In 2023, the global economic downturn, exacerbated by the trade war, has had widespread ramifications across various industries. The textile sector, which serves as Bangladesh’s primary remittance-earning source, faced significant challenges due to the Russia-Ukraine war and a decrease in orders. Despite recent improvements in order volumes, Bangladesh now grapples with an energy crisis.
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Textile Focus interviewed Waeza Masnoon, the Executive Director of Clifton Group, to gain insights into their business in 2023 and projections for 2024.
Textile Focus: How has your business experienced 2023?
Waeza Masnoon: The economic downturn forced garment proprietors to implement cost-cutting measures for survival. Unrealistically high wage hike demands from workers added to the challenges. Internationally, garments were considered non-essential, leading to the cancellation of orders by overseas buyers. The market observed a shift towards an environmentally conscious circular fashion economy. Political unrest further disrupted transportation, escalating shipment costs and prompting buyers to withdraw from Bangladesh.
Textile Focus: What are your expectations for 2024?
Waeza Masnoon: The post-economic downturn phase is characterized by a resurgence in orders and increased buyer interest in Bangladesh. Simultaneously, there is a rise in wages for the labor force. Consumers are increasingly adopting conscious and ethical fashion practices, resulting in a higher demand for clothing. The industrial landscape is undergoing a notable transformation, with more green factories emerging and companies integrating environmentally friendly and sustainable practices. Moreover, there is a growing emphasis on improving health services accessibility for Ready-Made Garment (RMG) workers.