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Beyond apparel Global Investor, 01/2016 Credit Suisse

Beyond apparel
Global Investor, 01/2016
Credit Suisse

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GLOBAL INVESTOR 1.16 — 39<br />

backdoor into Europe for chemicals that are<br />

actually prohibited in the EU by the REACH<br />

regulation but are not outlawed in the Asian<br />

producer countries.<br />

What about protection for workers?<br />

CLAUDIA BANZ The textile and<br />

clothing industries are mainstays of the<br />

economy in countries like Bangladesh,<br />

Vietnam and Indonesia. It isn’t in the interest<br />

of politics, and it’s even prohibited<br />

in some places, for workers to form labor<br />

unions or to demand a minimum wage,<br />

for example. The risk is just too great<br />

of the entire industry pulling up stakes and<br />

moving to a place where clothing can be<br />

manufactured even more cheaply, such as<br />

Myanmar or Ethiopia, or Africa in general.<br />

Most industries historically evolve<br />

from “dirty” production to more<br />

sophisticated, less-polluting manufacturing<br />

practices. How is the fashion industry<br />

any different?<br />

CLAUDIA BANZ One possible impediment<br />

is that the textile industry is a socalled<br />

pioneer industry, which means that a<br />

business can be set up with relatively little<br />

expense. A few sewing machines in a<br />

factory hall suffice. The positive flipside is<br />

that the textile industry gives many people,<br />

especially women, an opportunity to work<br />

and earn a little money. More safety standards<br />

are also being fought for, but as we<br />

all know, in the end it’s always about profit.<br />

Who is responsible for the excesses<br />

of the mass fashion industry?<br />

CLAUDIA BANZ That’s a very big<br />

question to which there is no easy answer.<br />

I see four relevant parties: producers and<br />

entrepreneurs, politicians, designers and, of<br />

course, consumers all bear a major respon ­<br />

sibility. Consumers should wield their power<br />

much more forcefully, for instance by voting<br />

with their feet and not shopping in stores<br />

that don’t carry any sustainable products.<br />

It is not only companies that have a duty;<br />

everyone bears some part of the blame.<br />

The responsibility associated with<br />

consumers mainly has to do with the price<br />

of clothing. Are the ideas of “cheap” and<br />

“sustainable” contradictory?<br />

CLAUDIA BANZ Our exhibition also<br />

explored precisely this question of how<br />

clothing can be so inexpensive. It is a fallacy<br />

that fashion apparel necessarily becomes<br />

more expensive when wages are raised.<br />

Wage, production and transportation costs<br />

make up only a very small part of the<br />

end price; marketing expenses and profits<br />

Dr. Claudia Banz<br />

The doctor of art history and author of<br />

numerous publications has headed the<br />

art and design collection at the Museum<br />

für Kunst und Gewerbe (Museum of<br />

Art and Crafts) in Hamburg since 2011.<br />

She previously worked as a curator at<br />

internationally renowned museums such<br />

as the National Museums in Berlin,<br />

the Dresden State Art Collections and<br />

the Kunstpalast museum in Düsseldorf.<br />

account for the lion’s share. So the main<br />

issue is the profit margin. Sustainability and<br />

cheap prices thus don’t negate each other.<br />

But a rethinking of economics has to take<br />

place, and that’s a real problem.<br />

Does that go for cheap mass merchandise<br />

as well as for luxury fashion apparel?<br />

CLAUDIA BANZ Our research revealed<br />

that in Bangladesh, for example, T-shirts<br />

produced for the cheap fast-fashion<br />

industry and for fashion labels in the upper<br />

price segment are manufactured in the<br />

same factory. That’s a bitter realization.<br />

“Companies are<br />

committed in principle<br />

… to sustainable<br />

production at all<br />

stages of the textile<br />

value chain.”<br />

The New York Times recently reported<br />

that the luxury goods industry has<br />

begun to place greater importance on<br />

sustainability. Do you agree?<br />

CLAUDIA BANZ Yes, in principle companies<br />

are increasingly espousing transparency<br />

and, in this context, are increasingly<br />

taking a stand for sustainable production at<br />

all stages of the textile value chain.<br />

“Directors for sustainability” are being<br />

hired to employ “cleaner” materials,<br />

make work environments safer and take<br />

climate change into account.<br />

CLAUDIA BANZ It’ll probably be around<br />

five years before we can judge the earnestness<br />

of these efforts. By then we’ll be<br />

able to make an interim appraisal. And<br />

let’s not forget that sustainability has since<br />

become a lifestyle issue.<br />

Meaning …?<br />

CLAUDIA BANZ Marketing departments<br />

have recognized that there’s a lot of money<br />

to be made by invoking sustainability or<br />

even purportedly sustainably manufactured<br />

products. It always sounds good when<br />

something is “sustainably manufactured,”<br />

but very few seals of approval really do<br />

any good. Still, if sustainability is a lifestyle<br />

choice today, then the fashion apparel<br />

business is perfectly positioned to develop<br />

genuinely sustainable production practices<br />

over the medium term. The knowledge<br />

and possibilities to do so already exist.

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