Shorter Supply Chains & Small, Sustainable Local Firms … New Fashion Industry Trends to Survive Crisis?

In the coming months, 80% of companies in the European and U.S. fashion industry will face financial distress as a Corona crisis ‘aftermath’, according to a recent Mckinsey report.

Formerly, large retailers out-sourced the production of their textiles to far-away developing nations, where the textiles were made by often under-paid workers in old, energy-intensive machinery and treated with polluting chemicals. The European Union is still drafting its economic recovery plan, but policymakers in various countries are already calling for measures that involve shorter supply chains and the manufacturing of critical components in the region. It is stated that stimulus packages targeting local small and medium companies could disproportionately have a beneficial effect on the future economic recovery.

Such as French wool and textile manufacturer Chargeurs SA, who shifted from fabrics and garments to equipment for medical workers. The company is planning to shift production lines in its U.S., Asian, and South American factories too, instead of shipping masks from France. Angela Chan, the company’s global president and managing director for fashion technologies states: “This is a corrector for the industry that will push us to think differently. It will put sustainability on top of everyone’s minds.”