Rising consumer prices, lower supplier payouts in global denim market

A glaring disconnect has emerged between purchasing practices and the pursuit of fair wages. Suppliers find themselves unable to raise wages or ensure equitable compensation when brands cancel orders and delay payments, according to the EDC 2023 State of the Denim Supply Chain report.

Overwhelmingly, suppliers expressed a pressing need for compliance clauses within their contracts, offering them a vital safeguard against unethical behaviour.

“The EDC 2023 State of the Denim Supply Chain report clearly demonstrates that brand pricing and other purchasing practices often undermine our sustainability and worker well-being goals. The inclusion of a compliance rider to protect suppliers and their workers is a crucial step toward addressing this concerning trend,” emphasised report advisor Mark Anner, PhD.

The buzzword ‘sustainability’ echoes throughout corporate corridors, as companies pledge to protect the environment and advocate for workers’ rights. However, the EDC’s report underscores the undeniable reality that despite this rhetoric, little progress has been made.

Born from the Transformers Foundation’s 2020 report exposing unethical practices within the industry, the EDC emerged as a platform pushing for a fair and equitable denim industry. It aims to bridge the gap between purchasing practices and workers’ compensation while dismantling existing power structures that favour brands and retailers.

“It’s disheartening to observe that suppliers within the denim industry are not treated with the same commitment to compliance that is readily embraced when it comes to social compliance. Neglecting commercial compliance equally impacts the rights and security of workers. One would expect that brands, valuing their reputation, would seek to avoid the issues our poll has unfortunately uncovered,” stated EDC founder Andrew Olah.

The EDC’s report serves as a call to action, spotlighting the urgent need for reform within the denim industry. It reverberates with a resounding message—the time has come to transform the industry’s practices, ensuring a more sustainable, ethical, and fair future for all stakeholders.

This comprehensive report delves into the industry's current purchasing practices and their impact on the workforce, shedding light on crucial issues that demand immediate attention.

Fibre2Fashion News Desk (NB)