Wearing Thin: Retailer Impact on Indian Garment Manufacturers

Based on a survey of 198 Indian garment manufacturers, the Wearing Thin report found pervasive unfair contracting practices by brands and retailers, leading ultimately to these pressures being passed onto workers.

It found:

53% of manufacturers experiencing brands cancelling orders
Over 1/3 experiencing order payments delayed by more than three months
81% reporting brands not adjusting price to account for increases in minimum wages
44% reporting brands insisting on discounts after entering into a contract

One manufacturer said: “When we take an order, we lock in the costs – fabric, labour, logistics. If they cancel, we bear the loss. They don’t care.”

The report recommends the introduction of a Garment Trading Adjudicator - or #FashionWatchdog - to ensure brands are treating their suppliers fairly.