Apparel Industry Got Impacts Of COVID-19
As the pandemic of COVID-19 has taken over roughly all the parts of the world, it impacts all the economic sectors though the discussion for today is around the Global Apparel Industry and Textile Sector.
As, the outlets of all the fashion, and apparel brands are closed due to the infectious virus, the brands are encouraging the customers to shop online. The apparel sector is facing multiple challenges because of the virus from the lack of textile raw materials to the cancelation of orders. The dominant consumption market of apparel such as the US and EU, the clothing stores and outlets are locked down for the reason to maintain social distancing, the retailers have no option rather to postpone or even cancel the orders.
The US apparel retail sales dropped in April almost twice as compared to March because the clothing retailers are facing hard hits due to COVID-19. The fashion industry is going through its worst phase, as the top markets for apparel and fashion-the US, Europe, China, Japan, Canada, France, India including many other countries have been severely hit due to the outspread of the pandemic. The industry has no option other than the closing of stores, canceling the placed orders to the factories and furloughing employees.
The report of Bloomberg said that the 1,089 apparel factories of Bangladesh has had canceled the orders which roughly worth $1.5 billions due to the pandemic outbreak. Basically, the brands pay their suppliers weeks or even months after the delivery rather than upon the orders which means that the supplier usually pay for the fibers or materials that the brand buy from them to make the products.
Most of the fashion brands and retailers are canceling the orders and stopping payments for the orders that have placed already even the work has already done, and taking no responsibility that impacts their supply chain workers.
The Labor Behind the Label has predicted that in Yangon, Myanmar 10% of the factories are already closed now.
WEIGO has estimated that about 2 billion unofficial workers all around the world that lack basic labor, social and health protection facility are facing difficult time right now. As the situation is threatening for the global trade flows due to the impact of COVID-19, the team of workers, artisan groups, local crafts-based communities, home-based workers, agricultural workers, and the farmers will face the risky economic circumstances.
The Clothing Manufacturers Association of India predicts the demand of apparel industry may shrink up to 40% in 2020. The textile exports of Pakistan had dipped almost by 4.46% just in March, during the global slowdown due to the infectious disease. The prediction about the decline in Pakistan's exports are expected by $3 billion as the result of the virus. It is becoming more difficult for the apparel brands to continue the production and be sustainable in the crisis.
Though, we still hope that the current situation of the pandemic COVID-19 lasts soon, so the nation's economy recovers.