INVESTIGATION
Behind the Seams:
How Sweatshop Mafia Deceive the Fashion Industry
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A dark underbelly of the manufacturing industry
Developing and creating a clothing collection should be exciting: it's an opportunity to make something new, express a creative vision and connect with a customer base. The task of design and production is a fun yet challenging one, involving a series of complex decisions; working with suppliers and manufacturers, perfecting samples and making the right choices for your brand.
Those looking to source and manufacture clothing are frequently met with difficulty in the search for a perfect supply chain. They are either flooded with an overwhelming number of options or struggle to find a manufacturer that aligns with their specific needs. Brands are drawn to promises of quality fabrics and trustworthy manufacturers but can often be duped by easy solutions and low prices. Particularly for buyers who would prefer to manufacture ethically, there is a hidden pitfall that it is increasingly important to look out for.
Manufacturing and sourcing platforms provide a point of contact for buyers and suppliers. However, not all platforms are reliable. There are a number of sourcing companies which are involved in serious unethical practices including unregulated working conditions and forced labour. They are hidden behind a clean and reputable facade but, in reality, are acting as agents for large networks of deceptive factories. These companies have come to be known as 'sweatshop mafias'.
Those looking to source and manufacture clothing are frequently met with difficulty in the search for a perfect supply chain. They are either flooded with an overwhelming number of options or struggle to find a manufacturer that aligns with their specific needs. Brands are drawn to promises of quality fabrics and trustworthy manufacturers but can often be duped by easy solutions and low prices. Particularly for buyers who would prefer to manufacture ethically, there is a hidden pitfall that it is increasingly important to look out for.
Manufacturing and sourcing platforms provide a point of contact for buyers and suppliers. However, not all platforms are reliable. There are a number of sourcing companies which are involved in serious unethical practices including unregulated working conditions and forced labour. They are hidden behind a clean and reputable facade but, in reality, are acting as agents for large networks of deceptive factories. These companies have come to be known as 'sweatshop mafias'.
What is 'sweatshop mafia'?
The term 'sweatshop mafia' essentially describes a European proxy company operating within the clothing manufacturing sector. These companies, under the guise of reputable European firms, promise ethical and high-quality manufacturing solutions to clothing brands. However, this is merely a polished facade designed to mask their actual practices. These companies, while outwardly upholding the image of European manufacturing standards, covertly engage in outsourcing to unregulated and often exploitative sweatshops overseas.
This dichotomy between their outward appearance and their actual operations creates a deceptive illusion. They leverage the trust traditionally associated with European craftsmanship to conceal their involvement in unethical labour practices. By doing so, the 'sweatshop mafia' not only misguides brands looking for ethical manufacturing partners but also actively contributes to the perpetuation of labour exploitation, thus hindering the advancement of ethical standards in the global clothing industry. By doing so, the 'sweatshop mafia' not only misguides brands looking for ethical manufacturing partners but also actively contributes to the perpetuation of labour exploitation, thus hindering the advancement of ethical standards in the global clothing industry. Moreover, these deceptive companies are frequently employed by fashion brands aiming to construct a facade of sustainability and ethical practice. In reality, while these brands project an image of social responsibility and environmental stewardship, they are, in fact, complicit in the unethical practices perpetuated by the 'sweatshop mafia', further deepening the industry's challenges in achieving genuine sustainability.
There isn't much official information about these 'sweatshop mafia' companies. However, those in the industry don't doubt that their covert practices exist.1 In many ways, their factories are comparable to those of fast fashion brands, whose supply chain has been proven to be exploitative and misleading.2 The brand boasts cheap and trendy garments made viral by influencers and celebrities but little was known about the people or processes involved in their manufacturing until their use of forced labour was revealed, among other unethical practices.
This dichotomy between their outward appearance and their actual operations creates a deceptive illusion. They leverage the trust traditionally associated with European craftsmanship to conceal their involvement in unethical labour practices. By doing so, the 'sweatshop mafia' not only misguides brands looking for ethical manufacturing partners but also actively contributes to the perpetuation of labour exploitation, thus hindering the advancement of ethical standards in the global clothing industry. By doing so, the 'sweatshop mafia' not only misguides brands looking for ethical manufacturing partners but also actively contributes to the perpetuation of labour exploitation, thus hindering the advancement of ethical standards in the global clothing industry. Moreover, these deceptive companies are frequently employed by fashion brands aiming to construct a facade of sustainability and ethical practice. In reality, while these brands project an image of social responsibility and environmental stewardship, they are, in fact, complicit in the unethical practices perpetuated by the 'sweatshop mafia', further deepening the industry's challenges in achieving genuine sustainability.
There isn't much official information about these 'sweatshop mafia' companies. However, those in the industry don't doubt that their covert practices exist.1 In many ways, their factories are comparable to those of fast fashion brands, whose supply chain has been proven to be exploitative and misleading.2 The brand boasts cheap and trendy garments made viral by influencers and celebrities but little was known about the people or processes involved in their manufacturing until their use of forced labour was revealed, among other unethical practices.
How the process appears to be.
At first glance, the journey of bringing a new clothing brand to life is filled with excitement and promise. It begins with a creative vision, a dream waiting to be transformed into a tangible reality. This narrative takes the buyer through the seemingly straightforward and idealised process of clothing manufacturing as perceived by many. From the initial concept to the hopeful anticipation of completed orders, here how it appears to be:
1. A buyer has an exciting concept for their clothing brand and will seek out manufacturers to bring their new design to life. They must take on the task of sourcing fabrics and trims, as well as finding the perfect factory for production.
2. They come across a sourcing platform website that promises to easily connect buyers with suppliers and manufacturers. The company boasts a simple process, overseeing all communication with the manufacturers, and at first glance, they have an excellent range of trusted suppliers to choose from.
3. The buyer will then sort through the range of factories and select one that seems like the best fit. They will be presented with factories from around the globe; Asian factories which offer high-quality, vetted facilities, and European factories which have a reputable image but are often more expensive.
4. The buyer selects a factory that is most suitable and the sourcing platform company places an order with the chosen factory. The buyer then eagerly waits for their order to be completed.
1. A buyer has an exciting concept for their clothing brand and will seek out manufacturers to bring their new design to life. They must take on the task of sourcing fabrics and trims, as well as finding the perfect factory for production.
2. They come across a sourcing platform website that promises to easily connect buyers with suppliers and manufacturers. The company boasts a simple process, overseeing all communication with the manufacturers, and at first glance, they have an excellent range of trusted suppliers to choose from.
3. The buyer will then sort through the range of factories and select one that seems like the best fit. They will be presented with factories from around the globe; Asian factories which offer high-quality, vetted facilities, and European factories which have a reputable image but are often more expensive.
4. The buyer selects a factory that is most suitable and the sourcing platform company places an order with the chosen factory. The buyer then eagerly waits for their order to be completed.
Peeling back the curtain.
Beyond the polished façade of the clothing production lies a less glamorous, often unsettling reality. This part of our exploration sheds light on the actual workings behind what appears to be a straightforward process. It uncovers the layers of deception and unethical practices that are deeply entrenched in the global clothing industry. Here, we reveal how the initial steps taken by buyers, filled with hope and expectations, can lead to a labyrinth of unregulated factories, deceptive labeling practices, and untraceable production lines:
1. The use of unethical factories: Whether a buyer selects a reputable factory overseas, both have the same result; the clothing is manufactured at an unethical and unregulated factory located in Asia. Unbeknownst to the buyer, the factory has placed smaller orders with other factories at a cheaper cost instead of using the advanced facilities that they have been presented with.
2. 'Made In Europe' = Finished in Europe: If the buyer chooses a European factory, their products are often actually manufactured in Asia. The products are assembled in the hidden factory and are sent over to be finished in the EU, and can then be labelled as 'made in Europe'.
3. Production is untraceable: The buyer may be lucky and successfully receive their goods but will never know the truth of how the garments have been produced. If they encounter issues with quality or incorrect samples due to the poorer standard of manufacturing, it will be difficult to make a complaint and the company will maintain that production has taken place at one of the reputable factories with proof of high standards and certificates.
1. The use of unethical factories: Whether a buyer selects a reputable factory overseas, both have the same result; the clothing is manufactured at an unethical and unregulated factory located in Asia. Unbeknownst to the buyer, the factory has placed smaller orders with other factories at a cheaper cost instead of using the advanced facilities that they have been presented with.
2. 'Made In Europe' = Finished in Europe: If the buyer chooses a European factory, their products are often actually manufactured in Asia. The products are assembled in the hidden factory and are sent over to be finished in the EU, and can then be labelled as 'made in Europe'.
3. Production is untraceable: The buyer may be lucky and successfully receive their goods but will never know the truth of how the garments have been produced. If they encounter issues with quality or incorrect samples due to the poorer standard of manufacturing, it will be difficult to make a complaint and the company will maintain that production has taken place at one of the reputable factories with proof of high standards and certificates.
Why such services exist?
In the intricate tapestry of the global fashion industry, various factors contribute to the existence and persistence of unethical manufacturing. From the allure of cheap manufacturing in less regulated countries to the strategic shift towards nearshoring for environmental and social accountability, let's examine the dynamics shaping these practices and services. We aim to shed light on why such deceptive services continue to thrive and how historical precedents in brand positioning contribute to current trends in the fashion industry.
Cheap manufacturing: Countries such as China are able to offer more affordable prices than European options due to less regulation. Sweatshop mafia companies use this competitive advantage to attract buyers without disclosing the true location and processes of their operations.
Shift from Offshoring to Nearshoring: Due to the fashion industry shifting towards more accountability regarding the environmental and social impact of clothing production, and other factors such as political conflict, brands are increasingly moving away from overseas manufacturing meaning that offshore suppliers are losing business.3
Trust in European companies: Brands have historically 'faked' their nationality, whether that was to appear more trustworthy or simply be more marketable. Examples such as the US skincare company, Neutrogena, associated with Norway; or the English Cobra beer company, marketing themselves as Indian, show that companies are not ignorant of the potential that a different nationality can offer.4
Cheap manufacturing: Countries such as China are able to offer more affordable prices than European options due to less regulation. Sweatshop mafia companies use this competitive advantage to attract buyers without disclosing the true location and processes of their operations.
Shift from Offshoring to Nearshoring: Due to the fashion industry shifting towards more accountability regarding the environmental and social impact of clothing production, and other factors such as political conflict, brands are increasingly moving away from overseas manufacturing meaning that offshore suppliers are losing business.3
Trust in European companies: Brands have historically 'faked' their nationality, whether that was to appear more trustworthy or simply be more marketable. Examples such as the US skincare company, Neutrogena, associated with Norway; or the English Cobra beer company, marketing themselves as Indian, show that companies are not ignorant of the potential that a different nationality can offer.4
What are the signs to look out for?
When seeking out a manufacturer or supplier, it's crucial for buyers to be diligent and delve further into the factories showcased on manufacturing platforms. This will enable them to avoid untrustworthy sweatshop operations which can lead to poor quality garments, unfulfilled orders and wasted investment. Here are the key indicators that you might be dealing with a so-called sweatshop mafia:
International sourcing specialists
Sweatshop mafia organisations operate as a proxy or agent for brands to connect with clothing manufacturers and suppliers. They present themselves as a team of professionals who help buyers to source garments and materials. However, the reality is that they are supporting factories that are involved in forced or unregulated labour.
Disproportionate number of overseas suppliers and factories
These companies emphasise European quality and manufacturing. However, their network portfolio will indicate that the majority of their suppliers and factories are based overseas. The small number of EU manufacturers will primarily be involved in garment finishing processes and their actual purpose is to bulk out the portfolio and offer the illusion of more choice.
Lack of transparency
You may not be able to find much information about the actual supply chain behind the factory, its production methods or even its location. Sweatshop mafia proxies and factories may have poor communication and evade questions about their practices and policies, working conditions and traceability.
False certifications and standards
There are a number of certifications to verify responsible manufacturing and sourcing, including Fair Trade and GOTS (Global Organic Textile Standard). Factories represented by sweatshop mafia may hold one or more of these badges but buyers should be wary if there is no further information to back up these claims.
Offline trade fairs
European proxy companies always take part in global offline trade fairs in order to gain more clients and build a credible image. However, the majority of exhibitors will be from overseas, even if the trade fair is located in Europe.
International sourcing specialists
Sweatshop mafia organisations operate as a proxy or agent for brands to connect with clothing manufacturers and suppliers. They present themselves as a team of professionals who help buyers to source garments and materials. However, the reality is that they are supporting factories that are involved in forced or unregulated labour.
Disproportionate number of overseas suppliers and factories
These companies emphasise European quality and manufacturing. However, their network portfolio will indicate that the majority of their suppliers and factories are based overseas. The small number of EU manufacturers will primarily be involved in garment finishing processes and their actual purpose is to bulk out the portfolio and offer the illusion of more choice.
Lack of transparency
You may not be able to find much information about the actual supply chain behind the factory, its production methods or even its location. Sweatshop mafia proxies and factories may have poor communication and evade questions about their practices and policies, working conditions and traceability.
False certifications and standards
There are a number of certifications to verify responsible manufacturing and sourcing, including Fair Trade and GOTS (Global Organic Textile Standard). Factories represented by sweatshop mafia may hold one or more of these badges but buyers should be wary if there is no further information to back up these claims.
Offline trade fairs
European proxy companies always take part in global offline trade fairs in order to gain more clients and build a credible image. However, the majority of exhibitors will be from overseas, even if the trade fair is located in Europe.
- Harney, A. (2008) The China Price: The True Cost of Chinese Competitive Advantage, Penguin Publishing Group: New York
- https://www.vox.com/the-goods/22573682/shein-future-of-fast-fashion-explained
- https://www.logisticsit.com/articles/2023/06/27/%E2%80%98nearshoring%E2%80%99-accelerates-demand-for-european-industrial-space-as-manufacturers-move-production-closer-to-consumers
- https://www.campaignlive.com/article/when-brands-fake-nationality/787693
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