What Is Ethical Fashion? A Guide for Retailers
Despite all the praise for its innovative spirit and ability to set global trends, the fashion industry has taken a lot of heat for its impact on the environment and society. But what is ethical fashion?
Ethical fashion is when each step of the retail process pays attention to what can be done so that it responds to a sustainable and transparent production. To survive in a market where sustainability and ethics are becoming increasingly important in retail decision-making, retailers must have a voice on responsible fashion issues.
In this blog, we will see what ethical fashion is and why it matters to retailers.
What Is Ethical Fashion?
Ethical fashion is the more responsible approach to clothing production, created using a method and in an environment that respects guidelines for fairness and care of people and the planet. More than a matter of products being sustainable, ethical fashion takes into account the full life cycle of garments—that is, from how workers are treated in manufacturing to the impact on animals and the environment.
Its emphasis mainly revolves around the following areas:
- Fair labour policies. Paying fashion workers a fair and minimum wage, providing them with safe working conditions and promoting diversity in retail.
- Animal welfare. Making sure that animals are not harmed in the production process.
- Environmental stewardship. Reducing waste, pollution, carbon footprint, and promoting eco-friendly practices in the retail industry.
- Transparency. Brands need to openly talk about where things are sourced from and manufactured.
Vegan Fashion
Vegan fashion is one part of ethical and sustainable fashion that seeks to eradicate the use of animal products in our clothing (i.e., leather, fur, wool). Even some of the high-end clothing brands, which traditionally leaned heavily on animal products with more expensive prices and have been among the last to house change, are starting to embrace this new paradigm of sustainability in luxury retail. This turnover towards fake leather and vegan alternatives is saving millions of animals annually. Ethical fashion brands that refrain from using fur or leather can showcase their efforts to support animal rights and be more environmentally responsible as a business entity.
Ethical Fashion and Corporate Social Responsibility
Ethical fashion is an integral component of corporate social responsibility (CSR) and it’s how fashion retailers need to be responsive. This is the idea that companies are obliged to do more than just make a profit for their shareholders. To fashion retailers, CSR means reducing their environmental impacts as well as improving labour conditions and ensuring fair living wages for garment workers. An important aspect of CSR and ethical retailers is ensuring employees’ mental health across the retail industry, and creating a supportive work environment.
The Difference Between Ethical Fashion and Sustainable Fashion
The first inclination is to refer to “ethical fashion” as the same as what others also call “sustainable fashion,” but they are not. In both cases, the systems try to treat an obvious pain of the fashion industry but target different aspects.
- Ethical fashion mainly considers the well-being of both humans and animals. With the main focus on the ethical treatment of workers and also the condition in which animals are raised. Ethical fashion is about social issues, but sustainable fashion mainly focuses on the environmental impact.
- Sustainable fashion focuses on reducing the negative impacts that fashion production has on our planet. It entails using alternative and/or recycled materials such as eco-friendly substitutes and putting efforts into diminishing carbon footprints, inculcating circular economy themes by making recycling/upcycling a feasible option.
Regardless of this difference in focus, there is a massive overlap between the two. Some brands that are adopting sustainable processes or circular business processes naturally include an ethical business model because they support their local workers and communities.
If you want to learn more about becoming a sustainable retailer, check out our Top Sustainable Practices in Retail blog.
Why Is Ethical Fashion Important for Retailers?
As consumer awareness continues to grow—especially following the Rana Plaza scandal—fashion companies need to ask themselves: why is ethical fashion important for my business?
Here are a few key reasons why retailers should adopt ethical practices:
- Building Brand Loyalty
- Enhancing Brand Reputation
- Cost Savings in the Long Term
- Attracting New Customer Demographics
Building Brand Loyalty
Millennials and Gen Z consumers are conscientious shoppers, and this group of buyers is more mindful than ever of the brands they associate with as well as their ethical constructs. There is a lot more in it for customers than just the products themselves; they want to know that when their money goes into companies, then these businesses will treat workers well and source as ethically and sustainably as possible. Conscious selling, then, may just be a path to win that trust and loyalty of increasingly savvy, more aware, and engaged citizens.
Enhancing Brand Reputation
A brand reputation can be your richest asset—or liability. In the age of social media, where bad news travels faster, businesses that do not continue to prioritise ethical standards risk both a PR disaster and ultimately reputation impairment. Recent reports highlight that maintaining consumer trust is essential for retail success. According to the Health of Retail Report 2023, companies that prioritise ethical practices are more likely to foster trust among consumers.
For example, Moncler came under a lot of fire for being cruel to animals in their sourcing practices. It is a stark reminder of the dangers of cutting ethical corners, and that can cause serious reputation problems in the long term. On the other hand, brands that make ethics their strategy foundation enjoy positive media coverage and public appreciation.
Cost Savings in the Long Term
Ethical fashion practices might have some reputation for requiring more expensive upfront costs, but the benefits they bring are paramount. Sustainable sourcing, energy-efficient production processes, and making sure salaries are higher can bring down operational costs by cutting waste and improving productivity overall. Ethical retailers will often find that their supply chains are much more robust and flexible, therefore significantly less prone to global disruption, providing both financial and operational stability.
Attracting New Customer Demographics
Ethical fashion is not only the right thing to do, it also makes good business sense. As they seek out brands that match their values of sustainability in the retail industry and animal welfare, younger generations like Millennials or Gen Z are especially motivated. These are also the demographics that respond best to and stick with companies that demonstrate legit sincerity in their ethics. Retailers can access an increasing population of sustainable shoppers by supporting these values.
Through adopting ethical practices, retailers can not only build trust and loyalty with their customers but also save vast amounts of money on unnecessary legal fees to protect the face and value of their brand. This can all be achieved while being able to serve a larger pool of demographics from newly engaged consumers.
Final Thoughts
As today’s consumers increasingly consider the environmental and social implications of their purchasing choices, brands are now being called upon to engage in corporate responsibility. Brands that emphasize ethical practices are helping create a more sustainable and human fashion ecosystem while simultaneously strengthening their relationship with consumers, increasing brand equity (and over time sales), which leads to long-term success.
However, brands must ensure that their commitments are genuine; otherwise, they risk being accused of bluewashing, which can severely damage their reputation.
Establishing an ethical brand isn’t just about being a good corporate citizen—it’s also a means of delivering business resilience that mitigates risk, leaving loyalty and untapped markets available for the taking.
Even more so, retailers need to keep educating themselves and stay on top of industry trends, including sustainability trends, in order to adapt quickly as the demands for ethical fashion continue to evolve over time. This is why attending industry events such as the Retail Conference, is important, as you will have a great opportunity to learn from industry leaders and gain valuable insights into current business trends and best practices.
Looking for more retail trends? Stay up to date with the latest industry news by attending our retail events. Don’t miss the next Retail Conference and get the chance to network with top influencers and learn from industry experts. Register now.
