Where does the money from your t-shirt purchase go? 80% stays in Finland

Around 80% of the price paid for a garment in Finland remains in the country regardless of where it was manufactured, according to an estimate by the industry association Textile and Fashion Finland.

The figure accounts for domestic costs such as retail sales, marketing, taxes, and transportation, Yle reports. While fast fashion relies on high production volumes to keep prices low, ethical fashion brands face higher costs due to quality materials and smaller batch sizes.

A recent investigation by Yle revealed that a scarf sold by Finnish brand Bypias for €60 was sourced from an Italian wholesale supplier for just €4.50. Ville Salonen, an expert from Textile and Fashion Finland, noted that while branding can account for roughly 20% of a product’s retail price, comparing wholesale and consumer prices is problematic. The latter includes all additional expenses, such as shipping and taxes, which significantly increase the final cost.

Business overheads—such as physical stores, staff, logistics, and returns—also drive up prices. Fast fashion prioritises rapid turnover and large volumes, often at the expense of sustainability, as unsold stock contributes to waste. In contrast, ethical fashion emphasises durable materials, transparency, and smaller production runs, leading to higher consumer prices.

Finnish-made clothing does not automatically guarantee ethical production, according to the NGO Finnwatch.