This is how it works now, but it doesn’t have to. Look on AliExpress and you’ll see how cheap these clothes actually are. You can buy a decent collared shirt for $5 - $10. And that’s the consumer price, not wholesale. It’s actually incredibly cheap and fast to make clothes.
The producers could cut hours in half and still make good money. Their buyers are marking the items up like 80%. Essentially you are paying for the brand and the rent in the store in the West.