{"id":11454,"date":"2023-06-23T19:13:43","date_gmt":"2023-06-23T17:13:43","guid":{"rendered":"https:\/\/moov360.com\/the-price-from-every-angle\/"},"modified":"2023-12-08T11:32:19","modified_gmt":"2023-12-08T10:32:19","slug":"the-price-from-every-angle","status":"publish","type":"post","link":"https:\/\/wp.moov360.com\/en\/the-price-from-every-angle\/","title":{"rendered":"The price from every angle"},"content":{"rendered":"\t\t
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No one will deny it : price is a key factor in the decision to buy a garment.<\/p>\n

And the lower it is, the greater the temptation…<\/p>\n

But what’s the right price for our clothes? And what’s behind 2 t-shirts, one priced at \u20ac10 or less, the other at over \u20ac40?<\/p>\n


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Wages crushed<\/strong><\/p>\n


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While the quality of the raw material is important, we all know that : it’s the cost of labor that explains a large part of the price differences that appear on labels.<\/p>\n

As Tristan Gaudiaut(Statista)<\/a> reports, in many developing countries, garmentindustry<\/a> workers have to endure difficult working conditions for very low wages, which often don’t even allow them to meet their basic needs.<\/p>\n

The lowest wages are to be found in Asia and Africa, notably in Ethiopia, which is currently experiencing the fastest economic growth on the African continent and where, to attract foreign investors, the government has introduced the lowest minimum wage of all garment-producing countries: just $26 per month, or around \u20ac23. In Madagascar, monthly wages are a little higher but remain extremely low (\u20ac48), compared with \u20ac83 in Bangladesh and \u20ac85 in Pakistan. China, the world’s largest clothing exporter, has set a minimum monthly wage of \u20ac200 for this sector for 2019. In Turkey the same year, garment workers received a minimum monthly wage of just over 300 euros.<\/p>\n

If we take into account the standard of living in the various countries concerned, these basic salaries can be two to seven times lower than the national average.<\/p>\n


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Price components<\/strong><\/p>\n


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In the end, these wages represent only a tiny fraction of what consumers pay in store. On the price of a T-shirt produced in Bangladesh and purchased from a ready-to-wear distributor in Europe, the costs generated by the retail trade (store profit, staff, rent and VAT) account for almost 60 % of the total. After that, the largest shares go to brand profit and material costs (12 % each). This is followed by the cost of transport (8 %), and the cost of the garment factory’s profit and expenses (5 %). In the end, local workers’ wages represent just 0.6 % of the cost of the finished product, or barely 20 euro cents for a garment sold for \u20ac29 in Europe.<\/p>\n

According to Hom\u00e8re (the men’s ethical & sustainable fashion blog), if a \u20ac10 t-shirt can exist, it’s thanks to :<\/p>\n