What the Crisis in Bangladesh Means for Fashion’s Supply Chain

The recent political turmoil in Bangladesh has sent shockwaves through the global fashion supply chain, raising serious concerns among industry stakeholders. Prime Minister Sheikh Hasina, after years in power, resigned amidst violent protests compelling her to seek refuge outside the country. These protests were ignited by an oppressive regime attempting to suppress dissent over increasingly authoritarian governance.

Bangladesh holds the status of the world’s second-largest garment exporter, a critical partner for major global brands such as H&M, Inditex, and Walmart. However, curfews and communication blackouts have disrupted operations, making it challenging for factories to process orders. The Bangladesh Garment Manufacturers and Exporters Association reported staggering losses, estimating $150 million in daily disruptions.

Responses from international brands have varied. While Hula Global redirected orders to India to mitigate risks, Puma remains committed to sourcing from Bangladesh. This inconsistency highlights a looming dilemma for brands as they grapple with unpredictable sourcing environments.

The fabric of the garment industry is further strained by high inflation and increased pressure on workers. Many faced violence amid wage protests, and with current unrest, they are under the added threat of arrest. As the local workforce remains caught in the crossfire of political chaos, the future stability of Bangladesh’s garment sector hangs in balance.

With the global fashion community watching, the industry must decide swiftly whether to deepen its ties with Bangladesh or source elsewhere, as Christmas orders draw near. The outcome of this crisis could redefine not only Bangladesh’s role in fashion but also the labor rights landscape for the garment workers who power it.

Back To Top