Clothing industry

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Clothing factory in Montreal, Quebec, 1941. Commercial. Clothing Factory. St. Hubert street, Montreal. Maurice Laniel BAnQ P48S1P06570.jpg
Clothing factory in Montreal, Quebec, 1941.

Clothing industry or garment industry summarizes the types of trade and industry along the production and value chain of clothing and garments, starting with the textile industry (producers of cotton, wool, fur, and synthetic fibre), embellishment using embroidery, via the fashion industry to apparel retailers up to trade with second-hand clothes and textile recycling. The producing sectors build upon a wealth of clothing technology some of which, like the loom, the cotton gin, and the sewing machine heralded industrialization not only of the previous textile manufacturing practices. Clothing industries are also known as allied industries, fashion industries, garment industries, or soft goods industries.

Contents

Terminology

Nylon stocking inspection in Malmo, Sweden, in 1954. NMA.0028271, Fashion Photo by Erik Liljeroth 1954.jpg
Nylon stocking inspection in Malmö, Sweden, in 1954.
Garment factory workers in Bangladesh, in 2013. Helping Khaleda, one of the survivors of Rana Plaza (14008308964).jpg
Garment factory workers in Bangladesh, in 2013.

By the early 20th century, the industry in the developed world often involved immigrants in "sweat shops", which were usually legal but were sometimes illegally operated. They employed people in crowded and hostile conditions, working manual sewing machines, and being paid less than a living wage for up to 10-to-13-hour shifts. This trend worsened due to attempts to protect existing industries which were being challenged by developing countries in South East Asia, the Indian subcontinent and Central America. Although globalization saw the manufacturing largely outsourced to overseas labor markets, there has been a trend for the areas historically associated with the trade to shift focus to the more white collar associated industries of fashion design, fashion modeling and retail. Areas historically involved heavily in the "rag trade" include London and Milan in Europe, and the SoHo district in New York City. [1]

There are considerable overlaps between the terms clothing-/garment-, textile- and fashion industry. The clothing sector is concerned with all types of clothes, from fashion to uniforms, e-textiles and workwear. Textile industry is less concerned with the fashion aspect but produces the fabrics and fibres that are required for tailoring. The fashion industry closely follows - and sets - fashion trends to always supply the latest in non-functional clothing.

Production

The garment industry is a major contributor to the economies of many countries. The industry for Ready Made Garments has been criticized by labor advocates for the use of sweatshops, piece work and child labor.

Working conditions in low-cost countries have received critical media coverage, especially in the aftermath of large scale disasters like the 2013 Savar building collapse or the Triangle Shirtwaist Factory fire.

In 2016, the largest apparel exporting nations were China ($161 billion), Bangladesh ($28 billion), Vietnam ($25 billion), India ($18 billion), Hong Kong ($16 billion), Turkey ($15 billion) and Indonesia ($7 billion). [2] By 2025, it is projected that the United States market will be worth $385 billion. [3] It is also projected that the e-commerce revenue will be worth $146 billion in the United States by 2023. [4]

Production in developing countries

The worldwide market for textiles and apparel exports in 2013 according to United Nations Commodity Trade Statistics Database stood at $772 billion. [5]

In 2016, the largest apparel exporting nations were China ($161 billion), Bangladesh ($28 billion), Vietnam ($25 billion), India ($18 billion), Hong Kong ($16 billion), Turkey ($15 billion) and Indonesia ($7 billion). [6]

Export processing zones (EPZs) are designated areas where manufacturers are able to import materials, process, and assemble goods for re-export, exempt from taxes and duties. Many manufacturers view EPZs as catalysts for economic growth with the minimal possible regulations, thus relocating production to these zones to maximize profits. According to UN Women (formerly known as UNIFEM), women comprise a significant majority of the workforce in EPZs, accounting for 90% in Nicaragua, 80% in Bangladesh, and 75% in Honduras, the Philippines, and Sri Lanka. [7]

Bangladesh

Many Western multinationals use labour in Bangladesh, which is one of the cheapest in the world: 30 euros per month compared to 150 or 200 in China. In 2005 a factory collapsed and caused the death of 64 people. In 2006, a series of fires killed 85 people and injured 207 others. In 2010, some 30 people died of asphyxiation and burns in two serious fires.

In 2006, tens of thousands of workers mobilized in one of the country's largest strike movements, affecting almost all of the 4,000 factories. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) used police forces to crack down. Three workers were killed, hundreds more were wounded by bullets, or imprisoned. In 2010, after a new strike movement, nearly 1,000 people were injured among workers as a result of the repression. On 24 April 2013 in the Savar Upazila of Dhaka District, Bangladesh, where a commercial building called Rana Plaza collapsed. The Rana Plaza once stood as an 8 story building that housed many garment factories, including Zara, Joe Fresh, and Walmart. [8] On April 24th 2013, the building collapsed and lead to the death of 1,134 people with many more injured. Structural cracks of the Rana Plaza were identified the day before, but many workers were told to still come into work the next day. [8] The Rana Plaza tragedy brought worldwide attention to the reality of the textile industry and modern day textile workers. The search for the dead ended on 13 May 2013. [9]

Although many advancements have been made since the early 1900s, “by the early twenty-first century, little had changed for textile workers the world. Female mill operatives in Bangladesh, for example, earn wages 40% percent lower than men”. [7] A common tactic by manufacturers is to outsource and move the labour to “countries with the lowest wages, and by proxy, the lowest working standards”. [7] In the twenty-first century, women are still often underpaid and undervalued in terms of the textiles they produce and “because of its historical association as being "cheap" and "flexible," women's labor within the textile and garment industries is particularly suited to the dynamics of production along the global assembly line. It is cheap both in terms of prevailing wage levels and in terms of the unhealthy and unsafe conditions under which women often”. [7]

Cambodia

The garment industry in Cambodia represents the largest portion of the country's manufacturing sector, accounting for 80% of all exports. In 2012, exports grew to $4.61 billion, up 8% over 2011. In the first half of 2013, the Cambodian garment industry reported exports worth $1.56 billion. [10] The sector employs 335,400 workers, of which 91% are female.

The sector operates largely in the final phase of garment production, that is turning yarns and fabrics into garments, as the country lacks a strong textile manufacturing base.

China

China has held the position of the world's largest clothing manufacturer for over a decade, commanding over 50% of global apparel production. In 2021, the country's apparel market generated an impressive revenue of $303 billion USD. The province of Guangdong serves as the epicenter of clothing production, housing a vast network of over 28,000 exporting enterprises. In the first quarter of 2022 alone, the province's clothing manufacturing sector contributed $6.3 billion USD in export value. However, since 2015, China's clothing sector has exhibited a notable shift towards sustainability, with a reduced emphasis on expanding scale and a greater focus on technology-driven approaches to enhance productivity. This transformation has been largely motivated by the escalating labor costs, compelling businesses to transition from labor-intensive practices to more efficient and automated methods. [11]

Ethiopia

Employees of Ethiopian garment factories, who work for brands such as Guess, H&M or Calvin Klein, receive a monthly salary of 26 dollars per month. [12] These very low wages have led to low productivity, frequent strikes and high turnover. Some factories have replaced all their employees on average every 12 months, according to the 2019 report of the Stern Centre for Business and Human Rights at New York University.

The report states: "Rather than the docile and cheap labour force promoted in Ethiopia, foreign-based suppliers have met employees who are unhappy with their pay and living conditions and who want to protest more and more by stopping work or even quitting. In their eagerness to create a "made in Ethiopia" brand, the government, global brands and foreign manufacturers did not anticipate that the base salary was simply too low for workers to make a living from." [13]

India

Indian clothing and apparel industry is one of the largest employment generating sector after agriculture in India and is sixth largest exporter in the world. India is the second largest producer of fibre in the world. Cotton is the most produced fibre in India. Other fibres produced in India include silk, wool, and jute. 60% of the Indian textile Industry is cotton based. Indian clothing industry dates back to Harappan civilisation and is one of the oldest clothing manufacturing industry in the world. India produces various types of clothing including woven and knitted clothing. Mumbai, Surat, Tiruppur,Ahmedabad , Bangalore, Delhi, Ludhiana and Chennai are important manufacturing centres of India.

Pakistan

The textile industry is the largest manufacturing industry in Pakistan, the fourth largest global producer of cotton, and the eighth largest exporter of textile products in Asia. It contributes to 8.5% of GDP and provides employment to 30% of the 56 million strong national workforce, or 40% of industrial employment. Punjab Province dominates the textile industry in Pakistan. Realising the economic and employment implications of non-compliance for Pakistan, the national government has developed an International Labour Standard (ILS) Compliance and Reporting Programme to improve workplace practices in the textile industry together with the ILO. [14]

Retail

Retail in the clothing industry involves the selling of clothes to consumers through physical and online stores. Clothing retailers range from small, independently owned boutiques to large chain stores and department stores. The retail sector is a vital part of the clothing industry, as it connects manufacturers and consumers, drives demand for clothing, and contributes significantly to the economy.

The retail clothing industry has undergone significant changes in recent years due to the rise of e-commerce. Online retailers such as Amazon, ASOS, and Zara have disrupted the traditional brick-and-mortar retail model and forced established retailers to adapt to new consumer behaviors. Many traditional retailers have invested in their online platforms to offer a seamless shopping experience across multiple channels.

Retailers often use a range of strategies to attract and retain customers. These include offering discounts and promotions, providing excellent customer service, and creating a strong brand identity. In recent years, there has been an increasing focus on sustainability and ethical fashion, and retailers are adapting their strategies to cater to these trends. Many retailers are now offering sustainable clothing lines and using environmentally friendly production processes to appeal to consumers who prioritize sustainability.

The clothing retail sector is highly competitive, with retailers constantly innovating to stay ahead of the competition. Fast fashion retailers such as H&M, Zara, and Forever 21 have gained popularity by offering trendy clothing at affordable prices. However, the environmental and social impact of fast fashion has come under scrutiny in recent years, leading to a rise in popularity of sustainable and ethical fashion.

Fast fashion is a major source of retail sales for the clothing industry. Retailers do not typically manufacture their own items and henceforth they purchase their goods from wholesalers and manufactures. This makes it so that they can mark down their prices, and make them cheaper to consumers. This process is called a Supply Chain, which is the way in which companies and suppliers are able to distribute products to consumers. [15] Fast-fashion based companies can quickly manufacture and distribute their designs. These quick made designs often result in extra waste, low-paid workers, and overconsumption. Fast fashion companies include Zara, Forever21, Old Navy, and Gap. [16]

Overall, the retail sector plays a vital role in the clothing industry, connecting manufacturers with consumers and driving demand for clothing. The sector is constantly evolving and adapting to changes in consumer behavior and societal trends.

Sustainability and working conditions

Clothing factory in Buryatia, Russia Sewing factory in Buryatia.jpg
Clothing factory in Buryatia, Russia

The clothing industry has grown to an eco-friendly packaging solution to limit the amount of waste. [17] The regulator, Fast-Moving Consumer Goods (FMCG) companies, and retailers are contributing their efforts to the eco-friendly packaging commitment. China banned imports on packing waste in 2017, Canada implemented Zero Plastic Waste in 2018, and U.S introduced bills around reducing single use packing waste. [18] The nonprofit organisation As You Sow produced a report in 2010 which argued that "apparel industry leaders have made changes to their purchasing practices ... to improve working conditions in factories". [19]

Trade unions

Workers in the clothing industry are represented by a number of international and national trade unions.

See also

Further reading

United States

Related Research Articles

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<span class="mw-page-title-main">Sweatshop</span> Workplace that has socially unacceptable working conditions

A sweatshop or sweat factory is a crowded workplace with very poor, illegal working conditions. The manual workers are poorly paid, work long hours, and experience poor working conditions. Some illegal working conditions include poor ventilation, little to no breaks, inadequate work space, insufficient lighting, or uncomfortably/dangerously high or low temperatures. The work may be difficult, tiresome, dangerous, climatically challenging, or underpaid. Workers in sweatshops may work long hours with unfair wages, regardless of laws mandating overtime pay or a minimum wage; child labor laws may also be violated. Women make up 85 to 90% of sweatshop workers and may be forced by employers to take birth control and routine pregnancy tests to avoid supporting maternity leave or providing health benefits. The Fair Labor Association's "2006 Annual Public Report" inspected factories for FLA compliance in 18 countries including Bangladesh, El Salvador, Colombia, Guatemala, Malaysia, Thailand, Tunisia, Turkey, China, India, Vietnam, Honduras, Indonesia, Brazil, Mexico, and the US. The U.S. Department of Labor's "2015 Findings on the Worst Forms of Child Labor" found that "18 countries did not meet the International Labour Organization's recommendation for an adequate number of inspectors."

The Multi Fibre Arrangement (MFA) governed the world trade in textiles and garments from 1974 through 1994, imposing quotas on the amount developing countries could export to developed countries. Its successor, the Agreement on Textiles and Clothing (ATC), expired on 1 January 2005.

<span class="mw-page-title-main">Textile industry</span> Industry related to design, production and distribution of textiles.

The textile industry is primarily concerned with the design, production and distribution of textiles: yarn, cloth and clothing. The raw material may be natural, or synthetic using products of the chemical industry.

<span class="mw-page-title-main">Li & Fung</span> Supply Chain Management Company

Li & Fung Limited is a Hong Kong-based supply chain management company. Established in 1906, the company became publicly traded in 1973 and has since played a significant role in manufacturing apparel, toys, and various consumer goods for major North American and European retailers. Significant growth occurred after its public listing, reaching a peak market capitalization in 2011. However, the advent of e-commerce and shifts in the global retail landscape began to impact the company's business, contributing to a 95% loss in market value between 2011 and 2020. The rise of platforms like Alibaba and Amazon, which directly connect manufacturers with consumers, has been particularly challenging.

<span class="mw-page-title-main">Fast fashion</span> Quick retail copying of catwalk trends

Fast fashion is the business model of replicating recent catwalk trends and high-fashion designs, mass-producing them at a low cost, and bringing them to retail quickly while demand is at its highest. The term fast fashion is also used generically to describe the products of this business model. Retailers who employ the fast fashion strategy include Primark, H&M, Shein, and Zara, all of which have become large multinationals by driving high turnover of inexpensive seasonal and trendy clothing that appeals to fashion-conscious consumers.

<span class="mw-page-title-main">Textile recycling</span> Method of reusing or reprocessing used clothing, fibrous material and rags

Textile recycling is the process of recovering fiber, yarn, or fabric and reprocessing the material into new, useful products. Textile waste is split into pre-consumer and post-consumer waste and is sorted into five different categories derived from a pyramid model. Textiles can be either reused or mechanically/chemically recycled.

<span class="mw-page-title-main">Sustainable fashion</span>

Sustainable fashion is a term describing efforts within the fashion industry to reduce its environmental impacts, protect workers producing garments, and uphold animal welfare. Sustainability in fashion encompasses a wide range of factors, including cutting CO2 emissions, addressing overproduction, reducing pollution and waste, supporting biodiversity, and ensuring that garment workers are paid a fair wage and have safe working conditions.

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<span class="mw-page-title-main">Textile industry in Bangladesh</span> Regional economic sector in South Asia

The textile and clothing industries provide a single source of growth in Bangladesh's rapidly developing economy. Exports of textiles and garments are the principal source of foreign exchange earnings. By 2002 exports of textiles, clothing, and ready-made garments (RMG) accounted for 77% of Bangladesh's total merchandise exports. Emerging as the world's second-largest exporter of ready-made garment (RMG) products, Bangladesh significantly bolstered employment within the manufacturing sector.

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<span class="mw-page-title-main">Sweatshop-free</span>

Sweatshop-free or sweat free is a term first used by American Apparel, a famous American clothing brand, which means coercion-free, fair-compensation for the garment workers who manufacture their products. The aim of sweatshop-free wish to ensure that all employees are treated fairly and products are made in good working conditions. Sweatshop-free standards include the right to collective bargaining, non-poverty wages, safe workplaces, back wages, and non-harassment. It has been heavily featured in American Apparel’s advertisements and become a common term in the garment industry.

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The textile industry in India traditionally, after agriculture, is the only industry that has generated huge employment for both skilled and unskilled labour. The textile industry continues to be the second-largest employment generating sector in India. It offers direct employment to over 35 million people in the country. India is the world's second largest exporter of textiles and clothing, and in the fiscal year 2022, the exports stood at US$ 44.4 billion. According to the Ministry of Textiles, the share of textiles in total exports during April–July 2010 was 11.04%. During 2009–2010, the Indian textile industry was pegged at US$55 billion, 64% of which services domestic demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing factories in all of India. According to AT Kearney’s ‘Retail Apparel Index’, India was ranked as the fourth most promising market for apparel retailers in 2009.

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<span class="mw-page-title-main">Arvind (company)</span> Indian textile company

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<span class="mw-page-title-main">Export-oriented employment</span> Employment in multinational corporations international industrial factories

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<span class="mw-page-title-main">Nassa Group</span> Bangladeshi industrial conglomerate

NASSA Group of Industries was founded in 1990 by Nazrul Islam Mazumder. It is one of Bangladesh's largest industrial conglomerate

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