Amid the ongoing political crisis in Bangladesh, global apparel brand H&M said on Wednesday that it is continuously monitoring the developments in Dhaka, and will not seek any delay-related discounts from the suppliers based in the country.
“According to the latest information, most of the factories are gradually opening up again, and safety remains a priority. We have told our suppliers that we will not seek any discount due to delays that might happen under the current circumstances. We continue assessing the situation daily,” a company spokesperson said.
Bangladesh and China are the prime hubs for producing clothing for H&M.
“We are maintaining a close dialogue with our business partners and other stakeholders, and we welcome the steps taken for greater stability in the country,” the spokesperson added.
According to the Confederation of Indian Textile Industry (CITI), several major global brands that rely on Bangladesh for their sourcing needs will be affected. Brands with significant portions of their supply chains rooted in Bangladesh may experience delays and a decrease in the availability of their products. This, in turn, could lead to a ripple effect across the global retail market, hitting inventory levels and sales.
Inditex, which owns brands like Zara and Bershka, has significant manufacturing clusters in the country. According to its 2023 annual report, the group had 150 suppliers with purchases in the year, with 273 sewing factories associated with purchases, and a total workforce of 965,797 associated manufacturers.
