All is well on the apparel export front
Major Western clothing retailers said they are yet to lessen on their work orders from Bangladesh for the coronavirus outbreak in Europe and the united states -- where the majority of the country's apparel products are headed -- in a reassuring development for the sector that rakes in 84 % of the exports receipts and employs about 4 million.
The Daily Star spoke with the united states managers of four major clothing brands, which are household names under western culture, plus they all said a similar thing: there are no plans to revise down their sourcing targets from Bangladesh.
The four brands' combined sourcing makes up about about 20 % of Bangladesh's receipts from apparel shipments each year.
The disclosure is in stark contrast to the news appearing out of the headquarters of the Bangladesh Garment Manufacturers and Exporters Association, the sector's apex trade body, which is foreboding doom and gloom.
"We are facing a grave situation with coronavirus. The brands are reducing their orders and so are asking us to carry to uncut fabric," BGMEA President Rubana Huq said Thursday.
And the ones who are creating are being asked to carry their shipments as global consumption is coming to a halt, Huq said in a WhatsApp message.
But the retailers the correspondent spoke with yesterday remained buoyant, despite the fact that Europe has now become the epicentre of the novel virus, shifting from China.
"Until now, the company hasn't slashed any work order," said the united states manager of a European retailer asking never to be named as he's not authorised to consult with the media without obtaining the clearance from the headquarters, which is closed for the weekend.
In fact, the business has placed 5 % more work orders in Bangladesh weighed against this past year, he said.
"We think about this country as a crucial place for our business."
If the problem worsens in the EU and the US further, then consumption could be hit hard.
But, given the advent of online shopping, consumers' steering clear of shopping centres or perhaps a lockdown in large parts of the Western world would soften the blow of the virus.
"While our stores currently remain open for business, we recognise you might choose to shop from your home. Our ck.com customer support team is available 7 days of the week, and we've extended our return window for all purchases after February 1, 2020 to 60 days," said Cheryl Abel-Hodges, ceo of Calvin Klein, in a press release yesterday.
Besides, the timing of the spread of the virus is opportune in a way: the stores have started to put out their spring/summer collections, so the country's apparel manufacturers have already shipped out a major chunk of their work orders.
"We've been running our office as normal. We didn't require any work order cancellation in virtually any of the factory until now in Bangladesh," said another official of a multinational clothing retailing company of Europe.
He too requested never to be named as he did not get authorisation from the company headquarters to speak with the media on such matters.
His company is taking strong health insurance and safety measures, so that the staff aren't infected by the coronavirus.
"I hope the situation will improve soon given that the governments in Europe and America have already been stirred into action to support the virus," said the state who sources garment items from practically 250 garment factories in Bangladesh.
At the time of writing, Italy is in lockdown, and the Spain, the next most affected country, is considering following suit, too.
Meanwhile, China, where the virus originated from and the apparel sector's source for 46 per cent of the recycleables, contains the novel virus in order and is on course to restarting production.
"Things are increasing in the supply chain with China," said Kabir Ahmed, president of Bangladesh Freight Forwarders Association (BAFFA).
For example, normally some 550 tonnes of cargoes are unloaded per day at the Hazrat Shahjalal AIRPORT TERMINAL.
However, the quantity declined to almost 250 tonnes a day in February, when coronavirus was at its peak in China.
But, over the last two days, practically 300 tonnes of cargoes have been unloaded a day.
"This means, normalcy has been restored in China," he added.
In fiscal 2018-19, $5.02 billion worth of textiles were earned from China.
"Nobody complained of any disruption in the supply chain as of this moment," said Monsoor Ahmed, secretary to the Bangladesh Textile Mills Association.
The association's members import machinery, cotton, dyes chemicals and other commercial raw materials mainly from China.
Besides, almost all of the international clothing retailers and brands have extended the period of execution of work orders for 14 days as a result of virus, according to Kyaw Sein Thay Dolly, managing director of Cloths "R" US, a garment buying house in Dhaka.
Meanwhile, Hong Kong-based QIMA, a respected provider of supply chain compliance solutions and which partners with brands, retailers and importers to secure, manage and optimise their global supply network, surveyed the executives of more than 200 globally renowned companies between February and early March and discovered that Bangladesh stands to benefit from the fallout of the coronavirus.
The reason being, most of the globally renowned companies are preparing to shift their work orders from China to other Parts of asia, including Bangladesh.
