financetom
Business
financetom
/
Business
/
Factbox-Global apparel companies with exposure to key supplier Bangladesh
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Factbox-Global apparel companies with exposure to key supplier Bangladesh
Aug 7, 2024 7:42 AM

(Reuters) -The current political unrest in Bangladesh is expected to disrupt the country's clothing industry, potentially affecting global apparel retailers from H&M to Zara as they head into the key holiday season.

The country has been gripped by violence since July, forcing Prime Minister Sheikh Hasina to resign on Monday and flee the country after hundreds of people were killed in a crackdown on demonstrations demanding her ouster.

Some garment factories reopened on Wednesday after they were forced to shut down under curfews.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said a total of four days were lost, and that it was "too early" to make an estimate of the loss.

According to the BGMEA, the readymade garment industry accounts for 83% of the country's total export earnings.

Bangladesh was the third-largest exporter of clothing in the world last year, after China and the European Union, according to data from the World Trade Organization, exporting $38.4 billion worth of clothes in 2023.

The following table shows Bangladesh's apparel export to the world:

Region July-May FY 2023-24 July-May FY 2022-23

Total export % of Total % of total

value total export export

export value

European $21.65 bln 49.4% $21.22 49.8%

Union bln

United $7.45 bln 17% $7.73 bln 18.1%

States

United $5.16 bln 11.8% $4.59 bln 10.8%

Kingdom

Canada $1.387 bln 3.16% $1.39 bln 3.26%

Japan $1.48 bln 3.3% $1.46 bln 3.4%

The following are some of the main retailers with exposure to Bangladesh:

** Swedish apparel retailer H&M sources garments from about 1,000 factories in Bangladesh, according to a supplier list on the company's website. The company said on Monday that it was "concerned about the developments (in Bangladesh)."

** Fast-fashion player Zara, owned by Spain-based Inditex, has 12 manufacturing clusters where 98% of its production was concentrated in 2022, according to an annual filing. Bangladesh was one of the manufacturing clusters, the filing showed.

The company on Monday declined to comment on the impact of the political unrest on its business.

** Japan-based Fast Retailing, which owns the Uniqlo banner, sources garments from about 29 factories in Bangladesh.

** Clothing retailer Primark, owned by Associated British Foods, sourced from 113 factories in Bangladesh as of Oct. 2023, the company's website showed.

** Retailer Canadian Tire had about 50 suppliers in Bangladesh as of June 2023, according to a list on the company's website.

** French retailer Carrefour sourced from 59 textile factories in Bangladesh in 2022, according to a list on the company's website.

** Among U.S. apparel makers, VF Corp has 49 company-owned facilities in Bangladesh, according to the company website. Levi Strauss has 33 facilities in Bangladesh according to the company's website.

** U.S. big box retailer Target has about 80 factories in Bangladesh, according to a public list from the company.

** Fruit of the Loom, a Berkshire Hathaway unit, has seven suppliers in Bangladesh, as per the company's website.

** Kate Spade-owner Tapestry has two tier-1 suppliers in Bangladesh, as per a list available on the company's website.

Source for export figures: BGMEA

(Reporting by Juveria Tabassum; Editing by Aishwarya Venugopal, Anil D'Silva and Shinjini Ganguli)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved