Friday, August 09, 2013

We were talking about the Bangladesh building collapse that happened some months ago. A colleague was telling us that buying clothes, shoes from a better brand is better than the global retail brands which sells at lower prices. The argument being that a worker who produces products for these brands which sell at higher prices are benefited much more. I don't think that's the case.

I was walking in the area of the city centre here, and visited a few brands like Zara and Mango. When i looked at the tags, most were from Cambodia, Vietnam and other south and south-east Asian countries. Some were from Portugal which would make not more than 25% of the entire lot. I'm being generous here with the 25%, as i think that the ratio is much lower.

Let's compare. We have a C and A which sells a T-shirt at about 7 Euros. While Zara sells them at 40.
And if both are manufactured in an Asian country, i so doubt whether Zara's profits actually go all the way down to that worker there in a south-Asian country. Yes, i have to say that the quality at Zara is better, but that said, i still think that it's worker is not better off than somebody who produces for C and A. Zara's profit for that piece of clothing is much higher. They make money but unfortunately that does not reach the person slogging in Indonesia. So this line of argument doesn't hold good.

I don't know about higher brands, though. I would want to look at those as well.

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