globalisation
Global patterns of textile and clothing manufacture have fluctuated throughout history, with widespread production across Europe and Asia being replaced by dominance by the 'west' following the industrial revolution in the mid 18th century.
The speed with which garment production has relocated throughout the world in the second half of the 20th century, however, is unprecedented.
The main causes are:
- low labour costs and a flexible labour force
- the incentives provided by the governments of competing producer countries
- the speed and low cost of new communication technologies
- significantly cheaper transport costs.
As a result, garment retailers and brands have become 'global sourcing companies', outsourcing the low-profit stages of production (eg sourcing of raw materials, manufacture, packaging) to tiers of suppliers and manufacturers - through complex networks known as 'global supply chains'.
While at the top of the chain, market share has tended to concentrate in the hands of few leading retailers and brands, there has been a dramatic growth in the number of countries and manufacturers available to supply them. This imbalance has given retailers and brands significant power, who are demanding ever lower prices and ever faster delivery. The resulting price and time pressures on manufacturers are mostly passed on to workers, in the form of lower wages, longer hours and deteriorating working conditions.
So far, the prevailing globalisation model is failing to deliver significant benefits to workers.
Further information:
- For more detailed information about globalisation, see factsheets 2a and 3.
- Watch 'We Shop. Who Pays?' to learn more about working conditions and the environmental impact of the fashion, textile and leather industry.
- To learn more about the impact of brands and retailers on working conditions in developing countries read: Buying Matters: Sourcing fairly from developing countries.
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