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Bangladesh: Despite rising input costs buyers unwilling to pay higher price

Bangladesh garment suppliers are being driven down pricewise by apparel brands and retailers. While unit price is going down by the season, prices of all materials and operation costs are going up.

Buyers raise the question of sustainability but don’t necessarily pay more for sustainably produced products. Some small brands do but not always the bigger ones. In a big company the ones dealing with CSR issues are not the ones placing orders. The ones placing orders don’t really care much as it is not their responsibility. So in larger brands, the left arm does not always know what the right arm is doing. So there is talk of sustainability but not about implementation costs.

The relationship between suppliers and brands is essentially unequal. If ever there were a buyers’ market, this is it. So manufacturer may be asked to change the styling, add trims or change the wash method of a garment but the buying team never wants to pay for these changes. Bangladesh is the world’s second largest garment exporter. If the country is to escape the race to the bottom it needs more specialisation, more added value, and more innovation which will lead to greater bargaining power with brands.

 
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