H&M stands with Bangladeshi suppliers, will not seek discounts

Amid the ongoing political crisis in Bangladesh, fast fashion giant H&M has reassured its suppliers in the country that it will not seek any delay-related discounts. The show of support comes as the industry grapples with the potential fallout from the unrest.

In a statement, an H&M spokesperson said the company is maintaining close communication with its business partners and stakeholders, and welcomes the steps taken to restore stability in Bangladesh, a primary production hub for the brand alongside China. However, the Confederation of Indian Textile Industry has warned that several major global brands heavily reliant on Bangladeshi sourcing will be affected by the turmoil, potentially triggering a ripple effect across the global retail market.

H&M’s stance is in line with its global supplier policy, which states “we are committed to building strong, long-term relations with our suppliers that are based on mutual trust and transparency.”

H&M’s promise contrasts with some other global retailers who have pressured suppliers for discounts during delays, adding financial strain to an already stressed industry, reported Textile Today. H&M sources garments from about 1,000 factories in Bangladesh, according to a published supplier list on the company’s website.

Zara parent Inditex has yet to comment on disruption from its Bangladeshi supply chains. According to Business Standard, Inditex operates significant manufacturing clusters in the country. According to its 2023 annual report, the group had 150 suppliers with purchases in the year, with 273 sewing factories associated with purchases, and a total workforce of 965,797 associated manufacturers.