How discounters make it possible to buy clothes dirt cheap

Hamburg - There are stores that sell T-shirts for 1.99 euros, dresses for 7.99 euros and matching ballerinas and bags for similarly low prices - a complete outfit for less than 20 or 30 euros. 

This is possible thanks to textile discounters that have had great success in the marketplace. But what is the real cost of clothing that's available for such little money? Recently, for example, the textile discounter KiK was criticized for paying "dumping" wages and was dragged into court over its employment contracts. 

Consumers generally are asking themselves how cheap an article of clothing can be without the use of child labour in Asia or without material that has been treated with poisonous substances. But the truth is far from that because cheap clothing doesn't have to be bad, according to experts. 

"Cheap clothing manufacturers are not necessarily the ones that produce their wares under poor working conditions and without meeting environmental standards," said Jana Kern of a Frankfurt-based trade magazine. Top labels also appear in the headlines when it is revealed that they have exploited their employees. 

"For the customers there is hardly a possibility to discern the conditions under which the goods were produced," said Kern. 

Many discounters are aware of their responsibilities. They have established their own standards or join standard-setting initiatives. German discounter Takko, for example, is a member of an association of finished goods importers and has established a code of conduct - a regulator for upholding and improving social standards. 

The code bans child and forced labour, but it doesn't want to speak out on how the company can offer clothing at such low prices "because of the current discussion in the media." 

Kern said many companies, however, are going on the offensive, citing the Business Social Compliance Initiative, an organization that includes more than 100 German companies such as food retailers and discount drug stores. 

"The price is achieved mostly by the huge volume," said Heijo Gassenmeier, deputy director of the association of German textile merchants in Cologne. In addition clothing patterns have been extremely standardized. The garments are less intricate and have fewer seams. Then there is the quality of the material. 

"Often the clothing is made of inexpensive mixture," said Gassenmeier. The finest yarns and best cotton are not used; discounters are satisfied with a particular degree of fashion. Months of work on a collection is not included in the discount price. 

Discounters don't like to hear that. The Takko chain's advertising slogan uses the words fashionable, trendy and chic to describe its clothes. Others, such as the Ernsting's family, consider themselves fashion advisers. KiK on the other hand focuses on price, using a slogan that refers to "clever buying" at KiK. 

Every customer should be able to completely dress themselves "from socks to cap" for under 30 euros, according to KiK's principles. 

Discounters achieve savings not just through design. 

"The entire textile pipeline is very tightly organized. The companies are logistically perfectly arranged and the affiliates are centrally managed," said Gassenmeier. Price tags often are added to the garments in the country where they were produced. 

And the employees who unpack the garments are usually not textile workers, rather sales personnel. 

"There's no secret about that," said Gassenmeier. Many chains also have a standard store configuration, making it easier for employees to unpack, sort and stock the garments. And it saves the company money. 

The items are not worse than higher priced clothing, according to the experts. And instead, the consumer gets something to wear - nothing more, nothing less. (dpa)

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