COVID-19 and the Fashion Apparel Industry (updated April 2020)

FR_Blog_COVID_GarmentWorkers

It comes with no surprise that the fashion apparel industry has changed drastically in light of the novel coronavirus (COVID-19).

  • According to the latest statistics released by the U.S. Census Bureau, hit by COVID-19, the value of U.S. clothing and clothing accessories sales went down by 50.5% in March 2020, compared with a year earlier.
  • According to a recent NPR news report, in Bangladesh, the world’s second-largest garment exporter, about one million garment workers have lost their jobs as a direct result of sourcing changes. An online survey of Bangladesh employers, administered between March 21 and March 25, 2020, indicates that 72.4% of furloughed workers have been sent home without pay, and 80.4% of dismissed workers have not received severance pay.
  • A survey of 700 companies conducted by the International Textile Manufacturers Federation (ITMF) between 28 March and 6 April 2020 shows that companies in all regions of the world suffered significant numbers of cancellations and/or postponements of orders. Globally, current orders dropped by 31% on average. The severity of the decrease ranges from 20.0% in East Asia to 41% in South America.

Screenshot 2020-04-08 at 08.01.40

  • According to a newly created COVID-19 Tracker developed by the Worker Rights Consortium, it is concerning that many large-scale fashion brands and retailers are not paying their overseas manufacturers back for the materials the manufacturers have already paid for to start making garments.

Additionally, here is a list of well-known fashion brands that have announced to cut or cancel sourcing orders as of April 13, 2020:

  • Primark has closed all its stores across Europe and the U.S. and asked all of its suppliers to stop production. However, the company has set up a fund to pay the wages of factory employees who worked on clothing orders that were canceled.
  • Ross Stores has announced to cancel all merchandise orders through mid-June, 2020.
  • Gap Inc. has decided to halt the shipments of their summer orders and the production of the fall products
  • H&M has also canceled orders but told its suppliers it would honor the orders it already placed before the COVID-19.

Additional reading:

Compiled by Meera Kripalu (Honors student, Marketing and Fashion Merchandising double majors) and Dr. Sheng Lu

The discussion is closed for this post.

%d bloggers like this: