With lower production costs, 70% of European textile imports now come from Asia. At the same time, consumer expectations of sustainability are rising. How can (r)etailers solve this equation? Is traceability in Asia even possible?
Traceability is a key element for a (r)etailer
Until recently, it was only when accidents occurred, such as at Rana Plaza in Bangladesh in 2013, that the conditions in which garments are produced became blatantly apparent. It’s now a thing of the past. As customers become more critical and aware, the demand for transparency and traceability in the fashion industry is on the rise.
According to a 2020 McKinsey survey, 66% of shoppers now consider sustainability to be one of the key factors when selecting which fashion brand to buy from. In the coming years, to gain your clients’ trust, you, as a retailer, will have to prove that your products are not harmful to people or the planet. Your reputation, in other words your most valuable asset, will depend on it.
Some improvements, but still a long way to go in Asia
It is precisely because of dramas like the one at Rana Plaza that the textile industry is taking action. Some brands started to map the provenance of their fibres, thanks to blockchain technology or biomarkers for example. But given the complexity of the supply chain and the massive use of subcontracting in Asia, the process is still a challenge.
Barely one in five garment companies currently have a clear view of their entire supply chain*. Yet only if you know where and under what conditions your clothes are produced can you improve the social and environmental impact of your products. The Organisation for Economic Co-operation and Development (OECD) recommends meaningful participation by all stakeholders to ensure sustainable clothing.
* KPMG China
Avoid sourcing from Asia?
This is a legitimate question. Products in Europe must follow strict regulations. In Asia, on the other hand, no such framework exists. Traceability still seems almost impossible unless you have your own local teams and limit yourself to a small number of trusted partners.
Is this your case? Then go for it, you will benefit from attractive prices while offering products in line with your values to your customers. If not, stay away or partner with a supplier like B&C to have access to the best of both worlds: quality goods sourced in Asia but billed in euros, available within 48 hours.
