerns about the risks of forced labor linked to sourcing from China and the deteriorating US-China relations were among the primary factors driving fashion companies’ eagerness to reduce their ‘China exposure” further.
  • China has been diversifying its clothing exports beyond the traditional Western markets in response to the challenging business environment. For example, from 2021 to 2022, Asian countries, especially members of the Regional Comprehensive Economic Partnership (RCEP), became relatively more important clothing export markets for China. Nevertheless, since RCEP members primarily consist of developing economies with ambitions to enhance their own clothing production, the long-term growth prospects for their import demand of ‘Made in China’ clothing remain uncertain.
  • Bangladesh achieved a new record high in its market share of world clothing exports, reaching 7.9 percent in 2022, which exceeded Vietnam’s 6.1 percent. Many fashion companies regard Bangladesh as a promising clothing-sourcing destination with growth potential because of its capability to make cotton garments as China’s alternatives, competitive price, and reduced social compliance risks.
  • Fashion companies’ efforts to “de-risking from China” also resulted in the robust growth of clothing exports from other large-scale Asian clothing producers in 2022, including Vietnam (up 13 percent), Cambodia (up 12 percent), and India (up 10 percent). In other words, despite the concerns about China, fashion companies still treat Asia as their primary sourcing destination.

Pattern #3: Developed countries stay critical textile exporters, and middle-income developing countries gradually build new textile production and export capability.

  • The European Union members and the United States stayed critical textile exporters, accounting for 25.1 percent of the world’s textile exports in 2022, up from 24.5 percent in 2021 and 23.2 percent in 2020. Thanks to the increasing demand from apparel producers in the Western Hemisphere, U.S. textile exports increased by 5 percent in 2022, the highest among the world’s top ten.
  • As a persistent long-term trend, middle-income developing countries have consistently been strengthening their textile production and export capability. For example, China, Vietnam, Turkey, and India’s market shares in the world’s textile exports have steadily risen. They collectively accounted for 56.8 percent of the world’s clothing exports in 2022, a notable increase from only 40 percent in 2010. Also, over time, these middle-income developing countries have achieved a more balanced textiles-to-clothing export ratio.

Pattern #4: Regional textile and apparel trade patterns strengthened further with the growing popularity of near-shoring, particularly in the Western Hemisphere. However, an early indication has emerged that Asian countries are diversifying their sources of textile raw materials away from China to mitigate growing risks.

  • The regional textile and apparel supply chains were in good shape in Asia and Europe. For example, nearly 80 percent of Asian countries’ textile input and apparel imports came from within the region in 2022. Likewise, approximately half of EU countries’ textile imports were intra-region trade in 2022, and one-third were for apparel.
  • The Western Hemisphere (WH) textile and apparel supply chain became more integrated in 2022 thanks to the booming near-shoring trends. For example, 20.8 percent of WH countries’ textile imports came from within the region in 2022, up from 20.1 percent in the previous year. Likewise, about 15.1 percent of WH countries’ apparel imports came from within the region in 2022, higher than 14.7 percent in 2021 and 13.9 percent in 2022.
  • Compared with Asia and the EU, SSA clothing producers used much fewer locally-made textiles (i.e., stagnant at around 11% from 2011 to 2022), reflecting the region’s lack of textile manufacturing capability. A more comprehensive examination of strategies for bolstering the textile manufacturing sector in Sub-Saharan Africa, particularly in light of the recently enacted African Continental Free Trade Area (AfCFTA) agreement, might be warranted.
  • Additionally, data suggests that Asian countries began diversifying their textile imports away from China to mitigate supply chain risks. For example, with the official implementation of anti-forced labor legislation in the US and other primary apparel import markets directly targeting cotton made in China’s Xinjiang region, Asian countries significantly reduced their cotton fabric imports (SITC code 652) from China in 2022. Instead, Asian countries other than China accounted for 46.3 percent of the region’s textile supply in 2022, up from around 42-43 percent between 2019 and 2021.
  • It is critical to watch how willing, to what extent, and how quickly Asian countries can effectively reduce their dependency on textile supplies from China. The result is also an important reminder that Western fashion companies’ de-risking from China could exert significant and broad impacts across the entire supply chain beyond finished goods.

By Sheng Lu

Further reading: Lu, Sheng (2023).Key trends to watch as world clothing trade moves from China to wider Asia in 2023. Just-Style.

2023 USFIA Fashion Industry Benchmarking Study Released

The full report is available HERE

USFIA webinar (Aug 2023)

Key findings of this year’s report:

#1 U.S. fashion companies are deeply concerned about the deteriorating U.S.-China bilateral relationship and plan to accelerate “reducing China exposure” to mitigate the risks.

  • Respondents identified “Finding a new sourcing base other than China” as a more prominent challenge in 2023 than the previous year (i.e., 4th in 2023 vs. 11th in 2022).
  • This year, over 40 percent of respondents reported sourcing less than 10 percent of their apparel products from China, up from 30 percent of respondents a year ago and a notable surge from only 20 percent in 2019. Similarly, a new record high of 61 percent of respondents no longer use China as their top supplier in 2023, up from 50 percent of respondents in 2022 and much higher than only 25-30 percent before the pandemic.
  • Nearly 80 percent of respondents plan to reduce apparel sourcing from China over the next two years, with a record high of 15 percent planning to “strongly decrease” sourcing from the country. This strong sentiment was not present in past studies. Notably, large-size U.S. fashion companies (with 1,000+ employees) that currently source more than 10 percent of their apparel products from China are among the most eager to de-risk.

#2 Tackling forced labor risks in the supply chain remains a significant challenge confronting U.S. fashion companies in 2023.

  • Managing the forced labor risks in the supply chain” ranks as the 2nd top business challenge in 2023, with 64 percent of respondents rating the issue as one of their top five concerns.
  • Most surveyed U.S. fashion companies have taken a comprehensive approach to mitigating forced labor risks in the supply chain. Three practices, including “asking vendors to provide more detailed social compliance information,” attending workshops and other educational events to understand related regulations better,” and “intentionally reducing sourcing from high-risk countries,” are the most commonly adopted by respondents (over 80 percent) in response to forced labor risks and the UFLPA’s implementation.
  • Since January 1, 2023, U.S. Customs and Border Protection (CBP)’s UFLPA enforcement has affected respondents’ importation of “Cotton apparel products from China,” “Cotton apparel products from Asian countries other than China,” and “Home textiles from China.”
  • U.S. fashion companies are actively seeking to diversify their sourcing beyond Asia to mitigate the forced labor risks, particularly regarding cotton products.

#3 There is robust excitement about increasing apparel sourcing from members of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).

  • CAFTA-DR members play a more significant role as an apparel sourcing base this year. Over 80 percent of respondents report sourcing from CAFTA-DR members in 2023, a notable increase from 60 percent in the past few years. Also, nearly 30 percent of respondents placed more than 10 percent of their sourcing orders with CAFTA-DR members this year, a substantial increase from only 19 percent of respondents in 2022 and 10 percent in 2021.
  • About 40 percent of respondents plan to increase apparel sourcing from CAFTA-DR members over the next two years. Most respondents consider expanding sourcing from CAFTA-DR as part of their overall sourcing diversification strategy.
  • With U.S. fashion companies actively seeking immediate alternatives to sourcing from China and Asia, respondents emphasize theincreased urgencyof improving textile raw material access to promote further U.S. apparel sourcing from CAFTA-DR members. “Allowing more flexibility in sourcing fabrics and yarns from outside CAFTA-DR” was regarded as the top improvement needed.

#4 US fashion companies demonstrate a solid dedication to expanding their sourcing of clothing made from recycled or other sustainable textile fibers:

  • Nearly 60 percent of respondents say at least 10 percent of their sourced apparel products already use recycled or other sustainable textile fibers. Another 60 percent of surveyed companies plan to “substantially increase sourcing apparel made from sustainable or recycled textile materials over the next five years.”
  • Addressing the higher sourcing costs and the low-profit margins are regarded as the top challenge for sourcing clothing using recycled or other sustainable fiber.
  • About 60 percent of respondents also call for policy support for sourcing clothing using recycled or other sustainable textile materials, such as preferential tariff rates and guidance on sustainability and recycling standards.

#5 Respondents strongly support and emphasize the importance of the early renewal of the African Growth and Opportunity Act (AGOA) and extending the program for at least another ten years.

  • Respondents sourcing from AGOA members are typically large-scale U.S. fashion brands or retailers (with 1,000+ employees). Generally, these companies treat AGOA as part of their extensive global sourcing network and typically source less than 10 percent of the total sourcing value or volume from the region.
  • About 40 percent of respondents view AGOA as “essential for my company to source from AGOA members.
  • About 60 percent of respondents say the temporary nature of AGOA “has discouraged them from making long-term investments and sourcing commitments in the region.” Many respondents expect to cut sourcing from AGOA members should the agreement is not renewed by June 2024.
  • About one-third of respondents currently sourcing from AGOA explicitly indicate, “Ethiopia’s loss of AGOA eligibility negatively affects my company’s interest in sourcing from the entire AGOA region.” In comparison, only about 17 percent of respondents say they “have moved sourcing orders from Ethiopia to other AGOA members.

Other topics covered by the report include:

  • 5-year outlook for the U.S. fashion industry, including companies’ hiring plan by key positions
  • The competitiveness of major apparel sourcing destinations in 2023 regarding sourcing cost, speed to market, flexibility & agility, and compliance risks (assessed by respondents)
  • Respondents’ qualitative comments on the prospect of sourcing from China and “re-risk”
  • U.S. fashion companies’ latest social responsibility and sustainability practices related to sourcing
  • U.S. fashion companies’ trade policy priorities in 2023

Background

This year’s benchmarking study was based on a survey of executives from 30 leading U.S. fashion companies from April to June 2023. The study incorporated a balanced mix of respondents representing various businesses in the U.S. fashion industry. Approximately 73 percent of respondents were self-identified retailers, 60 percent self-identified brands, and 65 percent self-identified importers/wholesalers.

The respondents to the survey included both large U.S. fashion corporations and medium to small companies. Around 77 percent of respondents reported having more than 1,000 employees. And the rest (23 percent) represented medium to small-sized companies with 100-999 employees.

Hinrich Foundation Study: Impact of US anti-forced labor laws on Vietnam’s textile industry

A new study released by the Hinrich Foundation in July 2023 evaluated the impact of the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) on Vietnam’s textile and apparel industry.

The study’s findings were based on interviews with “senior leaders and owners of Vietnam’s garment and textile small and medium-sized enterprises (SMEs).” (Note: However, the study didn’t specify when and how many interviews were conducted.) Below are the summarized key findings:

#1: Vietnam’s textile and apparel industry heavily uses cotton imported from China. As noted in the study, in 2021, China accounted for nearly 30% of Vietnam’s cotton imports (ranked #1, $1.48 billion out of total $4.99 billion imports), surpassing the US ($1.05 billion).

#2: Vietnam’s garment exports may contain Xinjiang cotton. According to the study, “Once the cotton arrives in Vietnam, international intermediary manufacturers create finished garments from semi-finished products to export globally, often using the same materials from banned Chinese suppliers. This results in the ‘laundering’ of Xinjiang cotton.”

#3: Vietnam textile and apparel SMEs report challenges in proving the origin of cotton in fabrics. For example, one respondent says, “Differentiating between cotton products coming from different sources is challenging as they might have been blended while being transported by sea. Suppliers from China, Vietnam, Bangladesh, India, and Pakistan may engage in this practice to falsely label Xinjiang cotton as coming from other locations to circumvent this act.”

#4: Vietnam’s textile and apparel SMEs say the UFLPA implementation has negatively affected their exports to the United States.

  • CBP’s statistics show that (current as of July 1, 2023), since UFLPA’s implementation in June 2022, a more significant amount of Vietnam’s textiles, apparel, and footwear were affected by law enforcement than those from China (e.g., $20 million vs.$16.2 million investigated and $3.53 million vs.$1.04 million denied access).
  • US fashion companies are sourcing LESS from Vietnam due to forced labor concerns. According to one respondent, “My company is producing apparel products for several US-based fashion brands and uses materials from China and exports to the US. Since UFLPA was in place in June 2022, they have ordered less from us. It seems that our partners feel pressure from the regulators, so they are looking for alternative risk-free suppliers.
  • The surveyed SMEs also expect MORE of Vietnam’s textile and apparel exports to be investigated under the UFLPA enforcement down the road. Some SMEs commented that “it would be hard for US firms to rapidly find alternative suppliers in a short time, therefore more checks on Vietnamese cargoes are to be expected.
  • The study acknowledges that “In the worst-case scenario, Vietnamese SMEs may lose market access if their American importers are unable to verify that the supply chain is free from inputs produced via forced labor.”

#5: UFLPA also increased the trade compliance costs of “Made in Vietnam,” a significant challenge to many SMEs. One respondent commented, “Compliance with the UFLPA may pose a challenge for SMEs due to the higher costs associated with providing the necessary documentation of their supply chains. This could be due to the need to conduct additional audits, hire external consultants, or implement new tracking systems.”

Additionally, the report called for Vietnam’s textile and apparel SMEs to 1) diversify the supply chain, especially using more cotton imports from the US, India, Australia, and Brazil. 2) enhance supply chain traceability (note: how to make it happen remains a big question mark); 3) engage in dialogue with US authorities.

U.S. Trade Policy Recap: 2021-2023

Related readings:

EU Extended Producer Responsibility for Textiles: Potential Impacts (Updated July 2023)

On July 6, 2023, the European Commission proposed a new rule, which aims to reduce textile waste and bolster used textile markets across the European Union (EU). EU says the new initiative will “accelerate the development of the separate collection, sorting, reuse and recycling sector for textiles in the EU, in line with the EU Strategy for Sustainable and Circular Textiles (released in March 2022).

Just-Style consulted a panel of industry experts and scholars to assess the potential ramifications of the new EU rule. Below are my contributions to the discussion, for consideration only.

What are your thoughts on the latest update on the new proposed rules?

The new EU rule goes far beyond existing regulations on sustainable textile and apparel production. For example:

  • While circular fashion is mostly voluntary efforts by companies, the new rule will impose a mandatory eco-modulation fee” that is used to collect, sort, and recycle used textiles.
  • The proposal also aims to address “the issue of illegal exports of textile waste to countries ill-equipped to manage.”  Notably, despite the controversies surrounding the negative impacts of the used clothing trade on the developing world, few countries impose export restrictions on used clothing.
  • Additionally, there are few specific rules or regulations that explicitly mention stopping “fast fashion.” The new EU rule will be the first of its kind. It will be interesting to see how EU-based fast fashion giants like Zara and H&M respond to the proposal.

How do you think it will affect global apparel production, sourcing and trade?

While we are still waiting for the proposal’s details, the new rule is expected to substantially promote more use of recycled textile fibers in clothing with profound implications for the future of global apparel production, sourcing, and trade patterns.

For example, one of my recent studies found that given the many ways of recycling textile waste (e.g., mechanical and chemical), the supply chain of clothing made from recycled materials is versatile, potentially allowing countries of all kinds to get involved. Also, sourcing clothing made from recycled textile materials may offer many exciting business benefits beyond sustainability, such as reducing “China exposure,” expanding near-shoring, and diversifying the sourcing base.

What are the opportunities for the global apparel industry given these new proposed rules?

One opportunity is on the supply side–the new proposed rule could drive significant new investments in textile recycling, from exploring new textile recycling methods and improving the efficiency of collecting and sorting used clothing to expanding the production capacity in making garments using recycled textiles. In the future, clothing made from recycled textile materials may no longer be a “niche product” but a mainstream offering.

The new rule may also raise public awareness of the environmental and social aspects of clothing. For example, consumers may continue to push brands and retailers to make the apparel supply chain more transparent and inform them about the product’s detailed environmental, climate, and social impact.

What are the challenges for the global apparel industry given these new proposed rules?

It is unsure whether the “eco-modulation fee” will apply to EU-based textile and apparel producers only or will affect any producers that sell products in the EU markets. Given the long and fragmented nature of the textile and apparel supply chain, who will be subject to the “eco-modulation fee” needs clarification.

Fashion brands and retailers may also face higher sourcing costs and more limited product choices when sourcing clothing using recycled textiles. Like it or not, achieving “cost neutral” remains a critical principle for most fashion companies.

On the other hand, reflecting the unique supply chain of clothing made from recycled textiles, fashion companies must strengthen the monitoring efforts beyond the garment factories (i.e., tier 1 suppliers) to include tier 2 and 3 suppliers that handle the initial stages of recycled textile production.

by Sheng Lu

Related reading:

Mega Trade Agreements in the Asia-Pacific Region and Textiles and Apparel Trade (Updated July 2023)

Speaker: Dr. Deborah Elms, Founder and Executive Director of the Asian Trade Centre and the President of the Asia Business Trade Association. The clip was part of the webinar “Asia’s Noodle Bowl Of Trade” (March 2023).

Background

The Asia-Pacific region includes several mega free trade agreements:

ASEAN (Association of Southeast Asian Nations) is a regional intergovernmental organization comprising ten countries in Southeast Asia (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam). In 2021, ASEAN members have a combined GDP of $3.11 trillion and a population of 673 million.

CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is a free trade agreement signed by 11 countries in the Asia-Pacific region, including Japan, Malaysia, Vietnam, Australia, Singapore, Brunei, New Zealand, Canada, Mexico, Peru, and Chile. The CPTPP covers a market of 495 million people with a combined GDP of $13.5 trillion in 2021. The United States was originally a participant in the Trans-Pacific Partnership (TPP) negotiations, but in January 2017, former US President Trump withdrew the US from the agreement. The Biden administration has indicated no interest in rejoining CPTPP. Additionally, China is actively seeking to join CPTPP.

RCEP (Regional Comprehensive Economic Partnership) is a free trade agreement signed by 15 countries in the Asia-Pacific region, including China, Japan, South Korea, Australia, New Zealand, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam. In 2021, RCEP members collectively represented a market of 2.3 billion people with a combined GDP of $26.3 trillion. India was an RCEP member but withdrew from the agreement due to concerns about import competition with China.

IPEF (Indo-Pacific Economic Framework for Prosperity) is a US-led economic cooperation framework that aims to “link major economies and emerging ones to tackle 21st-century challenges and promote fair and resilient trade for years to come.” IPEF is NOT a traditional free trade agreement, and it does not address market access issues like tariff cuts. Instead, IPEF includes four pillars: trade, supply chains, clean economy, and fair economy. IPEF members in the Asia-Pacific region include the United States, Japan, Australia, New Zealand, South Korea, India, Fiji, Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. The IPEF is designed to be flexible, meaning that IPEF partners are not required to join all four pillars. For example, India chooses not to join the trade pillar of the framework. In 2021, IPEF countries collectively represented a market of 2.1 billion people with a combined GDP of $23.3 trillion. The potential economic impact of IPEF remains too early to tell.

Notably, ASEAN, CPTPP, RCEP, and IPEF members play significant roles in the world textile and apparel trade. Specifically:

ASEAN and RCEP members have established a highly integrated regional textile and apparel supply chain. For example, a substantial portion of ASEAN and RECP members’ textile imports came from within the region.

ASEAN and RCEP members’ supply chain connection with China has substantially strengthened over the past decade. In contrast, the US barely participated in Asia-based textile and apparel supply chains. For example, other than CPTPP, the US accounted for less than 2% of ASEAN, RCEP, and IPEF members’ textile imports in 2021.

ASEAN and RCEP members also hold significant market shares in the world textile and apparel export (over 50%). Meanwhile, the US and EU are indispensable export markets for ASEAN and RCEP members.

Because of the United States, IPEF represented one of the world’s largest apparel import markets (i.e., 33.7% in 2021, measured in value). Similarly, in 2022, about 26% of US apparel imports came from current IPEF members. Should IPEF address market access issues, it could potentially offer significant duty-saving opportunities for textile and apparel products.

Additionally, UK’s membership in CPTPP may have a limited direct impact on the textile and apparel sector, at least in short to medium terms. For example, current CPTPP members only accounted for about 6% of UK’s apparel imports in 2021.

Patterns of US Apparel Imports (Updated June 2023)

Please also see the updated analysis: Patterns of US apparel imports in 2023 (Updated February 2024)

The latest OTEXA trade data suggests several US apparel import patterns:

First, US apparel imports indicated a slow improvement in April 2023 but remained weak this year. For example, measured in quantity, US apparel imports fell by 33.9% in April 2023 from a year ago, but it was less significant than in March (i.e., down 40.2% YoY*). Likewise, measured in value, US apparel imports fell by 29.3% YoY in April 2023, which improved from a 32.7% YoY decline in March 2023. (*YoY: Year-over-year)

Overall, the shrinking US apparel import volume reflected the headwinds in the US economy and consumers’ hesitancy to purchase clothing amid financial uncertainties and high inflation. Recent economic indicators also present a mixed picture of the US economy’s growth trajectory. For example, while the US consumer confidence index slightly went up from 68.0 in March to 69.6 in April 2023 (January 2019=100), the advanced clothing store sales index in April fell to 115.6 (Jan 2019=100), the lowest so far in 2023 (e.g., was 120.6 in January 2023). However, since summer is traditionally a peak season for clothing sales, followed by events like back-to-school shopping, there remains hope that US apparel imports may experience a slight recovery at some point in the second half of the year.

Second, trade data suggested that US apparel imports came from more diverse sources. For example, the Herfindahl–Hirschman index (HHI) fell below 0.1 in the first four months of 2023. Likewise, the market shares of the five largest suppliers (CS5) fell below 60% for the first time since 2018. The result suggested that leveraging sourcing diversification is a prevalent strategy among US fashion companies to mitigate supply chain risks and address market uncertainties.

Third, US fashion companies are serious and eager to further reduce their “China exposure.” Although China remained the top apparel supplier to the US, its market share fell to a new low of 17.9% in value and 30.6% in quantity in the first four months of 2023. Notably, for the first time in decades, less than 10% of US cotton apparel imports came from China in March/April 2023, revealing the significant impact of the Uyghur Forced Labor Prevention Act (UFLPA) on US fashion companies’ China sourcing strategies.

Related, US fashion companies appear to be increasingly cautious about sourcing apparel from Vietnam as its supply chain is too exposed to China, raising concerns about forced labor risks. In value, Vietnam accounted for 17.3% of US apparel imports in the first four months of 2023, down from 18.6% a year ago. Notably, almost the same amount of Vietnam’s textile and apparel products were subject to the CBP’s UFLPA investigation as China in FY2023.

CBP UFLPA enforcement statistics—FY2023—Apparel, Footwear and Textiles—All investigated (denied+ pending+released) see https://www.cbp.gov/newsroom/stats/trade/uyghur-forced-labor-prevention-act-statistics

Fourth, large-scale Asian countries benefited the most as US fashion companies looking for China’s alternatives. Specifically, measured in value, about 70.6% of US apparel imports came from Asia in the first four months of 2023, down from 74.9% in 2022. However, the five largest apparel exporting countries in Asia other than China (i.e., Vietnam, Bangladesh, Indonesia, India, and Cambodia) accounted for 44.7% of US apparel imports in the first four months of 2023, a new high since 2018 (i.e., was 35.3%). These countries are among the most popular “alternatives to China” because of their balanced performance regarding production capacity, cost, flexibility, and compliance risks.

Fifth, US fashion companies are also actively exploring new near-shoring opportunities from the Western Hemisphere. For example, about 17.3% of US apparel imports came from Western Hemisphere countries in the first four months of 2023, up from 15.6% in 2023. That being said, measured in quantity, US apparel imports from Mexico and CAFTA-DR members fell by 13.0% and 21.2% in the first four months of 2023 from a year ago due to the struggling US economy. It will be interesting to see whether CAFTA-DR and Mexico can keep or enhance their market shares when the US import demand recovers.

By Sheng Lu

Progress and Challenges in Apparel Supply Chain Traceability: A Case Study on ASKET

ASKET is a prominent online retailer based in Sweden that commits to complete supply chain transparency. Based on analyzing nearly 40 unique products and their detailed supply chain information posted on ASKET’s website as of May 2023, the article aims to shed light on the company’s supply chain traceability progress and the remaining challenges it faces.

First, while ASKET achieved full traceability for Tier 1 suppliers, tracking Tier 2 and Tier 3 suppliers was more difficult. For example, compared with its perfect traceability score for Tier 1 suppliers (i.e., garment factories), ASKET’s average traceability for Tier 2 Milling factories (i.e., yarn and fabric producers) was at around 97%, and the score fell to only 77% for trims suppliers in Tier 3.

As one critical contributing factor to the phenomenon, Tier 2 and Tier 3 suppliers had far more players than Tier 1, which presented a more significant challenge in obtaining detailed information about all the factories involved. For example, ASKET’s garment cutting and sewing operations predominantly occurred within a single facility. In contrast, making yarns, fabrics, and trims EACH usually involve multiple facilities in different parts of the world.

Second, a comprehensive understanding of the sub-supply chains associated with apparel components is pivotal in enhancing a fashion company’s overall traceability. Notably, the apparel supply chain is far more complicated than the commonly known four stages—fiber, yarn, fabric, and garment manufacturing. Rather, apparel components like yarns, fabrics, sewing threads, buttons, and zippers have complex and intricate sub-supply chains. For instance, for ASKET’s shirts or polo shirts:

  • Cotton was “farmed in New Mexico, Arizona, California and Texas, USA, ginned in Anqing, China.”
  • Yarn was “spun and twisted in Hyderabad, India,” and “dyed in Varese, Italy.”
  • Fabric was “woven in Letohrad, Czech Republic, dyed and finished in Prato, Italy.
  • Sewing thread was “produced in Breisgau, Germany, wound and packed in St. Maria de Palautordera, Spain
  • Button was produced in Saccolongon, Italy, with corozo farmed in Manabi, Ecuador.

Third, using recycled textile materials in apparel products could make it trickier to map the supply chain.

  • ASKET reported no problem tracking recycled textile materials derived from natural fibers, especially recycled wool products.
  • ASKET’s capability of tracing recycled man-made fiber textiles yielded mixed results. For example, ASKET was still investigating the Tier 3 raw material suppliers for one fabric made with “100% pre-consumer recycled nylon.” Likewise, for one body fabric derived from “plastic waste collected from Spanish Mediterranean and French Atlantic oceans and coastlines,” pinpointing the precise origin of the raw fiber posed a challenge.

Fourth, ASKET’s data shows that using recycled textiles in apparel products could incur higher transportation costs. For example, the average transportation cost for an ASKET garment using recycled textiles would reach $5 per unit (or 6.3% of the total production costs), much higher than regular clothing using non-recycled materials ($1 per unit or 3% of the total production). However, on average, making a garment using recycled textile materials could involve fewer facilities(e.g., 9 vs. 12). This result suggests that the higher transportation cost associated with clothing made from recycled textiles may not be attributed to a longer supply chain but rather to a more tedious and expensive recycled fiber collection process.

Additionally, ASKET’s data indicates a strong correlation between its retail price and sourcing costs. Specifically, ASKET’s applied a gross margin% ranging from 71%–81%. This implies that a $2 increase in sourcing costs could potentially lead to a retail price increase of $10-$20. Thus, controlling and managing sourcing costs will always be a priority for a fashion company.

By Sheng Lu

Further reading: Lu, Sheng (2023). How Asket is achieving apparel supply chain traceability. Just-Style.

Transition Pathway for EU Textiles: For Sustainable and Circular Value Chains (Webinar)

Speakers

  • Antonio de Sousa Maia, Legal Officer, European Commission;
  • Cecilia Nilsson-Bottka, Policy Officer, European Commission;
  • Enrico Venturini, Senior Researcher, NEXT TECHNOLOGY TECNOTESSILE;
  • Dirk Vantyghem, Director General, EURATEX;
  • Clara Mallart, Senior Specialist for Sustainability, MODACC.

Summary of remarks by Dirk Vantyghem (Director General of the European Apparel and Textile Confederation, EURATEX)

  • EU textile and apparel companies are still struggling with an adverse business environment, from high energy bills and hiking inflation to an economic slowdown. Many companies are in trouble. New “green measures” must be careful about their impacts on companies’ business operations.
  • Textile and apparel is one of the most globalized sectors in the EU. Government sustainability policy must consider the global dimension of their implications on EU companies, such as the impact on fair competition and investments across borders.
  • Consumers’ demand for sustainable textile and apparel products, especially their willingness to pay a premium, remains a question mark.
  • If new sustainability regulations are implemented, it is imperative for the government to assist companies going through the transition. Small and medium-sized enterprises (SMEs) form the backbones of the textile and apparel industry. These SMEs must survive as they provide critical products and services to large-scale fashion brands.
  • Many green legislations impacting the EU textile and apparel industry are coming (e.g., new labeling requirements on sustainable materials). Close collaboration and dialogue between the industry and legislators are essential.

New Study: Impact of Textile Raw Material Access on CAFTA-DR Members’ Apparel Exports to the United States

The full paper is HERE. Below are the key findings:

Over the past decade, U.S. fashion brands and retailers have seen Central America as a critical emerging apparel-sourcing destination. Especially since implementing the Dominican-Republic Central America Free Trade Agreement (CAFTA-DR) in 2006, a trade deal among the United States, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic (joined in 2007), and Costa Rica (joined in 2009), apparel sourcing from the region gained consistent interest among U.S. companies.

Nevertheless, U.S. apparel sourcing from CAFTA-DR members is NOT without significant challenges. For example, CAFTA-DR countries’ market shares in the U.S. apparel import market fell from 11.8% in 2005 before the trade agreement entered into force to only 10.6% in 2022, measured by value. Trade data also indicated that U.S. apparel sourcing from CAFTA-DR members concentrated on simple and low-value items, such as T-shirts, and lacked product diversification with no improvement over the years.

Given the high stakes of improving the status quo, this study quantitatively evaluated the impact of textile raw material access on CAFTA-DR’s apparel exports to the United States. Specifically, this study assumed that CAFTA-DR members cut their textile import tariff rates to improve garment producers’ textile raw material access (i.e., to reduce the cost of sourcing textiles from anywhere in the world and beyond the U.S. supply). The computable general equilibrium (CGE) model estimation based on the GTAP9 database shows mixed results:

On the one hand, cutting CAFTA-DR members’ textile import tariffs to improve their garment producers’ textile raw material access would significantly improve CAFTA-DR members’ price competitiveness of their apparel exports to the United States and increase the export volume.

However, cutting CAFTA-DR members’ textile import tariffs to improve their garment producers’ textile raw material access would significantly expand their textile imports from non-U.S. sources. This means that CAFTA-DR members’ dependence on the U.S. textile raw material supply may decline further.

Overall, the study’s findings remind us that the debate on expanding U.S. apparel sourcing from CAFTA-DR members should go beyond CAFTA-DR members’ garment production. Instead, more efforts could be made to enhance CAFTA-DR garment producers’ textile raw material access as an effective way to expand the region’s apparel exports to the United States.

Meanwhile, several leading CAFTA-DR apparel exporting countries, including Honduras and Nicaragua, have been engaged in negotiations for free trade agreements with China, Taiwan, and other Asian economies. As the study’s findings indicate, these new trade deals could incentivize CAFTA-DR apparel manufacturers to increase their textile sourcing from Asia. In other words, inaction on the U.S. side and maintaining the status quo still could have significant implications for the future stability of the Western Hemisphere textile and apparel supply chain.

by Sheng Lu

Inside Garment Factories in Vietnam, Cambodia, and Sri Lanka (updated April 2023)

Garment factories in Vietnam
Garment factories in Cambodia
Garment factories in Sri Lanka

Discussion questions (proposed by students in FASH455, spring 2023)

  • Based on the videos, does the flying geese concept still work today? Why?
  • Do you think Western fashion brands and retailers’ increasing emphasis on sustainability and social responsibility in apparel sourcing reduces Asian suppliers’ competitive disadvantage? Why or why not?
  • With Asian countries increasingly leveraging their labor advantages alongside advanced technologies, is the prospect of expanding nearshoring even less likely? What is your assessment?
  • What is your vision for the recycled clothing supply chain? Why or why not do you think Asian countries will continue to dominate?