A new research paper has revealed
what the future of the post-Covid-19 apparel industry could look like and its
impact for workers, employers and governments in the Asia and Pacific region.
Jason Judd, who co-wrote the report with J Lowell
Jackson, explained: “After lots of reporting on Covid-19’s short-term impacts,
we were determined to take a longer view.”
He added: “Using two decades of data, we found few
changes in direction in apparel supply chain labour practices but big
accelerations along the curves the industry has been following for years –
supplier consolidation, market concentration, a mania for ever-lower wages, and
so on.”
The report explores the apparel industry changes that appear to be new
directions brought on by the pandemic versus those that are on a long-term
trajectory such as industry concentration and cosolidation, automation and digitalisation
as well as e-commerce for brands, retailers, suppliers and workers.
The authors of the research explored four key areas
that will be important in a post-Covid-19 world:
The three scenarios in the post-pandemic industry
landscape which the authors believe are fixed and will almost certainly take
place are as follows:
A key concern for many is the climate impact on
apparel production in Asia. The authors of the research paper stated their
research shows that major apparel-producing areas will be under-water by 2030.
Dr
Sheng Lu, associate professor of fashion and apparel studies at the University
of Delaware told Just Style exclusively: “The study’s findings remind us that
climate change is a critical issue facing the global apparel industry that
requires all stakeholders to get involved in finding a solution. For example, in the latest 2021 US
fashion industry benchmarking study I conducted in collaboration with the US
Fashion Industry Association (USFIA), respondents suggest that
textile and apparel trade policy can positively address climate change. Some
proposed measures include cutting the tariff rates for imports using
sustainable materials, incentivising sourcing from countries with strong
environmental regulations, and enhancing regulatory coherence across countries
on ecological and sustainable product requirements.”
The report authors agree that the future of the apparel industry in a
post-Covid-19 world depends on whether the sector decides to ‘repeat’, ‘repair’
or ‘renegotiate’ the status quo.
Judd pointed out: “Over three decades, [the apparel industry] has put itself at the centre of global crises of overconsumption, environmental damage, income inequality, worker rights, failures of private regulation, and more. The three scenarios our paper describes reflect the big choices the industry has to confront. Repeat is obviously the default choice, but not one that many of the industry’s suppliers and workers can live with.”
If the apparel sector status quo is maintained and the
‘repeat’ scenario comes into force, the apparel sector will return to a
pre-Covid-19 trajectory in terms of industry structure, sourcing and
governance.
If the ‘repair’ scenario comes into play it will be
because the apparel industry has decided to change its structure and sourcing
habits.
Finally, the ‘renegotiate’ scenario would lead to
changes in the structure, sourcing and governance of the apparel industry. It
is the most ambitious of the three scenarios but the authors explained it
integrates the most desirable outcomes from a decent work perspective.
Judd and Jackson explained: “This [renegotiate]
scenario depends on partnership, a collaborative approach to the industry’s
challenges that not only reflects the interests of fashion’s
‘outsiders’—suppliers, workers and their organisations, regulators,
consumers—but writes their negotiated terms into the contracts and formulas by
which the industry operates. This, in turn, depends on important changes in the
industry’s power relationships and the focus here is largely on sourcing and
governance.”