Home / Knowledge / News / Apparel/Garments / Retailers should pay €33 more for jeans pair: Report

Retailers should pay €33 more for jeans pair: Report

27
May '19
Pic: ABN AMRO
Pic: ABN AMRO
Retailers should actually pay €33 more for a pair of jeans to take into account hidden costs such as damage to the climate and workers’ rights, encountered during production of jeans, says a report by Impact Institute and ABN AMRO. At present, the costs such as water pollution and water consumption, illicit labour practices, are not currently being paid.

In the report ‘The Hidden Costs of Jeans’, researchers from the Impact Institute investigated a typical production chain for jeans: from cotton plantations and denim weaving mills in India via jeans factories in Bangladesh to transport to the European markets. They calculated the ‘true price gap’: the difference between the purchase price that retailers pay and the actual total production costs, including environmental costs and the impact on (local) society.

The heaviest external costs are caused during the growing of cotton and processing it into denim. Over half of the external costs in cotton production are environmental, having to do with the use of scarce water and the pollution of the precious liquid. In the production of denim and of jeans, social external costs are highest. In India, the main cause is widespread forced labour, child labour and underpayment throughout the entire value chain.

In turn, the production of jeans out of denim in the sewing workshops in Bangladesh entails social costs in the form of intimidation and underpayment of the employees. Per pair of jeans, these external costs are fairly low due to the limited time spent during this phase of production. Remarkably, the costs of transportation are negligible in the overall picture.

The report makes recommendations so as to make the costs more realistic. ABN AMRO hopes that fashion companies will be encouraged by to make even more efforts to get started with making the production chain more sustainable. This can be achieved by better organising the production processes in the production countries based on a long-term relationship with manufacturers, governments and social organisations. For a slightly higher price, it must be possible to purchase ‘realistic’ produced jeans. The report also gives Dutch consumers insight into the cost structure of jeans.

“True pricing helps retailers to enter into long-term relationships with their producers, to make good agreements together and to ensure that these agreements are complied with, so that a fair purchase price is paid. Consumers want more transparency and the true price method gives them insights with which they can make better choices,” said Henk Hofstede, sector banker retail at ABN AMRO, to local Dutch media. (PC)

Fibre2Fashion News Desk – India


Must ReadView All

VITAS suggests ways to reduce Vietnam's fabric import rise

Textiles | On 18th Jun 2019

VITAS suggests ways to reduce Vietnam's fabric import rise

Quickly setting up industrial parks for textile and dyeing industry,...

Pic: University of Sheffield

Apparel/Garments | On 18th Jun 2019

RMG firms failing to deliver on living wage promise: study

Global garment companies are failing to meet living wage promises to...

Millennials will equal 40% of global luxury market by 2025

Fashion | On 18th Jun 2019

Millennials will equal 40% of global luxury market by 2025

Millennials will represent 40 per cent of the global personal luxury...

Interviews View All

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Top executives, Textile industry

Top executives
Textile industry

The budget will give major impetus to textile and apparel consumption

Abhishek Samdaria, Reflete

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Pratik Agarwal,

Pratik Agarwal

Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Kalai Selvi,

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search