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77 % revenue decline in Bangladeshi apparel, footwear exporter market- Sedex Insights Report

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editA survey named “Sedex Insights Report: Covid-19 impacts on business” reveals that export-driven Bangladeshi clothing and shoe producers have decreased by 77% due to the pandemic effect of COVID-19. The survey of 3,300 buyers and suppliers across 118 countries revealed the worst affected by the pandemic was the garment and footwear sectors. Of the total suppliers surveyed, 469 are from China, India, Bangladesh, and Turkey from the clothing and footwear industries. According to the results, 68 per cent of member countries reported a substantial decrease in their sales, while only 38 to 55 per cent reported helping their customers during the pandemic on average.

Only 10 per cent respondents have seen an increase in or steady revenue, the survey added. Almost, 43 per cent respondents viewed disruption to supply chains and inability to get input of raw materials as the biggest challenged they faced. Reasons for this included delay in raw material delivery, suppliers stopping production, and higher prices of raw materials or transport. On the other hand, 20 per cent respondents have had orders cancelled by customers and 4 per cent experienced delayed payment terms, it showed.
The combination of squeezed output times and poor buying practices puts substantial additional pressure on suppliers and workers and makes poor working conditions more likely.