The market for ethically sourced garments is here to
stay. The last decade has seen a fundamental shift in consumer attitudes
towards ethical trading and recent research suggests that, despite the economic
downturn, UK shoppers are still demanding responsibly sourced fashion. Of
course, now more than ever, retailers must juggle sourcing ethically alongside securing value for money. To
do this, brands and retailers across the fashion industry are increasingly
turning to the latest technology in order to gain greater visibility and
control throughout their supply chain.
A Growing Issue
Socially responsible trading became a growing issue
during the 1990s when companies with global supply chains- particularly those
in the clothing and food industries- were coming under rising pressure form
consumer groups, governments and trade unions to ensure decent working
conditions for those producing their goods. Since then numerous media campaigns
highlighting the poor working conditions in factories and farms in developing
countries have been behind the drive for fair trade and ethically sourced products.
More recently, growing environmental concern has also increased consumer
awareness for sustainable sourcing, with many now opting for clothing made from
organic cotton, hemp or other low-impact raw materials and garments designed to
be washed at lower temperatures.
As a result, ethical sourcing is now part of the corporate
responsibility agenda of most major organisations. Many corporate investment companies today
screen their ventures according to a range of social and environmental
criteria, including an organisation's efforts to secure adequate labour
conditions in their supply chain, and retailers are increasingly implementing corporate codes of
practice to ensure that the working conditions of those producing their goods meet
or exceed international labour standards. What's more, ever increasing customer
demand for responsibly sourced items means this aspect of supply chain
management is gradually descending from niche to mainstream.
Demand Despite the Credit Crunch?
Although this shift in consumer attitudes coincided
with a period of easy credit and a booming economy- and was no doubt aided by this
climate- the myriad of other contributing factors means that consumer demand
for responsibly sourced goods is a reality that is unlikely to dissolve in the
current economic downturn. "The democratisation of information, for
example, brought with it the realisation that the choices we make as consumers
have an impact," says Sally Reynolds, Marketing Manager for Syscom,
www.syscom.plc.uk, "and this has not changed." Indeed recent research
suggests that, despite the credit crunch, 60% of UK consumers think it is
right or fair for retailers to remove non-sustainable products from their
shelves and 45% are willing to pay more for environmentally friendly products.[1] Similarly, New Look's Chairman, Phil
Wrigley, said in a recent Drapers article that he believes ethical trading is
on customers' agenda and will become even more of an issue in future. It seems
that values are still up there with value in the mix of factors driving that
all important purchase-decision.
The Importance of Ethical Sourcing
With this demand, savvy retailers and businesses are
increasingly realising that a reputation for fairness is invaluable. "It
isn't just a question of wanting to behave responsibly," says Sally. "Retailers
who are sourcing ethically are making informed judgments about what their
customers want." For example, Primark's rating in consumer polls fell
dramatically in the wake of BBC Panorama's damning expos in June 2008, which
revealed that some of Primark's suppliers were using child labour. Indeed a
survey conducted for Drapers following the programme revealed that 44% of
Primark shoppers were likely to switch to another chain.In
contrast, Marks & Spencer was rated highly due to their 'Plan A'
initiative, which included carrying out lifecycle assessments on their clothing
and setting up a clothes recycling scheme with Oxfam. "The fact that
Primark changed suppliers and created a website promoting its ethical trading
record in response to the child labour allegations emphasises just how
important it is for companies to be able to show their customers that they are
sourcing responsibly," says Sally.