(BRAND)
POLITICAL STABILITY
In 2018, the United States scored a 0.48 on the political stability index, which according to the World Bank, indicates the likelihood that a government will be overturned by institutional or revolutionary means. This score ranks above the global average of -0.05, however, well beneath strongest possible value of 2.5.
While the 2018 is the most recent figure, 2020 has brought a number of factors likely to have decreased political stability in the U.S., including the COVID-19 pandemic, the escalation of political, social and racial tensions, the widening gap in individual biases and basic agreement on facts.
(SOURCE)
TIKTOK LAWSUIT
The increasingly popular viral content app TikTok has become a central target for the Trump administration based on speculation that the app could be manipulated by the Chinese government. To prevent such manipulation, the administration has signed an executive order in attempt to ban the social media platform. TikTok has responded by counter suing the Trump administration on the basis that the administration would violate the rights of the community of users who rely on TikTok for “entertainment, inspiration, and connection.” TikTok continues to note that “countless creators rely on our platform to express their creativity, reach broad audiences, and generate income.”
(tac) will monitor the outcome of these lawsuits very closely as the platform is a key source of community organization and communication for (tac)’s primary target consumer.
(SOURCE)
S. 3744: UYGHUR HUMAN RIGHTS POLICY ACT of 2020
From 2017-19, the Chinese government transferred up to 1.8 million Uyghur Muslims from their homes to work in factories across China. It is estimated that 1 in 5 garments sold globally come from organizations that use forced labor in China. And 20 percent of the world’s cotton comes from Xinjiang.
In June 2020, the U.S. government signed into a law the Uyghur Human Rights Policy Act of 2020, condemning the Chinese government for its actions against the Uyghur population. This legislation elevated public awareness around this issue, leading to a massive call to end the use of forced labor in apparel production by a coalition of over 180 international organizations.
While this issue is far from being solved, (tac) will keep track of it as it develops and use it to drive awareness around its core value that apparel production should be 100% free of slave labor.
(SOURCE)
GARMENT WORKER PROTECTION ACT SB. 1399
Presented in July 2020, the Garment Worker Protection Act is legislation that would allow individual workers in the apparel industry to hold their employers accountable for wage theft and human rights violations. This proposal of this legislation is seen a step toward ending piece rate payment for employees and introduce a guaranteed minimum wage. Further, employers will take on additional liabilities to ensure legal accountability for worker’s wages. These include:
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“close the existing loophole and hold ‘contracting’ fashion brands and retailers directly accountable under the law for garment workers’ unpaid wages, including unpaid minimum wage and overtime pay, ‘regardless of how many layers of contracting that person may use.’”
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And the elimination of “piece-rate compensation, wherein garment workers are paid per piece sewn in a day rather than hours worked.”
This legislation did not pass, but revised legislation is expected for consideration next year. (tac) will consider this legislation as a basis for the minimum national standard for employment within the sector.
(SOURCES)
State of California Department of Industrial Relations
TRADE LEGISLATION
Since 2016, the current administration has engaged in trade negotiations with China, the global leader in textile and apparel production and sales. These trade negotiations, in conjunction with the current events of 2020, including COVID-19 and increased awareness around human rights violations within the Chinese supply chain, are predicted to contract the Chinese apparel market by 15%.
Additionally, as of July 2020, the United States successfully put into force the USMCA trade legislation, which will help to “sustain the $20 billion in apparel and textile trilateral trade between the U.S., Mexico and Canada.” Further, this legislation demonstrates certainty and confidence in the Western Hemisphere, which should spur investment into the development of regional and domestic supply chains.
(SOURCES)
COVID-19 AND ECONOMIC UNCERTAINTY
The COVID-19 pandemic has placed looming uncertainty over global economic stability. While consumption makes up 70 percent of America’s gross domestic product (GDP), the events of 2020 have caused this figure to slump as result of business closures, increased unemployment and generalized consumer uncertainty.
Investment accounts for 20 percent of the GDP, but this figure has stalled as well and will continue to be low until the economic impact of COVID-19 can be more fully assessed. Manufacturing will also be impacted as global supply chains have been disrupted as well.
(SOURCE)
Foreign Policy Research Institute
COVID-19 AND ECONOMIC UNCERTAINTY
Despite major changes in laws and norms surrounding the issue of same-sex marriage and the rights of LGBT people around the world, public opinion on the acceptance of homosexuality in society remains sharply divided by country, region and economic development.
But even with these sharp divides, views are changing in many of the countries that have been surveyed since 2002, when Pew Research Center first began asking this question. In many nations, there has been an increasing acceptance of homosexuality, including in the United States, where 72 percent say it should be accepted, compared with just 49 percent as recently as 2007.
According to a survey conducted by The Innovation Group, “38 percent of Gen Z-ers ‘strongly agreed’ that gender no longer defines a person as much as it used to, and 27 percent of millennials felt the same way.” In 2018, millennials and Gen-Zers accounted for an estimated $143 billion in retail spending through 2022.
(SOURCES)
SUSTAINABILITY
The fashion industry is one of the most egregious environmental offenders of industry. Much of these offenses are driven by the “fast fashion” model that prioritizes quick response to consumer demand over sustainable production and inventory management practices. “Fashion production makes up 10% of humanity's carbon emissions, dries up water sources, and pollutes rivers and streams…What's more, 85% of all textiles go to the dump each year. And washing some types of clothes sends thousands of bits of plastic into the ocean.”
Recent studies showed that “88% of consumers want brands they like to become more ethical and environmentally friendly.” But more importantly, “66%...are willing to pay more for environmentally-friendly offerings” because of the feelings of “empowerment” and responsibility for health and environment.
(SOURCES)
HUMAN RIGHTS AND TRANSPARENCY
Based on the various political and social developments outlined in this analysis, the current American public is more socially aware than ever. There is a growing demand for transparency in sources of raw materials, supply chains and production processes.
Fast fashion operates on quick and cheap labor models made possible by hidden supply chains rife with human rights violations. While these supply chains historically were thought to be exclusively in foreign countries, recent investigations have found increasingly widespread use in the United States as well. Following the COVID-19 pandemic, studies have stated that "virtually all" of apparel manufacturing is complicit in abuses of this type.
(tac)'s founders have numerous connections with the domestic textile industry that it will leverage to meticulously vet and control its supply chain sources and partners to ensure 100% slave-labor-free production.
(SOURCE)
AUTOMATION IN SEWING
North America boasts one of the largest apparel markets. As seen in the Canadian market, “firms have increasingly moved towards niche markets, designing and producing high-end clothing, as well as specialty and high R&D garments including performance apparel such as sportswear and protective clothing. Some large firms that have off-shored their apparel production to control costs are also operating short run and replenishment facilities in the region in order to respond to fast changing trends in the retail industry, and to produce high-end apparel. To remain competitive on the global market, leading apparel manufacturers are adopting new technologies and automation throughout the supply chain. Digital technology adoption is increasing in the sector, which includes the development of an omnichannel or multichannel approach to sales.”
(SOURCE)
ECOMMERCE, SOCIAL MEDIA AND APPS
Regardless of many of the negative macroeconomic factors outlined above, online apparel sales have increased in recent years as consumers and brands alike rely more heavily on personal and mobile devices to make apparel purchases. Additionally, this increase has been driven by the increase of web-only apparel startups.
The COVID-19 pandemic, which has forced closures of many brick-and-mortar retail stores, has increased this reliance further.
Social media, and specifically the use of social media influencers, has changed the way apparel marketing can be conducted and led to an increase in sales. “With 71% of social media marketers reporting they have an influencer marketing budget, it's clear to see that marketers are finding value in influencers.”
(SOURCE)