Blog: Textile sourcing spotlight shines on Cambodia
Leonie Barrie | 4 November 2013
The sourcing spotlight seems to be shifting to Cambodia's garment industry, which is currently fighting to maintain its competitive edge while tackling a range of labour problems.
Although exports are up 32% in the first six months of the year, the country has suffered from poor working conditions and industrial unrest sparked by poor pay. It is, however, trying to improve its standards, bolstered by the ILO's Better Factories Cambodia monitoring initiative.
One such project has seen thousands of garment and footwear workers take part in a pioneering mobile phone call-in project. But while many callers had a good knowledge of the issues covered, 32% incorrectly believed that striking workers were entitled to receive wages.
Clothing retail giant H&M is leading calls for the Cambodian government to conduct an annual review of the minimum wage, to help ease worker unrest. The review should take into account national inflation and the consumer price index, the fashion firm says.
But government officials, garment manufacturers and union leaders in Bangladesh last week failed to agree on a rise in the minimum wage paid to garment workers. A 50% increase to BDT4500 (US$57.88) per month offered by factory owners was rejected as "unacceptable".
The latest update from The World Bank sees Bangladesh's apparel industry at a critical crossroads, describing the industry's image as "severely tarnished" following a series of deadly industrial incidents.
Meanwhile, environmental pressure group Greenpeace International is stepping up efforts to assess companies' progress at eliminating toxic chemical discharges from their supply chains. Its new Detox Catwalk describes Nike, Adidas and Li Ning as "greenwashers" who have failed to follow through on commitments - although both Adidas and Nike say they have made "meaningful progress" towards their goals.
And apparel group Hanesbrands has posted a double-digit third quarter profit increase, boosted by fatter margins and improved market share. The US company said all four of its business segments had recorded double-digit operating margins, while the group's overall gross margin rose 240 basis points to 35.2%.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
- "Power of the many" drives change at Otto Group
- Hard hit Turkish industry is not knocked out
- China leads US apparel sources with falling prices
- Wage abuses can’t be eliminated by software and PR
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- JC Penney to close 140 stores amid lower sales
- Inditex and H&M boycott Dhaka Apparel Summit
- Bangladesh government steps in on labour crackdown
- Bangladesh calls for duty-free access to US
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022