Despite recent political upheaval in Bangladesh, including the ousting of Sheikh Hasina's government due to the quota reform movement, several global fashion brands have increased their sourcing from the country.
As per reports by industry insiders, brands from Europe, America, and East Asia have expanded their orders from the country, largely due to proactive efforts by exporters to maintain communication and meet deadlines amid the turmoil. The appointment of Nobel laureate Professor Muhammad Yunus as head of the interim government has reportedly enhanced Bangladesh's international image.
US brands such as US Polo, Gap, and Express are among those that have increased their orders. Korean brand BYC has also started sourcing from Bangladesh. Faruque Hassan, Managing Director, Giant Group, notes,US Polo has become his company's largest buyer, accounting for about 40 per cent of their capacity.
Shovon Islam, Managing Director, Sparrow Groupadds, three US buyers have increased their orders from the group. Theseinclude regular clients like US Polo and Gap, as well as Express, which has ramped up its sourcing following its exit from bankruptcy.
MdSharafatHussainSohail, Masco Group reveals, a top Korean brand has inquired about sourcing from Bangladesh for the first time. His company, which produces around 11 million garments monthly, has not faced significant challenges and is preparing to supply for the next summer season in the EU market.
Many global brands, including G-Star Raw, M&S, H&M, and Inditex, have not imposed penalties for delayed shipments due to recent unrest. For instance, H&M AB has assured its suppliers that it will not seek discounts for delays caused by the factory shutdowns during the protests. Inditex has also confirmed that their business remains stable with no changes in orders or pressure for discounts.
However, Syed Mohammad Tanvir, Managing Director, Pacific Jeans Group, has expressedconcerns over the effect of the political instability on future orders that may potentially lead buyers to shift their sourcing elsewhere.
Certain companies may face order losses due to recent revelations of financial irregularities linked to the ousted regime, notes AK Azad, Managing Director, Hameem Group.
Industry leaders also emphasise challenges such as electricity and gas shortages and congestion at ports and airports. They hope, if the interim government addresses these issues, Bangladesh's apparel industry can expand its global market share.
