The COVID-19 is forcing stores to close; brands are canceling or postponing orders and deferring payments to supply chain partners. Thus, making the apparel manufacturers the most vulnerable group during the crisis, as the factories they work in run on razor-thin margins.
Why brands need to Pull up their Socks?
A few days back, the local fashion supply chain workers faced unprecedented layoffs as many brands in the U.S. and France shut their production. The workers are living in a tight spot as they had already bought the material and credit salary. Although brands don’t pay for the products until they are shipped, things got worse for the local artisans as orders in bulk got canceled. These circumstances left local suppliers on the hook for both their workers’ salaries and, because they buy their materials outright, for what they owe their suppliers. The pandemic has already prompted tens of thousands of layoffs and job suspensions. Still, millions more could be at risk in countries like Bangladesh with limited access to healthcare and no social safety net.
If we look at the statistics, around 4 million people have lost their jobs alone in Bangladesh, which was a direct fall out of some of the world’s most influential fashion brands canceling orders due to the closures and layoffs precipitated by the coronavirus pandemic. Though the government is offering relief funds to the workers in need, still some of the factory owners believe it is not enough. The world is facing down a severe recession, but some of the countries in the South-Asian regions have suffered the hardest hit. As a sign of silver lining, there is a start-up which inspires the leading fashion houses to learn something.
Read More- https://www.idesignibuy.com/custom-design-software-promotes-ethical-fashion/
The COVID-19 is forcing stores to close; brands are canceling or postponing orders and deferring payments to supply chain partners. Thus, making the apparel manufacturers the most vulnerable group during the crisis, as the factories they work in run on razor-thin margins.
Why brands need to Pull up their Socks?
A few days back, the local fashion supply chain workers faced unprecedented layoffs as many brands in the U.S. and France shut their production. The workers are living in a tight spot as they had already bought the material and credit salary. Although brands don’t pay for the products until they are shipped, things got worse for the local artisans as orders in bulk got canceled. These circumstances left local suppliers on the hook for both their workers’ salaries and, because they buy their materials outright, for what they owe their suppliers. The pandemic has already prompted tens of thousands of layoffs and job suspensions. Still, millions more could be at risk in countries like Bangladesh with limited access to healthcare and no social safety net.
If we look at the statistics, around 4 million people have lost their jobs alone in Bangladesh, which was a direct fall out of some of the world’s most influential fashion brands canceling orders due to the closures and layoffs precipitated by the coronavirus pandemic. Though the government is offering relief funds to the workers in need, still some of the factory owners believe it is not enough. The world is facing down a severe recession, but some of the countries in the South-Asian regions have suffered the hardest hit. As a sign of silver lining, there is a start-up which inspires the leading fashion houses to learn something.
