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    How Can China Avoid Recurrence Of Bangladesh'S Clothing Industry Tragedies?

    2016/12/6 14:16:00 50

    BangladeshGarment IndustryChina Market

    In a recent survey by Nelson, 66% of global investigators expressed willingness to pay a premium for certain products, provided that they were committed to having a positive impact on the social environment.

    This ratio is 55% in 2014 and 50% in 2013.

    At the same time, Nelson's survey data clearly draw several conclusions: 1, compared with those with no commitment, those brands showing more commitment to sustainability have more advantages; 2, if these brands fail to consider responsibility in the future, they may fall behind; 3, very important, more and more.

    Consumer

    There is a willingness to buy brand products, but there is still a gap between willingness and actual behavior, which is also considered a challenge.

    A few years ago, Bangladesh's clothing industry tragedies continued to remain in the world.

    Sweatshops and labor squeezing led to a discussion on the "conscience consumption" of a garment supply chain.

    Today, however, the violation of public morality such as labor force, factory farming, cruelty to animals, destruction of the original ecology and illegal sewage discharge still exist on this supply chain or deep or shallow.

    If you are a consumer, are you willing to spend a little more money on fairness and justice, concern for the weak, environmental protection and multicultural inheritance? Maybe you will say yes.

    But when these are reflected in the clothes produced by a sustainable supply chain, are you willing to pay for the premium?

    This is what journalists feel most about the future of the apparel supply chain after listening to the high level Forum on sustainable supply chain in Central Europe.

    This point is also highlighted by all parties in China and Europe, and it is worth the vigilance of all participants in the apparel supply chain to advance the future layout.

    "Now we all have a feeling that the situation of our textile and clothing is not very good. Some people say that the market demand is weak, and the supply and demand are not right."

    Jiang Hui, President of the China Textiles Import and Export Chamber of Commerce, said.

    Indeed, in 2016, the global economic downturn, affected by this and countries' self-protection, foreign trade generally reflected worse. Many people believe that there is a weak external demand growth.

    However, this is not the case.

    Jiang Hui released the foreign trade data of textile and clothing in 1-10 months in 2016, at the high-level forum of sustainable supply chain in Central Europe. It showed that the cumulative export volume was 1 trillion and 439 billion 590 million yuan, down 0.7%, of which the yarn export was 572 billion 360 million yuan, an increase of 1.8%, while the clothing export was 867 billion 230 million yuan, a decrease of 2.4%.

    In dollar terms, textile exports totaled $219 billion 540 million from 1 to October, down 6.5%.

    However, from the data of textile and clothing exports, from 1 to September, China's export yarn was 3 million 410 thousand tons, an increase of 14% over the same period last year, and the export of chemical fiber yarns was 2 million 520 thousand tons, an increase of 20%.

    Exit

    The number of garments is 24 billion 800 million sets, a decrease of 0.3%.

    "The volume of trade has declined greatly, but the volume of trade is increasing. That is to say, our market is not without, there is a market, but the volume has declined.

    That is to say, foreign friends buy us more with less money.

    Jiang Hui said.

    The gap between the growth of trade volume and the decline of trade volume is a warning: the sustainability of China's apparel supply chain is in urgent need of pformation and upgrading and the upgrading of supply chain value.

    As an organization jointly established by the United Nations Conference on Trade and development (UNCTAD) and WTO (WTO): the international trade center, ITC, has made some investigations and obtained some substantive conclusions.

    JosephWOZNIAK, director of sustainable development and trade at the international trade centre, shared sustainable practices that could be adopted by all stakeholders in the entire value chain when they were engaged in trade and production.

    Among them, he focused on four major trends.

    The whole sustainable situation has become confusing, with many standards, codes of conduct and other sustainable projects.

    The frequent changes and variety of these standards and standards bring additional challenges to enterprises, governments and consumers, especially in terms of technical and financial barriers to SMEs.

    When implementing these complicated standards or codes of conduct, there is a need for huge compatibility or investment in technical resources.

    In other words, we need a lot of cost and resources support, but for China's developing countries, the shortage of resources has always existed.

    It is increasingly found that supply chain needs to improve traceability. Consumers need to know where their products come from, and what kind of labor conditions they produce.

    The market needs robust and convincing data on sustainable production and influence, which will convince the ability and financial side to improve the sustainability of the entire supply chain.

    And in the drive

    clothing

    ITC believes that government departments, businesses and consumers play a role in the value chain and sustainability of the supply chain.

    1, the public sector can play an important role in this process, that is, through the implementation of sustainable public procurement policies and guidelines to play a role.

    JosephWOZNIAK pointed out that in the current OECD countries, the announcement expenditure has accounted for 12% of the average level of GDP, accounting for 30% of the developing countries. Therefore, he believes that there is much to do in this area.

    "If the government can point out sustainable Commodity services, it can promote market innovation and ensure a more green economy."

    2, enterprises have the same driving factors, through this implementation can better prove that their products are sustainable, and the company is responsible for social responsibility.

    It plays a significant role in building enterprise image and brand value.

    3, consumers: JosephWOZNIAK points out the new characteristics of consumers: when purchasing products, consumers want to reduce environmental impact, and consider some practices of work and labor, hoping to ensure that the products they buy are sustainable.

    Therefore, ITC concluded that conscious consumers have now become a very powerful force to promote sustainable development.

    And reporters at the scene also felt this unusual bright spot, and had different understanding.

    However, it has not been widely recognized or valued by the apparel supply chain participants in the domestic market.

    HelgaVANTHOURNOUT, a senior expert at the center for business and environment of McKinsey Co, said at the meeting that a point of view is that capital must be acquired in order to solve the problem of clothing supply chain in the future.

    This coincides with two of the trend of supply chain value improvement.

    But at the same time, she also said that the acquisition of funds and the change of thinking and behavior are challenges for the future apparel supply chain pformation.

    And the solution to this challenge depends on consumers.

    "If the response of consumers can not have a great impact on the supply chain and can not supervise the development of the supply chain, it is difficult to promote change from the perspective of production.

    If consumers really respond to the problem of supply chain, we can better solve the problem of capital acquisition and better solve the supply side problem.

    HelgaVANTHOURNOUT mentioned a paper from a student of his German management school, studying what motivates consumers to participate in the shared economy.

    The conclusion is that publicity is a long-term publicity and ensures that information is better shared.

    Nelson's survey shows that consumers are increasingly concerned about enterprises rather than simple single products.

    Under such a premise, she believes that all parties in the apparel supply chain should seize the opportunity to tell consumers what your products are, otherwise consumers will have difficulty finding relevant information.

    Under such a realistic situation and logic, what is very prominent is the role of consumers in the favor of acquiring capital. Furthermore, the consumer side will be the breakthrough and driving force for the future garment supply chain reform.

    But under the situation that the situation is not fully clear at present, the early layout of the enterprises, such as the efforts to increase the publicity of the products, is necessary.

    Therefore, McKinsey expert HelgaVANTHOURNOUT reminds us that although consumers want brands to be sustainable, they are unwilling to pay premium at present, that is, price will be a challenge.

    So what companies need to do now is to make consumers more concerned about sustainability, and at the same time, to make prices more attractive, and to balance prices and sustainability.

    Maybe we can start from the aspects of mode innovation, product formulation, logistics model and so on.

    For more information, please pay attention to the world clothing shoes and hats net report.


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