Interbrand IQ: The Best Asian Brands Issue

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brands under fire

H&M, Primark Sign Bangladesh Safety Agreement; Gap Says It's Next [Update]

Posted by Sheila Shayon on May 13, 2013 06:39 PM

The rescue efforts in Savar, Bangladesh have officially been turned over to recovery as the death toll surpasses 1,100 in what has become the worst accident in the history of the garment industry. But 20 days later, it seems that progress and change is beginning to emerge from the rubble of a decrepit industry. 

The Bangladeshi government has agreed to let garment workers form trade unions without the permission of factory owners—a breakthrough in workers' rights in a de-regulated country, where garment factories were shut down this week following worker unrest over wages and conditions.

The proposed  safety plan, backed by a coalition of labor groups, calls for independent inspections of factories and a legally binding fire and building safety plan requiring retailers to help pay for improvements to factory safety and is an amendment to the 2006 Labor Act lifting restrictions on forming trade unions in most industries.

The pact also calls for changes regarding severance payments, welfare fund payments, management practices and payment and banking standards. In what could be a game-changing announcement, Swedish retailer H&M announced Monday that it will sign the binding agreement.Continue reading...

brands under fire

Benetton Finally Admits Involvement as Activists Demand Action in Bangladesh

Posted by Sheila Shayon on May 9, 2013 05:47 PM

The death toll at Rana Plaza in Bangladesh has surpassed 900 as another factory fire has claimed an additional eight lives in the industrial district of Mirpur. 

Fortunately, the fire in the 11-story building that manufactured mainly sweaters was closed for the night and workers had left the premises, according to Reuters. According to reports, the factory's managing director, a member of the board of the Bangladesh Garment Manufacturers and Exporters Association was meeting with friends in the building when the blaze broke out. The fire was fueled by massive piles of acrylic products used to make cardigans, jumpers and pajamas for customers including Britain's Primark and Spain’s Inditex Group. The eight victims died of suffocation in stairwells trying to escape from the smoldering acrylic that produced immense amounts of smoke and poison gas. Among the victims were also two local government officials.

For what it's worth, the horrific state of factories in Bangladesh, magnified by global news coverage and relentless social media attention is finally starting to have an effect on those involved.Continue reading...

brands under fire

As Death Toll Passes 500, Brands Consider Pulling Out of Bangladesh Factories

Posted by Sheila Shayon on May 3, 2013 05:06 PM

Nine days after the fatal collapse of the Rana Plaza garment factory in Sahar, Bangladesh, the death toll has surpassed 500, and the outcry against the conditions, companies and governance responsible is augmenting.

Bangladesh is now the world’s second-largest apparel exporter after China, with 80 percent of those exports servicing the US and the European Union. In return, those big brands provide jobs and support for millions, but is that enough? After multiple fatal accidents, western brands face harsh scrutiny over sourcing policies and the obvious lack of labor and safety regulations put into place by its suppliers. 

“We need to be careful now not to throw the baby out with the bathwater,” said Sara Hossain, a high-court lawyer in Bangladesh to TIME. “The question should not be shutting down the factories. It should be, 'How do you make employment safe and secure?'” Garment factories in Bangladesh pay the most and carry a certain cachet for that reason, despite safety issues. “Young men and women with a few years of schooling consider that the RMG [sector] gives them more independence and [makes them] more socially acceptable,” added Rushidan Islam Rahman, research director at the Bangladesh Institute of Development Studies.Continue reading...

brands under fire

Bangladeshi Garment Execs Vow to Improve Safety Standards

Posted by Sheila Shayon on April 30, 2013 07:12 PM

The death toll from the factory building collapse in Bangladesh could reach as high as 1,400, with at least 900 workers still missing six days after Rana Plaza in Savar crumbled and the owners facing possible prison terms for not protecting the tenants or workers.

The Dhaka collapse is the deadliest to hit Bangladesh's garment industry—worth upwards of $20 billion—but little has changed since last November's Tazreen factory blaze that killed 112 workers despite public outcry and pledges to improve safety standards. 

However, the cumulative effect of such tragedies, which have been magnified through the power of social media and the internet, is forcing major Western retailers such as Britain's Primark, Canada's Loblaw and Spain's Mango to admit involvement and ultimately offer up aid or a solution.

But for every brand that steps up and admits fault, another places blame elsewhere or remains mum. Italy's Benetton acknowledged that their products were made in Rana, but claimed it was a "one-time order," while Walmart has maintained that its third-party supplier was not authorized to outsource manufacturing to the Bangladeshi factory.Continue reading...

brands under fire

As Death Toll Rises in Bangladesh Factory Collapse, Brands Face Scrutiny Over Ethics (Updated)

Posted by Sheila Shayon on April 26, 2013 05:33 PM

The death toll in the latest Bangladesh garment industry disaster has risen to more than 300 as rescue crews continue to pull survivors from the rubble of Rana Plaza and search for an estimated 500 workers still missing, with more than 2,500 already rescued.

In the aftermath of the garment factory collapse in Dhaka, Prime Minister Sheikh Hasina has called for those responsible to turn themselves in. It is believed that the building owner and factory owners are in hiding after ignoring warnings from police and industry officials to forbid workers to enter the building after cracks were discovered on Tuesday. The building collapsed on Wednesday. 

"Whoever might be the culprits, and if even they belong to our party, they won't go scot-free," the impoverished nation's Prime Minister warned. (Update: The factory owners were arrested on Friday night, when the death toll had risen to 336.)

The disaster shines a light, yet again, on global apparel companies that outsource manufacturing to Bangladesh, a practice that has ballooned into an $18 billion industry as clothing companies continue to adandon manufacturing in China, where inflation and rising wages are pushing up costs. The upshot: Bangladesh and its questionable garment industry is now the world's second-biggest garment manufacturing center.Continue reading...

brand news

Brands in the News: Netflix, Coach, Harbowl and more

Posted by Shirley Brady on January 24, 2013 08:56 AM

In the News

Netflix CEO says company is "on probation" despite soaring subscriptions.

Coach reveals ready to wear collection in bid to add luster.

NFL pressures fan to nix Harbowl trademark.

Acer writes down value of brands.

Air Canada CEO defends higher airline fees.

Apple stock plunge highlights investor expectations.

Barclays new CEO swings the axe in Asia.

Benetton turns down the shock tactics.

H&M to stage first Paris Fashion Week show in eight years.Continue reading...

corporate responsibility

Greenpeace Claims Success as Zara Bows to Detox Campaign

Posted by Mark J. Miller on November 29, 2012 10:56 AM

Greenpeace is doing battle against the fashion world. In the past week, it organized more than 700 volunteers in more than 80 cities in 20 countries to dress up like mannequins and stage “walkouts” of Zara stores as a protest against the company for using any hazardous chemicals in its supply chain.

The “Detox Zara” campaign has spread to include all of fashion; the eco-campaigner's latest video, above, is a manga style trailer called "Detox Fashion" (tagline: "Toxic is so last season.")

The campaign has worked, according to Greenpeace's Tristan Tremschnig: "Zara — the world’s largest retailer — has now committed to clean up their supply chain and Detox following 9 days of intensive pressure from people around the world. This included over 320,000 people joining the campaign online, over 44,000 mentions of Zara and the Detox campaign on Twitter alone, and a reach of over 7.1 million people across Twitter and Weibo. Not forgetting our activities on Facebook, Pinterest and outside the brand’s stores."Continue reading...

shopper insights

Feel Like Store Mannequins are Watching you? These Ones Are

Posted by Mark J. Miller on November 23, 2012 10:01 AM

Security cameras are pretty much everywhere – even places you don’t suspect. In 2005, the New York Civil Liberties Union counted 4,176 cameras below 14th Street in Manhattan alone, according to Discovery.com. And the number has multiplied since. Cute Rockwell's 2004 hit song, "Somebody's Watching Me."

A 2007 documentary called Look claims that there were more than 30 million surveillance cameras across the country and that the average American is recorded 200 times a day. You have to wonder what the filmmakers would have made of Italian mannequin maker Almax SpA, whose EyeSee technology embeds surveillance cameras in its mannequins' eyes.

The $5,130 mute models boast cameras with facial-recognition software so the retailer can keep track of the ages, ethnicities, and gender of those peering into store windows or wandering through the racks, Bloomberg reports. Sure, it can be used as a security measure, but the EyeSee is more about watching what kinds of customers are already coming into the store, traffic patterns, and gleaning other shopper insights to create new revenue streams.Continue reading...

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