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China’s fashion manufacturers increase focus on sustainability to gain global market share

 

Chinas fashion manufacturers increase focus on sustainability to gain global market share

 

Several companies in China are launching new sustainable innovations. For instance, a leather handbag specialist, Guangzhou-based Veshin Factory has collaborated with Ralph Lauren-backed material science company Natural Fiber Welding to use its plastic-free leather-like textile Mirum. Similarly, Hong Kong-listed Crystal International Group has reduced the carbon footprint of products by 40 per cent since 2007. The group also reduced freshwater consumption per garment by 52 per cent compared to 2017 levels, says a Business of Fashion report.

Other Chinese firms such as Chenfeng, Erdos, Esquel and High Fashion Group are moving towards stronger traceability and accountability across the value chain. Esquel Group has constructed a green manufacturing park in Guilin, China that sustainable innovation leader Edwin Keh describes as state of the art. China has been in news owing to its environmental record and commitments. The biggest global emitter of greenhouse gases, the country aims to achieve carbon neutrality by 2060. This announcement has given manufacturers a purpose to operate.

Supply disruptions compel manufacturers to diversify

Fashion manufacturing in China has been deeply impacted by the government’s zero-COVID policy and supply chain disruptions intensified by the Russia-Ukraine war. Rising tensions between China and the West are also compelling fashion companies to diversify and nearshore their manufacturing bases.

However, despite these challenges, China continues to be the world’s largest apparel exporter, reveals World Trade Organization stats. After taking WTO membership, China has been growing in prominence as the ‘world factory’ in recent decades. The country has been focusing on sustainable apparel manufacturing for the last 29 years.

Rise in entrepreneurship culture

A long-standing challenge in implementing sustainable practices in China’s fashion industry is the huge capital required investment it needs. Esquel’s new campus in Guilin requires about two to three times more investments than that required by a conventional factory with the same production capacity.

A few suppliers are benefiting from brands launching more products with lower-impact materials. However, they are not being paid for it. William Lam, Managing Director, High Fashion Groups says, brands allocate minimum funds for suppliers as they have to achieve a certain percentage of sustainable products.

The rise of start-ups in China is creating a culture of entrepreneurship and innovation, adds Wenjian Hu, Founder, Qingdao Amino Material Technology. This year, the start-up bagged H&M Foundation’s Global Change Award for chemical recycling technology that successfully breaks down polyester-elastane blends commonly found in activewear.

Market troubled by labor concerns

The sustainability push in Chinese manufacturing industry is however troubled by labor rights concerns. The country has constantly been accused of forced labor of Uyghurs and other minority groups in its Xinjiang region. However, a few progressive manufacturers like Crystal International are seeking their own social responsibility policies. Manufacturers in China are also shifting their approach to sustainability in lateral ways. They are planning to step-up automation and efficiency across the country.

Manufacturers are also focusing on creating a talent pool of highly skilled professionals with sustainability training. For instance, High Fashion Group’s Womenswear Institute in Hong Kong has launched new courses to equip students with technical knowledge of environmental sustainability.

More subsides for fashion manufacturers

China also has an upper hand in forming new public-partnerships and creating a strong supporting infrastructure to drive sustainability in the fashion industry. Through its net zero emissions and textile waste recycling initiatives, the country has given a direction to fashion manufacturer besides introducing subsidies and tax incentives for them.

Financing mechanisms like Power Purchase Agreements (PPAs) and Energy Attribute Certificates (EACs) allow businesses to sign long-term contracts to buy renewable energy in China. However, even without these incentives, many Chinese fashion manufacturers are taking the sustainability route.

 
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