Retailers are betting on Bangladesh’s garment industry more than that of any other country for the coming years show recent studies. Despite the recent deadly factory accidents that have put their reputations at risk.According to a new study by McKinsey & Co, Wall Street Journal, Bangladesh’s $20billion garment business came out ahead of smaller rivalsVietnam and Cambodia in the ranking of countries with the highest potential for future sourcing.
Research showed that production capacity and price appeared to trump safety and labour issues when it came to choosing where to source clothes. Bangladesh has suffered more industrial disasters than any other garment-producing country but its low minimum wage and high number of garment factories has made it a magnet for global retailers, according to the report.
Retailers including H&M, Wal-Mart, Gap and Zara parent Inditex SA are grappling with how the public perceives their role in Bangladesh. Labour unions have pointed fingers at retailers for turning a blind eye to safety violations in factories. The companies have formed safety pacts aimed at improving working conditions which also help improve their image.