B.A.F.F.L.E.D. Fashion Law
The Battle of Counterfeits in Big Cities, Part 3--
Not too long ago, we started talking about the fight large American cities have against counterfeits in their markets. We discussed how they get to the market, and what legislatures and law enforcement are doing to counter the problem. Today, we're taking things a little bit further. Here are 3 additional points about the counterfeit market.
Counterfeits v. Employment
The Cost Hits Local Governments, Too
It doesn't get the news coverage it may deserve to help alleviate it, but the fake trade has been linked to drug trafficking, child labor, and even terrorism. Counterfeiting often feeds drug rings and are literally accessories in human trafficking. Further, children are frequently used to produce illegal items. The Zara factory in Argentina was investigated and shut down earlier this year because of poor working conditions, no breaks for adult workers, and consistent use of children in their labor force. The investigation also included a search into whether or not unauthorized products were made. The gray market is heavily sustained by child labor.
Not too long ago, we started talking about the fight large American cities have against counterfeits in their markets. We discussed how they get to the market, and what legislatures and law enforcement are doing to counter the problem. Today, we're taking things a little bit further. Here are 3 additional points about the counterfeit market.
Counterfeits v. Employment
Counterfeits are directly responsible for the loss of over 750,000 American jobs. As we mentioned before, having particular global locations be responsible for certain pieces in the economic cycle is not a bad idea. it works well in many ways. However, having local jobs is necessary in every nation. It may be more efficient for a nation or city to produce certain products because of their climate or other unique settings. But, moving jobs overseas to keep profits sky high is not helpful to the overall economy. It is also a detriment to the receiving nations, where they often work for wages and in conditions Americans would never accept. We also can't forget how much counterfeits cost the actual brands. This starts a chain reaction as well. International copyright piracy has cost U.S. companies $9billion in trade losses.
The Cost Hits Local Governments, Too
In NYC alone, counterfeit sales cost residents about $1billion in lost sales tax. This is doing the same in places like Chicago, Atlanta, LA and other areas with large fashion constituencies. Local governments are already struggling to keep services and necessities available. Missing additional tax revenue is not helpful. Sure, some tourists make it a point to visit the counterfeit markets when traveling, but this takes away from the money used for local infrastructure and contributes to the financial hardships in which many cities have found themselves.
There is a Social Cost
There is a Social Cost
It doesn't get the news coverage it may deserve to help alleviate it, but the fake trade has been linked to drug trafficking, child labor, and even terrorism. Counterfeiting often feeds drug rings and are literally accessories in human trafficking. Further, children are frequently used to produce illegal items. The Zara factory in Argentina was investigated and shut down earlier this year because of poor working conditions, no breaks for adult workers, and consistent use of children in their labor force. The investigation also included a search into whether or not unauthorized products were made. The gray market is heavily sustained by child labor.
Harper's Bazaar has been extremely active in the battle against counterfeits in their Fakes are Never in Fashion campaign. Check them out and see what you can do to help keep fakes out of the market.
B.A.F.F.L.E.D. Fashion Law
International Production: Fashion's Trip Around the World--
Over the last few weeks, there have been numerous reports about the conditions of textile factories. These establishments have had subpar working conditions and are havens for unruly demands upon the workforce. The impact on the labor force is major. Workers in Zara's Argentinean factory were working 16 hours with no break, in dimly lit spaces. Children worked there, too. Moving production is definitely now a consideration. A Bangladesh factory, riddled with code violations and poor working conditions collapsed in late April. A worker was found in the wreckage a few weeks later.
The impact on the fashion industry is major, too. Factories are shifting production to other countries because of rising wages and labor shortages in China. China has long been an international capital of clothing production, but a shift appears to be afoot. Lever Style, founded in Hong Kong, produces attire for a number of American apparel companies. Their employee count has dropped by 1/3 in the last 2 years. Like other garment manufacturers and designer brands, other locations for production are catching their eye.
Coach is shifting production to other countries, reducing reliance on China. Nordstrom is moving to India. They have 450 factories on 40 countries. China is the world's largest recipient of foreign direct investment, although growth is starting to decrease. U.S. retailers profit margins average 1-2% according to National Retail Federation.
Production location is less important to retailers, while quality is paramount. Uniqlo is the largest apparel chain in Asia. It makes 70% of its clothing in China.
So why not have more production here? American citizens simply live in a different world with different expectations. The conditions laborers accept overseas would hardly fly here. Many countries just don't have the employment law standards and practices so common here. Is this any reason to keep production out of the States? Is this system just part of the globalization scene, letting each nation do what they do best?
What do you think? Should we have more clothing production here, or keep things as they are?
Over the last few weeks, there have been numerous reports about the conditions of textile factories. These establishments have had subpar working conditions and are havens for unruly demands upon the workforce. The impact on the labor force is major. Workers in Zara's Argentinean factory were working 16 hours with no break, in dimly lit spaces. Children worked there, too. Moving production is definitely now a consideration. A Bangladesh factory, riddled with code violations and poor working conditions collapsed in late April. A worker was found in the wreckage a few weeks later.
The impact on the fashion industry is major, too. Factories are shifting production to other countries because of rising wages and labor shortages in China. China has long been an international capital of clothing production, but a shift appears to be afoot. Lever Style, founded in Hong Kong, produces attire for a number of American apparel companies. Their employee count has dropped by 1/3 in the last 2 years. Like other garment manufacturers and designer brands, other locations for production are catching their eye. Coach is shifting production to other countries, reducing reliance on China. Nordstrom is moving to India. They have 450 factories on 40 countries. China is the world's largest recipient of foreign direct investment, although growth is starting to decrease. U.S. retailers profit margins average 1-2% according to National Retail Federation.
Production location is less important to retailers, while quality is paramount. Uniqlo is the largest apparel chain in Asia. It makes 70% of its clothing in China.
So why not have more production here? American citizens simply live in a different world with different expectations. The conditions laborers accept overseas would hardly fly here. Many countries just don't have the employment law standards and practices so common here. Is this any reason to keep production out of the States? Is this system just part of the globalization scene, letting each nation do what they do best?
What do you think? Should we have more clothing production here, or keep things as they are?