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Fast fashion: 'How do you justify selling a £2 T-shirt?' Fast fashion: 'How do you justify selling a £2 T-shirt?'
(about 3 hours later)
Primark has defended selling T-shirts for as little as £2, saying its ability to sell clothes so cheaply is down to its business model. Big-name retailers have defended selling clothes for £5 or less, saying their ability to sell clothes so cheaply is down to business models.
MPs investigating the impact of so-called "fast fashion" asked the firm how it could justify such low prices. MPs investigating the impact of so-called "fast fashion" asked the firms how they could justify such low prices.
Paul Lister, Primark's head of ethical trade and environmental sustainability, said it spent nothing on advertising and had tight profit margins. Primark's spokesman Paul Lister said the firm spent nothing on advertising and had tight profit margins.
He said he knew of no-one under 16 working in any of its supply factories. Representatives from brands including Boohoo, Misguided, Asos, Burberry and Marks & Spencer also gave evidence.
The Commons Environmental Audit Committee is examining the impact of clothes production - for example, looking at the pollution produced by factories - especially items produced cheaply and quickly in response to trends. The Commons environmental audit committee is examining the impact of clothes production, especially those items produced cheaply and quickly in response to trends - known as "fast fashion".
It's also examining the conditions experienced by those working in the industry. Labour MP Mary Creagh, chair of the committee, asked Primark's head of ethical trade and environmental sustainability, Paul Lister: "How can you justify selling T-shirts in your stores for as little as £2 or £3, and how can you be making a profit on those?"
Primark has been giving evidence on Tuesday alongside representatives from brands including Marks & Spencer, Burberry and Asos. He replied: "Primark has never done any significant advertising at all, and that can save us in any year £100m to £150m, compared to some of our larger rivals. That goes straight into price. That keeps our pricing low."
Committee chairman and Labour MP Mary Creagh asked Mr Lister: "How can you justify selling T-shirts in your stores for as little as two or three pounds, and how can you be making a profit on those?" "It's our business model that takes us to a £2 T-shirt."
He replied: "Primark has never done any significant advertising at all, and that can save us in any year £100m to £150m compared to some of our larger rivals. That goes straight into price. That keeps our pricing low.
"We often buy on longer lead times in quiet periods for the factories and then we pay the factories early, so if you're a factory owner you'll able to give Primark a better price to reflect that."
He added: "It's our business model that takes us to a £2 T-shirt."
On waste, Mr Lister said Primark had very little unused stock and was planning to launch a take-back scheme for consumers next year, where old clothes can be returned and used again by overseas charities.On waste, Mr Lister said Primark had very little unused stock and was planning to launch a take-back scheme for consumers next year, where old clothes can be returned and used again by overseas charities.
Ms Creagh suggested that by making garments so cheaply, they were being devalued.
But Mr Lister insisted: "Every item that we make, we're looking at durability… we are proud of the quality and durability of our garments, they're not built to throw away."
What is fast fashion?What is fast fashion?
The term describes our high rate of fashion consumption fuelled by the quantity of new and cheap clothes. The term describes our high rate of fashion consumption fuelled by the availability of new and cheap clothing.
MPs believe that the throwaway nature of fashion is fuelling fast turnarounds among suppliers, which may result in poor working conditions. Producing clothes requires climate-changing emissions. Global textile production produces 1.2bn tonnes of carbon emissions a year - more than international flights and maritime shipping.
Producing clothes also requires climate-changing emissions. Global textile production produces 1.2bn tonnes of carbon emissions a year - more than international flights and maritime shipping.
Last month, MPs on another committee concluded that the fast fashion industry was a major source of the greenhouse gases that are overheating the planet.Last month, MPs on another committee concluded that the fast fashion industry was a major source of the greenhouse gases that are overheating the planet.
'Industry practice' MPs believe that the throwaway nature of fashion is also fuelling fast turnarounds among suppliers, which may result in poor working conditions.
High-end fashion brand Burberry defended criticism from MPs for dumping clothes. Elsewhere, Carol Kane, joint CEO of online fashion house BooHoo, was asked how the company could sell dresses for as little as £5 when the minimum wage was £7.83.
Earlier this year the firm was strongly criticised for burning £30m ($40m) of stock. It admitted destroying the unsold clothes, accessories and perfume instead of selling them off cheaply, in order to protect the brand's exclusivity and value. She said this only applied to a small number of dresses intentionally sold at a loss, to drive more traffic to the site.
Leanne Wood, Burberry's chief of corporate affairs, told MPs the firm was "committed" to stopping the activity, but added: "It is an industry practice. Ms Kane, asked if consumers were now too accustomed to cheap, disposable clothes, said: "I believe this all comes back to consumer demand. I've been in the industry for 32 years, and in that time I've seen prices decline."
"We're the only luxury business that's reported it in their accounts… but it is something that happens in the industry." Speaking on the same issue, Jamie Beck, from the Arcadia group, which includes Topshop, Dorothy Perkins and Burton, said: "These garments aren't designed to be a disposable item, to be bought for [just] a holiday. They're designed to be long-lasting."
Marks and Spencer's representative, Mike Barry, said that none of the company's waste fabric goes to landfill or for incineration, and that it gives around half a million garments to charity each year. During the hearing, high-end fashion brand Burberry also defended criticism from MPs for dumping clothes.
However, recycling the material was a much harder challenge, he added. Earlier this year, the firm was strongly criticised for burning £30m ($40m) of stock. It admitted destroying the unsold clothes, accessories and perfume instead of selling them off cheaply, in order to protect the brand's exclusivity and value.
'Offcuts used for sanitary products' Leanne Wood, Burberry's chief of corporate affairs, told MPs the firm was "committed" to stopping the activity, but added: "It is an industry practice. We're the only luxury business that's reported it in their accounts… but it is something that happens in the industry."
Nick Beighton, CEO of online fashion retailer Asos, said that one of their factories in Kenya had started using fabric offcuts to make toys and sanitary wear. Boohoo, Missguided and Asos were also quizzed on relationships with suppliers accused of exploiting workers in Britain.
"[The factory] currently has just under 80 single mothers making garments for that region," he told MPs. Paul Smith, head of product quality and supply at Missguided, said the firm had cut the number of businesses it worked with in Leicester - where many of the factories are based - from 35 to just 20 due to concerns about pay and conditions at some sites there.
"They've come up with a really neat solution where the offcuts there can be used for toys for children in the area and for sanitary wear for young women in that area." After the hearing, Ms Creagh said: "Evidence we heard today justifies our concerns that the current system allows fashion retailers to mark their own homework when it comes to workers' rights, fair pay and sustainability.
But he said that this was a local solution that would not work in all Asos factories. "Marks and Spencer are supposed to be a leading light in corporate responsibility, but even they pulled out of a scheme seeking to achieve living wages for garment workers through collective bargaining.
Ms Creagh suggested that by making garments so cheaply, they were devaluing them. "Boohoo did not convince us that it had a grip on the potential illegal underpayment of their Leicester-based workers."
But Mr Lister insisted: "Every item that we make, we're looking at durability… We are proud of the quality and durability of our garments, they're not built to throw away." She added that it was "shocking" to learn during the hearing that Missguided staff who went to check on conditions at a factory were allegedly assaulted by its owners, adding that it "begs the question - what on Earth was going on inside?".
Jamie Beck, from the Arcadia group, which includes Topshop, Dorothy Perkins and Burton, said: "These garments aren't designed to be a disposable item, to be bought for [just] a holiday. They're designed to be long-lasting."
Asked why so much clothing was ending up in the bin, Mr Beck replied: "We don't believe it is ending up in the bin. We believe it does go to charity shops, we believe it does get reused."
He said the wealth of garments available for sale on eBay demonstrated that belief.
Carol Kane, joint CEO of Boohoo, was also asked about cheap clothing - and how the company could sell dresses for as little as £5 when the minimum wage was £7.83. She replied that this only applied to a small number of dresses intentionally sold at a loss, to drive more traffic to the site.
Asked if consumers were now too accustomed to cheap, disposable clothes, she added: "I believe this all comes back to consumer demand. I've been in the industry for 32 years, and within that time I've seen prices decline considerably."
She and Mr Beighton, and Paul Smith, head of product quality and supply at Missguided, admitted more could be done to make their garments more sustainable, by promoting their longevity and recyclability.