New report reveals dark truth behind popular fashion brands' profits: 'Let's not pretend they're not making money'

Yahoo

2 days ago

Fast fashion is known for being bad for the environment, generating a huge amount of textile waste. However, it's also bad for the workers creating the garments, who are underpaid laborers working long hours in factories overseas.
A prime example is Bangladesh, a country getting the short end of the stick in clothing manufacturing deals, the Asia News Network reported.
According to ANN, Bangladeshi companies receive much less than the global average for the garments their workers produce — often just a few dollars per item. Their Asian competitors may earn twice as much, and even the two types of items that net them the best results — women's cotton pants and men's cotton T-shirts — are only sold for about 23% above the international average, a quarter of what Turkey and Peru charge for the same items.
Companies then turn around and sell these items for a huge markup, listing them for $30 or $40, sometimes more. While costs like shipping and storage account for some of the difference, a large chunk of it is pure profit.
"There are overheads, of course, but let's not pretend they're not making money," said Fazle Shamim Ehsan, proprietor of Fatullah Apparels, per ANN. "Especially in the mid to high-end market, many brands earn huge profits from goods made in Bangladesh."
Not only are Bangladesh's products chronically undervalued, but the prices for some items have actually gone down in recent years, while they've gone up for other manufacturing countries. Not only that, but according to a 2020 study by the European non-profit Fair Wear Foundation, nearly 39% of Malaysian manufacturers have sold their clothing at a loss.
The amount of money Malaysian manufacturers receive for their products determines how much they can pay their workers. Given that these are the people actually making the clothes, it seems fair that some of the sky-high profits from those products should ensure these people receive decent wages.
However, too often, these workers are pushed to work harder and longer hours, just to be paid a wage too low to live on.
Khondaker Golam Moazzem, research director at CPD, suggested improving the materials and techniques being used by Bangladeshi factories to make them more competitive, ANN reported. "Bringing in more foreign investment could be a viable solution, as foreign investors usually have access to upmarket buyers and advanced technologies," he said.However, individuals can also help by doing their research and buying from brands that ensure fair pay for their workers. Alternatively, you can buy your clothing secondhand to save and avoid supporting fast fashion brands with your money.
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