Ethical Fashion - Is it sustainable?

You see them endorsed by your favorite celebrity; they are the most talked about craze among “shop-a-holics”; they are the gifts you give your child, or loved one; they transcend geographies, age, and other barriers - they are one of the biggest proponents of the global village premise. The objects in question are what we wear – clothes. An industry with a market value of $319 Billion (and increasing), textiles often form a crux of major decisions taken by economies. In the form of fashion industry, textiles are one of the most glamorous, yet enigmatic industries in the world. There is, however the other side of the story as well. Reports allege that clothes that we wear may have been spun by children against their free will. There are also reports which suggest that the clothes require many chemicals and dyes, which thus cause water pollution. There are also issues regarding the material used in making these clothes.

The answer to this has been ethical fashion. Ethical fashion is defined as “an approach to the design, sourcing and manufacture of clothing which maximises benefits to people and communities while minimising impact on the environment.” Thus, there are two main issues – ensuring fair trade standards from workers, and maintaining organic standards – both in terms of raw materials and pollution control.

Does ethical fashion live up to its billing, and is it sustainable, especially in India where price is a major purchase decision? The question would be answered by analyzing the following– Analysis of some big players in the industry who are entering into ethical fashion, pioneers in establishing Fairtrade standards in India, and Indians working towards establishing ethical fashion in India.

It might seem futile at the first glance to analyze this further – why would a consumer decide to pay more for a product just because it is for the environment? However, as Louis Vuitton’s recent buying of a 49% minority stake into ethical fashion firm Edun suggests, there is more to it than meets the eye. Edun is a profit organization which produces in India and sub-Saharan Africa. The organization works on Fair trade stipulations. The belief at Edun is that their clothes carry the story of their makers. Says Bernard Arnault, Chairman and Chief Executive Officer of LVMH , “LVMH is committed to advancing both the social and environmental aspects of sustainable development, which plays an intrinsic role in the development of our brands".

This attitude is not restricted to just Louis Vuitton. Levis has come out with its organic jeans, which are bio-degradable. What this means is that clothes are made from bio-degradable materials, and a lot of dyes and artificial colors are saved in the process. Though it has been priced at a premium of $80, as opposed to the conventional jeans, priced between $20 and $40, they still attract a demand in their niche market.

One company which has faced the wrath due to unethical practices despite a good reputation was GAP. Allegations were leveled that they were using child labor. It subsequently got two new lines introduced in its stores, namely, Socially Responsible, and Made by Lil’ children to save face in the market.

The market pioneer, however, has been Marks and Spencers. In five years time, they plan to have all clothes coming from organic fibers. Marks and Spencers already have a policy of labeling some lines as meeting Fair trade norms. This policy of Marks and Spencers has three benefits – fair price to cotton farmers in India, eco-friendly apparel, and by not requiring heat for washing clothes, saving energy.

This trend is not restricted to just big brands. Ciel, Kuichi, and Under Skin are brands (to name a few) which have a niche presence, and they boast of a good collection in terms of the look. Thus small firms who are only into ethical fashion have sprouted in all six continents. They have managed to survive even through recession, and at higher price offerings.

Now, where does India come into the picture?

First of all, as India is a major textile producer, one of the major requisites for ethical fashion to flourish is that the Indian labor is fairly compensated as per Fairtrade norms. For example, the firm Mehera Shaw is based in the US, which designs feminine clothes. The clothes are made in villages near Jaipur, Rajasthan. The dyes used are all bio-degradable in nature, and the villagers are trained on how to use them. The workers are treated in accordance with fair trade standards, and supported in their traditional craftsmanship.

As far as sustainability is concerned, niche firms such as Mehera Shaw have carved out their market. This is because at a higher price there is a demand for ethical fashion, but the clientele is small. However, these customers are willing to pay that extra price so as to be doing something for the environment.

For larger firms, though the cost increases due to switching over to ethical fashion, Corporate Social Responsibility is a factor why most of the firms are taking an interest in this aspect. However, with mass production, price and cost levels should go down. Thus the law of demand suggests that the relatively minor increase in price is something that would not make a difference to the customer purchase decision, if mass production is sufficiently done.

There has also been a growing concern about ethical fashion in India. With an increase in awareness, more and more fashion designers are experimenting with this. For example, Anita Ahuja presented a collection in Paris by which she meant to express the relationship between ethical fashion and sustained development. By using dumped plastic to make high fashion accessories, Carbon Dioxide emission was reduced.

There is always a term known as opportunity cost that is taken into account while deciding on alternatives. The opportunity costs by not going for ethical fashion would be an increased dumping of clothes, greater pollution in water (and deaths due to the same), a disgruntled labor force with a low purchasing power to name a few. The other alternative to avoid the above opportunity costs is, of course, to produce fewer clothes.

If you are in vogue, wear them because even Natalie Portman did for the Oscars. If you are an entrepreneur-in-waiting, invest in them, because that is what all the top brands – from Nike to Marks and Spencers, from Levis to Louis Vuitton are doing. If you are a greenie, buy them because they champion your cause. From whichever perspective you want to look at this, one conclusion is certain. It remains to be seen whether ethical fashion can style haute couture or prêt-a-porter collections in a sustained manner, but if the above facts are anything to go by, an avant-garde green fashion line in the mainstream is not too hard to envisage in the near future.