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Industry Book Review

Under The Banyan Tree: Buyers and Suppliers in Fashion
Author: John S. Thorbeck, Chainge Capital / Reviewer: Dave Gardner, The Needle’s Eye
Fashion is often seen as a major contributor to environmental issues, with unsold garments adding to the waste. Apparel manufacturers express a shared challenge, noting that “we can’t act green when we’re in the red.” This highlights the urgent need for a common understanding of how business innovation can lead to meaningful, productive, and profitable transformation—an aim this report seeks to support. on is often seen as a major contributor to environmental issues, with unsold garments adding to the waste. Apparel manufacturers express a shared challenge, noting that “we can’t act green when we’re in the red.” This highlights the urgent need for a common understanding of how business innovation can lead to meaningful, productive, and profitable transformation—an aim this report seeks to support.
Under the Banyan Tree is designed and commissioned as a catalyst to articulate an alternative approach to the over-reliance on lowest-cost global sourcing. Under the Banyan Tree takes an ambitious stance, calling for substantial, transformative changes to create real value across the industry. The focus is on the business model itself, not operational improvement. It is an agenda aligned with the UN’s Sustainability Development Goals for 2030. As one leading analyst puts it, “Everything is becoming commoditized and uber-competitive. Supply chain evolution is the only way out.” Shared Risk/RewardIs there a more equitable distribution of risk and reward between brands/retailers and manufacturers? This groundbreaking report introduces a “Shared Risk/Reward” approach to generating economic value through process and data innovation. By focusing on fashion-related risks and capital while boosting supply chain flexibility, this model aims to enhance social, environmental, and business outcomes across every level of the supply chain.
All of the strategic elements above underscore results of this study to encourage language for change beyond gradualism, incrementalism, and measureism. The intent is to document the magnitude of financial and human opportunity to be achieved by process innovation, new data applications and a new generation of fashion leaders.
The Shared Risk/Reward model offers an economic approach that fairly distributes financial rewards across the supply chain, creating a win-win for both buyers and suppliers. Manufacturers, alongside brands and retailers, are in position to lead initiatives that drive significant value from supply chain operations, strengthen the foundation for better purchasing practices, and move the fashion industry out of the “red” and into the “green.” By focusing on fashion risk and capital and enhancing supply chain flexibility, this business model improves social, environmental, and business outcomes in all tiers of the supply chain. Under the Banyan Tree presents six real-world case studies across product and market segments and their impacts. It emphasizes the link between sustainability and financial productivity with the key insight: “Over-production is the obstacle to greater capital investment for sustainability.”
Banyan is a Portuguese word for the Bodhi Tree, under which Buddha attained enlightenment. The banyan symbolizes Asia’s spirituality and its entrepreneurialism. In its shade is a gathering place of village learning and where merchants conduct business.
IAF and ITGThe International Apparel Federation (IAF) and the International Trade Centre (ITC) see apparel manufacturers as key players in leading value-generating initiatives. These efforts, based on upstream practices and metrics, could drive a more sustainable future for fashion. Both IAF and ITC are fully committed to supporting the fashion industry’s shift toward greater sustainability and prosperity. They envision a new, holistic approach that balances economic value with meaningful social impact. IAF and ITC believe that apparel manufacturers are uniquely positioned to lead initiatives to generate significant value from upstream operations, practices, and metrics that accelerate a more sustainable future for fashion.
John S. Thorbeck is Chairman of Chainge Capital LLC, a firm focused on fashion industry transformation. In collaboration with Warren H. Hausman, professor emeritus at Stanford University, John has created analytics to measure market and social value, process + data tools known as Lead Time Optimization (LTO), and case studies on organizational and cultural change. John is a former CEO of GH Bass & Co (PVH), and Rockport (Adidas), and marketing executive for Timberland Co and Nike. John received an MBA at Harvard Business School.
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