The Leicester Clothing Industry in Crisis
The Leicester Clothing Industry in Crisis – The numerous scandals concerning sweatshops in Leicester have pushed most big brands away, collapsing much of its garment industry, which once had the claim that it “clothed the world.”
With another wave of sweatshop scandals in Leicester, a lot of large clothing companies decided to move out, greatly reducing the city’s industry, which once prided itself on supplying the world.
Now, Leicester deals with an even bigger threat to its existence: challenges from Chinese competitors like Shein and Temu, along with imports from India that will soon be coming to the UK. There are concerns that it could end the city’s long-running fashion industry.
It’s tough to judge the extent of the shock since many of Leicester’s textile and apparel factories are tiny and can change quickly, but according to SP&KO, there were 1,500 in 2017 and only 96 at the end of this year, as published by Sky News. So many shops closing is cause for real concern about the future of fashion manufacturing in Britain.
The Leicester Clothing Industry in Crisis
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Our investigation included journeys to places in the city that had to shut down because demand dropped sharply. Many people in the fashion industry have been made unemployed. There are many factories where the machines have been left unattended.
Previously, most clothing from brands on the high street or in fast fashion came from Leicester, but now that’s mostly changed, with North African and South Asian countries being the main suppliers.
95% of clothing companies operating in the UK have now ended or cut down on clothing production in the country, says a new report by UKFT. Around 58% of brands, measured by turnover, have made it official that they will not get their clothes from UK suppliers.
According to Jenny Holloway, chair of the Apparel & Textile Manufacturers Association, some factories have been through the process of becoming high street brand suppliers, investing money and time. Yet, when they got close, they were excluded because Leicester was embargoed.
According to Tejas Shah, who is from a family of manufacturers, brands have told him they would be willing to work with him if he moved only 15 miles north to Loughborough. Yet, since my LE1, LE4 postcode gives me an LE1, LE4, they are not enthusiastic about working for me.
The Leicester Clothing Industry in Crisis
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Pain for those countries has increased lately by two new Chinese fast fashion retailers, Shein and Temu.
Through Chinese production (and a direct delivery to consumers), they provide ultra-cheap items for their customers. A provision of customs law called “de minimis” means that those shipments do not pay any tariffs upon entering the country.
Satvir Singh, who manages Our Fashion and is one of the last knitwear firms in the area, fears that this threat might finish off Leicester’s garment sector.
We are seeing an effect on what we produce, and I believe the whole retail sector, focused on clothing, is experiencing the same pressure.
Although Donald Trump has spoken about getting rid of the loophole in the US, the UK has not revealed a timeline for reviewing the matter.
Mr Singh said Trump is mainly addressing the needs of his local economy because he can see the positive changes, future-wise. I believe getting rid of de minimis cases will greatly reduce problems. I feel like the main goal is to make sure it’s fair for all competitors.
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