Bangladesh, a major producer of clothing worldwide, is dealing with internal unrest that could destabilize the global fashion market. Curfews and internet outages have resulted from recent protests against the government’s job quota system, which ultimately led to the resignation of the dictatorial prime minister of the nation. The garment industry, a crucial part of Bangladesh’s economy, might suffer losses worth billions of dollars as a result of these disruptions.
Numerous foreign customers have reportedly canceled orders or requested reimbursement, according to the Bangladesh Business Post. Some purchasers are demanding that products be shipped by air rather than the customary marine route. Production has also been delayed by industrial closures, which has increased losses, “the journal said.
Initial estimates indicate that orders valued at over $4 billion may have been lost; in just five days, industry associations reported 800 million dollars in losses to the apparel and textile industries.
The garment business is not the only sector affected economically. According to a July Bloomberg interview with Zaved Akhtar, president of the Foreign Investors’ Chamber of Commerce, “the industry curfews and the internet shutdown are estimated to have a 10 billion dollar impact on the economy, with costs expected to climb further.”
Bangladesh is the second-largest garment exporter in the world after China, and its production issues are having an impact on global supply chains. Reconsidering sourcing tactics is becoming increasingly necessary for many worldwide fashion brands and merchants due to the rising frequency of delayed shipments and unmet orders.
The situation may lead to a change in the way clothing is produced worldwide. Industry analysts predict that businesses will move more quickly to diversify their sourcing away from Bangladesh, which might help nations like Vietnam, India, Cambodia, and Indonesia produce clothing.
Furthermore, the turmoil is intensifying worries about worker welfare in Bangladesh’s million-employee ready-made garment (RMG) industry. Extended disruptions may cause severe job losses and financial difficulties, which could exacerbate societal unrest.
The international fashion business is keeping a careful eye on developments in Bangladesh as the crisis plays out. The incident highlights the weaknesses in global supply networks and can force big-name companies and retailers to reevaluate their sourcing policies.
