Fashion brands and retailers will continue to be
tripped up by laws targeting forced labour in supply chains until they advocate
for the scaling of solutions that tackle the issue.
The
complexity of importing cotton-made clothing into the US just stepped up a
notch after the Department of Homeland Security added another 26 Chinese
suppliers to its Uyghur Forced Labor Prevention Act Entity List.
What makes it so challenging is while US
brands and retailers have been making concerted efforts to shift their supply
bases away from China, the DHS is on the lookout for finished goods coming from
any location that is suspected of containing inputs from blacklisted suppliers.
The bugbear is, of course, cotton coming
from the Xinjiang Uyghur Autonomous Region that has for some time now been
linked to concerns over forced labour.
But at least 76% of Chinese cotton products
contain Xinjiang cotton. The region accounts for about a fifth (20%) of the
world’s cotton production. Against that backdrop the chances that the average
consumer has some percentage of Xinjiang cotton in their wardrobe, is pretty
high, particularly since much of the cotton is mixed and then exported to other
regions before finished garments are then shipped into the US.
So while US clothing brands and retailers
may think they are purchasing a batch of t-shirts from supplier A in Pakistan,
the real issue is where supplier A was getting their cotton fabric from. And
where was the cotton fabric supplier getting their cotton fibre from? Until
now, ignorance has been bliss. But under the DHS’s latest crackdown, this
approach could be costly for fashion sellers, in terms of time, money and
reputation.
Country *
Visit
our Privacy
Policy for more information about our services, how we may use, process and
share your personal data, including information of your rights in respect of
your personal data and how you can unsubscribe from future marketing
communications. Our services are intended for corporate subscribers and you
warrant that the email address submitted is your corporate email address.
Brands have to be significantly more aware
of what is going on at every stage of their supply chains, right down to the
point of fibre sourcing.
The free-to-use tool shows brands, via
detailed graphics, where the forced labour risks in their supply chains lie and
offers a solution to allow them to be addressed.
The platform’s lead developer told Just
Style, in an interview, until now brands have been made aware they need to
crack down on forced labour in their supply chains but haven’t necessarily had
the tools at their disposal to be able to do so. With increased visibility
thanks to machine learning, the problem of forced labour – which the ILO says
stood at 27.6m in 2021 or equivalent to 3.5 people per 100 – can finally be
addressed.
Whether it is enough to tackle the problem
or whether it is the end solution is something that remains to be seen. What is
clear is the tools are coming, and they are coming through thick and fast. With
technology like machine learning, they will continue to improve and are likely
to become a reliable third eye for supply chain leaders of fashion firms. But
ultimately brands and retailers have to not only embrace these tools but
advocate for their improvement, development and scaling.
For that to happen, collaborative action and
acceptance at all levels, by all stakeholders is essential.
It is the only way to shift the needle and
move closer to the goal of a responsible global fashion industry.