H&M has announced the acquisition of garments already made

Sweden-based consumer company H&M has announced the acquisition of garments already completed in the factory. At the same time the world-renowned brand has said that they will pay the cost of these garments as per the contract. Don’t even bid to lower prices.

The office of H&M Dhaka reported the matter on Sunday evening. H&M claims the global coronavirus pandemic has had a negative effect on both the supply chain and the entire organization. H&M discusses business with both sides, as global demand is declining.

When asked, Bangladesh, Pakistan and Ethiopia’s H&M chief Ziaur Rahman said to First Light, “Because of Corona, we’re hearing that many brands and consumer companies are refusing to buy ready-made goods.” However, H&M won’t go that way. We are going to take clothes already made in the factory. At this point, it is necessary to temporarily pause new orders as well as evaluate potential changes on recently placed orders. He added,” We are thinking of giving a new purchase in the next two to three weeks if the situation in Europe improves.”

H&M says it is well aware that in this scenario the vendors and their employees are highly vulnerable. “Given the rapidly evolving situation and the uncertainty that we, the industry and the world face, we want to be consistent and open with our clothing suppliers.” According to the Swedish business, the entire fashion industry is now facing the biggest challenge ever.

“So we use all of our networks so contacts to find approaches that will make the greatest possible impact.” Companies like H&M are playing a crucial role in many developing countries as well as in global retail. The textile industry contributes to economic growth, employment and stability in the countries which produce textiles.

“In this instance, we are intensively researching how we can help countries, communities and individuals from a health and financial perspective. In this first, urgent step, we will concentrate our efforts on countries highly dependent on the textile industry,” added the retailer.

H&M imports approximately $100 million a year from Bangladesh or Tk 25,000 crore. As such, one of Bangladeshi’s biggest buyers of clothes is Sweden. In the last fiscal year Bangladesh exported $4 billion in garments produced.

Every day transactions by the Bangladesh garment factory are canceled and postponed because of Corona. The BGMEA, a supplier of readymade garment owners, said on Sunday the procurement of 1,05 million pieces of garments from 1,220 factories had been cancelled and suspended until 5 pm. Exporting $20 million worth of clothes would be affected.

The BGMEA has estimated that 2 million employees will be affected because of Corona’s cancelation and postponement of the massive procurement. Prime Minister Sheik Hasina has, however, proposed a 5,000 crore incentive package for export companies to pay salaries for workers. Additionally, some departments of government have announced that they would offer certain benefits.