B.A.F.F.L.E.D. Fashion Law
Will Chinese Tariffs Further Fuel Fakes?
If you've been watching national news lately, you know the president is pushing for tariffs on items imported from China. This has a major impact on local and state governments in America, who rely on Chinese companies for some of their infrastructure items like railcars, for example. Certainly we support domestic jobs and manufacturing, but the reality is, much has moved overseas. These are the cards dealt.
Imposing these tariffs could really hit closer to home--literally, if clothing and beauty items are swept into the list. The likelihood is there. Not only would items like synthetic and human hair be included, but lipstick, shampoos, and other essentials. Consumers will really flock to small business if that becomes the case (which we support!). The tariffs could also have an impact on the creative industry, in further flourishing the counterfeit market. Like the now-shifting market in Iran, the love for high fashion, but barriers to enter the market can call for desperate measures.
Counterfeit luxury items are sold openly in Iran. It's almost a market necessity, as the global economy was long cut off because of international sanctions. Importers have struggled to bring good into the country. Consumers haven't let their wants struggle. Neither have knockoff merchants. As many sanctions have been relaxed over the last couple years, the market is sliding toward change, but not easily. Despite super conservative leadership in Iran, counterfeiters found ways to get consumers what they wanted--even if it meant taking on detested Western ways of loving luxury.
The proposed Chinese tariffs in America could make for a similar situation. Sure, there's already a counterfeit market here, and it's unlikely there won't always be one. But, if brands are cut off in such a way to create burdens consumers aren't used to, counterfeiters will definitely find a way to meet demand--whatever it takes. When it comes to counterfeits in the health and beauty industry, it's more than just bags with questionable logos. Formulas and chemical compounds are at stake. Health is a whole different ballgame.
As hearings continue on this issue in D.C., it is worth keeping an eye on. Will counterfeits be king?
If you've been watching national news lately, you know the president is pushing for tariffs on items imported from China. This has a major impact on local and state governments in America, who rely on Chinese companies for some of their infrastructure items like railcars, for example. Certainly we support domestic jobs and manufacturing, but the reality is, much has moved overseas. These are the cards dealt.
Imposing these tariffs could really hit closer to home--literally, if clothing and beauty items are swept into the list. The likelihood is there. Not only would items like synthetic and human hair be included, but lipstick, shampoos, and other essentials. Consumers will really flock to small business if that becomes the case (which we support!). The tariffs could also have an impact on the creative industry, in further flourishing the counterfeit market. Like the now-shifting market in Iran, the love for high fashion, but barriers to enter the market can call for desperate measures.
Counterfeit luxury items are sold openly in Iran. It's almost a market necessity, as the global economy was long cut off because of international sanctions. Importers have struggled to bring good into the country. Consumers haven't let their wants struggle. Neither have knockoff merchants. As many sanctions have been relaxed over the last couple years, the market is sliding toward change, but not easily. Despite super conservative leadership in Iran, counterfeiters found ways to get consumers what they wanted--even if it meant taking on detested Western ways of loving luxury.
The proposed Chinese tariffs in America could make for a similar situation. Sure, there's already a counterfeit market here, and it's unlikely there won't always be one. But, if brands are cut off in such a way to create burdens consumers aren't used to, counterfeiters will definitely find a way to meet demand--whatever it takes. When it comes to counterfeits in the health and beauty industry, it's more than just bags with questionable logos. Formulas and chemical compounds are at stake. Health is a whole different ballgame.
As hearings continue on this issue in D.C., it is worth keeping an eye on. Will counterfeits be king?
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?