Home Apparel Impact of coronavirus: Garment exporters voice concerns

Impact of coronavirus: Garment exporters voice concerns

Garment manufacturers yesterday raised their concerns with western retailers and brands as they are cancelling orders and putting them on hold due to a significant drop in sales in western markets for coronavirus pandemic. “Brands have voiced their concern and we voiced ours,” said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, after a meeting with retailers and brands in Dhaka. Executives of nearly 50 retailers and brands attended the meeting, sources said. “In case of cancellations, we will have empty floors and we won’t be able to fulfil our obligations. Thus, we urged them not to cancel. They have asked for some time to get back to us,” Huq told The Daily Star in a WhatsApp message after the meeting. So far, work orders worth $93.06 million in 69 garment factories have been cancelled and put on hold by international retailers and brands, according to Huq. “We (H&M) have already sent letters to the affiliated manufacturers for reducing the work orders due to the coronavirus,” said Ziaur Rahman, country manager of H&M after the meeting. “We are not cancelling the work orders that have been already placed. But we are not placing new orders fully, which were planned to be placed,” he said. “We are exploring different options to minimise the risks,” he said. The suppliers will need a lot of cash to pay workers during Eid festival and considering this, H&M did not cancel work orders that have already been placed, Rahman said. “It is really a tough time for all as people can’t go outside to buy even the goods in some of the worst-affected countries, especially in Europe. So, the fashion business in Europe is facing a tough time,” he said. Another manager of a European retailer, who attended the meeting, said his company plans to cancel work orders as the sale is declining every day.

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