Global Clothing Industry To Turn Warm In 2024

The global center for workers' rights (cgwr / Global Center for workers' rights) and workers' Rights Alliance (cgwr / Global Center for workers' rights) recently released an analysis report on import data.

Based on previously published import databases, the two U.S. agencies estimated the losses of global garment factories and suppliers from April to June this year. Cgwr and WRC point out that the main sources of this report's database include: clothing suppliers Trade Association.

According to reports, since March this year, many large fashion brands and enterprises in Europe and the United States have cancelled orders due to the epidemic and refused to pay orders before the epidemic, resulting in a loss of 16.2 billion US dollars in global garment factories and suppliers from April to June.

According to the report, suppliers from affected countries, such as Bangladesh, Cambodia and Myanmar, had to scale down their business, some even shut down directly, resulting in the direct dismissal of millions of workers.

The report points out that the epidemic has exposed the core problem of the power imbalance in the fashion industry, that is, early production costs are borne by suppliers in economically underdeveloped and poor countries, and buyers will not pay until weeks and months after factory delivery. "During the outbreak, unfair payment systems enabled western brands to support their financial position by oppressing their suppliers in developing countries," said Scott nova, WRC director and co-author of the report

The report says some retailers still choose to pay millions of dollars in dividends to shareholders, even if the situation of supplier workers is critical. In March, for example, Kohl's, the US clothing retailer, paid shareholders a $109 million dividend just weeks after it cancelled large orders from factories in countries such as Bangladesh and South Korea.

The Cambodian Garment Manufacturers Association issued an open letter in April calling on buyers to comply with regulations and protect the livelihood of 750000 Cambodian garment industry workers. Compared with the buyer, the manufacturer (factory) has low profit and weak pressure bearing capacity.

According to the open letter, the total value of cancelled orders in Bangladesh is 2.5 billion pounds, and buyers mainly include spring and summer clothing retailers such as Arcadia (parent company of Topshop), Debenhams, Asda, peacocks, new look and sports direct.

According to cgwr data, being at the top of the supply chain allows (brands and retailers) to violate cooperation with suppliers in the face of crisis. Even if it is morally necessary to protect the weak, the most fundamental thing is to ensure the rights and interests of workers at the bottom of the supply chain.

The cancellation of orders and refusal to pay directly led to the dismissal of more than one million Bangladeshi garment workers. After that, the local government has provided a total of $500 million in aid to factories to reduce the unemployment rate.

It is reported that Bangladeshi workers have been without income for two months. In July, rubana Huq, President of the Bangladesh garment manufacturers and Exporters Association, said new orders were down 45% from a year earlier.

Bangladesh is the world's second largest clothing producer, and the capacity utilization rate of its factories is only half of the normal level. Vietnam is a major manufacturer of large sportswear brands such as Nike and Adidas, and its recruitment agencies are facing difficulties.

Recruitment Consultant will tran revealed that he and his colleagues only signed two recruitment orders in April and may, and each person signed a maximum of 10 orders. "

So, in order to protect the most basic workers' interests, WRC and cgwr launched an "epidemic Tracker" in April to monitor the company's performance of its contractual obligations.

At present, Acadia group, the parent company of British street brand Topshop, Wal Mart, American fashion retail City clothing merchant, British mother and baby clothing retailer mothercwalmarte, has promised to complete the production order and pay in full.

Scott nowa pointed out that under the influence of trade union organizations and media reports, brands and retailers such as gap, H & M and zwalmarta announced that orders would be paid in full.

From 5 to 25 September, the International Textile Federation conducted a fifth survey of 216 companies around the world, including its member affiliated companies and associations, on the impact of the epidemic on textile enterprises.

The survey shows that the turnover expectations of these companies have increased significantly since the fourth survey. At the global level, turnover in 2020 is expected to decline by 16% compared with that in 2019. The global textile industry is expected to stagnate in 2021.

In the next few years, the company's turnover is expected to be higher than that in 2019. Compared with the base year of 2019, the turnover level is expected to increase by 9% in 2022, 14% in 2023 and 18% in 2024. By 2024, the global textile industry will be able to make up for the losses caused by the epidemic in 2020.