If you’re like many college students, there’s a good chance that you own at least one item from the popular retailer, American Apparel. Despite the less-than-cheap cost of an American Apparel solid, unisex hoodie, these zip-ups seem to be the hallmark of today’s hippest. Whether you’ve splurged on a deep-V from American Apparel or not, you probably don’t know just what goes into making this trendy-yet-comfy garb. Today’s “Hidden Cost” video highlights the inner costs and values of American Apparel as a manufacturing and retailing titan.
Known mostly for scantily clad models, hip clothing, and some eyebrow-raising prices, the truth is that there’s much more to American Apparel that meets the eye. Efforts that may seem eco-conscious and forward-thinking may also have hidden detriments to public safety, health, and the environment.
Check out the following video and get an inside look at employee health, environmental impacts, and economic value of this ultra-hip clothing company – some of the true costs just might surprise you.
- Video Transcript
- Health: B-
- Locally: (A)
- American Apparel offers a full workout line of clothing, inspiring the fashion-conscience to get fit. Also, American Apparel clothing pieces are typically made from a majority of cotton – a breathable, hypoallergenic, insulating material which is can be worn for comfort year around.
- Globally: (C-)
- American Apparel employees are offered health care, paid time off, and reasonable wages – an impressive package for seamstresses. Even overseas employees in China make the US federal minimum wage. However, the company is plagued with rumors and lawsuits about discrimination based on appearance and sexual harassment.
- Environment: B+
- Locally: (B)
- American Apparel offers a range of organic-made products, including t-shirts, which are made without material not grown with harmful fertilizers. However, organic-clothing isn’t exclusively sold at American Apparel, so eco-conscience shoppers must choose carefully.
- Globally: (A-)
- By using the maximum amount of each cut of material, American Apparel saves one million pounds of cotton per year and any unused material is recycled. The also offers a bike lending program for employees to save on CO2 emissions and they installed a solar system on their manufacturing plant in LA which powers 30% of operations.
- Economic: C+
- Locally: (B)
- For relatively durable clothing, American Apparel keeps it’s prices reasonable compared to other logo-painted clothing. T-shirts start around $15 and hoodies at $45. As long as one doesn’t go too crazy – shopping at American Apparel won’t break the bank.
- Globally: (C)
- American Apparel employs over 10,000 people in manufacturing, corporate and over 250 retail stores in 20 different countries. After experiencing years of triple digit percentile growth for years, American Apparel struggled along with the rest of the economy during the downturn. In 2011, the company experienced $533 million in revenue loss and hinted at bankruptcy until investors managed to come up with $15 million.
- Final Grade: B-