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Top Three Compliance Trends in the Apparel Industry

Top Three Compliance Trends in the Apparel Industry

February 6, 2018

This past year, we’ve seen consumers become more socially conscious than ever before, demanding greater visibility and transparency from the products they purchase. This increasing consumer demand is driving organizations to prioritize vendor compliance throughout the apparel supply chain, leading to a more detailed focus on traceability.  

As the apparel sector focuses more on supply chain transparency, we’ve put together the top three compliance trends that are shaping the industry and will continue to present challenges and opportunities for apparel brands and retailers in 2018.

Pollution Crackdown
Recent headlines have highlighted environmental issues that the textile and apparel industry is responsible for, sparking protests and concerns from the public. In China, tens of thousands of factories have shut down after an unprecedented pollution crackdown. These surprise inspections and fines have forced factories to be more sustainable and environmentally responsible.

Additionally, a study in the Marine Pollution Bulletin found that New York’s Hudson River could be emitting 300 million microfibers into the Atlantic Ocean each day, shedding light on the detrimental impact of clothing fiber pollution. The good news is, apparel brands and retailers are paying more and more attention to the costly effects.

Labor and Working Conditions
Unsafe working conditions in apparel factories around the world have led to organizations demanding policies to drive change. In particular, investors in the leather industry are requiring additional labor compliance for tannery audits in response to forced child labor and factory workers’ exposure to hazardous chemicals.

Meanwhile, although Bangladesh is often the center of attention for its low fire safety standards, last year, 75 out of 75 buildings in London failed fire safety tests, right after 79 people were killed in the Grenfell Tower fire. This discovery has created greater awareness of factory fire problems across the globe. Apparel brands and retailers must focus on improving labor and working conditions to avoid disasters and litigations.

Errors and Chargebacks
Brands and retailers have realized the importance of improving product quality while ensuring products get to consumers’ hands fast. With this growing demand from consumers, forward-thinking brands are investing in solutions to reduce errors and chargebacks to minimize quality discrepancies. 

In order to achieve this goal, top brands and retailers have prioritized vendor compliance to enforce standards for all suppliers, vendors, and third parties involved. This will continue to be an ongoing priority for the apparel industry this year.

Move Towards Transparency
Brands and retailers have the opportunity to address any concerns about non-compliance and increase visibility in 2018. By investing in vendor compliance solutions, retailers and brands can avoid costly litigation, reduce downstream risks and costs, and win market share by building a positive public image. 

At NGC, we provide solutions designed specifically for the needs of apparel, fashion and footwear brands and retailers, simplifying the complexities of vendor management. To learn how NGC Andromeda can enable your vendor compliance program, request a demo today.