The International Apparel Federation, by 2020, apparel sales are expected to decline by 50 per cent, compared to 27-30 per cent of revenue, and more than 80 per cent companies are facing financial problems such as bankruptcy. Apparel retailers are trying to get their feet back on e-commerce or other strategies. Already in many countries, brands are reopening stores. On the other hand, 65 per cent of consumers are reducing their spending on apparel.
Retailers and brands are going forward with their strategies and manufacturers also getting new orders. But apparel manufacturers are the most sufferers because they are facing a significant crunch in liquidity.
To save theirs worker, the Pakistan government issued a concessional loan to partly cover 3-month salaries provided no layoffs moratorium on payment of principal. To prevent bankruptcies Pakistan took the resumption of work under strict SOP’s (standard operating procedure) with partial capacity utilization and extra overheads but without the help of brands’ receivables of payments, it will get tough.
At the end of the pandemic, the Re-Set of the supply chain will occur. Fast fashion will go to slow fashion, change in order rhythm, e-commerce will go rapidly but will take more time to replace shops, re-consideration of sourcing strategy and buyer-supplier relation will be rebalanced. Manufacturers around the globe are taking a new initiative to rise back again.
Similarly, Bangladesh RMG companies reopened their factories and are receiving new orders. Bangladesh garments sector is following SOPs to maintain health security for workers. Regular temperature checking, proper sanitization, and social distancing are being established in factories.