ARLINGTON – High-pressure cost negotiations by apparel buyers have the greatest impact on textile suppliers’ business profitability, which then overflows onto workers and the environment, putting all forms of sustainability at risk, says a new industry report.
Based on two surveys, pre- and post-COVID-19, the findings released today by US-based NGO Better Buying show which high-pressure cost negotiation strategies are the most damaging for textile suppliers. These are “demanding level prices be maintained from year- to year – with no consideration for inflation,” and the much maligned “take it or leave it” approach from brands and retailers who insist that if a target cost is not met, they cannot win the order.
The NGO calls for new negotiating strategies to be implemented within textile supply networks that include minimally acceptable costing practises for buyers – especially in the wake of COVID-19 where order volumes are significantly down, yet pressure on target prices continues.
