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The Fashion Industry – Tips For Outsourcing Manufacturing And Paying Affiliates
Many of us as consumers are aware that most of our wardrobe, although purchased in the UK, is not manufactured in the UK. Fashion lines could not make it more obvious to us. Just look at the beautiful white labels sewn into our clothes or bags with “Made In China” or “India”. printed on them. The thing is, with the current economy and the love for fast fashion, we as buyers have helped push the trend of outsourcing to eastern countries because of our desire, our need, the our desire to buy at lower prices. We all feel that we need to justify the money we spend now; Do I really need those shoes? Yes, my jeans are ripped, but isn’t that fashion? Okay, I’ll lose weight and squeeze into my old clothes. UK buyers (among other countries) are guilty of needing a deal.
We are a nation of discount shoppers. The likes of Primark, TK Maxx and Sports Direct were not always seen as acceptable or ‘cool’ places to shop because of what was associated with the brand eg: Cheap, poor. It said a lot about your status if you were the child in hi-tech trainers or the family that buys in £1 shops, especially in a country that is very keen to establish and differentiate the status. But, because of climate change, how quickly trends on the high street change, and because consumers are challenging the demands of fast and low-cost fashion, UK fashion houses have turned to (mainly) Bangladesh for manufacturing. of our clothes.
However, just because we are not running the factories in Bangladesh that have recently resulted in deaths, does not mean that we are not somewhat responsible for them. We all know that factory conditions outside the UK are very different and most of our population would not last a day in the same environment. So really, the time to take a look at these intensive working conditions should end.
There are a few different tactics that fashion brands can take on board to help maintain good ethical manufacturing, as well as save themselves from getting hit with bad press or even being exploited by some of these eastern factories.
Factory audits – If you are a wholesaler in the fashion industry then you know that dealing with the big players on the high street such as Next, JD Williams (Simple Be), John Lewis or M&S to name a few, will require you . to dig into that margin of yours (before even doing anything with them), to pay for factory audits. This is when high street suppliers use a reputable auditing company that they are familiar with that are up to date on the legal requirements and conditions for the countries where your factories are located. by staff members on the workshop floor to verify that all legal requirements are met and there is no child labor or exploitation.
As a fashion brand, instead of waiting for the retailer to require you to do this as part of your contract with them, you should start doing this from the beginning before you even get any samples from the factories that you are trying to deal with. Sooner or later, any shop you want to supply will ask for the last audit of your factory supplier.
Take responsibility when mistakes happen and communicate with your suppliers –
Although you can invest in factory audit, this will only be a week that the factory is under surveillance. Building a strong relationship with the factories you work with and, where possible, flying out to visit them, is another way to try to prevent the factory from possibly outsourcing your manufacturing to another third party without your knowledge. This is something that was covered by Channel 4’s “Dispatches” about two years ago.
Many eastern factories were outsourcing fashion houses such as the order of “New Look” to third-party manufacturers to produce the volume of orders, but also manufactured at the quoted cost price so that the factory itself was not in loss The third ones weren’t necessarily factories either, but more like sweatshops. If a supplier knows that you can make regular visits, or have an employee based near their factory for a long period of time, they are less likely to jeopardize the outsourcing of your goods.
Or, as the last high street retailers have done recently, you can contribute to their supply factories when disaster strikes, such as building collapse or factory fires that occurred during last month in Bangladesh. A small contribution can go a long way.
If you are unable to visit the factory; protect your money-If your brand is not yet in a position to afford the cost of flying to China, India or Bangladesh, then you know that the only communication you are likely to have with your chosen factory is via e-mail and possibly phone calls. You also know that your research process has actually been done on the Internet. This means that you do not really know for sure, who will provide you.
It is very easy to create a website with the variety of free platforms that are available now. So, be careful not to be fooled by fake or simply fraudulent phishing sites. The thing you learn in the manufacturing industry when it comes to these eastern countries, is that you don’t ship without payment. If you don’t pay them, they will keep your goods (and most likely they will call you throughout the day, because the factory manager’s staff will do the same to them asking when they will be paid). Protect your finances and create a separate online bank account or eWallet to pay affiliates so they are not transferred directly from your business bank account.
In this way, you prevent your business account from being hacked, but it also helps you manage your cash flow, since you only transfer to your eWallet what you need to pay for example: the balance of your invoice from your supplier. eWallets always have the ability to transfer money in a variety of currencies so you don’t have to convert the money you want to transfer.
If it is too good to be true; It probably is – If the cost price seems incredible, for example: A PU bag covered in metal skull hardware that can sell for £12 giving you a margin of 2.5 (giving a cost price of £4.80 ) then you know that it is unlikely that the metal on the bag will have been tested for its nickel content, or it could end up smelling rather fishy! (Common pungent smell with formaldehyde which is often used as a finishing product on leather bags). If the entire front panel of a bag is covered in hardware with chains or other hardware features, it should really be sold at £65 minimum.
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