In hundreds of messages expressing concerns and complaints directed at "Turkish Clothing Manufacturer Board’s Coronavirus Help Desk" over the past four weeks, suppliers have drawn attention to some of these alarming actions taken by global brands and retailers:
A large number of brands declared to the manufacturers that there will be no future orders until further notice. This will oblige manufacturers to cover labor and overhead costs on their own for an indeterminate period of time. Some brands called for the suspension of production in the pipeline and yet in some rare cases, solicited discounts or cancellations for goods that are in the pipeline. Lastly, some brands have requested for an extension on the payment terms for shipped goods that are on their way to distribution centers or already in the stores. A halt in high-volume production at the beginning of the season means that large quantity orders are creating massive inventories for the factories. Along with the inventory cost, manufacturers bear full liability for materials nominated by brands on their own, which constitutes an existential threat to companies most of which operate within one-digit margins. If brands do not help their suppliers finance the minimum liabilities, suppliers will not be able pay their employees' salaries and secure their livelihood.