A report released by the Copenhagen Fashion Summit today found that it would only cost about €1.35 ($1.50) to double the wages of those producing T-shirts that retail for €25 ($27) each.
Right now, when fashion companies think about the increased cost price of a product, they tend to inflate the price throughout the supply chain, including retail and brand markups, which would increase the price of that t-shirt by €6.75 ($7.40). But the report makes the case that it should be possible to charge the consumer a small $1.50 premium that would be passed on to the worker in its entirety. “That model calls for truly innovative thinking and breaking business practices in place for decades,” the report says. ES