To understand the fashion supply chain, let's take cotton as an example. The journey of cotton from seed to garment is a multi-step and often environmentally damaging process. Back in the 1950s, nearly 100% of the clothes sold in the US were made in the US. Today, only 2% of US clothes are still made in the US. The supply chain of the fashion industry has shifted to a globally interconnected supply mesh.
The top three worldwide producers of cotton are India, China, and the United States. The United States is the number one exporter of cotton, exporting over 70% of its production, which will then reenter the US either as a fabric or as a product. Garment factories are mostly located in China and India, where India has the lowest cost of labor with a monthly average wage of $37 per worker, versus $200 in China.
