According to the market estimates, just five retailers contribute to over US$40 of business orders at stake and have claimed to have cancelled the same. These retailers are H&M (US$11.6 bn), Walmart (US$9.5 bn), Costco (US$9.4 bn), Inditex (US$6.8 bn) and Target (US$2.6 bn).
However, according the fresh reports H&M has assured its garment suppliers of taking shipment of goods that have already been manufactured. The brand will also pay for these goods under agreed payment terms. In addition, it will not negotiate prices on already placed orders.
Considering the kind of business at stake from brands and retailers across the world, apparel industry will have devastating impact on the entire supply chain of fabrics, and raw material textile industry.
Fashion and apparel being a seasonal business coming out of lot of variants in terms of sizes, colours and fits cannot generally be liquidated, being made specifically for specific regions, markets and brands.
