By: Mike Flanagan
A forthright take on the follies the world’s apparel buying community has to deal with, from Mike Flanagan, CEO of Clothesource – and his suggestions for putting them right.
There's hardly an apparel industry commentator on the planet who's not forever going on about rising cost prices, writes Mike Flanagan. But he also wonders how often any of them look at what buyers are paying.
Don't believe those New Year forecasts, warns Mike Flanagan, as he debunks a few stories about four issues that are likely to be important in garment sourcing for some time.
Last week's announcement by Adidas that it expects its costs to rise sharply over the next five years underlines some crucial changes buyers in different countries have seen in their sourcing operations since the beginning of this century, explains Mike Flanagan.
On 5 October, the 12 countries negotiating the Trans-Pacific Partnership (TPP) announced that their trade ministers had agreed a deal. But Mike Flanagan still doubts it will come into action this decade.
Britain’s Modern Slavery Act (MSA), which began coming into force on 31 July, sets new disclosure standards on an extraordinary number of garment businesses. But its legal niceties won’t really determine the law’s impact, believes Mike Flanagan, noting that public opinion matters more.
Are Bangladesh’s garment factory owners about to destroy their extraordinary apparel success story? On the face of it, the question sounds absurd, writes Mike Flanagan. But neither the BGMEA nor the Bangladesh government have shown any real interest in developing a compliant garment industry.
Can mass-market clothing be made legally - or ethically - in the UK or the US if it’s competing with low-wage production? Not according to Mike Flanagan, who calls Western labour practices "onshoring’s dirty secret."
There’s a huge gap in Bangladesh between two business philosophies: those with realistic profit expectations, and those who are obsessed with controlling costs. And recent events have highlighted just how wide this gulf is, according to Mike Flanagan.
Last May, India overwhelmingly elected Narenrda Modi as Prime Minster. While apparel factory owners thought he was “business friendly,” few showed much public support for his annual budget on 28 February. Buried in the fine detail, there’s a reason both they and their workers might also be annoyed.
There is growing pressure from activists and governments to make Western laws apply to alleged non-compliance in developing country garment factories. But be careful what you wish for, advises Mike Flanagan, who points out that the most likely outcome is that countries will be blacklisted with no effort to improve standards.
Despite the hype, it's amazing how insignificant the internet is on the garment trade, writes Mike Flanagan. While every clothing brand and retailer uses the web for moving, receiving and monitoring information, relatively few clothes are sold this way.
Low-income workers are likely to dominate the global garment-making workforce for a long time yet, Mike Flanagan believes, despite recent forecasts that the number of low-cost countries is dwindling.
In the past six years apparel buyers have moved from avoiding commitment on toxic discharge to likely toxic-free production by the end of the decade. And China has moved from opposing legislation on hazardous chemicals to introducing a legally-enforced programme for eliminating them. Has the industry finally hit a tipping point? asks Mike Flanagan.
A decade-long enthusiasm for cutting trade barriers has come to an end, with sceptical electorates now seeing more downsides than upsides. But trade lobbyists continue to chase new barrier cuts, or defend concessions that have already reached the end of the road.
Will "strong man" politicians kick-start the sluggish garment industries in India and Pakistan? asks Mike Flanagan. Evidence so far, he suggests, shows progress ranges from positive to unconvincing.
- Why voters don’t want more global supply chains
- Global supply chain trends at Sourcing at MAGIC
- What's 3D-printing doing for apparel and footwear?
- Denim and athleisure top picks for back-to-school
- Labelling – The importance of the fine print
- H&M takes action over Myanmar child labour breach
- Vietnam garment industry calls for strategy update
- Nike and Apollo create supply chain partnership
- US Q2 in brief - The Buckle, Stein Mart
- Li & Fung joins FTA in sustainable sourcing pledge
- Too Many Standards
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Under Armour, Inc. (UA) - Financial and Strategic SWOT Analysis Review
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- THE GAP, INC.: Retailing - Company Profile, SWOT & Financial Analysis