Project Description

THE TRUE PRICE OF JEANS

Client

ABN AMRO is the third largest bank in the Netherlands. They have become more and more active in investigating the sustainability of jeans production. In 2019, it conducted a consumer research on the willingness to pay for (sustainable) jeans. The Dutch bank wants to provide the consumer as well as the producer new insights. This includes important questions like: What is the consumer’s opinion on fair and sustainable fashion? And how can producers anticipate on these views?

Project description

For this research, we calculated the true price gap for a pair of jeans, of which the cotton is cultivated and used for denim textile production in India, to be followed by jeans manufacturing in Bangladesh. The Netherlands was hereby considered the final retail point. The total true price gap is composed of five different value chain processes, including cultivation, manufacturing and transport. As usual, our study also included detailed breakdowns of both social and environmental costs. Moreover, we offered concrete interventions for the jeans sector in three key areas. 

Benefits to the client

Our research provided clear insights into how the fashion industry can transition towards more sustainable production. Our detailed breakdown of externalities revealed in which parts of the value chain external costs are the highest. This helps with the identification of priority improvement areas. Our inclusion of concrete interventions further supports the goal of ABN AMRO to make jeans production more sustainable.

The customer was working with the Impact Institute under its former name, True Price

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