Textile Industry - Fashion makers want to continue production in Bangladesh
The German Fashion Association reports that, following the recent unrest in Bangladesh, there have been no significant impacts on the industry so far. Rumors of canceled orders and relocation to other countries are unfounded, the association confirmed upon request. Overall, the situation on the ground has stabilized, with production remaining stable and the only hurdle being a backlog in the port.
Budget fashion retailer Kik has no plans to relocate production. "Bangladesh remains a particularly important production country for us," a spokesperson said. Kik's supplier network in Bangladesh comprises around 100 textile factories, according to the company.
Swedish fashion chain Hennes & Mauritz (H&M) informed the German Press Agency that all factories of its supplier companies in Bangladesh are currently open. The company has not changed its long-term strategy in the country and continues to monitor the situation daily, a spokesperson said. Fashion retailers Zara and Hugo Boss, which also produce clothing in Bangladesh, did not initially respond to a dpa request.
GermanFashion's vice president, Justus Lebek, said they are closely watching the situation and expect minor delays in delivery times, "which the end consumer will not notice." During the COVID-19 pandemic, production in China was at a standstill for months, but there were no shortages, he noted. Many companies have since diversified their production locations, with closer sites in North Africa becoming more important.
Army in Bangladesh to protect textile factories
According to the fashion association, the relevant manufacturers maintain long-standing, close relationships with their production facilities in Bangladesh. For medium-sized fashion companies, August is not a peak production month, as autumn and winter merchandise is in delivery and the next production cycle is just beginning. GermanFashion represents 350 companies in the industry.
Bangladesh is the second most important supplier of clothing for the fashion industry in Europe and Germany, after China. There are around 4,000 textile factories in the country, employing more than four million people, predominantly women. According to the Federal Statistical Office, goods worth a total of 7.1 billion euros were imported from Bangladesh to Germany in 2023.
Following the unrest in Bangladesh, which left hundreds dead, representatives of the army and industry announced plans to protect the country's important textile factories. Earlier, the Bangladesh Chamber of Commerce had reported looting, destruction, and arson attacks on several textile factories, with many businesses temporarily closed.
Despite the unrest and incidents in some textile factories, Kik's spokesperson reaffirmed their commitment to keeping production in Bangladesh due to its significance as a production country. Additionally, GermanFashion's vice president mentioned that while there might be minor delays in delivery times due to the situation, these would likely go unnoticed by the end consumers, referencing similar experiences during the COVID-19 pandemic and subsequent diversification of production locations.
