A new report published by the Better Buying Institute (BBI) has concluded that fashion brands and retailers are offloading their financial hardships onto suppliers. The survey of 147 factories across 30 countries highlighted that since demand picked back up, brands have attempted to undercut the prices they would typically pay to cut costs.

The report, titled ‘Cost and Cost Negotiation and the Need for New Practices,’ assesses the state of relationships between fashion brands and their garment suppliers since business resumed. The report claims the two most reported pricing and ordering strategies: smaller volumes at the same price and lower target prices from previous orders highlights the financial hardship the industry continues to face – as well as the prevailing strategy of offloading financial pressures onto suppliers.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), which is cited in the report says, suppliers are facing upto 15 per cent decline in price points than previous years. The report says that if customer brands to continue to undercut suppliers –then it could signal the demise of decent working conditions in factories. Over half of the surveyed brands indicated that remaining profitable is integral to retaining good working conditions for factory staff.