The 3 Compliance Challenges Fashion Brands Face - And How To Overcome Them
The fashion industry has been under fire for a few years now. Sustainability- and eco-conscious consumers are demanding more transparency when it comes to the role textile production plays not only in environmental pollution but also in regard to the often unethical labor conditions for workers, as well as to the industry’s promotion of fast-fashion throwaway culture. Fashion brands will have to embrace compliance in order to meet those rising demands and achieve effective and sustainable change.
That’s easier said than done, though. In this article, we’ll have a look at the challenges textile and fashion brands face in adhering to compliance regulations in their industry and what you can do to overcome them.
Existing Compliance Regulations in Textile Production
Compliance is the adherence to legal or social obligations or requirements; in fashion, that equates to conforming to recognized standards across the industry, including
work conditions,
garment quality,
environmental impacts, and
human rights.
Failure to be compliant can have disastrous consequences across the entire chain. Most brands are aware of this and want to stick to the regulations.
But, it’s a jungle out there. A set of all-encompassing compliance regulations coordinated and enforced on a global scale simply doesn’t exist. Compliance regulations are set by the country your business is registered in and by the country in which your suppliers are producing their wares - but, in most cases, that involves at least two different countries, meaning you have to adhere to two or more different sets of rules.
There are standards and certifications on both a global and local scale that fashion brands can follow, like the GOTS, ISO 9000, or very specific accreditation like natific’s mill and supplier certifications. Many of these standards, certifications, and accreditation are listed here by the Textile Standards & Legislation.
Let’s have a closer look at this and other predicaments sustainable and ethical fashion brands face in trying to stick to compliance regulations.
Challenge 1: Price is King
“As much as brands talk about compliance and concern for workers' rights and safety, the unfortunate reality is that price is still king.” ~ Edward Hertzman
In 2013, the Rana Plaza factory in Bangladesh collapsed, killing 1,100 people. This tragedy awakened the world to the reality of garment manufacturing conditions in Asia.
The issue lies within our western consumerist society and in our demand and expectation for basic necessities, like clothing, to be affordable, i.e. super cheap. This leads to the so-called “fast-fashion” concept, by which the entire industry has been designing, producing and selling clothing for decades. Consumers reward retailers for bringing new styles to market in the blink of an eye at bargain-basement prices and shrinking margins. In such a system, things like human rights, sustainability and compliance are left by the wayside.
But, the industry is undergoing a change in mindset. More and more consumers are willing and even happy to pay more for clothing produced according to compliance regulations. Slowly but surely, the entire industry is stepping away from the fast-fashion concept. Smart companies are already cashing in on this new trend by making their ethical fashion efforts part of their branding.
Challenge 2: Supply Chain Complexity
As we’ve previously discussed, supply chains in their entirety are a complex aggregation of data - including compliance regulations and how suppliers, logistics providers and brands themselves are complying with them. Transparency, therefore, is key. And consumers are demanding it.
Specifically, in fashion, 67% of consumers state that transparency plays an important role in their purchasing decisions. And while consumers’ thirst for transparency is driving retailers to step up in how they source products and communicate about their practices, it also opens the door for smart brands to get ahead and use transparency as a competitive advantage.
One way is to work with outside certification organizations, as sceptical consumers are turning to third parties to affirm brands’ claims and do their homework for them. Independent third-party certification is the best way to verify a product’s social or environmental claims believe 76% of consumers. Different organizations set various standards to verify all manner of product claims, using badges and so-called “trust seals” to help consumers determine if products meet given sets of standards, for example:
Another type of third party that fashion brands can collaborate with to ensure consumers of their supply chain’s transparency, including transparency for compliance regulations, are platforms and software that offer an overview of a brand’s entire supply chain. In fact, our platform links all parties involved - suppliers, brands, vendors, providers, and consumers - and gives them all insight into any clothing item’s journey down the supply chain.
Challenge 3: Differing “Codes of Conduct”
To clear themselves of any liability, retailers often implement a “code of conduct”, which states that overseas suppliers must comply with their local country’s health, safety, environmental and labour laws. But especially in developing countries, these are often hardly more than a set of poorly developed and easily bypassed guidelines.
Despite being aware of this inconsistency, brands continue to swear by the strength of their codes and follow this practice. But increasingly, consumers are catching on to this hypocrisy and brands would be well advised to correct this “oversight”.
Of course, the complexity of supply chains and worldwide compliance regulations makes this extremely difficult, even for brands whose inherent goal is to ensure the fulfilment of compliance regulations by their suppliers. But, it’s not impossible. Bomler’s nSITE software also provides a solution here with the compliance portal. It allows compliance officers an easy look at suppliers’ compliance regulations and how they’re being followed.
Compliance officers will love this tool for its time-saving capabilities. For example, any changes you make to your worker information, audits, certifications, Q&A will show up for your entire network of customers and suppliers using the Bomler software. Your days of researching and updating every scrap of information for every step of your supply chain are over.
Sign up here for free and check out our compliance portal for yourself.