One of the emerging trends in the apparel industry is the move toward more socially responsible products.
This can stem from pressures from consumers, but retailers and brands are also pushing themselves to be more socially responsible.
And there’s also a regulatory impetus: As a result of the California Transparency in Supply Chains Act, many apparel retailers are requiring wholesalers to sign codes of conduct regarding their labor practices.
As more retailers become compliant with the new California regulations, more suppliers and wholesalers will in turn be required to adhere to retailers’ code of conducts.
It doesn’t stop there. Companies are going above and beyond simple legal requirements or retailer code-of-conduct requirements. More apparel companies are joining socially responsible organizations such as the Fair Labor Association, whose members include adidas, American Eagle Outfitters, ASICS, Juicy Couture, Nike, Patagonia, and Puma.
We’ve also seen the rise of apparel-specific organizations such as the Sustainable Apparel Coalition, a group of apparel and footwear brands, retailers, and manufacturers whose goal is to reduce the environmental and social impacts of their products around the world.
Recently, Nike released the Nike Jordan XX3, whose “jigsaw puzzle” design reduced plastic waste by at least 17 percent. And eBay created WorldOfGood.com, a site devoted to the sale of socially responsible goods.
What these and other companies are coming to realize is that even if they’re not out to save the planet, an increasing percentage of their customers are. As consumers are becoming more educated on sustainable products and options, they expect companies to incorporate sustainability options within those products.
Whether it be products that use certified recycled materials or are produced with “ethical cotton” through the Better Cotton Initiative, consumers will expect more socially responsible products to wear. Few companies can afford to ignore this growing customer segment.
But the question remains: Are consumers willing to pay more to cover the extra costs associated with producing socially responsible products?
Here the answers are mixed. A 2011 survey conducted in Britain and reported in the Independent showed that 20 percent of respondents in the United Kingdom and the United States would spend more than 10 percent extra on green products.
However, according to a study by researchers at Villanova University and the University at Albany, while most consumers may not be willing to pay more for green products, they do expect companies to offer them—and may take their business elsewhere if they don’t.
So the holy grail appears to be the ability to produce sustainable products at the same price point as standard ones. Although the effect is greater for premium products selling through specialty stores, even brands selling through low-price retailers stand to gain customers if they can maintain their low price points while using socially responsible materials.
