H&M, Uniqlo, and Zara may experience delays in receiving their new clothing collections because of the current political turmoil in Bangladesh.
These fashion retailers, among many others, rely on the garment factories in the country, which have been shut down indefinitely during the protests, as reported by Reuters.
Following the resignation and departure of Bangladesh Prime Minister Sheikh Hasina on Monday (5 August) after nearly 300 people were killed in a crackdown on protests demanding her removal, the situation has become volatile.
As of last year, Bangladesh ranked as the world’s third-largest exporter of clothing after China and the European Union, according to the World Trade Organization.
H&M expressed concerns about the situation in Bangladesh, where it sources clothing from approximately 10,000 factories.
Zara has 12 manufacturing clusters, with 98% of its production centered in 2022 – Bangladesh being one of them. Fast Retailing, the owner of Uniqlo, sources from around 29 factories in Bangladesh.
This setback adds to the disruptions seen in the fashion supply chain due to the ongoing conflict in the Red Sea region.
H&M had to delay some of its spring/summer campaigns due to shipping delays and is intensifying efforts to move production closer and requesting early shipment from suppliers to reduce disruptions.
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