Category: FASH455 course material

FASH455 Exclusive Interview with Jillian Silverman, Associate Trim Specialist at Lands’​ End, about Textile Raw Materials and Apparel Sourcing

About Jillian Silverman

Jillian Silverman is an Associate Trim Specialist at Lands’ End, based in Madison, Wisconsin. She earned an Honors degree in Fashion Merchandising with a minor in Environmental Humanities from the University of Delaware in 2016. She later completed her Master’s degree in Fashion and Apparel Studies in 2018, focusing on sustainable material development. Her research, which explored the use of mushrooms as a primary material for footwear, gained national media attention. As a graduate instructor, Jillian taught an undergraduate sustainability course at UD. She continues to share her expertise on textile sustainability as an adjunct professor, teaching several courses in the FASH graduate certificate program for sustainable apparel business.

Disclaimer: The views expressed in this interview are those of Jillian Silverman and do not reflect the views or positions of her employer or any affiliated organizations.

Sheng: What are your main responsibilities as a trim specialist? What does a typical day look like? Which aspects of the job do you find particularly interesting or unexpected before taking on the role?

Jillian: I manage the trims for all our apparel categories, which include hard trims like zippers and buttons and soft trims like thread and interlining, just to name a few. I work with our designers to find out their trim needs and any inspiration, our sourcing team to learn where the garments will be manufactured and any cost, quantity, or lead time considerations, and our global trim suppliers (primarily Asia-based) to select existing trim qualities or bring new ones to fruition. I never realized the intricacies of all the different trim types, and I have learned a lot on the job and still learn as I go! I really enjoy sitting between the creative side, particularly with custom trims, and the more logistical side of things. The different teams often have competing priorities, so while that makes it challenging to juggle, the problem-solving aspect keeps things interesting.

Sheng: In general, what factors should be considered when selecting trims and other textile materials in product development and sourcing?

Jillian: One of the big challenges right now is vendor and garment production location and how that relates to material production locations. With the new administration’s push for tariffs, we’ve been trying to quickly pivot away from China, but many of our raw materials still come from China, so it’s not so simple to move production away without having new challenges with transporting materials and the resulting cost and time delays.

In general, our biggest considerations when selecting materials are aesthetics and performance, cost, lead time (how long it takes to get samples and/or bulk production made), and MOQ (minimum order quantity). We also have to consistently reevaluate our supplier base to make sure we have the right partners who offer what we need at the right place, time, and cost. Speed is becoming more important, so the quicker we can have materials made and transported to our factories, the faster we can start selling those products.

Sheng: Based on your observations, how has sustainability influenced the selection and sourcing of textile materials for fashion companies? How is “sustainability” assessed for trims and other textile materials? What emerging trends should we keep an eye on?

Jillian: Sustainability considerations can be more proactive or reactive depending on the company and the issue at hand. For example, we phased out any PFAS from our supply chain to be in compliance with regulations that were coming. Other initiatives may be to reach certain sustainability goals, like ensuring that a specific percentage of polyester is recycled or using organic or BCI (Better Cotton Initiative) vs. conventional cotton, both of which are transitions we’re working to make. For outerwear, we’ve been using a lot more synthetic insulation, which is generally cheaper, more ethical, and offers easier care to our customers compared to down, so that’s a great option across the board, but many swaps are not so simple; switching to materials with a higher recycled content is often more expensive and less readily available. It can also be hard to quantify what is more “sustainable” about an item, so we look for documentation that supports it wherever possible.

Sheng: How do fashion companies today communicate the sustainability attributes of their apparel products? Is specifically mentioning keywords such as “sustainability” and “low impacts” in labels the most common practice?

Jillian: This has been an interesting topic of discussion lately since at a larger company, the people writing product copies for the website may be fairly removed from the product teams who know the ins and outs of their items and materials and what makes them special. Another challenge is that customers may not recognize the industry terms for things like branded fibers or certifications, so while those are more specific and quantifiable than terms like “sustainable,” they may be lost on the end consumer. I think it’s nice to offer both the more simplified language to get the customer to read further and then to try to break out what makes the item fit that label (e.g., water-saving dyeing method, a certain number of recycled bottles in the insulation, etc.).

Sheng: Following up on the previous question, is it true or a myth that sustainable textile materials are typically more expensive and increase production costs? If so, how can companies balance sustainability with cost-effectiveness?

Jillian: I’ve unfortunately found this to be true in many cases, but as the demand increases, many suppliers are beginning to make these switches automatically and often cost-neutral to their customers. The more brands ask for these changes, the more motivated suppliers are to invest in technology, certifications, etc.. We have to weigh whether or not we can use the more sustainable option without negatively impacting the other business needs, as well as gauge what our customer really cares about. It would be great to use more ethical materials and processes across the board, but we often use a phased approach to transition to more recycled content, for example, over time as we deplete existing stocks or focus on certain programs and styles like our more eco-friendly denim.

Sheng: Based on your experience, do you have any advice for our students on preparing for a career in the fashion apparel industry? What can they do at UD to better prepare? Additionally, what benefits do you see in pursuing a Master’s degree in fashion and apparel?

Jillian: My biggest advice is to be open to opportunities that are different from what you envisioned doing or even realized was a specific job that existed, like one centered around trims! I work with people who have moved between different roles in sourcing, design, technical design, and even IT once they get exposed to different teams and what their work was like. It’s ok to pivot if you find something that suits you better, or to find yourself working on something you weren’t expecting. Getting a breadth of experience also helps you to understand the bigger picture of all the moving parts that go into the apparel industry.

–The End–

Recording: Due Diligence Education for Gen Z: Preparing Future Fashion Leaders for Sustainable and Socially Responsible Apparel Sourcing (2025 OECD Forum Side Session)

About the Event

As the fashion industry grapples with increasing demands for sustainability, transparency, and social responsibility, the next generation of industry professionals—Generation Z—will play a crucial role in shaping the future of apparel sourcing and social responsibility practices in the industry.

This session explores how US college fashion programs equip Gen Z with critical knowledge in due diligence, sustainable sourcing, and supply chain transparency. Including voices from educators, Gen Z students (future professionals), and industry partners, the session will share best education practices, identify educational gaps, and present valuable Gen Z’s vision for improving due diligence and social responsibility in the garment industry. Additionally, the session will emphasize the increasing importance of industry-academic partnerships in curriculum development and talent preparation, illustrating the long-term benefits of such collaboration.

This session is highly relevant to industry professionals, educators, students, international organizations, and policymakers interested in supporting the next generation of fashion leaders and fostering a more socially responsible and sustainable fashion industry.

Panelists (Bios here)

  • Matthias Knappe, Head of Fibres, Textiles and Clothing Unit, International Trade Center
  • Laurie Rando, Senior Director of Sustainable Product and Human Rights, Macy’s
  • Julia Hughes, President, United States Fashion Industry Association
  • Megan Dawson-Elli, Manager of Product Sustainability, Tapestry
  • Sheng Lu, Professor & Graduate Director, Fashion and Apparel Studies, University of Delaware
  • Emilie Delaye, Master’s Student, Fashion and Apparel Studies, University of Delaware

This event is an official side session of the 2025 OECD Forum on Due Diligence in the Garment and Footwear Sector.

FASH455 Video Discussion: The Global Journey of a Sneaker

Discussion questions [Please address at least two questions in your comment]

#1: Based on the video and our class discussion, what would be the advantages and disadvantages for Nike to make Converse shoes leveraging a global supply chain?

#2: Assume you are an experienced U.S. shoe worker. What arguments would you present to Nike’s sourcing executives to produce Converse in the United States?

#3: In your opinion, are protective tariffs worth the economic and foreign policy consequences? Why or why not?

#4: The “hidden costs” of global trade (e.g., emissions, labor conditions) are often obscured from consumers. How can brands like Converse address these “hidden costs” while maintaining market competitiveness? What specific policies or regulatory measures should governments implement to promote responsible sourcing and enhance supply chain transparency?

[Discussion is closed]

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?

[discussion is closed]

New OECD Study: The Role of Sustainability Certifications In Due Diligence In The Garment And Footwear Sector (February 2025)

The study was based on a content analysis of major fashion brands and retailers’ sustainability reports and a survey of stakeholders in the garment and footwear sector from August to October 2023, including 32 brands and retailers, 37 suppliers, and a few non-business respondents.  The full report is HERE.

Key findings:

Rise in sustainability certification in the garment and footwear industry

  • Certifications like GOTS (Global Organic Textile Standard) and LWG (Leather Working Group) have seen significant growth (e.g., GOTS-certified facilities increased by 154% from 2018–2023).
  • Certified textile materials still constitute a minority of global production (e.g., 27% for cotton, 39% for leather)

Sustainability certification requirements and motivations

  • Over 80% of surveyed garment and footwear brands/retailers require certifications from suppliers, driven by risk identification (92%), product tracing (81%), and compliance with regulations (72%). In general, larger brands/retailers (91% of those with >€50M turnover) are more likely to mandate certifications than smaller ones (60% of small and medium-sized enterprises, SME).
  • In contrast to brands and retailers, most surveyed garment and footwear suppliers selected market access (84%) as a key motivation for obtaining certifications, followed by reputational reasons (83%) and risk identification (68%)

Types of sustainability certification in the garment and footwear industry

The paper divides sustainability certification in the garment and footwear industry into three major categories:

  • Due diligence certification to attest that a company (e.g. brand, manufacturer) implements the 6-step risk-based due diligence framework as outlined in the OECD Due Diligence Guidance (e.g., Green Button, Oeko-Tex Responsible Business).
  • Targeted risk certifications to verify outcomes on labor, environmental, or animal welfare risks in the supply chain (e.g., Better Cotton Initiative, Cradle to Cradle, Fairtrade Cotton, Fairtrade Textiles, FSC Forest Management, Global Recycled Standard (GRS), GoodWeave, GOTS, LWG, Oekotex SteP, SA8000, Worldwide Responsible Accredited Production)
  • Certificates of origin and chain of custody to trace raw materials (e.g., cotton, wool) to specific regions or facilities (e.g., Better Cotton Traceability, GOTS transaction certificates)

Role of sustainability certification in trade and market access

  • Certifications standardize compliance, enabling suppliers to meet buyer/regulatory demands (e.g., EU due diligence laws).
  • Brands use certifications to exclude high-risk regions (e.g., cotton from areas with forced labor) and validate ethical claims (e.g., recycled content).

Challenges related to sustainability certification in the garment and footwear sector

  • As the report noted, suppliers typically bear certification costs (e.g., audits, improvements), with limited buyer support.
  • SMEs and informal suppliers struggle with eligibility criteria and costs, risking exclusion from global supply chains.
  • The paper argues that certifications are not a “safe harbor.” Instead, apparel and footwear brands and retailers must complement certification with direct assessments, grievance mechanisms, and stakeholder engagement (e.g., worker interviews). Likewise, mandatory due diligence laws (e.g., EU CSDDD) will increase certification demand, but companies must balance compliance with holistic risk management.
  • The paper emphasizes the need for further research to understand how fashion brands and retailers use sustainability certification in practice. Policymakers should also consider new guidelines that clarify how companies should communicate publicly about the elements of due diligence for which they utilize sustainability certifications.

FASH455 Video Discussion: The State of Textiles and Apparel “Made in Asia” (Updated February 2025)

Video 1: Threads of Resilience: China’s textile manufacturing goes automated
Video 2: Asian factories struggling to keep young workers
Video 3: How Millions Of Jeans Get Recycled Into New Pairs in Pakistan
Video 4: Vietnam becomes second biggest garment exporter globally

Discussion questions:

#1 How are textiles and apparel “Made in Asia” changing their faces? What are the driving forces of these changes?

#2 How would you assess Asia’s competitiveness as a hub for textile and apparel production and sourcing in the next five years? Why? What relevant factors could come into play?

#3  Is there anything else in the videos that you find interesting, intriguing, thought-provoking, or debatable? Why?

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

Outlook 2025–Key Issues to Shape Apparel Sourcing and Trade

In December 2024, Just-Style consulted a panel of industry experts and scholars in its Shape of apparel sourcing in 2025 briefing. Below is my contribution to the report. Welcome any comments and suggestions!

What’s next for apparel sourcing

Although the world economy is predicted to grow at a similar pace in 2025 from 2024, the slowing US and Chinese economies could impose new challenges to apparel sourcing, from weakened demand to intensified price competition.

Regarding the macroeconomic environment in 2025, which “sets the tone” for apparel sourcing, the International Monetary Fund (IMF) and the World Bank estimated that the world economy would grow by approximately 2.7-3.2 percent in 2025, with almost no change from the previous year. Similarly, the World Trade Organization (WTO) projected that world merchandise trade would increase by 3.3 percent in 2025, slightly higher than 2.6 percent in 2024.

Despite this incremental improvement, the world’s two largest economies–the US (with 2.2 percent GDP growth in 2025, down from 2.8 in 2024 and 2.9 in 2023) and China (with 4.5 percent GDP growth in 2025, down from 4.8 in 2024 and 5.2 in 2023) are expected to experience slower economic growth in the new year ahead. This slowdown means that apparel producers around the world, particularly those developing countries making large-volume basic items, will likely continue to struggle with a shortage of souring orders in 2025 due to overall weak import demand.

Even more concerning, as China grapples with declining domestic sales, the world clothing market could see an additional influx of low-cost Chinese products, especially through new e-commerce channels. Notably, less than half of China’s clothing production is exported, indicating its significant untapped export capacity. Furthermore, while China’s wage levels are higher than those in many other Asian apparel-producing countries, the unit price of U.S. apparel imports from China measured in dollar per square meter equivalent ($/SME) dropped by more than 21% between 2018 and 2024 (up to October). In contrast, U.S. apparel import prices from the rest of the world increased by 7.8% over the same period. Related to this, what is often overlooked is that even Shein, the “ultra-fast fashion” retailer known for its exceptionally competitive pricing, deliberately opted out of the vast Chinese market due to concerns about the intense price competition there. In other words, disregarding the new Trump tariff, 2025 could see an escalation of trade tensions targeting Chinese products in the US market and beyond.

Meanwhile, due to concerns about rising geopolitical tensions worldwide and trade policy uncertainty during Trump’s second term, fashion companies will likely continue to leverage sourcing diversification to mitigate risks. However, the “reducing China exposure” and sourcing diversification movement has yet to substantially benefit near-shoring or emerging sourcing destinations such as the Western Hemisphere and Sub-Saharan Africa (SSA). This result was mainly because fashion companies utilized China to source a wide range of various products, whereas Western Hemisphere and SSA suppliers can only produce a few basic categories.

For example, my latest studies show that in the first nine months of 2024, even excluding major platforms like Shein, Amazon, and Temu, US fashion companies sourced more than 60K Stock Keeping Units (SKUs) of clothing items from China. In comparison, India and Vietnam each supplied approximately 15K SKUs, Cambodia and Bangladesh each contributed 3,000 SKUs, Mexico provided only 2K SKUs, and CAFTA-DR and AGOA member countries supplied around 200 SKUs each. Therefore, even if fashion companies report sourcing from more countries, they are likely to stay sourcing from more Asian countries with closer export capacity and structure to China. Meanwhile, the total value or volume of trade may not fully capture the whole picture of sourcing diversification. This trend may persist in 2025, even with new tariff escalations.

Apparel industry challenges and opportunities

Today’s fashion business is highly global and relies heavily on the frequent movement of goods and services across borders. Thus, the uncertain and protectionist nature of U.S. trade policy during Trump’s second term could present significant challenges to the fashion industry in 2025. Of particular concern is that Trump’s new tariff actions would raise fashion companies’ sourcing costs, create additional inflationary pressure, reduce US consumers’ purchasing power on clothing, and trigger retaliatory trade measures from U.S. trading partners, ultimately hurting the U.S. economy. Notably, when the 7.5% Section 301 tariff was imposed on selected Chinese clothing products in 2018, the U.S. Consumer Price Index (CPI) growth was relatively low at 1.9%. However, imposing a 20% global tariff, a 60% tariff on Chinese products, and the existing 15%-30% regular tariff on clothing when the CPI is historically high is like “adding fuel to the fire.”

Besides tariffs, in 2025, if not sooner, U.S. fashion companies and many e-commerce suppliers worldwide will closely watch how Congress and the new Trump administration reform the de minimis rule, which currently exempts small-value shipments under $800 from tariffs and most customs procedures.  With Trump’s new tariffs looming, some argue that closing the de minimis “loophole” has become even more urgent, as it creates more financial incentives to use the rule to bypass the tariff increase. Meanwhile, proposals under consideration suggest removing textile and apparel products entirely from de minimis, a move that could be an “earthquake” for those fashion companies utilizing the rule heavily.

Trump’s approach and philosophy toward conventional trade agreements and trade preference programs in 2025 also deserve attention. During his first term, Trump launched a few bilateral trade negotiations, from the one with the United Kingdom and Japan to Kenya. Back then, Trump saw a bilateral agreement would give the U.S. more leverage for a better “deal.” Specifically related to apparel sourcing and trade, two flagship U.S. trade preference programs–the African Growth and Opportunity Act (AGOA) and the Haiti HOPE/HELP Act, will expire in September 2025. It remains uncertain whether the new Trump administration will support the early renewal of these two trade preference programs with minimal changes or prefer to renegotiate them and add new bilateral elements.

Additionally, even though the new Trump administration may not prioritize addressing climate change, it is an irreversible trend for fashion companies to allocate more resources to comply with upcoming or newly implemented sustainability and environmental-related legislation, whether from the EU or the US state level. Unlike in the past, when being more sustainable only meant adding operational costs or paying a “one-time fee,” today’s new generation of sustainability-focused regulations—such as Extended Producer Responsibility (EPR)—requires companies to shift their mindset and demonstrate continuous improvement. Interestingly, my recent study tracking apparel products’ sustainability claims shows that vague terms like “sustainable” and “eco-friendly” are gradually being replaced by more neutral, fact-based keywords such as “regenerative,” “textile waste,” and “low impact.”

Meanwhile, offering “sustainable” apparel products and those using “preferred sustainable fibers” could provide fashion companies new opportunities to diversify their sourcing base and expand their vendor networks. For example, studies show that in the U.S. market, China and many other Asian countries are not necessarily the top suppliers of clothing made with recycled materials. Instead, Europe and countries in the Western Hemisphere or even Africa present unique sourcing advantages and capacities due to the unique nature of such products. Therefore, in 2025, we can expect an ever-closer collaboration between design, product development, merchandising, sourcing, and legal teams within fashion companies, working together to meet the growing demand for sustainable apparel and ensure compliance with evolving regulations.

by Sheng Lu

New Study: Exploring India as an Apparel Sourcing Base for U.S. Fashion Companies

The full article is published in Just-Style and below is the summary:

India’s Textiles and Apparel Production

Data from the United Nations Industrial Development Organization (UNIDO) shows that India produced around $76.5 billion in textiles and $26.64 billion in wearing apparel in 2022. Although still smaller than China’s, this production scale has already surpassed that of most other Asian countries, including Vietnam. Behind these numbers were India’s over 4,000 ginning factories, 3,500 textile mills, and around 45 million workers directly employed by the textile and apparel sector.

India is one of the world’s largest textile fiber producers, including regular cotton, organic cotton, silk, polyester, and viscose. India also has more advanced local textile manufacturing capabilities than most other developing apparel-exporting Asian countries, allowing it to benefit from a vertically integrated local textile and apparel supply chain. A recent U.S. International Trade Commission (USITC) study noted that more than 90 percent of India’s textile raw materials needed for its apparel production can be sourced domestically. In comparison, as the World Trade Organization (WTO) global value chain analysis estimated, more than 64 percent of Vietnam’s apparel exports in 2022 contained foreign-made content (i.e., imported yarns and fabrics), 57 percent for Cambodia, 49 percent for Indonesia, and 33 percent for Bangladesh.

India’s Apparel Export

India remained a much smaller apparel exporter than China, Vietnam, and Bangladesh. According to the World Trade Organization (WTO), India exported about $15 billion in apparel in 2023, ranked the world’s sixth largestor 2.8 percent of the global total.  Similarly, in 2023, India accounted for 5.5 percent of U.S. apparel imports and 3.5 percent of the EU, showing its position as a significant supplier but not among the largest. However, unlike most other developing Asian countries, India exports less than half of its apparel output due to its massive domestic market with a population of 1.43 billion. This implies that India’s substantial untapped apparel export potential should not be ignored.

Why Sourcing from India?

Firstly, aligned with trade statistics, many U.S. fashion companies already source from India, although in a relatively small volume.  For example, the USFIA benchmarking survey respondents consistently ranked India as the 3rd or 4th most utilized apparel sourcing base from 2021 to 2024, after China and Vietnam. However, U.S. fashion companies typically place less than 10 percent of their total sourcing value or volume in India. The recent USITC study also raised concerns that India’s apparel factories were primarily small and medium-sized, which could limit their ability to fulfill large-volume sourcing orders.

Secondly, “Made in India” clothing is not necessarily cheap but could be perceived as “worth the value.” Notably, from January to October 2024, clothing labeled “Made in India” sold in the U.S. retail market was, on average, priced much higher than imports from Bangladesh and Vietnam, particularly in the mass market segment. Meanwhile, in the premium market segment, clothing “Made in India” was, on average, priced relatively lower than “Made in China,” such as dresses, tops, and bottoms. These results suggest that U.S. fashion companies do not typically consider India a preferred sourcing base for basic and price-sensitive items. Instead, India may be seen as a more cost-effective alternative to China for high-quality, value-added clothing.

Thirdly, India has been strengthening its competitiveness in export flexibility and agility, enabling its vendors to quickly adjust the delivery, volume, and product of the sourcing order upon customers’ requests. In the latest 2024 USFIA survey, respondents rated India’s sourcing flexibility and agility second only to China, surpassing Bangladesh, Cambodia, and Central American countries. Likewise, India was regarded as one of the few Asian countries that could fulfill apparel sourcing orders with relatively low “minimum order quantity (MOQ)” requirements.

One major factor contributing to India’s perceived advantages in sourcing flexibility and agility is its ability to produce a wide range of apparel products. For example, the Herfindahl-Hirschman Index (HHI) calculated using trade data at the 6-digit HS code level indicates that U.S. apparel imports from India cover more diverse product categories than most Asian countries.

Moreover, due to India’s position as one of the world’s leading cotton producers, in the first ten months of 2024, nearly 60 percent of U.S. apparel imports from India contained cotton fibers, including 13 percent using organic cotton. This percentage was much higher than imports from other Asian suppliers such as China and Vietnam. In comparison, over the same period, U.S. apparel imports from India appear less likely to contain man-made fibers like polyester, nylon, spandex, and recycled polyester. This fiber composition explains why India has yet to become a leading supplier of certain apparel product categories, like outerwear, which more commonly uses man-made fiber than cotton.

Additionally, in the first ten months of 2024, over 45 percent of India’s apparel newly introduced to the U.S. market targeted the luxury and premium segment, closely matching China’s nearly 50 percent and exceeding other Asian suppliers such as Vietnam (20 percent), Bangladesh (13 percent), Cambodia (5 percent), and Indonesia (18 percent). This result explains why U.S. fashion companies increasingly consider India a strategic alternative to sourcing from China, given the similarities in their product offerings.

Reflections

India’s large country size and population, the presence of an already highly integrated and sophisticated textile and apparel supply chain, and its ability to make a great variety of high-quality products suitable for various market segments position it well in the export competition. U.S. fashion companies’ eagerness to reduce sourcing from China due to rising geopolitical concerns and the limited sourcing capacity elsewhere created historical opportunities for India to expand its apparel exports to the U.S. market further.

Nevertheless, it remains a question mark whether India is fully committed to expanding labor-intensive apparel production and exports, given the country’s economy is moving toward more capital and technology-intensive sectors. Notably, in value, apparel only accounted for about 5.6 percent of India’s total merchandise exports in 2023, similar to China’s 5.3 percent but much lower than other lesser-developed Asian countries, including Vietnam (10 percent), Bangladesh (88 percent), and Cambodia (44 percent).

Moreover, while India is not a primary focus for compliance issues like forced labor, sourcing from the country still carries general social and environmental compliance risks similar to those in most developing countries (note: see the 2024 USITC report). It remains to be seen whether India’s textile and apparel mills are technically and financially prepared to meet more stringent social and environmental standards being adopted in the U.S. and can effectively compete in the growing market for “sustainable apparel.”

by Gabriella Giolli (Honors Marketing major & Fashion management minor, University of Delaware) and Sheng Lu

New Study: Exploring the US as a Sourcing Base for Clothing Using Recycled Cotton

The full article is published in Just-Style and below is the summary:

Market Size

Reflecting fashion companies’ interest in carrying more sustainable apparel products to meet consumers’ demand, there has been a notable increase in clothing using recycled cotton in the U.S. retail market since 2022. For example, based on information collected from US apparel retailers’ websites, only about 100 Stock Keeping Units (SKUs) of “Made in the USA” clothing explicitly indicated that they contained recycled cotton in 2022 and 2023, respectively. However, in the first nine months of 2024, this number had already doubled to around 200.

Despite the impressive growth, clothing containing recycled cotton remains a “niche” in the U.S. retail market. As of 2024, the total SKUs of “Made in the USA” clothing containing recycled cotton accounted for only about 0.1% of those made with regular virgin cotton.

Meanwhile, measured by SKU count, 70% of “Made in the USA” clothing containing recycled cotton was sold in the mass and value segments in the U.S. retail market from 2022 to 2024.  In comparison, over the same period, “Made in the USA” clothing made with regular cotton catered to a more diverse consumer base, with a relatively balanced distribution across the mass and value segment (57%) and the luxury and premium segment (43%).

Product Features

There appears to be a notable distinction between the product categories of “Made in the USA” clothing using recycled cotton and those made with regular cotton. Specifically, from 2022 to 2024, by SKU count, “Made in the USA” clothing containing recycled cotton mainly focused on basics such as T-shirts (35.6%), jeans (20.1%), other bottoms (20.7%) and other tops (18.4%). Particularly, jeans appear more likely to contain recycled cotton than any other apparel category.

Using recycled cotton also appears to affect clothing’s design patterns. For example, from 2022 to 2024, nearly 85% of “Made in the USA” clothing containing recycled cotton chose plain design patterns compared to only 65% of those exclusively using regular cotton. These results echo findings from previous studies, suggesting that the shorter fiber length and lower quality of recycled cotton may limit the use of more intricate and complex design details.

Fiber Content

Reflecting the significant limitations of the quality and properties of the fiber, clothing labeled as using “100% recycled cotton” was rarely available in the U.S. retail market from 2022 to 2024, regardless of where the item was made. In most cases, recycled cotton accounted for no more than 30% of the total fiber content in a garment, with typical labels read like “49% cotton, 21% recycled cotton, 17% recycled polyester” (jeans), “Made from 70% cotton and 30% recycled cotton” (T-shirt), and “Made from 70% cotton, 29% recycled cotton, and 1% elastane” (skirt).

Results show that over 95% of “Made in the USA” clothing containing recycled cotton was blended with regular virgin cotton, and 92% of imported clothing did the same. According to textile scientists, this blend helps overcome the physical limitations of recycled cotton and enhances the fabric’s durability and softness. Approximately 14% of “Made in the USA clothing” containing recycled cotton was blended with polyester. This blend was commonly used for jeans and T-shirts to improve durability and flexibility and may also reduce production costs. However, compared with “Made in the USA” clothing made from regular cotton, it was uncommon to see recycled cotton blended with specific fiber types such as nylon, spandex, rayon, and linen. This result again revealed the physical limitations of recycled cotton and explained the narrow range of apparel products currently suited for its use.

Sustainability Claims

In practice, the sustainability claims of “Made in the USA” clothing containing recycled cotton in the U.S. retail market appear to be a “mixed bag.” On the one hand, as anticipated, “Made in the USA” clothing containing recycled cotton seems to be more likely to highlight its sustainability attributes than those using regular cotton only. From 2022 to 2024, by SKU count, more than 23.1% of “Made in the USA” items containing recycled cotton mentioned the word “sustainable” in the product description or label, and another 16.2% mentioned “eco-friendly.” In comparison, less than 2% of “Made in the USA” clothing made from regular cotton included these two terms.  Similarly, a higher percentage of “Made in the USA” clothing using recycled cotton also featured other sustainability-related terms such as “impacts,” “waste,” and “certified,” compared to those made from regular cotton.

On the other hand, however, the sustainability claims of “Made in the USA” clothing containing recycled cotton are not without concerns. For example, in many cases, the product descriptions or labels provide no detailed and verifiable information about the actual “sustainability benefits” of producing and consuming clothing made from recycled cotton aside from vaguely saying the product was “sustainable,” “eco-friendly,” or “certified.”

To complicate the issue further, as clothing made from regular cotton increasingly emphasizes its sustainability benefits as a natural fiber, it somehow diminishes the exclusivity of recycled cotton as a sustainable option. For example, there is no clear evidence indicating that consumers generally perceive clothing using “recycled cotton” as more or less sustainable than those using “organic cotton” or cotton certified by reputable programs such as the “Better Cotton Initiative, BCI” and the “U.S. Cotton Trust Protocol.” In other words, “recycled cotton” faces intense competition as the preferred sustainable fiber among many choices available to fashion companies, including regular cotton. 

Pricing Practices

Results show that “Made in the USA” clothing containing recycled cotton is not always “cheap” for U.S. consumers. For instance, for those targeting the mass market segment, between 2022 and 2024, adding recycled cotton increased the selling price of “Made in the USA” clothing by more than 10% compared to items made with virgin cotton, with jeans being the only exception (i.e., 12% lower).

Price data also show that “Made in the USA” recycled cotton items generally have higher price tags than comparable non-U.S.-made items across both mass and premium markets, particularly in popular categories like T-shirts and bottoms. This trend suggests that higher U.S. domestic production costs, particularly the higher wage level than Asian countries, could contribute to these elevated prices.

Reflections

As the findings highlighted, while visibility is increasing, promoting recycled cotton in clothing still encounters significant challenges. For instance, technical advancements in the quality of recycled cotton fiber are critical to enhancing its competitiveness among other “preferred sustainable fibers,” raising its perceived market value and enabling its use across a broader range of clothing categories beyond T-shirts and jeans.

Notably, due to slow progress in improving the physical properties of recycled cotton, some have seemingly “given up” on using it for clothing and suggest focusing more on repurposing recycled cotton for other categories, such as non-wovens, carpets, packaging, and home textiles. However, as sustainability legislation, such as the Extended Producer Responsibility (EPR) law, increasingly mandates fashion companies to recycle textile waste, not promoting recycled cotton could lead to greater reliance on recycled polyester or other man-made fibers in clothing, which may not serve the long-term business interests of the cotton industry.

by Katherine Yasik (Fashion Design and Product Innovation major & Sustainable apparel minor, Fashion and Apparel Studies, University of Delaware) and Sheng Lu

New Study: How Has the Uyghur Forced Labor Prevention Act (UFLPA) Affected U.S. Apparel Import?

Implemented in June 2022, the Uyghur Forced Labor Prevention Act (UFLPA) prohibits U.S. companies from importing apparel wholly or in part produced in China’s Xinjiang region. UFLPA could significantly alter U.S. apparel import patterns as fashion companies have begun or anticipate adjusting their sourcing base to comply with the law and mitigate the forced labor risks in the supply chain.

This study quantitatively evaluated the impacts of the UFLPA on U.S. apparel imports nearly two years after the law’s implementation. Unlike existing studies primarily focusing on UFLPA’s political or legal aspects, this study’s findings would enhance our understanding of the economic and trade implications of the new law.

A panel regression model was adopted to evaluate the quantitative impact of UFLPA on U.S. apparel imports based on data collected from OTEXA (2024) and USITC (2024), the most authentic government data source. Four countries in three categories were included in the study: 1) China; 2) Vietnam and Bangladesh representing top Asian apparel exporting countries other than China; 3) member countries of the Central America Free Trade Agreement (CAFTA-DR) representing near-shoring sourcing destinations. The annual trade activities of these four countries from 2010 to 2023 (the latest available) were used for the analysis.

The panel regression model suggests several interesting findings*:

Firstly, the results showed that holding other factors constant, U.S. cotton apparel imports from China decreased significantly by approximately 350 million square meter equivalent (SME) annually following UFLPA’s implementation. In other words, the result confirmed that UFLPA had negatively affected U.S. cotton apparel imports from China. This result is far from surprising as Xinjiang accounted for nearly 90% of China’s cotton production, causing significant forced labor risks associated with importing cotton apparel from China.

Secondly, holding other factors constant, U.S. cotton apparel imports from Vietnam and Bangladesh and CAFTA-DR also respectively decreased by approximately 81 million SME, 51 million SME, and 20 million SME annually after UFLPA’s implementation in 2022. The results revealed U.S. fashion companies’ concerns about UFLPA compliance risks associated with sourcing from countries other than China, particularly Asia, due to their heavy reliance on cotton yarns and fabrics from China through a highly integrated regional supply chain.

Thirdly, the results revealed a more significant positive relationship between U.S. cotton exports to China, Vietnam, Bangladesh, and CAFTA-DR countries and U.S. cotton apparel imports from these countries after UFLPA’s implementation. Related, trade data also showed a declining ratio of U.S. cotton apparel imports from China, Vietnam, Bangladesh, and CAFTA-DR countries relative to these countries’ cotton imports from the U.S. This pattern implies a closer alignment in the trade flow of raw cotton from the U.S. to these countries and the return of finished cotton apparel to the U.S. It could be the case that leading apparel exporting countries increasingly used US cotton after UFLPA to mitigate the forced labor risks.

Additionally, there was a negative relationship between U.S. cotton apparel imports from China, Vietnam, Bangladesh, and CAFTA-DR members and U.S. MMF apparel imports from these countries. In other words, cotton apparel and MMF apparel appear to compete within the total U.S. apparel import market. However, UFLPA’s implementation has not significantly impacted the relationship. Nonetheless, MMF apparel has accounted for a growing share of China’s total apparel exports to the United States after UFLPA’s implementation (down from 46% in 2010 to only 19% in 2023).

The study’s findings revealed a broad trade impact of UFLPA’s implementation that goes far beyond China. Notably, cotton apparel exporters from other Asian countries and those in the Western Hemisphere also appeared to be negatively affected by the new law. Also, unlike theoretical prediction, no clear evidence shows that UFLPA has significantly expanded the near-shoring of U.S. cotton apparel imports from the Western Hemisphere, such as CAFTA-DR members.

Meanwhile, the results call for further investigation of the net impact of UFLPA on U.S. cotton exports. While UFLPA may help U.S. cotton gain more shares in the global marketplace, the reduced U.S. import demand for cotton apparel due to forced labor risk concerns may also unexpectedly “shrink the pie size.”

*:The fixed effects (FE) model was selected for the study based on the likelihood ratio test results (p<.01). The result of the F-test suggests the FE model is statistically significant at the 99% confidence level (p<.01). The value of R2 exceeds 0.90, indicating an overall high goodness-of-fit of the panel regression. All the independent variables were statistically significant at the 99% confidence level (p<.01).

By Sheng Lu and Emilie Delaye

Note: The study will be presented at the 2024 International Textile and Apparel Association (ITAA) annual conference in November 2024.

[This blog post is not open for comment]

FASH455 Discussion: How likely will US fashion companies increase apparel sourcing from Guatemala in 2025 compared to 2024?

Note: The video was taken during a Guatemala garment factory visit in May 2024. Credit: Sheng Lu

Discussion instructions:

The following two scenarios are generated by ChatGPT using input from FASH455 students’ proposed discussion questions*. Based on what we learned in class and additional information you collected online (not from ChatGPT or any AI tools), please critique the scenarios presented, including the strengths and weaknesses of the argument, any viewpoints you agree or disagree with, and any additional factors that could be considered. In your response, please share the link to any further resources you consulted.

Scenario 1: US apparel import from Guatemala would increase in 2025

In 2025, U.S. apparel imports from Guatemala are projected to experience a significant increase, driven by a confluence of favorable economic conditions, strategic supply chain shifts, and improvements in local manufacturing capabilities. The U.S. economy is expected to grow at a rate of 2.2%, which, coupled with rising consumer confidence, is likely to sustain robust demand for apparel. Guatemala’s geographic proximity to the U.S. presents a logistical advantage, allowing for shorter shipping times and reduced transportation costs compared to Asian suppliers. Moreover, U.S. apparel imports from Guatemala, which have historically averaged around $1.5 billion, could see a notable increase around 2-5%. This increase is further supported by Guatemala’s investments in modernizing its textile industry, including advancements in sustainable practices and technology adoption that align with growing consumer preferences for ethically sourced and environmentally friendly products.

Additionally, the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) has enabled duty-free access for certain apparel products, encouraging more U.S. brands to explore sourcing options in Guatemala. With a utilization rate of around 70% under CAFTA-DR, brands are beginning to leverage the agreement more effectively, which could lead to a higher volume of apparel imports as they seek to optimize their supply chains. In this context, the increasing trend toward sustainable fashion could further elevate Guatemala’s status as a preferred sourcing location, particularly for companies looking to enhance their corporate social responsibility profiles. As a result, the combination of economic growth, logistical advantages, and strategic shifts in sourcing could lead to a substantial increase in U.S. apparel imports from Guatemala in 2025.

Scenario 2: US apparel import from Guatemala would remain stagnant in 2025

U.S. apparel imports from Guatemala are poised to remain stagnant in 2025, continuing a troubling trend that has characterized the market for over a decade. Despite a projected U.S. GDP growth of 2.2%, the apparel market faces significant challenges that hinder any potential growth in trade volume. Historical data illustrates that U.S. imports from Guatemala have stagnated around $1.5 billion, primarily due to intense competition from Asian manufacturers who can offer lower prices and greater production capacity. With the global supply chain still recovering from disruptions and high inflation pressure, U.S. companies may prioritize sourcing from countries that can provide more cost-effective solutions, further sidelining Guatemala.

Moreover, Guatemala’s textile sector grapples with persistent capacity constraints and labor shortages, limiting its ability to scale operations effectively in response to market demands. The country’s utilization of CAFTA-DR benefits remains suboptimal, hovering around 70%, and many brands have yet to fully exploit the agreement to its potential. This underutilization could be a significant barrier to increasing trade volume, as companies may prefer sourcing from countries that can more efficiently navigate trade agreements and provide better pricing structures. Additionally, the growing trend toward fast fashion and quick turnaround times poses a challenge for Guatemalan manufacturers, who may struggle to compete with the rapid production cycles of Asian suppliers. Given these persistent issues, U.S. apparel imports from Guatemala are likely to remain stagnant at approximately $1.5 billion in 2025, as the country continues to face formidable obstacles in enhancing its role in the global apparel supply chain.

*Questions FASH455 students proposed to generate initial information. Read the ChatGPT responses here.

  • Compare the most likely scenario of Trump or Harris becoming the next U.S. president and its impact on US apparel sourcing from Guatemala.
  • Here is the latest US GDP growth and forecast: 2.9% in 2023, 2.8% in 2024 and 2.2% in 2025. Analyze the historical data you have access to and predict US apparel imports from Guatemala in 2025. Ideally, please provide numerical results
  • US apparel imports from Guatemala have stagnated over the past decade. What are the critical reasons for the lack of growth? Will any factors likely change in 2025, or will they remain mostly the same?
  • Does Guatemala have the capacity to handle increased US apparel sourcing demand in 2025 from 2024? Say 5% increase or 10% increase? Please use data to justify your viewpoint.
  • What factors would impact US fashion companies sourcing with Guatemala in the future? Will any factors change in 2025, and why?
  • What is the relationship between CAFTA-DR’s utilization and the value of US apparel imports from Guatemala? Based on historical data, will the utilization rate significantly affect the trade volume?
  • Will offering more flexibility in CAFTA-DR’s apparel rules of origin encourage more apparel imports from Guatemala, and why?
  • Will recycled textiles significantly boost US apparel sourcing in 2025 vs 2024? or instead, this is a niche product and won’t affect the sourcing volume much
  • Is Guatemala a preferred sourcing base among fashion companies for fast fashion items? Can Guantema compete with Asian countries for such orders in 2025?

Costume Buying and Sourcing: FASH455 Exclusive Interview with Kara Hamalainen, Associate Costume Buyer at Disney Live Entertainment

About Kara Hamalainen

My name is Kara Hamalainen, and I am a May 2023 graduate of the University of Delaware. I earned my Bachelor of Science double majoring in Fashion Design and Product Innovation & Fashion Merchandising and Management. While studying at UD, I was very involved with the Impact Dance Company and Synergy Fashion Group. I have a strong passion for the costume industry because I grew up as a dancer, and it is the perfect way to link my two most prominent interests of fashion and the entertainment world together.

After graduating from UD, I was accepted into the Disney Professional Internship program and began my role as a Disney Live Entertainment Costuming Buyer Intern. I had the most incredible experience as a Professional Intern for the Walt Disney Company, and luckily, my time with my dream company did not end after my internship. I was offered a full-time Associate Costume Buyer role, and I get to continue making magic for thousands of people every single day! I currently live in Orlando, Florida and have been in my full-time ACB role for about six months.

Sheng: As a costume buyer for Disney, what are your primary job responsibilities? What does a typical day or week look like for you? Which part of the job do you find most exciting? Were there any aspects of the position that surprised you after you started?

Kara: The primary responsibility of a costume buyer under Disney Live Entertainment is to have the right costumes at the right place, in the right quantity, and at the right time. Buyers are responsible for placing orders for costume pieces, garments, and accessories and ensuring that delivery dates for products ordered are closely monitored. By achieving this, we can create and enrich the experiences of our guests and cast members worldwide. Our work can be seen at the Disney theme parks, resort hotels, cruise ships, and numerous other locations around the globe, which is truly a special and unique opportunity.

I am an Associate Costume Buyer under our Character Programs & Development (CP&D) replenishment team. In this role, I mainly replenish existing products but may assist with new developments as needed. My main responsibility is facilitating the purchase of various hard and soft goods for our character costumes. I assist a few buyers on my team with their orders while managing my own orders and vendor relationships. I also facilitate conversations with domestic vendors across the U.S. to get high-quality products on time and within budget. Additionally, I issue fabric and notions requests from our warehouse to get materials stored in-house and sent to our outside vendors for production.

The most exciting part of my job is witnessing how my work behind the scenes impacts people every single day. Whenever I go to the Walt Disney World theme parks, I watch guests interact with their favorite Disney characters through meet & greets and parades. It is heartwarming to know that I get to contribute to something so special to somebody and allow them to have that memory for the rest of their life.

An aspect of my role that surprised me the most was how complex and detail-oriented every single element of a character’s costume is. It may be as small as an earring or a buckle on a belt, but each costume component is treated equally. Attention to detail is an extremely crucial element to Disney Live Entertainment Costuming to ensure the power of storytelling comes across to all guests.

Sheng: What does the buying and sourcing process look like for costumes? What factors do you typically consider in your buying and sourcing decisions? What are the unique issues or challenges involved in costume buying and sourcing?

Kara: The buying process for character costumes begins with our CP&D inventory planning team, which monitors the inventory of our costumes in terms of sizing, assortment, and quantity. The inventory planning team determines optimal inventory levels and all costume issue locations in the warehouse. They are also the team that will receive specific requests from costuming leaders and sites regarding inventory status and demand for a certain character costume. Once the inventory planning team has decided what character costume piece will need to be ordered and the ideal quantity, they will notify the buyer to place an order.

Once the buyer has been notified of the new purchase request, they will email their vendors to notify them of the new order. It is essential to inform the vendor of the item, quantity, and due date to confirm that the order can fit into their current production schedule. The buyer will also confirm pricing with the vendor. As soon as the vendor confirms that the new order will fit into their production schedule, the buyer writes the official purchase order. For all soft goods, this is the point in time where the buyer will notify our patternmaking team to send the tech pack and samples to the vendor for production. If necessary, the buyer will also ensure that fabric and notions requests are made for the order. Once the buyer takes these steps, the outside vendor will successfully produce the order.

When production is completed, and the order is delivered to our warehouse, a detailed quality check process will be performed. Every item goes through inspection, is counted for quantity accuracy, and is measured to ensure that sizing is to spec based on the tech pack. If there are any discrepancies, there are multiple ways in which the issue can be resolved so the items can ultimately pass the quality inspection. Most importantly, the buyer will be notified and communicate the issue to the vendor so it can be prevented for future orders. If there are no noted issues with the order, then the order will be received in the system and marked for completion.

A challenge frequently arises involves orders with a “hard due date,” meaning the costume piece is needed for a specific project, show, or cruise ship. These hard due date orders do not have flexibility with their due dates as a regular replenishment order would, so it is crucial to make the vendor aware of shifting order priority if necessary. Sometimes, these hard-due-date order requests come in with very little notice, so the buyer will confirm with the vendor that they can turn in the items quickly and successfully meet the due date. If a hard due date order becomes impossible to meet, the buyer will communicate with the inventory planning team, which will work on finding a viable solution.

Sheng: As a costume buyer, how do you collaborate with other departments and teams at Disney, such as designers, product development, and sourcing? How about external stakeholders, such as your vendors?

Kara: For the CP&D Procurement Buying team, one of our main focuses is our communication and relationships with outside vendors. It is extremely vital that we build and maintain strong relationships with our outside vendors so our business can continue to run successfully. The buyers are in constant contact with their assigned vendors, communicating daily via email and phone about both current and new costume orders. It is also important that we get our work onto their production schedule in a timely manner to avoid scheduling conflicts with other customers they may have.

Regarding other teams at Disney, my buying team often collaborates with the project development buying team. This team is responsible for buying and sourcing materials for new character costumes that the designers are currently developing. Once the development process has been completed, we hold transition meetings where the development team goes over everything the replenishment buying team will need to know about the new character costume for future orders. This includes elements such as raw materials, fiber content, vendor information, and price per costume piece.

Sheng: Do you see any innovations changing the future of costume buying or production, particularly due to factors like technology, AI, and sustainability?

Kara: The Walt Disney Company commits to environmental sustainability, implementing several goals to achieve by 2030 related to emissions, water, waste, materials, and sustainable design. Specifically for Disney Live Entertainment Costuming, we focus on sustainable materials, manufacturing, and zero waste management. Fabrics and raw materials will be resourced to contain at least 25% certified sustainable content or lower-impact alternatives. Plastics will also need to contain at least 30% recycled content or a lower-impact alternative material. Manufacturers of raw materials and garments must provide one or more approved sustainable certifications and confirm participation in the Higg Index.

As a buyer, it will be our responsibility to work with our outside vendors and ensure they are closely following our company’s sustainability efforts. As some vendors source their own materials rather than use Disney-supplied materials, they must shift toward using recycled, sustainably sourced, or lower-impact alternative textiles and raw materials. Additionally, any vendors specializing in plastics and other hard goods will have to figure out ways to make their materials more sustainable without affecting the quality of the costume piece. Our current outside vendors must also maintain a sustainable manufacturing certification and provide proof of their sustainability practices. Suppose this is not possible for some of our current vendors. In that case, I imagine we would have to identify new vendors who can maintain production on a sustainable level that is ideal for our business model.

Sheng: What advice would you give to students interested in pursuing a career in costume buying and sourcing? What skill sets are most valued in this role? Are there any specific experiences or opportunities at UD and in the FASH program that you would highly recommend for our students exploring their career paths?

Kara: I would highly recommend taking advantage of internship opportunities during your time at UD. Internships are a great way to gain hands-on experience in the day-to-day responsibilities of a particular role while allowing you to strengthen your understanding of the textile and apparel industry from a real-world perspective. It is also an extremely effective way to network and make valuable connections in the industry. Don’t be afraid to start conversations with your FASH professors about your goals and interests, as they are always willing to help and will likely have strong connections to the industry as well.

Additionally, having an open mind is extremely important going into the industry. Your first job out of college may not be your dream role, but know that you are gaining valuable industry skills that can be applied to a number of different positions. For example, I know that I eventually want to work my way into a more creative and design-driven role. While my current position as a costume buyer may not be focused on design and creativity, the communication and organization skills I am gaining can still translate to various positions in the industry.

Lastly, follow your dreams! It might sound cliché, but you never know what will happen if you put yourself out there and give something a shot. I faced multiple rejections from Disney before getting accepted into the internship program. If I had not decided to persevere and keep trying, I would not be where I am today. I also owe so much of my successes to the UD FASH program, as I am so grateful for the opportunities it provided. Good luck to all of you!

–The End–

Current Event Discussion: How Shipping Containers Control Global Trade

FASH455 Learning activity: After watching the two video above, please explore the following topics with the assistance of ChatGPT or other generative AI tools:

  1. The significance and complexity of container shipping for U.S. fashion brands and retailers
  2. Current issues related to container shipping for U.S. fashion brands and retailers

In your response, please include the following elements:

  • Questions: list at least three questions you asked ChatGPT or other AI tools that helped generate the most information and insights.
  • Summary and reflections: summarize the key points from the answers you received from the AI tool and share your reflections (e.g., were there any surprising insights? the outlook for the issues discussed)
  • Further Reading: Suggest 1-2 additional articles from national or international press that offer deeper insights into the topics. The readings need to be published after 2024. Please share the article link and briefly explain why you recommend them.

Merchandising and Sourcing: FASH455 Exclusive Interview with Natalie Kaucic, Global Merchant for Dockers at Levi Strauss & Co.

About Natalie Kaucic

Natalie Kaucic is a Merchandising professional currently in the role of Global Merchant for Dockers Men’s Tops at Levi Strauss & Co. She graduated from the University of Delaware in 2019 with a Fashion Merchandising Degree and Business Admin minor. During her studies, she was awarded the Fashion Scholarship Fund scholarship, studied at John Cabot in Rome, participated in the Disney College Program, and was a leader for the Delaware Diplomats. Natalie’s research on the global market for sustainable apparel was published in Just-style, a leading fashion industry trade publication. Post university, Natalie started as an assistant at Minted as a Merchandiser, where she worked in the Wedding category and faced the adverse challenges of the wedding industry during COVID-19. Levi’s was her next endeavor where she started as an assistant, and has since been promoted to run the Dockers Men’s Tops Category for the Globe.

Disclaimer: The comments and opinions expressed below are solely my own and do not reflect the views or opinions of any company.

Sheng: What are your primary job responsibilities as a global merchant? What does a typical day or week look like for you? Which part of the job do you find most exciting? Were there any aspects of the position that surprised you after you started?

Natalie: My primary responsibility is to create a brand-right and consumer-focused product assortment. Under the covers, this looks like a vast variety of tasks that I do on a seasonal basis. I regularly listen and work with regional merchandising to understand their regional specific needs, collaborate with design on new product ideas and fabrics, and meet with product development to work on new fabric innovations and product costing. Every week looks dramatically different for me in my work. Sometimes, I’m heads down in assortment strategy; other weeks, I work on creating templates and calendars for process improvement.

What I find most exciting is seeing the product in person. Most Dockers Tops are not sold domestically, so it’s really fun to see a product you worked on in the wild! I am also grateful to be able to manage an assistant. Seeing things click for her and watching her succeed is incredibly motivating.

What surprised me the most was the number of different teams I work with, including planning, regional merchants, product development, marketing, styling, design, garment/fit development, copy, IT, analytics, sales, business operations, and e-commerce. Learning what everyone does and who to go to was the most significant learning curve and the biggest shock coming into my role.

Sheng: Based on your observation and experience, how do the merchandising, product development, and sourcing teams collaborate in a fashion apparel company? Could you explain their respective responsibilities and how they support one another?

Natalie: In my role, I have more direct contact with our product development team than the sourcing team. I work very closely with product development as they are the team that helps produce our product. They manage fabric & garment development, costing negotiations, and innovation development/testing. They also work through some more micro-sourcing strategies, for example, moving the production from one factory to another to get better duty rates. As a hypothetical example, we sell a poplin shirt primarily in Europe. Pretend we produce the shirt in India at a cost of $10/each. However, shipping it to Europe incurs a 40% import duty, bringing the cost of goods sold (COGS) to $14. If we could produce the shirt in Mexico, where the duty rate to Europe is only 5%, even if the production cost is higher—say $12—the overall cost to Europe would still be lower. There are endless complexities to this that I’m sure you will learn more from FASH455—topics like free trade agreements, yarn forward rules of origin, etc.

Sheng: Fashion companies need to balance various factors such as cost, quality, speed to market, and compliance risks when deciding where to source their apparel products. Could you share your experiences and reflections on managing these challenges in the real world?

Natalie: Below is an example of natural fibers and the cost challenge with cotton-forward apparel products.

Currently, linen is in high demand, but there isn’t enough crop to meet industry needs—it’s a classic case of supply and demand. Not only does this drive up costs (COGS), but it also complicates the process of securing raw materials. It’s easy to overlook that the apparel industry is fundamentally tied to agriculture, making it vulnerable to factors like bad weather, natural disasters, and inaccurate demand forecasting. These challenges force us to make critical decisions. With rising garment costs, should the company absorb the expense to keep prices steady for consumers? Our product development team might ask if we need to pre-book fibers to lock in pricing—when is the right time to do that, and how much should we purchase?

This isn’t a new challenge. For example, cotton, our primary raw material for clothing, fluctuates in price like oil, making agility in sourcing essential!

Sheng: Studies show that consumers want to see more “sustainable apparel products” in stores. How are fashion companies responding to this demand? What opportunities and challenges does this trend present for fashion companies’ business operations, especially in merchandising, supply chain, and sourcing?

Natalie: This is such a complicated question. I think about this often as I am personally really passionate about this topic!

In my day-to-day work, I focus on sustainable fibers, as the fabric content of a garment is something I can directly influence. Working on a global scale, I collaborate with regions worldwide, each of which—along with their retailers—has different values regarding sustainable products. Europe, for instance, is relatively ahead of the US in sustainability and often requires a certain percentage of sustainable fibers (e.g., organic cotton, recycled cotton) in our products. In Europe, items using 100% organic cotton hold significant value and can command a higher price in stores such as Galeries Lafayette or Zalando. However, not all retailers and consumers globally share the same commitment to sustainability. In some cases, we may need to use synthetics for functional purposes, such as in activewear. In those instances, we prioritize using recycled polyester or nylon to meet our sustainability goals. Regardless of the consumer or price point, our goal is to integrate sustainability at every level and for every product.

One challenge I find particularly interesting is working with “recycled cotton.” As you may know, recycling cotton typically involves breaking down the fibers, which shortens and weakens them. Because of this, there’s usually a limit to how much recycled cotton can be used before fabric quality is affected. That’s why you often see recycled cotton blended with virgin cotton in the same garment. However, newer recycling methods that aim to preserve the staple length are emerging, offering hope for improvements as the technology becomes more mature and accessible.

Ultimately, heavy consumption, regardless of the fabric being recycled or organic, isn’t truly sustainable. The focus should be on choosing pieces you love and investing in items that are made to last.

Sheng: Are there any other major trends in the fashion industry that we should closely monitor in the next 1-3 years?

Natalie: In the next 1-3 years, I’m eager to see what AI-driven tools will be introduced to assist merchants in making smarter, data-backed decisions. In merchandising, we are constantly trying to predict the future. A lot of research and data analysis go into decision making,  but also a big handful of going with your gut. Will AI be able to help us find trends in the past that can better help us make decisions for the future?

It’s not exactly a trend, but I’m really curious about the future of fast fashion giants over the next decade. With growing interest in sustainability and new regulations emerging from Europe, will we eventually see a decline in these dominant players, or will demand for fast, cheap apparel always persist?

Sheng: Last but not least, is there anything you learned from FASH455 or other FASH courses that you find particularly relevant and helpful in your career? What advice would you offer current students preparing for a career in the fashion apparel industry?

Natalie: I felt really prepared coming out of the FASH program for my corporate job. I picked this degree, as I’m sure many have because it combined the necessary key concepts of a business degree with the skills and knowledge to build a career in apparel. I think the classes I reference the most in my day-to-day life are product development classes, textile classes, and apparel buying. As a merchant, I need to be able to talk about fabric types with designers, cost engineering with product developers, and financial metrics with planners. FASH455 was one of my favorite classes because sourcing, trade, geopolitics, and policy constantly pull the strings behind the scenes in the apparel sector. FASH455 gives you insight into how these factors create ripples in the apparel sector.

When it comes to advice, it’s tried and true: network! Talk to teachers, reach out to alumni, sign up for the UD Job Shadow Program, and talk to the career center. There are so many services to take advantage of while at UD. Other than networking, I would highly recommend steering the subjects of your papers to companies and topics you are interested in. I worked on a few reports about Levi Strauss & Co., which confirmed it as a target company for me and helped me succeed in the interview process.

Lastly, be flexible! You might come in, as I did, thinking you want to be a buyer, only to realize it’s not the best fit. Or, you could start with greeting cards and stationery merchandising and pivot to apparel. Or even move out of apparel entirely! Nothing is set in stone, and that’s both the most stressful yet reassuring lesson I’ve learned since graduating.

–The End–

New Study: PVH Corporation’s Evolving Apparel Sourcing Strategies (updated Septmeber 2024)

PVH Corporation (PVH), which owns well-known brands including Calvin Klein, Tommy Hilfiger, Van Heusen, Arrow, and Izod, is one of the largest US fashion companies with nearly $9.2 billion in sales revenues in 2022.

By leveraging PVH’s publically released factory lists, this article analyzes the company’s detailed sourcing strategies and changes from 2021 to 2022. Key findings:

Trend 1: PVH adopts a diverse apparel sourcing base and continues to work with more vendors. Specifically, in 2022, PVH sourced apparel from as many as 37 countries in Asia, Europe, America, the Middle East, and Africa, the same as in 2021. Despite not expanding the number of countries it sources from, PVH increased its total number of vendors from 503 in 2021 to 553 in 2022, highlighting the company’s ongoing commitment to diversifying its sourcing base.

Trend 2: Asia is PVH’s dominant sourcing base for finished garments and textile raw materials.

Specifically, about 56.2% of PVH’s apparel suppliers were Asia-based in 2022, followed by the EU (20.3%). Compared with a year ago, PVH even added twenty new Asia-based factories to its supplier list in 2022, suggesting no intention of reducing sourcing from the region. Moreover, From 2021 to 2022, as many as 83% of PVH’s raw material suppliers were Asia-based, far exceeding any other regions.

Trend 3: PVH’s China sourcing strategies are evolving and more complicated than simply “reducing China exposure.”

  • First, PVH continued to work with MORE Chinese factories. Specifically, between 2021 and 2022, PVH added 17 Chinese factories to its apparel supplier list, more than other countries. However, the expansion could be because of PVH’s growing sales in China.
  • Second, PVH’s garment factories in China are smaller than their peers in other Asian countries. For example, in 2022, most PVH’s contracted garment factories in top Asian supplying countries, such as Bangladesh (87.5%), Vietnam (63.3%), and Sri Lanka (65.3%), had more than 1,000 workers. In comparison, only 11.3% of PVH’s Chinese vendors had 1,000 workers, and more than 62.5% had fewer than 500 workers. The result suggests that PVH treats China as an apparel sourcing base for flexibility and agility, particularly those orders that may include a greater variety of products in relatively smaller quantities.
  • Further, PVH often priced apparel “Made in China” higher than those sourced from the rest of Asia.

Trend 4: PVH actively used “emerging” sourcing destinations outside Asia. Other than those top Asian suppliers, PVH’s apparel sourcing base includes several countries in America, the EU, and Africa that deserve more attention, including Portugal, Brazil, Tunisia, and Turkey. Overall, PVH sourced from these countries for various reasons, from serving local consumers, seeking sourcing flexibility, accessing raw materials, and lowering sourcing costs.

by Sheng Lu and Ally Botwinick

Further reading: Lu, Sheng & Botwinick, Ally (2023). US fashion companies’ evolving sourcing strategies – a PVH case study. Just-Style. Retrieved from https://www.just-style.com/features/us-fashion-companies-evolving-sourcing-strategies-a-pvh-case-study/

PVH’s market shares in the China apparel retail market

(discussion for this post is closed)

FASH455 Exclusive Interview with Michael Lambert, Executive Director of Global Trade and Compliance of Urban Outfitters, about Trade Compliance and Global Apparel Sourcing

About Michael Lambert

Michael Lambert is the Executive Director of Global Trade and Compliance at Urban Outfitters (URBN). He also serves as the Vice Chair of the Board of Directors of the United States Fashion Industry Association (USFIA).

Michael has spent over 30 years in the retail fashion business, primarily in the import/export and Customs compliance area. At URBN, Michael is responsible for Customs, Social, Vendor and Regulatory Compliance. Urban Outfitters has a global footprint, with stores in the U.S., Canada, Europe and the United Kingdom.  Urban Outfitters designs and develops products throughout the world, working with a core vendor base across more than thirty countries. Prior to Urban Outfitters, Michael spent nine years with Limited Brands as head of their Import Planning department.  He spent his last two years with Limited Brands in London, setting up Compliance activity for Limited Brands as they expanded overseas.

Michael has been a Licensed Customs Broker since 1998 and is a graduate of Pennsylvania State University, with a Bachelor of Arts in International Politics and Foreign Service.

About Emilie Delaye (Moderator)

Emilie Delaye is a 2024 UD entrepreneurship graduate and an incoming UD graduate student in fashion and apparel studies. Emilie is the recipient of the 2024 UD Alumni Association Alexander J. Taylor Sr. Awards for Outstanding Seniors.

FASH455 Learning Activity: Exploring US Import Tariffs

Part I: Watch the following two videos on tariffs—one from an economic perspective and the other from a political perspective.

Part II: Check the respective tariff rate for the following products by copying and pasting the HS code into the search box

  • Product 1 (men’s and boys’ overcoat, cotton): HS code 6101.20.00
  • Product 2 (cotton): HS code 5201.00.05
  • Product 3 (smartphone): HS code 8517.13.00

Discussion question: Based on the videos and your findings, how would you explain the differences in tariff rates for these products? Do you think tariffs are still necessary in the 21st century?

Additional readings (RT≠ endorsement):

FASH455 Learning Activity: Exploring US Trade Patterns

(note: please click the section title to access interactive data)

Part 1: U.S. Goods Trade by Industry Sectors and Trading Partners (Source: USITC Trade Shifts 2024 Report)

  • Observe the top U.S. export and import trading partners for goods, noting any changing patterns
  • Observe the top U.S. export and import product sectors, noting any changing patterns
  • Do the trade patterns overall align with the trade theories discussed in class?
  • Should it be a concern that textiles and apparel are NOT among the top US exports of goods?

Part 2: U.S. Trade in Services (Source: USITC Recent Trends in US Services Trade 2024 Report)

  • Observe the sectors covered by trade in services
  • Compare the value of US service exports and imports
  • Observe the trading partners of US services trade
  • Why do politicians often focus more on trade in goods rather than services? Should they?

Part 3 (Optional): Revealed Comparative Advantage Index (Source: UNCTAD)

Note: The revealed comparative advantage (RCA) index measures a country’s relative export performance of a particular product compared to the world average. It helps identify sectors in which a country holds a competitive edge in international trade. RCA =(Country’s exports of product X/Country’s total exports)/(World exports of product X/World total exports).

  • RCA > 1: A value greater than 1 indicates that the country has a revealed comparative advantage in the product, meaning the product has a higher export share in the country’s portfolio compared to the global average. This suggests the country is more competitive in exporting that product relative to the rest of the world.
  • RCA < 1: A value less than 1 means the country has a revealed comparative disadvantage in that product. It indicates that the country is less competitive in exporting that product compared to the global average.

Observe the sectors in which the U.S. enjoyed a revealed comparative advantage (i.e., RCA > 1) in 2023. How does this compare with Bangladesh? What is your explanation for the observed differences?​

FASH455 Video Discussion: How Team USA’s 2024 Olympic Outfits Were Made by Ralph Lauren

Discussion questions for FASH455:

How does the video enhance your understanding of the complexity of apparel supply chain and sourcing? What is your evaluation of Ferrara Manufacturing’s strategies and best practices for maintaining apparel production in New York? Are high-end luxury brands the only viable opportunity for apparel “Made in the USA”? Feel free to share your thoughts and other reflections on the video.

Mega Trade Agreements in the Asia-Pacific Region and Textiles and Apparel Trade (Updated August 2024)

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 2022, ASEAN members have a combined nominal GDP of $3.6 trillion and a population of 671.6 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 (as of March 2024).

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 2022.

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

Because of the inclusion 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 offer significant duty-saving opportunities for textile and apparel products.

Additionally, the UK’s membership in CPTPP may have a limited direct impact on the textile and apparel sector, at least in the short to medium terms. For example, current CPTPP members only accounted for about 6% of the UK’s apparel imports in 2022.

FASH455 Exclusive Interview with the Office of Trade at U.S. Customs and Border Protection (CBP)

Question 1: We know that nearly 98% of clothing consumed in the U.S. is imported. Can you give our students a quick overview of U.S. Customs and Border Protection (CBP)’s role in regulating international trade, particularly textiles and apparel products?

  • CBP’s Office of Trade facilitates legitimate trade, enforces U.S. trade laws, and protects the United States economy to ensure consumer safety and create a level playing field for American businesses.
  • CBP is responsible for regulating clothing and/or textiles products imported into the United States, ensuring that all trade aspects of the importation are correct at the time of entry. These include, but are not limited to the classification, valuation, country of origin markings, and qualification for preferential duty treatment under a free trade agreement and/or program. 
  • Textiles and wearing apparel are recognized as a Priority Trade Issue as codified in the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015. As such, this issue is one of the primary drivers for risk-informed investment of CBP resources as well as our enforcement and facilitation efforts. This includes the selection of audit candidates, special enforcement operations, outreach, review of free trade agreements and/or trade preference programs claims, and regulatory initiatives.

Question 2: Ensuring no forced labor in the supply chain is a top priority for U.S. fashion companies. Specifically, the Uyghur Forced Labor Prevention Act (UFLPA) officially came into force in June 2022. For our students who may not be familiar with the UFLPA, what essential information should they know about this legislation and the issue of forced labor? Additionally, could you recommend any helpful online resources?

  • CBP is the leading federal agency in the enforcement of forced labor laws and the UFLPA. The agency achieves this through two approaches – the first is through forced labor investigations and issuance of Withhold Release Orders (WROs) and Findings, which require CBP to prevent the release of goods made with forced labor into the U.S. commerce. The second is through the implementation of the UFLPA rebuttable presumption.
  • CBP enforces U.S. law on forced labor within Section 307 of the Tariff Act of 1930, which says any “goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in any foreign country” by convict or forced labor is not permitted entry into U.S. commerce. 
  • In 2016, the U.S. Government enacted the Trade Facilitation and Trade Enforcement Act (TFTEA), which removed the “consumptive demand” clause that was in the original statute. This change allowed CBP to set up its own investigative unit, where CBP receives allegations of forced labor, investigates them using the 11 indicators of forced labor, and issues WROs or Findings when applicable. CBP issues a WRO if there is a reasonable suspicion of forced labor conditions by a particular foreign manufacturer, and it issues a Finding if there is probable cause that forced labor conditions exist.
  • The relatively recent UFLPA establishes a rebuttable presumption that any goods made wholly or in part from the Xinjiang Uyghur Autonomous Region (XUAR) are prohibited from entry into U.S. commerce, as they are presumed to be made with forced labor unless the importer can provide clear and convincing evidence the goods are not made from forced labor or sourced from the XUAR.
  • When goods are exported directly from the XUAR, CBP applies the rebuttable presumption and excludes the goods from entry. Importers then must prove by clear and convincing evidence that the goods are not made with forced labor before they can be released into U.S. commerce. For goods not imported directly from the XUAR, CBP evaluates the risk that the producer uses inputs from the XUAR in the production of the final product and will stop any shipments it deems as high risk of containing materials produced from the XUAR.
  • CBP is committed to identifying products made by forced labor and preventing them from entering the United States. CBP’s enforcement of 19 U.S.C. § 1307 supports ethical and humane trade while leveling the playing field for U.S. companies that respect fair labor standards. The UFLPA is a major shift for importers as it requires them to know their entire supply chains from the raw materials all the way to the end product and to ensure no materials made with forced labor are included at any step along the way. Information on all of these topics and many more are available on CBP’s Due Diligence in Supply Chains webpage.
  • Students can visit our Forced Labor webpage for updated information and resources on CBP’s efforts to prevent goods produced with forced labor from entering U.S. commerce. There is also a specific UFLPA webpage, which explains CBP’s roles and responsibilities and links to the UFLPA Entity List; an UFLPA Statistics Dashboard with information on the number of shipments stopped by CBP by fiscal year, industry, or country of origin; due diligence documents and reports; CBP’s Operational Guidance for Importers, frequently asked questions on UFLPA enforcement and the Department of Homeland Security (DHS) Strategy; and additional links to the DHS Forced Labor Enforcement Task Force Agency Related Resources.    

Question 3: Our students are also intrigued by the so-called ‘de minimis rule,’ which has been a topic of heated debate in the news. Why was this rule proposed initially, and how does it relate to the fashion and apparel trade?

  • De minimis shipments, also referred to as Section 321 low-value shipments, are goods that are exempt from duty and tax under 19 U.S.C. § 1321(a)(2)(C) and 19 C.F.R. § 10.151. De minimis eligibility is based on the value of all goods imported by one person, in one day. The de minimis exemption allows CBP to pass, free of duty and tax, merchandise imported by one person on one day that has an aggregate fair retail value in the country of shipments of $800 or less. This provision was first enacted in 1938 to avoid administrative expense to the government from inspecting low-value goods disproportionate to the amount of revenue realized and was subsequently raised multiple times.  
  • The passage of the Trade Facilitation and Trade Enforcement Act (TFTEA) in 2016 raised the de minimis threshold from $200 to $800.
  • In 2015, CBP processed 139 million de minimis transactions. By 2023, this increased to more than 1 billion, representing a 662% growth in eight years. Now, in Fiscal Year 2024, nearly 4 million de minimis shipments arrive at CBP facilities for targeting, review, and potential physical examination each day. Although these packages are low value, they pose the same potential health, safety, and economic security risks as larger and more traditional containerized shipments.  
  • As long as a good is not subject to duties, taxes or fees (such as anti-dumping/ countervailing duties, excise taxes such as those required for alcohol and tobacco products, or any interagency fees that have not been waived for informal entries), it is eligible for de minimis clearance.
  • Significant attention is being placed on the de minimis administrative process for new business models, such as those used by e-commerce and fast fashion companies, which leverage the de minimis process for direct-to-consumer shipments. 

Question 4: Building on the previous question, in April 2024, the Department of Homeland Security (DHS) announced its new textile enforcement actions. How will CBP contribute to the new enforcement strategy?  

  • CBP is responsible for the management, control, and protection of U.S. borders and ports of entry, acting on the frontline of textiles and trade agreements enforcement. The U.S. textile industry is a vital domestic industrial base for U.S. national security, health care, and economic priorities. U.S. textile production is the foundation of the western hemisphere textile and apparel co-production chain, representing over 500,000 U.S. jobs, 1.5 million western hemisphere jobs, and $39 billion in annual shipments. Members of the textile industry have raised concerns with CBP regarding a decline in business momentum affecting their ability to maintain productivity and jobs. 
  • In response to these concerns, CBP is increasing its efforts to detect, interdict and deter illicit textiles trade and promote a level playing field for the domestic textiles industry given the ever-changing threat landscape and recent proliferation of allegations.
  • CBP is conducting coordinated and unified intelligence and data-driven operations to target and interdict textile imports that are not compliant with U.S. trade laws. Efforts include, but are not limited to, running special operations, carrying out Textile Production Verification Team visits at foreign factories and raw material providers, examining cargo, conducting compliance reviews and verifications, completing trade audits, and performing laboratory analysis on imported products with a heighted focus on imports that are subject to the U.S.-Mexico-Canada and Dominican Republic – Central America trade agreements, imported under the de minimis provision, and/or potentially in violation of forced labor laws, including the Uyghur Forced Labor Prevention Act.
  • You can learn more about CBP’s textile enforcement work in a recent CBP Reports video. You can also find information on our website.

Question 5: We know technology is significantly affecting and shifting how international trade is conducted. At CBP, there is an initiative called “21st Century Customs Framework.” Can you provide our students with more information about this program? For example, what is it about, what do you plan to achieve, and why does the program matter for fashion apparel companies?

  • The 21st Century Customs Framework (21CCF) is CBP’s effort to update its Title 19 authorities and underlying statutes, which have not seen comprehensive updates in more than 30 years.
  • Since 1993, trade volumes have increased dramatically, trade practices have changed, and new threats have emerged, which means CBP needs new tools and capabilities to do its job.
  • 21CCF matters for fashion apparel companies in two key ways: (1) the framework identifies updates that would better enable CBP to facilitate lawful trade more efficiently, so that goods can get to consumers, warehouses, stores, and other destinations as quickly as possible; and (2) the framework identifies updates that would enable CBP to bolster detection and enforcement against goods that threaten the well-being of American businesses and consumers—counterfeits, goods produced with forced labor, anti-competitively priced goods, and goods that violate environmental or consumer safety laws.
  • For example, 21CCF includes concepts that would authorize CBP to furnish industry stakeholders with information generated by market platforms regarding compliance with intellectual property rights laws—such as product origin and manufacturer—in importations where intellectual property violations are suspected. 
  • By sharing additional information with the private sector, CBP will be able to utilize its private sector partnerships to more readily identify illicit sellers using online marketplaces to import intellectual property rights-infringing goods into the United States.
  • Additionally, these proposed updates would better position the private sector to make more informed business decisions and eliminate high-risk actors from their supply chains.
  • Overall, in pursuing 21CCF, CBP envisions a trading system where legitimate goods move swiftly and securely; ethical production methods are used throughout the global supply chain; domestic industries compete on a level playing field; and the United States helps lead the world with innovative trade practices.
  • Private sector input has been instrumental throughout the development of the 21CCF statutory concepts, and the framework is now undergoing an interagency review process before eventually being cleared to be formally transmitted to Congress for consideration.

Question 6: As members of Generation Z, our students deeply care about fashion sustainability. Studies also show that fashion companies are increasingly concerned about climate change and its significant business implications. In your view, how can international trade contribute to sustainability and foster a more sustainable fashion industry? How might CBP support and assist in these efforts?

  • Sustainability in fashion concerns more than just addressing textiles or products. It involves the entire product lifecycle process, which includes the way the clothing is produced, consumed, and disposed of in landfills.
  • Sustainability in fashion encompasses a wide range of factors, including cutting carbon dioxide emissions, addressing overproduction, reducing pollution and waste, and supporting biodiversity.
  • CBP has a responsibility, as part of our mission, to keep people safe and protect the economy; that includes supporting the fashion industry. As noted, the fashion, textile, and apparel industries are crucial parts of the U.S. economy. The work CBP does is key in seizing suspect and potentially illegal fashion goods at the border, issuing penalties to bad actors, and protecting the health and safety of the American people.  
  • Due to CBP’s direct influence over trade processes, we see ourselves as a facilitator across the government to start conversations about sustainability and where government can remove barriers or add value to existing environmental efforts in trade.
  • CBP has developed strategies aimed at promoting environmental sustainability within trade. CBP’s Green Trade Strategy, for instance, is designed to champion the reduction of pollution and waste while encouraging the adoption of green technologies and practices. Such initiatives reflect a broader commitment to advancing circularity, recycling, and reuse in the fashion industry that can enable fashion companies to produce and sell their products more sustainably.
  • CBP launched the Green Trade Strategy in 2022 to further enable CBP to fight the negative impacts of climate change and environmental degradation in the context of the trade mission.
  • The strategy focuses on four main pillars:

o Incentivize Green Trade;
o Strengthen Environmental Enforcement Posture;
o Accelerate Green Innovation; and
o Improve Climate Resiliency and Resource Efficiency.

  • Thousands of CBP employees work toward making international trade more sustainable and transparent. The strategy touches every office and every employee at CBP.
  • With these four pillars, the strategy provides a framework for future action. Success requires buy-in and collaboration with all our stakeholders, including the fashion industry, and especially you, the future of fashion. We want your help because we cannot do this alone, and you offer unique perspectives that we need in order to fight and mitigate climate change.
  • Students who are interested in learning more about CBP’s green trade efforts can visit our Green Trade Strategy webpage.

Question 7: Additionally, some of our students are considering a career in international trade. What career opportunities at CBP might be a fit for our undergraduate and graduate students? 

  • There are a number of paths for college students and recent graduates to gain experience and begin to build their careers at CBP, including our recent graduate programs and the Pathways Program.
  • Some positions that recent graduates can pursue include the following:
  • Administrative – CBP has administrative roles in various business functions, such as finance, budget, personnel, logistics, and asset management. Position titles include Staff Assistant and Management and Program Analyst.
  • Law Clerks – This role is for those with recent JDs that expect to pass the Bar Exam within 14 months.
  • Auditors – This is for students pursuing the auditor career (Interns) or those expecting to complete the required unit of Auditor courses (Auditor, GS-11).
  • CBP prioritizes facilitating legitimate trade in textiles and wearing apparel and protecting the intellectual property rights of fashion and apparel brands as a part of its trade mission.
  • CBP employees help protect the wearing and apparel industry from counterfeit merchandise and other unfair or harmful trade practices.
  • Learn more about career opportunities at CBP on our careers page.

–END–

Disclaimer: This interview is intended exclusively for educational purposes in the FASH455 class and shall not be considered an official policy statement of the U.S. Customs and Border Protection (CBP).

New Study: Is Sub-Saharan Africa Ready to Serve as an Alternative Apparel Sourcing Destination to Asia for U.S. Fashion Companies? A Product-Level Analysis

Full paper: Lu, S. (2024), “Is Sub-Saharan Africa ready to serve as an alternative apparel-sourcing destination to Asia for US Fashion companies? A product-level analysis“, Competitiveness Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CR-03-2024-0041

Summary:

The prospect of Sub-Saharan Africa (SSA) as an apparel-sourcing base for U.S. fashion companies has been a growing heated debate. On the one hand, U.S. fashion companies, driven by increasing geopolitical concerns and other market factors, were eager to diversify apparel sourcing away from Asia. The SSA region was often regarded as one of the most popular alternative sourcing destinations thanks to its large population, relatively low labor costs, and shorter shipping distance to U.S. ports compared to most Asian. The African Growth and Opportunity Act (AGOA), a trade preference program enacted in 2000, in particular, allowed eligible apparel exports from SSA countries to enter the United States import duty-free, creating substantial financial incentives for U.S. fashion companies to source from the SSA region.

However, empirical trade data shows that U.S. apparel imports from SSA members have stagnated over the past decades without evident growth. Notably, with little change from 2010, SSA countries collectively accounted for only 1.8% of U.S. apparel imports in 2023, with no single SSA member achieving a market share of more than 1%. In contrast, over the same period, despite China’s declining market shares, the following five largest Asian suppliers—Vietnam, Bangladesh, India, Indonesia, and Cambodia—jointly accounted for 43.0% of U.S. apparel imports in 2023, a notable increase from 27.4% in 2010.

This study aims to evaluate SSA countries’ capacity to serve as an alternative apparel sourcing destination to Asian suppliers for US fashion companies. Specifically, the study examined the detailed product information of a total of 10,000 stock keeping units (SKUs) of clothing items sold in the U.S. retail market from January 2021 to December 2023. Half of these items were sourced from the six largest apparel-exporting countries in SSA: Lesotho, Kenya, Mauritius, Ethiopia, Madagascar, and Tanzania. Together, these countries accounted for over 96% of the value of U.S. apparel imports from the SSA region between 2021 and 2023. The remaining half came from China, Vietnam, Bangladesh, Cambodia, India, and Indonesia, the six largest Asian apparel exporters, which stably accounted for approximately 90% of U.S. apparel imports from Asia over the past decade.

Key findings:

First, the results revealed that U.S. fashion companies’ sourcing strategies for SSA countries appeared more subtle and complicated than simply treating the region as another low-cost sourcing destination, as suggested by previous studies. Instead, according to the results, U.S. fashion companies seemed to leverage SSA countries as suppliers of “niche products,” such as those relatively simple and basic apparel categories containing African cultural elements and targeting the luxury and premium market segment. Meanwhile, the demand for such products could be much smaller than regular apparel items sold in the value and mass market. This allows SSA countries to fulfill these smaller orders despite their limited production capacity, often family-owned or involving handmade processes.

Second, the study’s findings identified significant challenges for SSA countries serving as immediate alternatives to sourcing from Asia for U.S. fashion companies. While SSA countries could offer relatively low sourcing costs, the range of apparel products available for U.S. fashion companies to source from the SSA region remained significantly more limited than those from Asia. For example, results show that U.S. fashion companies preferred sourcing relatively basic and technologically simple categories like knitwear, T-shirts, and bottoms from SSA countries. However, imports from SSA countries offered more limited sizing and color choices and were less likely to include womenswear and relatively more sophisticated or specialized product categories such as outerwear and swimwear. As another example, U.S. apparel imports from SSA countries were primarily made of cotton and polyester, with less use of other fiber types, including nylon, rayon, viscose, wool, and those made from recycled textile materials (see table below).

Third, building on the previous point, the results call for new thinking on strengthening SSA countries’ genuine competitiveness as an apparel-sourcing destination. Over the past decades, trade preference programs such as AGOA have mainly focused on improving the price competitiveness of SSA countries’ apparel exports. However, as this study’s findings illustrate, AGOA and other trade preference programs seemed inadequate in assisting SSA countries in developing capacity beyond basic apparel categories and securing a sufficient variety of textile materials. As U.S. fashion companies have placed greater emphasis on factors beyond price in their sourcing decisions, such as flexibility, agility, sustainability, and vendors’ capability to make a wide variety of products, this could put SSA countries at even more significant disadvantages down the road to being considered alternatives to Asia for apparel sourcing.

The results also reminded us that AGOA’s liberal rules of origin, which allowed least-developed SSA countries to use textile materials from anywhere worldwide, cannot replace the crucial need to develop the local textile manufacturing capacity within the SSA region. Without a robust local textile manufacturing sector, SSA countries would encounter significant challenges in diversifying their product offerings to include more complex and versatile clothing categories, such as outerwear and women’s dresses. These categories typically require a wide variety of raw textile materials and accessories, making it highly impractical and inefficient to rely solely on imports for their supply.

On the other hand, the findings reveal the necessity of creating a stable and foreseeable business environment, such as the long-term renewal of AGOA, to attract more long-term investments in SSA. For example, investing in and strengthening SSA countries’ local supply of sustainable textile materials, such as recycled or organic fibers, could strategically enhance SSA countries’ competitiveness in meeting the increasing demand from U.S. fashion companies for sustainable apparel products.

Additional reading:

Explore Egypt, Morocco, and Tunisia as a Sourcing Base for Clothing Made from Recycled Cotton

The full article is available HERE and below is the summary:

With consumers’ growing demand for sustainable apparel products, fashion companies increasingly carry clothing made from recycled textile materials and seek additional supply bases. Recycled cotton has great potential for use in garments because of the wide availability of cotton-made secondhand clothing and the perceived positive environmental impacts of effectively recycling post-consumption cotton waste.

This study explores Egypt, Morocco, and Tunisia’s potential as sourcing bases for clothing made from recycled cotton. North African countries, including Egypt, Morocco, and Tunisia, have a long history of making and exporting cotton and cotton-made finished garments. The “developing country” status and membership in trade agreements or trade preference programs, such as the African Growth and Opportunity Act (AGOA) and the EU-Mediterranean Association Agreement, allow apparel products from these three countries to enjoy preferential duty benefits in the world’s top import markets. Therefore, there is great potential to capitalize on recycled cotton apparel and “green exports” to further promote economic development in the region.

About 13,000 Stock Keeping Units (SKUs) of clothing items made by these three countries newly launched to the world retail market between January 2022 and April 2024 were randomly captured from fashion brands and retailers’ websites. About half of the items were made of regular cotton, and the other half explicitly mentioned using “recycled cotton” in the product label or description. The results show that:

#1: Egypt, Morocco, and Tunisia have gradually expanded their clothing exports made from recycled cotton since 2022. For example, as estimated, about 1,300 SKUs of clothing using recycled cotton from these three countries were newly launched to the US and EU retail markets in 2023, a substantial increase from only 150 SKUs back in 2022 (or a sevenfold increase). Similarly, in the first four months of 2024, clothing using recycled cotton accounted for 10.2% of total cotton apparel from the three countries in the US and EU markets, a substantial increase from only 1.1% in 2022.

#2: Of the collected samples, apparel using recycled cotton from Egypt, Morocco, and Tunisia was destined for as many as 49 countries, reflecting the global demand for such products. However, possibly restrained by the limited supply, the export market for clothing using recycled cotton remained less diverse than that for clothing made of regular cotton, which spanned 72 countries.

#3: Geographically, the European Union (EU) was the top clothing export market for Egypt, Morocco, and Tunisia, accounting for over 75% of these countries’ export value in 2022, according to UN trade statistics (UNComtrade). This was also the case for recycled cotton products. Specifically, the EU accounted for 65% of these three countries’ total recycled cotton clothing exports measured in SKUs in the collected samples, higher than 59.4% of regular cotton clothing products.

#4: Egypt, Morocco, and Tunisia focused on different product categories for clothing using recycled cotton than those made from regular cotton. Specifically, of the sampled items, clothing using recycled cotton had a notable concentration on bottoms (52.9%), followed by tops other than T-shirts (23.8%). Recycled cotton clothing also was more commonly used for outerwear (7.5%) than those using regular cotton (3.8%). In comparison, only about 7.9% of clothing using recycled cotton were T-shirts, much fewer than nearly 30% of those using regular cotton. Similarly, specific product categories, such as underwear and hosiery, rarely use recycled cotton. Likely, the concerns for quality and durability and the difficulty of absorbing higher production costs make using recycled cotton for these relatively simple categories more challenging.

#5: Even though cotton apparel made in Egypt, Morocco, and Tunisia already commonly mentioned their sustainability attributes (86%), phrases such as “sustainability” and “sustainable” appeared even more frequently in clothing using recycled cotton (94.6%). For example, some producers highlighted that they “worked with suppliers, workers, unions and international organizations” to ensure their recycled cotton clothing contributed to “the United Nations Sustainable Development Goals.” Likewise, some labels intentionally remind consumers about the positive environmental impact of using recycled cotton, “The use of recycled cotton helps to limit the consumption of raw materials.” Another added, “The production of recycled cotton recovered cotton, mainly from the production of other garments, thus reducing the production of virgin spring and water consumption, energy and natural resources.”  

Meanwhile, compared to clothing using regular cotton, those made with recycled cotton in Egypt, Morocco, and Tunisia reported much higher participation in certification programs, such as the Recycled Claim Standard (RCS), which verifies the recycled content and tracks it from source to final product.

#6: Reflecting the technical limitations of the fiber property, it remains rare to have clothing that is 100% made from recycled cotton. According to industry experts, longer cotton fibers generally indicate higher quality. Since the recycling process shortens cotton fibers, regular virgin cotton or other fibers like polyester are typically used alongside recycled cotton to make fabrics smoother, stronger, and more durable. For example, common labels include descriptions such as “80% virgin cotton, 20% RCS certified recycled cotton” and “55% RCS certified recycled polyester, 45% RCS certified recycled cotton.”

#7: Except for T-shirts, in most cases, clothing made from recycled cotton in Egypt, Morocco, and Tunisia was priced lower than their equivalent using virgin fiber in the market. This is particularly the case for the premium and luxury market segments, where clothing using recycled fiber typically was 20-30% lower priced than regular clothing. The results echo the findings of numerous studies indicating that consumers are generally unwilling to pay higher prices for recycled fiber clothing as they perceive such products as lower quality and less “valuable.” Also, more needs to be done to create more financial incentives for producers in Egypt, Morocco, and Tunisia to expand the production scale and increase the use of recycled cotton in their products.

By Emilie Delaye and Sheng Lu

2024 WITA Academy Pathways To Opportunity: Textiles and Apparel-University of Delaware

On April 30, 2024 (Tuesday) from 2:15 pm. to 3:45 p.m, the Washington International Trade Association (WITA) Academy, in partnership with UD’s Fashion and Apparel Studies Department, will host a virtual workshop (on Zoom) exploring career opportunities in textiles and apparel trade, sourcing, supply chain, and sustainability.

This event is free and open to ALL UD students (undergraduate and graduate) and faculty, but registration is required (please use UD email address): https://www.wita.org/events/pathways-april30-2024/

Note: Students in FASH455 do not need to register for the event. We will attend the workshop and participate in the live Q&A session in the classroom.

Confirmed speakers include:

  • Katherine White, Chief Textiles and Apparel Negotiator, Office of the U.S. Trade Representative (USTR)
  • Nate Herman, Senior Vice President, Policy, American Apparel & Footwear Association (AAFA)
  • Felicia Pullam, Executive Director, Office of Trade Relations, U.S. Customs and Border Protection (CBP); former Deputy Assistant Secretary of Commerce for Textiles, U.S. Department of Commerce
  • Stephanie Lester, Vice President, Head of Government Affairs, Gap Inc.
  • Maristella Iacobello, VP of Global Customs and Trade, PVH Corporation
  • Sarah Thorn, Senior Director, Global Government Affairs, Walmart

FASH455 Exclusive Interview with Tricia Carey, Chief Commercial Officer of Renewcell, about Textile Recycling and Implications for Apparel Sourcing and Supply Chain

About Tricia Carey

Throughout her career, Tricia believes in ‘progress over perfection’.  As an advocate for innovation and circularity in the textile and apparel industry, she recently joined Renewcell to accelerate the commercial development of CIRCULOSE®, making fashion circular. With a vast global network, as well as experience in brand building, storytelling, and business development, she is an invaluable partner to close the loop and optimize the benefits of CIRCULOSE®.

For more than twenty years, Tricia held various commercial management positions at Lenzing Fibers to establish the TENCEL™ brand, build mill partners, and set retailer specifications.  Her roles comprised marketing, Americas business development, and global denim segment expansion, including the creation of the Carved in Blue platform and numerous collaborative collections with mills and brands.

Tricia holds a bachelor’s degree in Fashion Merchandising from The Fashion Institute of Technology, as well as certificates in Digital Marketing and Strategy from Cornell University and MIT.

Tricia serves on the board of Accelerating Circularity, as well as the Transformers Foundation and the Fashion Impact Fund.  She was Vice Chair at Textile Exchange from 2014-2018.  In 2020 she was nominated as B2B Content Marketer of the Year by Content Marketing Institute, as well as top 100 Denim Legends by WeAr Magazine.  In 2019 Tricia was awarded the RIVET 50 for influential denim industry leaders.  She has been a speaker at various industry events, including the Conscious Fashion and Lifestyle Network at the United Nations, Transformers, Kingpins Show, Southern Textile Association, Texworld, Premiere Vision, Wear Conference, and more.

Tracia lives in New York City and can be seen dashing on the Peloton leaderboard.  The best way to connect with Tricia is through LinkedIn.

The interview was moderated by Emilie Delaye, UD’s entrepreneurship major and fashion management minor. Emilie has been involved in several research projects on the textile and apparel trade, sourcing, and sustainability issues, including authoring a paper on US fashion companies’ evolving sourcing strateiges published in Just-Style. Emilie is also the recipient of the 2024 Warner and Taylor Awards for Outstanding Seniors, the highest recognition for UD’s graduating seniors.

Product Development and Apparel Sourcing: FASH455 Exclusive Interview with Abby Edge, Product Development Associate at Eileen Fisher

About Abby Edge

Abby Edge is the Product Development associate at Eileen Fisher, where she supports key initiatives in sourcing and sustainability. She graduated from the University of Delaware (UD) in 2020 with a degree in Fashion Merchandising. During her time at UD, she developed a passion for sustainable sourcing and social responsibility, which led her to pursue a career with a company that aligns with these values. Abby also served as a teaching assistant for FASH455 in Spring 2020 and was the co-author of How will EU Trade Curb Affect Cambodia’s Apparel Industry published in Just-Style.

Disclaimer: The views expressed in this interview are those of Abby Edge and do not reflect the views or positions of her employer or any affiliated organizations.

Sheng: What does a Product Development Associate do? Can you walk us through your typical day at Eileen Fisher? Also, what makes you love your job?

Abby: Product development can mean different things at different companies, but at Eileen Fisher (EF) it means costing and development prior to product development (PO). All samples, fabrics, and costs need to be approved during the Product Development period before the business teams place their buys. Every day, I communicate with our vendors to cost styles and create time & action plans so that delivery will be met. We work with our vendors and fabric mills to align and finalize pricing to achieve our margin goals. We also must think strategically about material and vendor allocation to improve lead times and mitigate carbon footprint.

I work hybrid, and our beautiful office is on the Hudson River in Irvington, New York. I enjoy going into the office to spend time with my team and review the product in person. I love my job because I am exposed to so many new and exciting sustainability initiatives every day. I admire everything that EF stands for and that we can promote a “less is more” wardrobe.

Sheng: What are the key steps involved in product development, and how do you collaborate with your sourcing team throughout this process?

Abby: At Eileen Fisher, there are two main stages of the product development process before “commitment”: “development” and “dupe.” At the development stage, we focus on any new materials that are being added to the line. We make sure the costing, testing, and lead times are workable. Then, at the dupe stage, we cost and sample the entire product line so that the merchandising and buying teams have all the information they need to place their buys. After commitment, we pass the baton to the Production team to finalize quantities, issue purchase orders, and track orders. Together, the Product Development

Sheng: Sustainability is a key focus in the fashion apparel industry today. From the product development perspective, what notable improvements have been made in recent years, and where do opportunities lie for further progress?

Abby: Eileen Fisher is leading the way in sustainability within the fashion industry, and it has been incredibly rewarding to be a part of a team where this principle is integrated into every aspect. For example, materials are at the core of EF. We focus on natural, organic, and regenerative materials and steer away from synthetics. Regenerative organic cotton is a new material that I’m really excited about. It all starts with the health of the farm and the people growing our cotton. The regenerative organic certification means that the cotton is grown holistically and healthily, contributing to the soil’s health and mitigating the impacts of climate change.

Additionally, the certification has strict social responsibility guidelines, requiring a living wage and safe working conditions for all farmers. This is just one example of innovative improvements that are being made in the material sector. Others include Lenzing Tencel lyocell, regenerative responsible wool, and organic linen.

Another key initiative at Eileen Fisher is our take-back program called “Renew,” where customers bring back their old EF garments in exchange for a $5 store credit. Since the program started in 2009, 2 million garments have been collected. Of the 2 million, 660,885 have been re-sold in stores, and the rest have been donated, repurposed, or downcycled. Some of my favorite EF pieces have actually been purchased from the store’s renewal section! It is also great to see other brands following suit and creating take-back and recycling programs. Clothing waste is an industry-wide problem; we need all hands on deck to make a difference.

Sheng: From your observation, how has the adoption of digital technologies transformed the practices of product development and apparel sourcing?

Abby: Our Product lifecycle management (PLM) system— Centric— has helped streamline the design and product development process tremendously. All teams have access to the PLM system, which allows everyone to be on the same page and easily access any information they might need. For example, designers use the system to set up styles and tech packs, whereas the merchandising team uses the system to line plan and set retails. In my role, I use PLM to enter and land costs and analyze margins. It is dynamic and provides everyone the key tools to succeed while working on multiple seasons at once.

Sheng: Are there any other major trends in the fashion industry that we should closely monitor in the next 1-2 years, particularly in product development and sourcing?

Abby: Traceability and transparency have become increasingly important in the industry. Technology platforms are emerging that can ensure transparency throughout all supply chain tiers using a digital “fiber coin.” The specific platform we use— Textile Genesis—maps the supply chain from fiber to retail to verify any sustainable fibers so that all claims we make are valid. In other words, they ensure the “transactions” between each supply chain step (fiber to yarn to fabric to garment) are authentic. It has been very exciting to see this project come to life, and I feel that platforms like this will become increasingly more prominent in the coming years.

Sheng: What reflections can you share from your experiences at UD and FASH? what advice would you offer to current students preparing for a career in product development and apparel sourcing?

Abby: I am so grateful for my time at UD in the FASH program. I made so many connections with my peers, professors, and alums that have helped me get to where I am now. My advice to current students is to get involved as much as possible, whether through study abroad programs, internships, or clubs. Don’t limit yourself or close yourself off to areas of the industry and embrace any opportunity you get, as you never know where it could lead. My internship with Under Armour in Hong Kong through the FASH study abroad program really helped me grow personally and professionally and I would not be where I am without that experience.

–End–

Event recording: AI and trade: Will ChatGPT handle your supply chains? (March 2024)

Panel

  • Cecilia Malmström, Nonresident Senior Fellow, Peterson Institute for International Economics (PIIE)
  • Eva Maydell, Member, European Parliament; Rapporteur for the European Union’s AI Act
  • Joshua P. Meltzer, Senior Fellow, Global Economy and Development Program, Brookings Institution

Key points

  • AI has the potential to optimize supply chains, analyze shipping routes, forecast demand, and enhance risk assessment and fraud detection.
  • AI could potentially offer better market intelligence to help businesses make better-informed decisions and improve forecasting accuracy.
  • AI could reduce barriers to trade in services and technical barriers of trade (TBT) and empower small and medium-sized enterprises (e.g., translation services)
  • While trade in goods has peaked, services trade continues to grow substantially, even during COVID-19, with digital services and professional services being the main drivers. AI could further facilitate the expansion of service trade.
  • AI is already affecting the nature of jobs and the services trade.
  • Policymakers need to focus on creating an environment that supports the development and deployment of AI, particularly by balancing the need to provide regulatory guardrails and the need to encourage business innovation.
  • AI regulation is currently fragmented worldwide. However, there is significant potential for establishing international standards and regulatory coherence, offering a common approach to regulating AI.
  • Building more societal trust among the business community, policymakers, and civil society is necessary to address concerns about AI and related challenges.

[This blog post is not open for comment]

US Fashion Companies’ Evolving Sourcing Strategies and the Future of the US Textile and Apparel Industry: Discussion Questions from FASH455

Students in FASH455 have proposed the following discussion questions based on the readings about the US textile and apparel industry and fashion companies’ sourcing strategies. 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 As a developed country, should the US prioritize further strengthening highly capital-intensive yarn manufacturing, or should we rebuild a vertically integrated textiles and apparel supply chain (e.g., yarns, fabrics, and garments) at home? What is your recommendation, and why?

#2 In FASH455, we discussed how the US textile industry has experienced a decline in employment despite increasing production volumes, largely due to advancements in technology. However, why is import competition often cited in the media as the single largest threat to the US textile industry?

#3 While studies show that US fashion companies are reducing “China exposure,” measured in quantity, China still accounted for 36.1% of US apparel imports in 2023, even higher than 34.7% in 2022. How can we explain this phenomenon? What factors have made US fashion companies hesitant to move away from China?

#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement? Please provide your thoughts.

#5 Will the growing demand for supply chain transparency and traceability reduce the incentives or add additional burdens for fashion companies to diversify their supply chain further? What are the benefits of pursuing sourcing diversification other than mitigating the potential sourcing risks?

#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?

Sourcing Sustainable Fashion Products (II): FASH455 Exclusive Interview with Megan Dawson-Elli, Product Sustainability Manager at Tapestry (UD & FASH BS16)

About Megan Dawson-Elli

Megan Dawson-Elli graduated from the University of Delaware (UD) in 2016 with a degree in Fashion Merchandising. During her time at UD, she was the winner of the Fashion Scholarship Fund case study, a highly competitive national competition. Early in her academic career, she identified her interest in environmental sustainability within the fashion industry. This inspired Megan to study abroad in Hong Kong in 2014, where she was a Sourcing & Sustainability intern for Under Armour. After graduation, Megan worked in merchandising and sourcing before starting her career in environmental sustainability at PVH in 2018. Presently, Megan holds the position of Product Sustainability Manager at Tapestry, where she leads their work on product impact, environmentally preferred materials, and circularity.

In her free time, Megan enjoys reading, running, and traveling. She lives in NYC with her fiancé, also a UD graduate, and likes spending her weekends in Central Park.

Disclaimer: The views expressed in this interview are those of Megan Dawson-Elli and do not reflect the views or positions of her employer or any affiliated organizations.

Sheng: What does a Product Sustainability Manager do? Can you walk us through your typical day at Tapestry? Also, what makes you love your job?

Megan: As a Product Sustainability Manager, I work as an internal consultant to our brands to support their progress towards our Environmental, Social and Governance (ESG) goals and their desire to market and evaluate the environmentally preferred attributes of our products. Many initiatives fall under Product Sustainability, but I would bucket most of the work into several categories: marketing claims substantiation, environmentally preferred materials, product impact, circularity, and packaging. Every day can look different in this role, which keeps it exciting! One day I will be working with teams to craft a marketing claim about a product and the next I will be collecting data from suppliers for a life cycle assessment. My work is very dynamic, with some projects lasting days versus months. I love my job because I get to work with teams across the company that are passionate about sustainability, and even though I no longer work to create products, it’s still the focus of my work.

Sheng: Consumers today, especially our Gen Z students, want to see more “sustainable” fashion products in the market. What does “sustainable product” mean in practice? Can “sustainability” be objectively measured?

Megan: The term “sustainable” has become difficult to define as many initiatives can fit under it, like environmentally preferred materials, responsible sourcing, circularity, etc. It can also be seen as a yes/no question, while sustainability is a journey where progress should grow as new innovations become available. At a product level, the most visible sustainability initiatives that can be seen are environmentally preferred materials or social impact claims being made about the item. There are plenty of initiatives that companies are doing across their supply chain and their operations. Checking out a company’s annual Corporate Responsibility report will show a greater picture of its efforts, commitments, and progress.

Sheng: How can sourcing contribute to a fashion company’s sustainability efforts and make more sustainable products available to consumers?

Megan: At Tapestry, we follow an internal framework known as “Style, Performance and Impact.” This ensures all products meet our high standards of craftsmanship. The framework also guides our decision-making around environmentally preferred materials and material innovation investments.

  • Style: Does it meet design needs or the intended design function of the product?
  • Performance: Does it meet expectations of quality and cost?
  • Impact: Does the material or decision have a measurable reduction in environmental impact?

Additionally, suppliers play a critical role in helping companies realize their environmental and social ambitions. We consistently partner with stakeholders across our value chain to work toward more responsible practices that their businesses can incorporate, especially through increased implementation of environmentally preferred manufacturing practices and using preferred materials.

Sheng: Related to sustainability are the buzzwords “supply chain transparency” and “traceability.” What progress has been made, and what are the key steps for fashion companies in achieving greater transparency and traceability in their supply chains and sourcing?

Megan: To ensure a more responsible and transparent supply chain, it is critical to map supply chains and the relationships between suppliers. At Tapestry, we have begun the process of onboarding suppliers to join TrusTrace, a cloud-based web platform for sustainability, where we intend to conduct more upstream supply chain mapping and the collection of documentation to establish material and product traceability. We envision the platform will help us meet enterprise-wide sustainability commitments and goals, and help us align with upcoming regulatory requirements and industry best practices.

We have also improved downstream traceability by launching a digital product passport program, most notably through Coachtopia products. Customers can hold their smartphones against the cloud emblem on their Coachtopia product until the pop-up appears and then learn the total environmental impact of the product, along with all the potential avenues to extend its useful life under the sub-brand’s circular principles.

Sheng: As legislation related to fashion companies’ sustainability practices continues to be newly implemented or is on the horizon, are there any specific regulations you would recommend our students closely monitor?

Megan: There are many emerging ESG regulations, especially in Europe. Below are some that would be interesting to review.

Europe:

USA:

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

Megan: My “lightbulb moment” for wanting to pursue a career in sustainability happened while I was at UD, specifically from taking the ethics and sustainability in the fashion industry class. After identifying environmental sustainability as my focus and passion, I found ways to include it in every project, case study, and internship during school. The great thing about sustainability is that every department in a company can be part of the collective efforts, so even if you aren’t on an ESG (Environmental, Social, Governance) team, you can make an impact. If you are specifically interested in pursuing a role on an ESG team, I recommend networking with people in the industry that have those roles to learn more about what the job looks like and staying up to date on the latest news, innovations and regulations in the space. Also, there are plenty of college courses and industry certifications in sustainability that can be a great learning resource.

–END–

Sourcing Sustainable Fashion Products (I): FASH455 Exclusive Interview with Julianna Alfieri, Senior Global Sourcing Specialist at Amscan (UD & FASH BS22)

About Julianna Alfieri

Julianna Alfieri is the Senior Global Sourcing Specialist for Amscan, which serves over 40,000 retail outlets across the globe and owns Party City Holdings Inc. Born and raised in Long Island, Julianna has always had a passion for all things fashion. This passion led her to pursue a Bachelor’s degree in Fashion Merchandising and Management, with a minor in Sustainable Apparel & Textile Innovation, from the University of Delaware. Julianna furthered her expertise with a Graduate Degree from Parsons School of Design in Fashion Sustainability. Her diverse background includes experience in fashion styling, retail, marketing, and indexing, all of which have shaped her approach to global sourcing. With these educational and professional experiences, Julianna has built a solid foundation and acquired the necessary tools to excel in the industry.

Disclaimer: The views expressed in this interview are those of Julianna Alfieri and do not reflect the views or positions of her employer or any affiliated organizations.

Sheng: What does a Senior Global Sourcing Specialist do? What does your typical day look like? Also, what makes you love your job, or what is the most exciting part of it?

Julianna: As a Senior Global Sourcing Specialist, my role revolves around fostering cross-functional collaboration and maintaining strong relationships with vendors and suppliers. I oversee specific categories of the company’s business, ensuring effective communication and negotiation to maximize the quality of goods while meeting financial objectives. This involves working closely with my sourcing team, global offices, and utilizing various systems to streamline sourcing processes.

On a typical day, I work closely with my sourcing team and global partners to analyze costs, manage vendor relationships, and collaborate on major projects within my designated categories. Additionally, I assist in updating data in relevant systems and ensuring smooth transitions for new suppliers while also contributing to major projects aimed at enhancing redundancy categories and diversifying our supplier base.

The dynamic nature of the role keeps me engaged and continuously learning, allowing me to apply my education to real-world scenarios and witness the tangible outcomes of our efforts, such as seeing products I’ve contributed to in stores. What I find most exciting is the opportunity for constant growth and the collaborative aspect of working with our global partners!

Sheng: Can you walk us through the sourcing process—for example, the main procedures, who will be involved, and the general timeline?

Julianna: The overall sourcing process is an extremely collaborative effort involving multiple teams and stakeholders. It begins with identifying the need for specific products, which could stem from various reasons such as new product development, transitioning from existing suppliers, or finding vendors offering better cost or quality.

Once the product to be sourced is determined, we engage with suppliers from our matrix. Communication is managed internally for domestic vendors, while for international vendors, our global partners are involved. We evaluate potential suppliers based on their capability to produce the desired product and then proceed to cost negotiations.

Sample gathering is a crucial step where we collect samples from all potential vendors to assess quality and cost-effectiveness. This decision often involves input from both sourcing and product development teams. Using Product Lifecycle Management (PLM) systems, we then generate artwork for the product, collaborating closely with the art team.

Once artwork is finalized, it is shared with the chosen vendor to facilitate production specifications. Lead times for sample creation and production are negotiated with the vendor. Once we receive a pre-production sample, either our global partners or product development teams evaluate its quality and suitability.

Upon pre-production sample approval, the sourcing team updates our systems to indicate the selected vendor for the product. Throughout this process, sourcing manages communication between cross-functional teams and partners.

The timeline for this process typically spans 3 to 6 months, varying on factors such as the country of sourcing, vendor payment terms, lead times, and sample production quality.

Sheng: We know retailers today need to “balance” many sourcing factors today, from costs and speed to market to compliance risks. In practice, how do these factors actually affect companies’ sourcing decisions? For example, are there any specific factors that hold particular importance or are given significant weight in the decision-making process?

Julianna: Sourcing decisions within companies are deeply influenced by a number of factors. Among these factors, cost stands out as a primary consideration, directly impacting the financial health and competitiveness of the company. Balancing cost-effectiveness with other factors is essential to ensure optimal value for the organization.

Quality is another factor that holds significant weight in sourcing decisions. Maintaining specific standards of quality is essential to uphold the brand reputation, customer satisfaction, and overall product integrity. Innovation also drives sourcing decisions, as companies look for suppliers with advanced products, technologies, or processes to stay competitive and meet changing consumer needs.

Other critical factors include supplier reliability and supplier diversity. Dependable suppliers ensure consistent delivery schedules, minimize disruptions, and foster trust, while diversification enhances resilience and flexibility. Building strong relationships with suppliers encourages working together, coming up with new ideas, and achieving long-term success!

Finally, sustainability is now a crucial factor in sourcing decisions, driven by increasing consumer and regulatory demands for environmentally and socially responsible practices. Companies favor suppliers committed to sustainability, such as reducing waste and upholding fair labor standards. Embracing sustainability not only reflects a company’s corporate values, but also ensures long-term business success and resilience in a market that values conscious practices.

Sheng: From your observation, what are the critical sourcing trends and key issues to watch in 2024?

Julianna: In today’s climate, it is evident that there are several critical sourcing trends and key issues to keep a close eye on in 2024. Among these, prioritizing resilience, sustainability, and diversification stands out as essential for companies aiming to navigate the evolving sourcing landscape successfully!

The COVID-19 pandemic has led to a renewed emphasis on strengthening supply chain resilience. Companies are actively diversifying their suppliers and improving risk management to ensure operational continuity. Based on my personal experience in this industry, I’ve recognized the essential role adaptability plays in keeping operations running smoothly without interruption.

Additionally, there is growing attention on sustainability and ethical sourcing. Companies are under pressure to be transparent and accountable due to increased consumer awareness about environmental and social issues. In our organization, we maintain standards through the use of supplier audits to ensure sustainability compliance. Initiatives such as sustainable packaging and collaborations with suppliers certified by reputable organizations like the Forest Stewardship Council (FSC) reflect our efforts to advance sustainability goals.

One of the key challenges I’ve encountered in my sourcing career is the reliance on a limited supplier base. This became evident during our paper bag project when antidumping duties significantly impacted our sourcing strategy. The imposition of antidumping duties on paper bags from certain regions prompted us to explore alternative suppliers globally. This highlighted the importance of diversifying our supplier matrix to reduce dependence on specific regions and mitigate risks associated with geopolitical tensions or trade regulations.

Lastly, uncertain economic climates have significantly influenced what warrants close attention. Our company’s experience with Chapter 11 bankruptcy served as a pivotal moment, illuminating the crucial paths forward. As repeatedly emphasized, maintaining a diverse and resilient supplier base is essential for mitigating risks linked to potential disruptions in the supply chain. Additionally, closely monitoring costs and implementing cost-saving measures becomes imperative for navigating through uncertain economic times. Lastly, fostering robust supplier relationships and enhancing communication and collaboration with suppliers emerge as essential strategies for navigating challenges and ensuring continuity in the sourcing process, especially amidst economic uncertainty.

Sheng: Many retailers have adopted PLM (product life cycle management) and other digital tools to manage sourcing and the supply chain. From your observations, what changes have these tools brought to sourcing?

Julianna: Digital tools are vital for global sourcing as they streamline processes, enhance communication, and provide real-time insights, enabling companies to make informed decisions. Some important tools I work with closely include PLM (Product Lifecycle Management), BPCS (Business Planning and Control System), and Datamyne, as they help to optimize efficiency and mitigate risks in the complex global marketplace.

PLM helps to centralize information and documents, which ensures that all stakeholders have access to real-time data, updates, and feedback, leading to improved alignment. This helps for history purposes and checking previous decision making done by other team members. PLM also assists with processes such as supplier onboarding, product specifications management, and artwork/sample tracking.

BPCS provides a wide range of tools for managing inventory, procurement, and production planning. It helps ensure that inventory levels are optimized, procurement processes are efficient, and production activities are scheduled according to demand forecasts and inventory data. This visibility into inventory levels also allows sourcing partners to access crucial information, such as the amount of inventory on hand, helping us prioritize sourcing efforts based on urgency.

Lastly, Datamyne provides valuable insights into global trade data, including import and export information, tariffs, and compliance requirements. Datamyne also allows users to search for potential suppliers, thus mitigating risks associated with geopolitical factors and trade regulations. In response to the antidumping tariffs affecting our paper bags (previously mentioned), I utilized Datamyne to identify alternative vendors exempt from these tariffs. I thoroughly researched and explored these potential vendors to determine if they could serve as viable alternatives for sourcing paper bags, thereby circumventing the tariffs.

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

Julianna: Reflecting on my experiences through the UD fashion program, I am grateful for the comprehensive education and real-world projects that have shaped my understanding of the fashion industry and the global sourcing world. UD provided me with valuable insights into various aspects of the industry and encouraged me to explore my interests deeply. Through specialized courses for my focus on sustainable apparel and textile innovation, I gained practical knowledge that is directly applicable to the sourcing realm. The exposure to relevant case studies and global issues was instrumental in honing my skills and preparing me for my career in global sourcing, and UD has paved the way for the inevitable challenges and opportunities ahead.

For current students preparing for a career in sourcing after graduation, my first piece of advice would be to prioritize networking and building relationships with peers and faculty members. Business is personal, and these connections can open doors to opportunities in the industry! Additionally, dedicating oneself to school projects and seeking any type of industry experience can provide clarity on career paths and offer invaluable insights into different work environments, and help in understanding one’s preferences within the industry.

Developing strong presentation skills and the confidence to speak up in team settings are essential for standing out as a leader and effectively communicating with vendors, global partners, and cross-functional teams.

Finally, staying informed about current events, especially in the sourcing landscape, is crucial for making informed decisions and staying ahead in the industry.

Feel free to reach out anytime if you’d like to connect, chat, or discuss industry insights – I am always here and eager to engage!

–The END–