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The Fashion Industry – Tips For Outsourcing Manufacturing And Paying Affiliates
Many of us as consumers are fully aware that most of our wardrobe, although bought in the UK, is not made in the UK. The fashion guides couldn’t make it any clearer for us. Just look at the beautiful white labels with ‘Made In China’ or ‘India’ sewn into our clothes. He put his stamp on them. The thing is, with the current economy and the love of fast fashion, we as consumers have helped drive the trend of outsourcing to eastern countries because of our desire, our need, our desire to buy at lower prices. We all feel that we have to justify the money we spend now; Do I really need those shoes? Yes my jeans are ripped but isn’t that fashionable? Well I’ll just lose weight and get back into my old clothes. UK shoppers (among other countries) are to blame for the need to negotiate.
We are a nation of discount shoppers. The likes of Primark, TK Maxx and Sports Direct were not always seen as acceptable or ‘cool’ places to shop because of what was associated with the brand eg: Cheap, poor. It says a lot about your status if you have a child in hi-tec trainers or a family that shops in £1 shops, especially in a country that is very keen to establish status and differentiate. But, because of climate change, how quickly trends on the high street change, and because consumers are demanding fast and affordable fashion, UK fashion houses have turned to (mostly) Bangladesh for manufacturing. from our clothes.
However, just because we don’t operate factories in Bangladesh that have caused deaths in recent times doesn’t mean we don’t bear some responsibility for them. We all know that working conditions outside the UK are very different and the majority of our population will never spend a day in the same environment. So really, it’s time to stop looking at these harsh labor conditions.
There are a few different tactics that fashion brands can take though to help maintain good ethical production and avoid getting bad press or even profit from some of these factories.
Factory checks- If you are a retailer in the fashion industry then you will know that dealing with the big players on the high street such as Next, JD Williams (Simple Be), John Lewis or M&S to name a few, will you need. to dig into that margin (before you do anything with them), pay for factory inspections. This is when high street suppliers will use a reputable auditing company that they know is knowledgeable about the legal requirements and conditions of the countries where your factories are located. Auditors will check the machines being used and the hours being recorded. by staff members on the workshop floor to check that all legal requirements are met and that there is no child labor or exploitation.
As a fashion brand, instead of waiting for your supplier to force you to do this as part of your contract with them, you should start doing this from the beginning before you even get to the factories you are looking for. provide samples to deal with them. Sooner or later, every store you want to supply to will request a background search of your factory supplier.
Take responsibility when things go wrong and contact your suppliers-
Although you can invest in factory inspections, this will only be a week that the factory is under inspection. Building a strong relationship with the factories you work with and flying to visit them where possible is another way to try to prevent a factory from outsourcing your production to a third party without your knowledge. This is something that was covered by Channel 4’s ‘Dispatches’ about two years ago.
Many eastern factories outsourced fashion houses such as ‘New Look’s’ orders to third-party manufacturers to produce the volume of orders but also produced them at set cost prices, so the factory itself was not at a loss. Third parties were not necessarily factories, but more like sweatshops. If a supplier knows that you are likely to make regular visits, or have an employee stay close to your factory for an extended period of time, they will be less likely to risk outsourcing your goods.
Or, as high street retailers have done recently, you can join their supply chain when disasters strike, like the building collapses or factory fires that occurred in Bangladesh last month. A small contribution can go a long way.
If you cannot make factory visits; Save your money – If your brand is not yet in a position to cover the costs of flying to China, India or Bangladesh, then you know that the only contact you will have with your chosen factory is via email and may that by phone. You also know that your research process was actually done on the internet. This means you don’t really know who is supplying you.
It is very easy to create a website with the variety of free platforms available now. So be careful not to be linked to fake phishing sites or just plain scams. One thing you will learn in the manufacturing industry when dealing with these eastern countries is that they do not ship without payment. If you don’t pay them, they take your stuff (and most likely call you around the clock because the factory manager’s employees will do the same to them and ask when they will pay). Protect your finances and set up a separate online bank account or eWallet for paying partners so you can transfer directly from your business bank account.
This way you prevent your business account from being hacked, but it also helps to manage your money, because you only transfer what you need to pay to your eWallet, for example: the balance on your bill from your supplier. eWallets still have the ability to transfer money in a variety of currencies, so you don’t have to worry about transferring the amount you want to transfer.
If it is too good to be true; maybe it is- If the cost price seems unbelievable, eg: A PU bag covered in metal punch tool that can sell for £12 gives you a margin of 2.5 (giving a cost price of £4.80) then you know it’s unlikely the metal on the bag would have been tested for nickel content, or it might smell fishy! (The pungent smell common to formaldehyde, which is often used as a finishing product on leather handbags). If the entire front panel of the bag is covered with chains or other hardware features, it should actually sell for at least £65 more.
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