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嘿,亚马逊会员们,你们可以免费在Amazon Music上收听商战。今天就下载这个应用程序。
February 25, 2010. Daca, the capital of Bangladesh. The seven-story building is cramped. Dozens of workers sit at sewing machines working diligently. They're cramped inside the garab and garab new-age sweater factory. And if they stop working, they'll miss their production targets and take home less paid.
Aside from the hum of machinery at work, it's quiet. On the third floor, a young woman pauses to wipe away the beads of sweat dripping down her brow. She curses under her breath. Damn, it's hot in here. Though it's past nine o'clock at night, the air is still and thick. The woman glances wistfully at the windows. She's told they're kept closed for security purposes. She's been working 10 hours straight, stitching sweater after sweater.
Suddenly, she smells something. She turns to another worker, her friend. Do you smell that? Quiet. Wait. Is that? Smoke. It's rising from a lower floor, and it's filling the room fast. Workers abandon their stations and rush for the stairwells jostling each other for space. But the emergency exits are sealed shut. The woman and her friend join others in banging on the exits. She screams, but her lungs fill with smoke. A security guard grabs a fire extinguisher from the wall. She fumbles with it unsure how to use it. Some workers rush to the windows, but they're covered by iron grills welded to the building. Soon, firefighters arrive.
The blaze started from faulty wiring on the first floor. Workers on the upper floors are trapped by the locked exits and iron grills. Firefighters struggle to pry them open. Many workers will not escape. The factory workers, including those who perished, were working to fulfill orders for fast fashion companies, including H&M. And that fact will not be lost on the public and its customers.
Hi, I'm Sarah Haggie, co-host of Wanderies Podcasts Scample Insers. In our recent two-part series, Three Weddings and a Funeral, we dive into the story of a German con man who built an entire life on fake names, lies, and schemes. And the unlikely true-kind twist that brought this decades-long charade crashing down. Listen to Scample Insers on Amazon Music or wherever you get your podcasts.
From Wanderie, I'm David Brown and this is Business Wars. In our last episode, we witnessed the birth of H&M, top shopped Zara and Forever 21, four leaders of the fast fashion industry. As each carved out a niche in their country of origin and began to expand internationally, the company started on a collision course towards direct competition.
Now, the rivals must face a more crowded market and the consequences of selling shockingly cheap, disposable clothing. The deadly tragedy in Bangladesh is a wake-up call for the fast fashion industry. The public is learning about the high cost of cheap clothes. Some companies pivot towards sustainability initiatives to mend their image. Others just double down on even cheaper clothing. And a new company out of China is about to disrupt the industry even further.
February 26, 2010, Stockholm, Sweden. It's the day after the deadly factory fire in Bangladesh and along with a rising death toll, news is spreading quickly that H&M manufactured clothing there. H&M executives hold an emergency meeting. CEO Carl Johan Persson, the grandson of company founder, Erling Persson, sits across from the company's head of sustainability, Helena Helmerson. Neither got much sleep last night.
They sit in Persson's office, untouched cups of coffee in front of them. Persson looks down at his phone and then faces Helmerson. The death toll is up to 21. It's terrible. I used to be our product manager in Dockai and I've been in that factory and met those workers. What I'm hearing from the fire inspectors is bad. They're saying exits were blocked, windows sealed. The security guards on duty didn't know how to use the fire extinguishers.
But we inspected it just a few months ago. I guess that would help cover us, but the sheer fact that they were still working at 9 pm had bested an avoidable accident, at worst negligence. We'll have to prepare a statement. Say that we have historically been satisfied with Garib and Garib's way of working with our code of conduct. And to the best of our knowledge, this terrible tragedy was not caused by poor working conditions or safety measures.
Persson nods, finally reaching for his now cold coffee, release it. This is going to shine a spotlight on the industry and not in the no such thing as bad press way. But the tragedy shines a lighter and an aspect of fast fashion that many consumers don't consider. Who's actually making the clothes they buy so cheaply?
These clothes are cheap because garment workers in Asia are paid very little with few legal protections. The fashion industry employs one-sixth of the world's population. But only a dismal 2% of workers make a living wage. In Bangladesh, wages in the apparel industry are estimated to provide workers with only 14% of a living wage.. Comparatively, garment workers in the United States make 38 times this amount. And coupled with the vast environmental effects of the highly pollutive nature of textile making, well, one wouldn't call the fast fashion industry a model global citizen.
As people learn about the environmental impacts and the horrible working conditions, their attitudes towards these companies are changing. And companies like H&M know they need to do serious damage control or risk losing everything they've built. But the timing for any push to increase wages or prices to offset the environmental and social toll couldn't be worse. 2008. It's two years earlier and the world is reeling from the Great Recession.
It's the most severe economic downturn since the Great Depression. Millions of people lose their jobs and those who haven't yet are watching their spending carefully. But when times are tough, customers don't stop shopping. They're just more budget conscious. And that helps keep these fast fashion houses in business. For out-of-work people preparing for job interviews, you can't beat a $25 for-ever 21 blazer. But things behind the scenes at Forever 21 are not so rosy.
April 2009, Forever 21 headquarters in Los Angeles. Inside the multi-story glass building with lush greenery and decorative hedges, at odds with the otherwise industrial feel, Du Wan Chang and Jin Su Chang sit with their attorney, Bruce Brunda. They are being sued and the atmosphere is tense.
As you know, the Travada case goes to trial next month. I know you're used to settling these matters out of court. For what they're accusing you of is a bit more complex than standard copyright infringement. The Changs seem unconcerned.
I don't understand what makes their claims so different. Travada, another California-based fashion company, has accused Forever 21 of copying seven designs from their spring 2006 collection. They're coming after you for violating trade dress laws, meaning you copied unique details, one placement, decorative stitching, that sort of thing.
Brunda places a photograph in front of the Changs, showing three pairs of near identical looking garments, the original Travada designs on the bottom, and the alleged Forever 21 knockoffs on the top. There's a polo shirt with black red and yellow stripes, a brown and white stripe cartigan with mismatched buttons, and a ruffled white blouse.
Jin Suq scoffs. Even at the cap, old Navy and those stores, they sell local likes. It's available everywhere. Stripes. They're always similar. That's true, and that's why I think you have a strong chance of winning this case. Trade dress violations are notoriously difficult to prove. We trust our vendors to manufacture our products. We didn't review these stripes because we didn't think they'd cause any problems.
Yeah, you need a telescope or at least binoculars to see the features they're saying were copied but, you know, I still think you need to prepare to settle out of court if it comes to it.
The Changs are no strangers to copyright accusations. In recent years, they've settled filings against them by Gwen Stefani, designer Anna Sweene, and major brands Anthropology and BB, among others, for undisclosed amounts. But the Travada lawsuit marks the first time one of these cases will be heard by a jury.
May 21st, 2009, US District Court in Santa Ana, California. Jens Su has been called as a witness in the Travada trial. She sits on the witness stand in the courtroom.
Travada's lawyer questions her. Mrs. Chang, who are the officers of your company who have product oversight? I do not know.
Travada的律师向她发问:“张女士,贵公司的哪些官员负责产品监督?”我不知道。
You don't know the officers at your own company? Only my husband. Surely you must be aware of your company's financial statements and how much money you made last year.
你不认识你自己公司的官员吗?只有我丈夫认识。你肯定知道你公司的财务报表以及去年赚了多少钱吧。
I don't know. Would you be surprised to hear forever 21's sales exceeded $1.5 billion?
你会不会惊讶地听到Forever 21的销售额超过了15亿美元?我不知道。
Yes, it's surprising. I didn't know. So you don't know who runs your company or how much it makes. What do you know, Mrs. Chang?
是的,这令人惊讶。我不知道。那您不知道谁经营您的公司,还有它赚了多少钱。张女士,您知道什么呢?
I am head buyer. I oversee a team who selects what to buy from vendors. We simply trust the vendors and they manufacture the garment for us. We get the samples and we choose pretty ones.
The court battle results in a hung jury with one holdout siding with Forever 21. A mistrial is declared and before a new trial date can be set, the two brands settle out of court for an undisclosed sum. Most customers couldn't care less.
In 2010, haul videos are popping up on YouTube and are even profiled by Good Morning America. All videos feature people showing off items they've recently purchased from a brand, often detailing their opinion of the items as well as the cost.
In one video, two young girls, one brunette and one blonde, face the camera in a bright pink bedroom. Hey everyone, so we just got back from Forever 21 and we're going to do a haul video. Yes, we actually had an interview today and we went to Forever 21 with Good Morning America and they're actually here in my bedroom right now filming us doing this video.
So they're going to put it on their show. So then I got a kind of formal outfit too and I think the reason I got this was because one of the girls was wearing it when I went in there. This 2010 video by Tennessee Sisters L and Blair Fowler has over 2 million views.
The two have monetized their YouTube business, turning it into such a success that the budget priced clothes featured in their videos often sell out nearly immediately. In some brands including JC Penny and American Eagle, start paying vloggers with gift cards in exchange for haul videos featuring their merchandise.
But the dark side of haul videos is that they're highlighting one of the biggest problems with fast fashion. Many consumers see these low-cost clothes as disposable after a few wears and that has created a PR problem for the industry as alarm about climate change and the environment grows.
H&M decides to get in front of its image problem. March 25th, 2010, an H&M store in Manhattan. Two twenty-something customers enter the store and begin rummaging through racks. One pauses when she spots something new. Do you see these green tags? I've never seen them before. It says H&M Garden Collection made with sustainable fibers.
The woman holds up a sheer floral dress with ruffles. And this is still only $30? I thought sustainable clothes cost more. Her friend reads the tag. It's made from organic cotton and linen, recycled polyester. This is super cool. It definitely makes me feel better about shopping here. The women grab more items of green tags before heading for the fitting room line.
While other brands have offered organic cotton clothing before, that typically comes with an added cost. By incorporating these materials into their usual price point, H&M is breaking new ground. Textile making has long been one of the most polluting industries worldwide, a problem exacerbated by fast fashion brands. But now H&M is trying to hold on to existing customers, accustomed to their low prices, while also pivoting to using better materials. Time will tell whether they can have their cake and eat it too. In 2010, H&M uses 15,000 tons of organic cotton, a 77% increase from the year before.
And their garden collection appeals to consumers who are becoming more aware of the environmental impact of their clothing purchases. But the company's efforts to appear altruistic will soon take a hit. April 24, 2013. It's 5 a.m. in Sweden and Helena Helmerson's phone is ringing. Gragie, she fumbles for the phone in the nightstand.
Hello? Carl Johan Persson, her boss, is on the line. There's been an accident, a factory collapse in Sava, Rana Plaza. Helmerson drops her head into her hands. Sava is a suburb of Dhaka, the capital of Bangladesh. How bad is it? Over a thousand dead, thousands more injured. They're calling it the deadliest structural failure accident in modern history. Oh, those poor people. Do we have business there? Miraculously no. I've been reassured that no H&M products will be found in the wreckage. But, well, you know how it is. These supply chains are so complicated, even if we didn't work directly with the factory where the biggest exporter of clothing from Bangladesh, I think we need to respond. This is fine to get everyone talking about labor conditions in Bangladesh. We're an industry leader in sustainability, but the media they're going to conflate this accident with our brand.
Other companies are directly involved. I'm hearing Walmart, the children's place, mango. They should take the brunt of the media storm. There are also rumors that the building's owner built four extra stories that weren't authorized and may have used subpar materials. It's a tragedy on all fronts. But we still have to respond. People will expect answers. And more than that, they'll expect change. She's right.
In the wake of the tragedy, H&M and 42 other clothing companies, including Zara, sign the Accord on Fire and Building Safety in Bangladesh. This legally binding document consists of a five-year plan to ensure a safe working environment, including independent inspections, new health and safety committees, and training programs to empower workers. H&M also promises to pay its 850,000 workers a fair living wage by the year 2018.
Workers in Bangladesh earn on average the equivalent of $87 USD per month, which falls below the world poverty line. H&M would need to triple their salaries to achieve a living wage. The company fails to keep its promise. By 2018, independent studies reveal that despite Hilmers inclaiming they've achieved all of their sustainability goals, Bangladesh workers are still living below the poverty line.
And, there's a new player on the scene. An online only brand targeted at teenagers. It is somehow faster and cheaper than any fast fashion brand yet. Meet Jill Evans. Jill's got it all. A big house, fast car, two kids in a great career. But Jill has a problem. When it comes to love, Jill can never seem to get things right. And then along comes Dean. I can't believe my look. Whoa, I hit the jackpot. It looks like they're going to live happily ever after. But on Halloween night, things get a little gruesome. This is where the shooting happened outside a building society in New Romney. It's thought the 42-year-old victim was killed after he opened fire on police. And Jill's life is changed forever.
From Wondery and Novel comes Stolen Hearts. A story about a cop who falls in love with a man who is not all he seems to be. Stolen Hearts, wherever you get your podcasts, you could binge the entire series, add free, on Amazon Music. Download the Amazon Music app now.
2014 Madrid, Spain. Graciella Martín manages a large Zara store in the city center. She looks on as nine of her employees take inventory. Her waving pistol-shaped devices towards racks of clothing, a chorus of near-constant beeps sounds as they make their way through dozens of skirts, dresses, and tops.
Martín answers the phone. Zara Madrid. Pablo Isla, the chairman of Zara's parent corporation, is on the line. It's not uncommon for him to personally check up on the brand's biggest stores.
I wanted to see how inventories going with the new RFID chips. RFID stands for Radio Frequency Identification. These chips store information about an item and when prompted, send that data via radio signals to a scanner. It's been amazing. Last time it took 40 of us five hours. Today, 10 of us did the same amount of work in half that time. It's a world of difference from having to scan each barcode individually. I'm seeing the info here at headquarters in real time. And since this process is so much easier now, we can do inventory. So much more often than we used to. I'm thinking every six weeks instead of every six months.
So the chips tell us what's selling well and what's not, right?
那么,这些芯片告诉我们什么商品卖得好,什么不卖得好,对吧?
Exactly. It's been great for us with the customers, too. If someone can't find a certain size, we just scan a similar item and we can see where it's available nearby. Or if it's available online.
Zara's been experimenting with this technology for the last seven years. And they landed on putting the chips into the security tags. A move that's let them reuse the chips when the security tag is removed.
I'm glad to hear it's working. And we've also been getting the restock so much faster. Whenever we sell out of something, the data from the chips orders more automatically. Isla knows it's not only making things easier for the employees, but it will also set Zara apart. It will be one of the first companies to use this technology in more than 2,000 of its stores. And it will pay off in a big way. H&M is still the market leader by about $500 million. But Zara's gaining on them. Thanks in part to this technology.
But while Zara is focused on streamlining its processes, forever 21 is doubling down on the appeal of cheap prices. May 3rd, 2014. The Azalea Shopping Center near downtown Los Angeles. It's the grand opening of a new store concept called F-21 Red. The 18,000 square foot store located in a densely populated working class neighborhood. Most prices even cheaper than that of a regular forever 21, including camisoles for less than $2 and denim for under $8.
Duan Chong stands behind a podium. A large ribbon is set up behind him, ready to be cut after his remarks to the press.
段冲站在一个讲台后面。一个大的丝带被摆在他的后面,准备在他向媒体发表讲话后剪断。
We are very pleased to unveil the first F-21 Red store in the Azalea Shopping Center. With F-21, we are able to deliver greater quantities of the styles our customers seek while maintaining the value with entry-level category price points for every 21 is known for offering.
The store quickly becomes popular and the company opens more F-21 Red locations in New York and Minnesota. Things are about to change dramatically. Zara, forever 21, H&M and Topshop are known for fast and cheap, but their newest competitor is about to take those ideas into the stratosphere..
An environmental concerns are not on their to-do list.
他们的待办清单上没有环保问题。
2014, Nanjong, China 30-year-old Chris Shoe is in his office speaking to a potential investor. Two years ago, the American-born Shoe gave up a business selling wedding dresses online to customers in multiple countries and purchased a web domain. Sheinside.com. Since then, he has been using the site to sell ultra cheap women's clothing to a young audience. College students love the prices, which are literally half bad of similar items at Zara or H&M.
But so far, it's been a small operation with only about 100 employees. They have zero brick and mortar stores, no in-house design team, and no cell phones supply chain. Instead, they buy all of their inventory from wholesale stores in China and sell directly to customers online.
Shoe leans forward as he gets into the meat of his pitch to the investor. He's ready to take this business model to the next level. The man is soaring, but I think we can do even better, so my plan is to hire designers. And we're going to move our operations center from Guangzhou to Pangyu where the factories are located. We'll have all of our facilities in close proximity. Research and development, logistics, manufacturing, even customer service.
The investor nods. A similar to what Zara does in Acaruña. Their headquarters are right next to the manufacturing operations. Yes, although we have an advantage over Zara, we don't have any brick and mortar stores draining funds. We'll conquer the European and American markets by selling merchandise produced in China directly to the public. No intermediaries.
Hmm. That's all very interesting, but I'll admit I'm confused by your background. You have no experience managing supply chain operations. Are you even interested in women's clothing? Shoe is unruffled. My expertise lies in marketing and search engine optimization. That's how I started my career. Working for a company in Nanjing. My company has grown popular because of our online presence. We are at the forefront of social media marketing. We were already advertising on Instagram and Pinterest in 2012, when other brands barely knew those sites existed.
But what is a brand's identity? What's the aesthetic? When I see Zara or H&M, I understand what those clothes will look like. They're knockoffs of European high-end fashion and runway copycats. That's sort of thing. We are not trying to create our own aesthetic. We're simply selling popular trends to customers as fast as possible. That's what customers want. They can buy an entire outfit, including shoes and accessories for under $30. No one can compete with that.
In 2015, Shoe renames his company simply Shien. A year later, revenue soars to $617 million. But by 2017, they exceed $1.5 billion. The website features an enormous amount of inventory. All produced in small batches of 100 to 500 pieces, reducing risk in case items don't sell well.
Shoe builds a team of 800 designers and prototypers and hones the supply chain, which consists of many small to mid-sized factories. And because they ship small value packages directly from Chinese warehouses to customers, they're able to get around paying a lot of import and export taxes. Something retailers with many brick and mortar stores can't avoid.
By 2017, Shien is gaining popularity in the United States, even beginning to appear on daytime talk shows like The Real.
到了2017年,Shien在美国变得越来越受欢迎,甚至开始出现在白天的脱口秀节目《真人秀》上。
Everything you see here today is from She-In dot com in style expert Sheila. Are they here to tell us all about it? She's so excited to be here. It's time to start stocking up on this summer's Must Have Fashions. And I heard that Shien is the ultimate one-stop shop for the modern fashionista who wants to be the first to rock the latest styles. Totally. Whatever the latest fashion trend is, She-In dot com is going to be sure to have it. And it's free shipping. They ship to over 80 countries. Oh wow. No minimum required you guys. Oh wow.
By the end of the 2010s, Shien, along with fellow ultra-fast fashion brands Aso's and Boo-Hoo, have cemented themselves as a legitimate threat to the brands that dominated the last decade. And experts start predicting that legacy players like H&M, Zara, Forever 21 and Topshop will be crushed by what they call Fast Fashion 2.0.
But these brands aren't going to take that lying down. In our next episode, Shien continues to make moves while H&M and Forever 21 fall upon hard times. And the bell tolls for Philip Green of Topshop when unsavory accusations against him turn the public against the company.
Stay prime members, you can binge every episode of Business Wars, Add Free on Amazon Music. Download the Amazon Music app today. Or you can listen Add Free with Wondery Plus in Apple Podcasts..
From Wondery, this is episode three of Fast Fashion for Business Wars. A quick note about recreations you've been hearing in most cases we can't know exactly what was said at the time, those scenes are dramatizations, but they're based on historical research.
I'm your host David Brown. Aaron Conley wrote this story, voice acting by Michelle Philippi, Jennifer Sunbell, Will Choi, and Stephen Foo. Karen Lo is our senior producer and editor, edited and produced by Emily Frost, sound designed by Kyle Randall. Our associate producer is Kate Young. Our producer is Dave Schellen.
大家好,我是您的主持人 David Brown。这个故事是由 Aaron Conley 编写的,声音演员包括 Michelle Philippi、Jennifer Sunbell、Will Choi 和 Stephen Foo。我们的高级制片人和编辑是 Karen Lo,编审和制作人员是 Emily Frost,声音设计是 Kyle Randall。我们的副制片人是 Kate Young,制片人是 Dave Schellen。
Our executive producers are Jenny Lauer Beckman and Marshall Lui, created by Ernan Lopez. We're Wondery.