The Decline of Leicester’s Clothing Industry
The city of Leicester was once a thriving hub for the clothing industry, but in recent years, it has faced numerous scandals and challenges that have led to its decline. The industry was marred by dark working conditions and the payment of under minimum wage, earning it the nickname "Dark Fabrics." These issues led to a mass exodus of large brands from the city, resulting in an implosion of production.
The Impact of Scandals on the Industry
After the scandals about "sweatshop" conditions in Leicester, the majority of large brands gave up on the city. This triggered a collapse of the industry, with many factories closing down. The city, which once boasted that it "dressed the world," is now facing an existential crisis. The industry’s decline has been so severe that it has been described as a "crater."
The Threat of Chinese Competition
Leicester is now facing another threat: competition from Chinese companies such as Shein and Temu. These fast fashion brands offer extremely cheap clothing and goods that are produced in Chinese factories and flown directly to British households. The rise of these brands has exacerbated the pain for Leicester’s clothing industry, making it even harder for local manufacturers to compete.
The Consequences of the Decline
The decline of the industry has had severe consequences for the city. Thousands of fashion employees have lost their jobs, and many factories are now empty, their machines collecting dust. The vast majority of high street and online fashion brands that once operated in Leicester have now moved their supply chains to North Africa and South Asia. A new report by the UK Fashion and Textile Association found that an astonishing 95% of clothing companies either produce or source their clothes abroad, with 58% of brands having an explicit policy of not sourcing clothing from the UK.
The Impact on Local Manufacturers
Local manufacturers are feeling the pinch, with many struggling to stay afloat. Tejas Shah, a third-generation manufacturer, said that brands have told him that they would be willing to work with him if he were to move his factory out of Leicester. This has led to a sense of desperation among local manufacturers, who feel that they are being unfairly discriminated against.
The Need for a Level Playing Field
The decline of Leicester’s clothing industry has highlighted the need for a level playing field. The UK’s customs gap, known as "de minimis," allows Chinese companies to import goods into the country without paying tariffs. This has put local manufacturers at a disadvantage, making it harder for them to compete. Satvir Singh, who heads one of the last remaining knitting producers in the city, said that abolishing the de minimis exception would make a big difference and create a fairer playing field for local manufacturers.
