How COVID-19 is Exposing Darkness in the Fashion Industry
In the era of fast fashion, COVID-19 is forcing the industry to slow down. Despite loungewear advertising and last-ditch attempts at steep discounts, brands are struggling to maintain consumer demand. While stores close and brands are forced to move online, the profitability of the fashion industry is declining at extreme rates.
The average market capitalization of apparel, fashion, and luxury players dropped almost 40% this year through March 24th, according to a report by McKinsey & Company. Additionally, 30% to 40% of online sales have declined. The report estimated that revenues for the global industry will contract this year by 27% to 30%.
The loss of income affects more than just western brands and their employees. Garment workers around the world, who are usually unfairly paid and treated, are being laid off and sent home without pay or any alternative option for income. The pandemic is showing consumers which brands care more about keeping their company alive than the workers in their supply chain--more precisely, which brands value money over people.
This disregard for the well-being of garment workers is not new. Fast fashion has been a consistent contributor to the unfair treatment of these employees and revolves around the rapid production of cheap, trendy, low-quality clothes to keep up with the ever-changing demand for new products.
The International Labour Organization defines forced labor as “work that is performed involuntarily and under the menace of any penalty.” Oftentimes employees in garment factories work long hours, lack resources, experience exposure to harmful chemicals, and receive physical or sexual abuse. Fast fashion contributes to global labor trafficking, and companies that participate should be held accountable.
Know the numbers:
The average market capitalization of apparel, fashion, and luxury players dropped almost 40% this year through March 24th
30% to 40% of online sales have declined.
It’s estimated that revenues for the global industry will contract this year by 27% to 30%.
The garment sector provides 80% of Bangladesh’s export earnings.
Many brands continue to dismiss the needs of garment workers. Brands are canceling and refusing to pay over $2.8 billion (and counting) in work orders made to 1,020+ factories. Because of this, millions of factory workers—mostly women—are being sent home without compensation.
While brands are struggling, they need to ensure that the financial burden is not falling completely on the supply chain. If they don’t, they are neglecting to care for the most vulnerable populations within the fashion process.
People are standing up against this injustice. Because of the pressure, some brands have agreed to pay, including H&M, Target, adidas, and Nike.
Even so, as more women are cut off and left with no income, they enter into vulnerable situations where many will go hungry and lack basic necessities. While global brands will suffer because of COVID-19, it is likely they will bounce back after circumstances begin to pick back up. However, many of these women (and their families) may be unable to do the same.
Additionally, the garment sector provides 80% of Bangladesh’s export earnings. So, when brands eventually have a need for clothes again, the factories will probably be quick to comply. People will be desperate for any kind of work and will run back to the factories, where they will likely be paid less than they already were paid, which is well under minimum wage.
So what can we do?
Shop conscientiously.
Keep up the demand for ethical and small businesses since these are likely the brands that will suffer the most and the ones we know will continue to provide fair wages to garment workers. Check out our Ethical Fashion Directory for ethical brands we love.
Make note of how brands are handling the pandemic.
This time reveals which brands care about garment workers and vulnerable populations and which dismiss them. When you shop, select brands that are taking measures to ensure their supply chain employees are cared for.
Sign the #PayUp petition.
Call on major brands to pay for in-production and canceled orders so those in the supply chain are not left to suffer.
Failing to hold brands accountable now means many will continue in unjust practices when the fashion industry picks back up. Let’s call on the fashion industry to utilize this time to rethink fast fashion and move toward a more ethical and sustainable future.
About the Author
Abby Hopkins is a follower of Jesus and a fan of fresh cups of coffee paired with intriguing reads or thought-provoking conversations with friends. She often shares about her passions with excitement, which range from coding to sports to her favorite TV shows. She is studying Journalism with a certificate in Social Entrepreneurship & Nonprofits at the University of Texas at Austin. (She loves saying "Hook 'em" whenever she gets the chance.) After graduating in May, her dream is to impact the world through storytelling, mostly by written word, and continue to advocate for the voiceless.