Using figures supplied by textile workers' unions in Bangladesh, the Trades Union Congress (TUC) calculated that doubling wages from the minimum wage of $41.50 per month would only add 4 cents to the cost of an average t-shirt. The figure is based on the idea that workers are expected to make six t-shirts an hour, for which they are paid 24 cents. The Trade Unions Congress is a federation of … [Read more...]
UK’s Marks and Spencer Reports Worst Performance in 4 Years
May 22, 2013 by
After two consecutive years of falling profits, the UK’s Marks & Spencer is under increased pressure to defend its strategy. Clothing and homeware sales have dropped for seven consecutive quarters, and the company posted a 6% drop in profits during the fiscal year ending March 2013—its worst performance in four years. Marks & Spencer’s food business, however, has not only … [Read more...]
Target Profits Plummet, Stocks Follow Suit
May 22, 2013 by
Target disappointed investors this morning with first-quarter earnings significantly below expectations: year-on-year, the quarter’s net earnings fell from $697 million to $498 million, a drop of 28.5%. As recently as April, Target had predicted that earnings would fall from $1.04 last year to 87 cents per share. The retailer failed to meet even its own benchmarks, falling 5% to 77 cents per … [Read more...]
Old Faithful: Even With Change, Denim Remains A Constant
May 22, 2013 by
Back in 1873, the airplane had yet to be invented, horses were the most popular mode of transportation, indoor plumbing was a luxury -- and denim jeans were born. While so many other forms of modern living have changed, denim endures -- and remains as popular as ever. The world can thank Levi Strauss and Jacob David for using copper rivets to strengthen the pockets of denim work pants, … [Read more...]
Guest Editorial: Beanie Baby or Barbie? How to Spot the Difference between Fads and Trends
May 22, 2013 by
How can potential investors tell if a product is more Vera Bradley bag or mismatched socks, Atkins or organic? The investment can be profitable either way, but knowing the difference upfront will help determine the correct multiple and drive favorable post-deal economics. In general, there are three key differentiating factors between a fad and a trend. Fad vs. Trend Framework Reason for … [Read more...]
Indian Reverse-Sourcing to Create U.S. Factory Jobs
May 22, 2013 by
We’re used to outsourced labor from the U.S. to India, but later this year, Indian textilers Alok Industries will reverse the course. The Mumbai-based textile manufacturer, which counts Wal-Mart and Macy’s among its clients, has announced plans to open a mill in the U.S., citing energy savings. Arun Agarwaal, Alok’s CEO, told the press that the U.S.’s high cotton production was part of … [Read more...]
Cambodia Factory Collapse Wounds 23
May 21, 2013 by
Another factory has collapsed in Cambodia wounding 23, in the latest episode in a recent string of garment industry disasters. This factory was producing goods for Swedish retailer H&M. The structure that collapsed was a concrete and metal shelter where workers were resting during a break. Local police chief Hy Narin told reporters, "The shelter is old and it collapsed into the lake while … [Read more...]
Chinese Yuan Goes Up; Exporter Profits Go Down
May 21, 2013 by
Chinese exporters in the country's Pearl River Delta are trying to squeeze profits from their exports now that the Yuan has risen against the U.S. dollar. Although orders for April have spiked in the delta region, margins are now thinner because of the rising yuan. Data collected from some 2,000 companies in the delta area show April exports have increased a substantial 47.3 percent … [Read more...]
Cotton Production Will Drop, But Still Exceed Consumption
May 21, 2013 by
The U.S. Department of Agriculture (USDA) has made its first cotton forecast for 2013-2014: Global cotton production will continue to exceed consumption, but production will decrease and consumption will rise. For the fourth season in a row, the world will produce more cotton than it uses, but production will drop 3% to 117.8 million bales, its lowest in three seasons. 70% of the world's … [Read more...]
Retailers Come Clean as Info Released On How and Where Products Are Made
May 21, 2013 by
In response to growing consumer demand to know how and where clothing is made, some retailers and brands are now providing that information. Prompted perhaps by the recent collapse of a garment factory in Bangladesh which killed more than 1000 people, a new transparency is developing in many aspects of the manufacturing of apparel where once those details were hush-hush. Nordstrom may add … [Read more...]
NEW Report From Sourcing Journal and TradeCard Helps Brands and Retailers Implement Sourcing Strategies in the Americas.
