Global brands promise to the stand by position apparel suppliers
At least 15 international apparel retailers and brands have up to now assured Bangladesh's garment manufacturers that they can accept shipments of products that were previously ordered, in order to help the country's exporters deal with the coronavirus fallout.
The retailers and brands are: H&M, Inditex, PVH, Target, Kiabi, M&S, C&A, Tom Taylor, KappAhl, Benetton, Decathelon, Primark, Puma, Tesco and Kontoor.
They are currently finalising the conditions and conditions of previously submitted work orders.
However, the total size or value of their orders cannot be ascertained.
DBL Group, a respected garment exporter whose biggest buyers include H&M and Puma, has been assured by the two international retailers that they can not cancel work orders located earlier, said DBL's Managing Director MA Jabbar.
"I hope the others of my buyers will contact me next week. We are positive that the buyers will the stand by position us in this critical time," Jabbar told The Daily Star over phone.
Since the coronavirus outbreak began, many western apparel retailers-who have been sourcing products from Bangladesh for decades-sent letters to the neighborhood manufacturers, seeking cancellation of current and upcoming work orders.
For the reason that, amid nationwide lockdowns to curb the spread of the deadly virus, their stores are closed and demand has collapsed.
As well, many retailers and brands stood by garment manufacturers who have been adversely impacted by order cancellations and delayed shipments.
"We welcome their decision to aid us and hope that payment terms will remain unaffected so as to ensure liquidity flow for the factories," said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in a WhatsApp message last week.
Huq issued the response after Swedish retail giant H&M the other day assured apparel suppliers that it could accept orders that have been already manufactured.
"At least six of my long-term buyers contacted me to get the orders," said Mahmud Hasan Khan Babu, managing director of Rising Group, a respected garment exporter.
"I am trying to continue production in the factories, however the situation is not good. Moreover, most Western buyers have already turn off their stores," he said, adding that the buyers' response as of this critical moment is certainly a positive sign.
For example, French buyer Kiabi told Rising Group throughout a video conference the other day that it would take previously placed orders worth practically $14 million.
Rising Group has been supplying knitwear items like T-shirts to Kiabi for a lot more than nine years. The French company purchases practically $120 million worth of garment items from the Bangladeshi manufacturer every year.
Kiabi has been annually sourcing various Bangladeshi garment items worth $700 million for days gone by 20 years, Babu said.
By yesterday, export orders amounting to $3.02 billion have already been cancelled by international retailers, according to data published by the BGMEA.
About 1,104 garment factories have reported a combined lack of 946.90 million units of work orders. This will affect 2.19 million staff in the country.
Hardly any factories were in operation yesterday even in production dense areas like Ashulia, Savar, Gazipur, Chattogram, Tongi, Maona, Narayanganj and Narsingdi.
Garment export fell by 26.70 per cent year-on-year to $1,972.24 million in March this year, according to BGMEA data.
The countries worst hit by coronavirus, such as for example Italy, the UK, the united states, France, Spain and Germany are prime destinations for Bangladeshi garment exports.
The US alone may be the single greatest export destination for Bangladeshi garments, importing about $6 billion worth of apparel items every year.
Germany is close behind with slightly less imports.
Bangladesh exports practically $3 billion worth of garment what to Italy and a lot more than $2.5 billion to Spain and France each year and over $3 billion to the UK.
