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AEPC urges brands not to cancel orders

The Apparel Export Promotion Council (AEPC), which represents the interests of the garment industry in India, has sent a letter to main operators in Europe and the United States urging them not to cancel orders in present times, while at the same time opening itself up to seeking flexibility measures.

Besides Primark, several companies have communicated to their investors over the last few days that their adjustment plans to deal with the pandemic include adjusting their purchases. British group Superdry, for example, will introduce "potential changes in the timing and structure of stock purchases for the next collection". In early March, the United Nations (UN) made a first approach to the impact of the pandemic on the fashion industry worldwide. The organization estimated losses in the textile and apparel industry at $1.5 billion, mainly due to a lack of raw materials.

The UN indicated that the most affected market will be Europe, with losses of $538 million; Vietnam, with $207 million; Turkey, with $164.2 million; Hong Kong, with $107 million; Taiwan, with $102 million, and the United States, with estimated losses of $80 million.

The entity chaired by António Guterres did not, however, contemplate order cancellation that is already taking place: in recent weeks, 490 factories in Bangladesh, one of the world's largest hubs, had received order cancellations with an impact of US$1.44 billion on the country's exports.

The impact of the cancellations is not limited to Asian markets, but also extends to nearby sourcing. In Turkey, where large groups have displaced their production with the stoppage of China, order cancellations are beginning to be registered, a situation that is repeated in Morocco.

 
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