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 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.
The recent strike by workers at a Chinese plant operated by Taiwanese footwear manufacturer Yue Yuen was as much to do with the status of migrant workers as the firm's sharp practice, believes Mike Flanagan. And it certainly doesn't mark the start of a Guangdong Spring uprising.
Retailers and brands are increasingly engineering their operations to make the most of changing trends affecting everything from sourcing to sales. But as Mike Flanagan points out, the model that works for one company is unlikely to work for another. Here he gives some examples.
The term 'backward linkages' - used by commentators a decade ago to describe clothing factories with spinning, weaving and dyeing facilities nearby - seems to be coming back into fashion. But far from being the key to success for garment makers, says Mike Flanagan, neither the commercial nor the environmental case stands up.
The pressure for higher wages and better working conditions looks unstoppable – and is being accompanied by a wave of new initiatives aimed at making it easier for factories to compete while making these changes. But will they work? asks Mike Flanagan.
The last two weeks of December threw up three huge issues that overturned most of the current wisdom about the garment industry. In this month's Flanarant, Mike Flanagan looks at why it is so difficult to forecast long-term trends in garment making.
Trade Facilitation is the new industry buzzword, but can anyone get excited about it? asks Mike Flanagan. They should, he says, highlighting here the potential of the WTO's Bali Package to enhance clothing supply chains. He also urges the industry to push for fast implementation, noting that garment workers would be the biggest beneficiaries.
Despite a decision eight years ago by Japanese brands and retailers to cut the amount of clothing sourced from China, garment imports from the country are on the rise. Mike Flanagan believes the reasons should resonate with buyers in the US and EU too.
- What Marks & Spencer's numbers mean for clothing
- Balance essential in garment supply chain
- Tanzania adds to Africa’s apparel sourcing mix
- Supply chain weighs on Kering's green footprint
- Where next for 3D design and prototyping?
- AGOA delays drag on sourcing decisions
- American Eagle Outfitters Q1 earnings soar
- Apparel bright spot in Wal-Mart Q1
- Brandix named PVH ‘Global Supplier of the Year’
- EU and Turkey to update customs union