Bangladeshi clothing

Bangladeshi Suppliers Squeezed by Major Clothing Brands

A recent study alleges that many of the world’s biggest clothing brands are squeezing Bangladeshi apparel suppliers to offset increased inflation. This study highlights the concerning lack of social responsibility demonstrated by major clothing companies, when dealing with some of the world’s smallest economies.

Study Findings

The study, conducted by the Financial Post, revealed that:

  • More than 50% of the Bangladeshi apparel suppliers surveyed reported receiving orders from global brands that contain lower prices than they had previously agreed to.
  • Out of those surveyed, more than 50% reported that major brands have asked them to partially foot the bill for increased production costs due to inflation.
  • 32% of those surveyed reported of accepting orders from global brands in amounts lower than previously agreed to, due to intense pressure from major clothing companies for reduced costs.

These findings suggest that clothing companies are trying to increase their profits by squeezing suppliers in Bangladesh’s fast-growing apparel industry.

The Impact on Bangladeshi Suppliers

The study also highlighted the significant impact this behaviour is having on Bangladeshi apparel supplies and the economy as a whole.

The pressure these companies have put on suppliers to accept lower prices, and diminish their delivery time, has put an immense strain on Bangladesh’s apparel industry. In particular, it has sparked greater competition for business, resulting in increased costs for suppliers, who often lack the resources to maintain such operating expenses.

Concluding Thoughts

Ultimately, this study portrays a concerning image of major clothing companies and their lack of regard for the delicate Bangladeshi economy. The implementation of better corporate governance and social responsibility is much needed from many of the world’s largest fashion and clothing brands in order to balance the financial impact of orders, and ensure the safety and well-being of Bangladeshi suppliers.

It is evident that more needs to be done to protect Bangladeshi suppliers and the economy, and it’s time for major clothing companies to play their part in helping the nation reach a better, more sustainable balance.

Author avatar
Nusrat Jahan

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