After reports of buyers downsizing existing orders due to outbreak of Coronavirus or COVID-19, apparel exporters of Bangladesh are now grappling with a new problem. A problem with significant business implications!
As per media reports, piling up of garment orders ready for shipment – in want of buyers’ go ahead for export – is adding to the garment makers’ woes, who are already battling with supply chain disruption.
Scarcity of space, delayed payments, fear of running out of working capital, are just to name a few.
“Buyers have asked us not to ship ready garments and hold the delivery of uncut fabrics until further instructions. Now we are facing many difficulties including shortage of space in our stores and scarcity of running capital due to the shipment delays,” reportedly stated Managing Director of Denim Expert Limited, Md. Mostafiz Uddin, speaking to the media.
Of the buyers, Spanish apparel retailer Zara has put all shipments on hold while French retailer Decathlon has deferred shipments partially, the report underlined quoting an unnamed apparel exporter.
“Many of our member factories fear huge losses as some of the big buyers of Europe cancelled large quantity of orders and some buyers have downsized their requirements,” further added First Vice-President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Mohammad Hatem.
