The International Apparel Federation is expected to decrease apparel sales 50 per cent by 2020 , compared to 27-30 per cent of revenue, and more than 80 per cent of companies are facing financial problems such as bankruptcy. Clothing retailers are trying to get back their feet on e-commerce or other strategies. The brands are already reopening stores in many countries. On the other hand, 65 per cent of consumers are cutting their apparel spending.
Retailers and brands are going forward with their strategies and manufacturers also getting new orders. But apparel manufacturers are the most sufferers because they are facing a significant crunch in liquidity.
To save theirs worker, the Pakistan government issued a concessional loan to partly cover 3-month salaries provided no layoffs moratorium on payment of principal. To prevent bankruptcies Pakistan took the resumption of work under strict SOP’s (standard operating procedure) with partial capacity utilization and extra overheads but without the help of brands’ receivables of payments, it will get tough.
The Re-Set of the supply chain will occur at the end of the pandemic. Fast fashion will go to slow fashion, change in order rhythm, e-commerce will go fast but it will take more time to replace shops, reconsideration of the sourcing strategy and the relationship between buyer and supplier will be re-balanced. Manufacturers around the world are taking a new initiative to get back on track again.
Likewise, RMG companies in Bangladesh reopened their factories and are receiving new orders. The garment sector in Bangladesh follows SOPs to maintain worker health security. In factories daily temperature control, proper sanitization and social distancing are provided.
