Globally, consumers are pulling back on clothing spend as evidenced this week in second-quarter results from brands including Hugo Boss, adidas, Kontoor Brands and Columbia Sportswear.

And that’s not just down to one reason; it’s a combination of factors from money worries to the growth of second-hand platforms as consumers turn away from fast fashion over concerns about its environmental and ethical impact. Even the weather has a part to play. Clothing brands still selling outfits for summer that just don’t work for the wet and grey days being experienced through July and August have suffered in a big way.

These events have been enough to see some brands, like Esprit, for example, collapse. Last week it announced it was reestablishing itself as an intellectual property management company and prioritising the expansion of its licensing operations after liquidating several of its subsidiary companies.

Back in 2019, Esprit had been one of the brands at the centre of allegations of supply links to the Uyghur Autonomous Region which has faced major scrutiny in the US in recent years. With the US doubling down on efforts to block any goods suspected of being made under forced labour conditions from the Xinjiang region, this has added an extra layer of complexity to brands with sourcing links to China.

The USFIA’s 2024 Benchmarking Survey revealed that over the past year, US apparel sourcing executives identified managing forced labour risks in the supply chain as their second top business challenge with 64% of survey respondents saying it was one of their top five business concerns.  

Most of the surveyed companies have taken a comprehensive approach to mitigating forced labour risks in the supply chain including “asking vendors to provide more detailed social compliance information,” “attending workshops and other educational events to understand related regulations better,” and “intentionally reducing sourcing from high-risk countries.”

That together with the US’s fraught relationship with China means many are turning away from China as a key or primary sourcing base. The USFIA Benchmarking survey revealed US clothing brands are accelerating efforts to bring sourcing closer to home turf where they may also benefit from greater supply chain visibility.

This year, a new record 52% of respondents plan to expand apparel sourcing from members of the Dominican Republic-Central American Free Trade Agreement (CAFTA DR), over the next two years, up from 40% in 2023.

But an added benefit of this strategy is the closer supply links which reduces order processing time. With climate change meaning unpredictable weather such as warmer, shorter winters and much wetter summers, brands are not required to order as far in advance only to end up lumbered with inventory that isn’t selling because it doesn’t fit the season.

Sales of clothing have always been a peak and trough situation, influenced and impacted by several factors. When the pandemic hit in 2020, clothing sales virtually stopped, leaving both brands and suppliers in limbo. But with people spending more time at home and in parks and gardens, those brands that capitalised on the production and sales of athleisure wear at a time when consumers were seeking comfort and prioritised health, benefitted, in a big way.

The key takeaway here is that as long as humans exist, clothing will be needed. And while that is the case there will always be a need for fashion brands and ultimately, the people that make the clothing for those brands. But remaining fluid and agile, and being able to respond quickly to consumers' changing temperaments will be key to the survival of any fashion brand and supplier going forward.

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