As the North Hemisphere swelters this August we're
left knowing the fashion industry has the dubious honour of contributing to the
planet's climate crisis, so what's next, asks Gherzi Textil Organisation
partner Robert P. Antoshak.
The debate over
climate change may have taken a turn this year as the North Hemisphere suffered
through a brutally hot July. In fact, according to the United Nations, “July has
already seen the hottest three-week period ever recorded; the
three hottest days on record; and the highest-ever ocean temperatures for this
time of year. The era of global warming has ended; the era of global boiling
has arrived. Climate change is here. It is terrifying. And it is just the
beginning,” reported the Washington Post.
As the North Hemisphere
swelters in August, we’re left knowing that our industry has the dubious honour
of contributing to the planet’s climate crisis. Over the past 40 years, our
industry built an intricate global system of suppliers, contractors, and
shippers, supported by a complex infrastructure of storage and logistical
services – all to maximise just-in-time retail replenishment and consumer
purchasing, the essence of fast fashion.
But over those same 40 years,
climate change became harder and harder to ignore or explain away. Politically,
governments and members of the polis have had an increasingly difficult time
ignoring this changing world. Indeed, scientific evidence documents that
warming waters, droughts, intense weather events, runaway wildfires, and
melting ice caps are not a figment of the imagination of overzealous
environmentalists – but are real.
And our industry has
contributed to our warming world. The rush to globalise resulted in more energy
consumption, greenhouse gas emissions, and pollution of our water resources.
Our industry’s logistical efficiency in managing a global network of suppliers
and logistical systems is something to behold. Please make no mistake: it’s an
outstanding achievement but costly considering our industry’s impact on the
planet’s climate. In this sense, efficiency went hand in hand with
environmental indifference.
A small consolation is that
our industry isn’t solely to blame for climate change. But as a significant
contributor, our hands are dirty. We have a responsibility. Yet, our industry
has increasingly come to grips with its environmental responsibilities. There
are genuine efforts to change business practices, find ways to repair the
damage if possible, and work towards a more plant-friendly future.
Even so, as an industry
dominated by marketers, new environmentally-friendly initiatives are often
tainted with marketing spin (think sustainability, circularity, or even
transparency). In some ways, it’s unavoidable as change takes time; innovation
is not a straight-line endeavor but rather a process typified by fits and
starts, failures and successes. As it took years for globalised supply chains
to emerge, it will take time for many aspirational environmental goals to be
realised.
The rub is if future goals of
achieving sustainable objectives are put off until 2030, 2040, or beyond. It
sounds great as a message for today – only who will be around to remember it in
15 years? A marketer’s delight to sell for today with a story for tomorrow;
whether it’s true or not is irrelevant as long as the next quarter’s sales
goals are hit.
The summer is often a time to
read books on the beach or at the pool and take a break from the grind. Only
this year, it’s too hot to sit by the pool. After all, as the UN’s metrological
chief said recently: “The era of great broiling has arrived.”
So what should our industry do
confronting a changing global environment? There are many suggestions, for
sure. But a rallying cry of some environmentalists is for consumers to buy less
(and recycle more). The assumption is that by consuming less, there will be
less post-industrial waste and less post-consumer waste in landfills or burned.
If demand eases, the demand for environmentally harsh raw materials will also
reduce, or so the thinking goes.
Of course, this flies in the
face of the realities of an industry built upon the foundation of cheap stuff
made possible by vast scales of production. If consumers buy less stuff, then
what? And if they buy less, do low prices lose their appeal? After all, if
people don’t want to buy, then isn’t the allure of low prices somehow muted?
That could be the case but for
various reasons, including changes in sourcing, consumer attitudes, and
demographics. Claims from the Wall Street Journal: “The twilight of
ultracheap Asian factory labour is emerging as the latest test of the globalised
manufacturing model, which over the past three decades has delivered a vast
array of inexpensively produced goods to consumers around the world. Americans
accustomed to bargain-rate fashion and flat-screen TVs might soon be reckoning
with higher prices.”
Why? There are several
reasons, but most pointedly, there is a shortage of young workers, particularly
in China. Demographic changes have played a role as many families have fewer
children than was the case with previous generations. Expectations also affect
employment: many young people want to work in service or technology jobs rather
than manufacturing.
Further, China has graduated
record numbers of young people from universities only to find relatively few
jobs for well-educated individuals. Manufacturing jobs, in turn, don’t even
register for many of these recent graduates despite recent calls by Beijing for
schools to lower the expectations of new entries into the workforce. How will
our industry adapt without China in the mix to make lots of stuff with good
quality and low prices? China’s costs began to rise even before the pandemic.
Globalised economics is
predicated on continued growth. That’s why so many international organisations
fret over global growth forecasts. But what happens if people say they have
enough stuff? Does price really matter, then? And could that be more than just
a temporary occurrence? In the West, the population is getting older – so do
they really need so much stuff?
What’s the bottom line for
clothing companies? The age of inexpensive goods may be coming to an end. For
consumers long accustomed to dirt-cheap clothing, a day of reckoning may be
around the corner. For fast fashion companies, you may have to get faster – or
learn how to sell less but accept a mark-up.
There is a curious thing to
consider, though. If prices go up due to changes in Asian supply chains,
consumption will presumably go down. In turn, will over-consumption by
consumers moderate? It’s not a great development for brands and retailers – but
some environmentalists would welcome it!
Our industry was built for a
different time. High growth and over-consumption were the pillars of the
industry. Today, it’s a new ballgame. But, as we’ve seen with so many
environmental programmes, the party got out of hand. We’re in a hangover. Less
consumption is the order of the day, either because of consumer conviction or
economics.
Nevertheless, there’s also so
much fashion supply out there – and this is where we see the intersection of
free markets and climate change. Too much of a good thing has left us to pay
the bill, with the planet stuck with the tab.