WRAP audit data shows Indian factories outperforming several major sourcing competitors on social compliance, even as tariffs threaten to erode the country’s broader sourcing advantage.
South Africa’s push to replace migrant workers is exposing deeper problems in its clothing industry, where low wages, skills shortages and weak demand are leaving factories struggling to stay afloat.
Fashion brands have become more transparent, but the industry’s biggest supply chain risks remain social, not environmental, and workers continue to bear the cost.
While the industry might be more sensitive to social compliance than in the past, workers still bear the brunt of negative impacts when supply chain shocks occur.
Forced labor compliance has become a frontline business risk for fashion companies, as tougher enforcement, hidden supply chain practices, and rising investor and consumer scrutiny turn visibility and data into competitive necessities.
Despite rising minimum wages, pay for millions of garment workers is slipping further behind the cost of living, as brands, factories and governments continue to pass the buck.