The American Apparel and Footwear Association – the industry’s voice for public policy and politics – recently requested that the Federal Trade Commission eliminate labels from clothing. AAFA recommends using QR codes, URLs or other methods, which can be printed directly on the inside of a garment, or chips embedded in fabric. This can give much more information that a tiny tag.
AAFA’s points are:
Waste
According to AAFA if all labels for clothing were lined up in a single year, they would cover the entire moon 12 times. The labels can be eliminated by transferring information electronically. Ricardo Bellini, CEO of luxury brand Chloe, told me earlier this year that “one of the challenges for the future will be to find the equation between reduction of footprint and growth.” Bellini describes finding that balance as the brand’s “quest.”
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The amount of information that’s possible to get on a label is very limited. The icons and print are small because each country has different symbols.
Authentication
In the future, each garment will have a unique electronic tag. The tags will then be able to verify that the product in question is genuine and will open up new opportunities for businesses that are looking to resell products.
Comfort
Labels that are scratchy can be annoying.
The sustainability of a garment’s production can also be included in detail so consumers can make more informed choices about their purchases.
AAFA’s uses the video below to make its points.
Stephen Lamar is the President and CEO of AAFA. He believes that electronic labels will reach a tipping point when more countries demand them. Because the same products are produced for sale in many countries, if only the U.S. innovates the changes, then labels can’t be eliminated.
Lamar says that consumers often cut off the labels because they’re scratchy or annoying and that defeats the purpose of having them.
AAFA’s letter was signed by 130 organizations in the U.S. and abroad. He believes electronic labels will be inevitable, and that no one is opposing them. “It’s a game changer in terms of accessibility, comfort and sustainability,” he told me.
Over time manufacturers can add more information to the garments or products. This includes brand information, provenance, when and where they were sold. This will change the resale industry fundamentally by eliminating fraud risks and reducing authentication costs. Lamar believes that the change is inevitable.
At the Sourcing Journal Sustainability Summit earlier this year, James Reinheart, CEO of clothing reseller ThredUp, said resale “needs more support from government,” and for brands, resale is “the path to relevance” to their consumers.
Buddy Teaster, CEO and President of Soles4Souls at the Sourcing Journal, stressed how important resale is to consumers. “Customers care, employees care, people want to know something good is being done in the organization and telling a story around that is important.”
Using an electronic label that leads to information is a great way to tell the brand’s story and facilitate authentication and resale with a lot less work and cost.
Lamar was unable to say when the changes would take place. The government moves at the pace of government and this will involve many countries. But the argument is compelling and there’s no major opposition to the change. It’s hard to tell when the changes will happen, but their direction is clear.