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Tuesday, 29 December 2020 14:59

Bangladesh suppliers lose $3.7 billion orders due to COVID-19

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The pandemic has hit Bangladeshi clothing suppliers hard as British fashion retailers cancelled orders worth $3.7 billion. BGMEA figures suggest, around 1,931 global fashion brands cancelled their orders during the period as non-essential stores were forced to close in March. The value of the canceled orders from fashion retailers totaled about $984 million, says the BGMEA report. Many of these retailers had just then taken their spring and summer collection deliveries.

Data from Traidcraft Exchange shows, prominent UK suppliers like Primark, Mothercare and Debenhams, canceled $1 billion orders by June. In comparison, US retailers canceled orders worth $500 million while German, Swedish, Dutch, French and Spanish retailers canceled $100 million orders each. As per a Times report, brands like Marks & Spencer, Tesco, Inditex and H&M have committed to pay in full for orders completed and in production. Primark, meanwhile has committed to pay for all outstanding orders. Traidcraft said retailers had demanded suppliers delay their shipments until the next season. That would make the companies incur extra warehouse costs, says the report.

The pandemic forced many businesses to shift toward a B2C or a direct-to-consumer (D2C) model. According to Steve Dentorn, CEO, Ware2Go, the shutting down of stores during the initial part of the pandemic made it necessary for clients using distribution channels to find new ways to get their materials out.