Ethical fashion retailers such as Zady have an edge over mainstream labels when it comes to marketing themselves to eco-conscious consumers, says Elizabeth Cline, author of "Overdressed: The Shockingly High Cost of Cheap Fashion." That's because they have a positive message to deliver. "Up until now, ethical clothing's story was it was sweatshop-free or organic," Cline says. "But what was missing was an authentic and feel-good human story about the people who design and make clothes."

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