From Local To Global: Offshoring In The Fashion Industry

Did you know that the clothes you are currently wearing have likely been produced thousands of kilometres away? It is now rare to look down at the content label and discover that your item was manufactured locally. Even to realize that your clothes have been produced in the same continent can be somewhat shocking, especially when considering that the majority of brands have moved their production facilities to countries such as China and Bangladesh. This shift of production overseas is known as ‘offshoring’. 

Offshoring began in the 1960s and 1970s as fashion brands searched for efficiencies in sourcing materials and production methods. It was a business opportunity for fashion brands to produce their apparel at lower costs while gaining larger profits. The rise of fast fashion further cemented offshoring practices. Companies learned to take advantage of countries with lax labour and environmental policies, allowing for the cheap mass production of clothing. Consequently, this growing trend led to severe human rights violations and ecological exploitation. 

Fast fashion relies on rapid production, numerous trend cycles, and low costs. Offshoring offered a shining opportunity by giving companies access to cheaper production locations. This model means brands can purchase cheap materials, pay workers next to nothing, neglect upkeep on factories, and disregard the environmental impact of their unsustainable operations. Offshoring allows for the continuous profitable growth of fast fashion companies. 

While offshoring has benefited the fast fashion takeover, the consequences for both people and the planet have been severe. Many countries where offshoring occurs have lax or non-existent environmental laws, facilitating a negative impact. These environmental problems include waste and pollution, resource depletion, energy use and emissions, water pollution, deforestation, and increased pressure on local ecosystems. 

Unethical labour practices are further issues associated with offshoring. Brands strategically choose countries that have insufficient labour rights. This decision is another way for companies to limit the cost of production. In these environments, workers are subject to poor working conditions, low wages, and long hours. Offshoring has led to the over-dependence of many communities on low-quality jobs provided by the fashion industry. This dependence places these local communities in a precarious position if global demand shifts, or if brands decide to relocate. Furthermore, supply chain transparency is limited with overseas manufacturing. Having production facilities far away from the final destination of an item makes it difficult to track where materials come from or how they are produced. This lack of transparency creates additional challenges when trying to ensure that sustainable practices are implemented throughout a product's lifecycle. 

This model of offshoring has not always been the norm, and production trends in the fashion industry are shifting yet again. In response to sustainability concerns, supply chain resilience and rising labour costs abroad, brands such as Patagonia, Zara, and New Balance have moved production closer to home. This move to nearby countries and regions has been termed “nearshoring”. 

Offshoring began as an opportunity for fashion brands to produce their apparel at lower costs while racking in a larger profit. This setup only worked by cutting corners regarding environmental and ethical labour standards. Today consumers are beginning to understand, and respond to the inequality and unjust practices ingrained in the fashion industry. Consumers realize that now more than ever the fashion industry needs to make adjustments to promote more sustainable practices. Brands can no longer be ignorant of the urgent need for change, their decisions are an integral part of the solution. However, it is ultimately up to the consumer to consider the impact of their fashion choices and demand that brands prioritize ethics and sustainability whenever possible!