H&M and Zara face the brunt of Bangladesh unrest

Due to disruptions in Bangladesh, garment factories in the country shut down.

After Prime Minister Sheikh Hasina’s unexpected resignation, the country faced several other disruptions that damaged companies, factories, and industries. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also announced the shutdown of all garment factories. This led to the disruption of major global apparel brands like H&M and Zara, which are highly dependent on Bangladeshi production.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) announced the shutdown.

BGMEA recently announced the shutdown of its garment factories, which has caused significant turmoil in the country’s vital garment industry, according to BBC reports. Prime Minister Sheikh Hasina’s sudden resignation prompted the decision.

Bangladesh’s political upheaval impacts global brands like H&M and Zara.

The shutting down of garment factories in Bangladesh, which has remained a key hub for global apparel production, has severely impacted major brands like H&M and Zara. H&M’s garments are sourced from more than 1,000 factories in Bangladesh, and Zara is heavily dependent on manufacturing clusters in the country.

H&M’s statement is about the ongoing political turmoil.

H&M’s spokesperson said, “According to the latest information, most factories are gradually reopening, and safety remains our priority. We have assured our suppliers that we will not request discounts due to delays in the current situation. We continue to assess the situation daily.”

Larger impact on the textile industry in Bangladesh.

Several global brands relying on Bangladeshi suppliers will face such disruptions, warned the Confederation of Indian Textile Industry (CITI). The delays and decreased availability of products could severely impact inventory levels and sales in the global retail market. It is said that Zara and Bershka’s parent company has substantial manufacturing operations in Bangladesh with 150 suppliers and 273 sewing factories, which employ millions of workers.

The shutdown of garment factories in Bangladesh has posed a major challenge for the global apparel industry. Since major global brands depend on Bangladeshi production, the closure will have major consequences across the global retail market.