Bangladesh’s ongoing political unrest has placed the country’s textile and garment industry in a uniquely difficult position and poses significant challenges to global fashion retailers, many of which are already seeking to diversify their sourcing. The instability has the potential to impact production schedules and the supply chain, which could result in delays and higher costs. Global fashion retailers are more concerned than ever as the turbulence may further complicate their preparations to meet demand for the upcoming holiday season.Supply chain disruptions Since July, Bangladesh has been engulfed in turmoil, culminating in former Prime Minister Sheikh Hasina’s resignation and departure from the country earlier this month. This followed the deaths of hundreds during a forceful suppression of protests calling for her removal from office. The country is now under an interim government headed by Nobel Peace Prize-winning economist Muhammad Yunus. “The International Apparel Federation (IAF), like all actors in the apparel industry, are watching the events in Bangladesh unfold with the strong hope that the caretaker government will be able to bring stability and reconciliation,” Cem Altan, president of IAF, said in a statement. Bangladesh is the world’s second-largest garment-exporting country after China and a manufacturing powerhouse of many global fashion brands, including H&M, Zara, and Uniqlo. The country exported US$38.4 billion worth of clothes last year, according to the World Trade Organization. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimates the readymade garment industry accounts for 83 per cent of the country’s total export earnings.Other major companies sourcing from Bangladesh include Japan-based Fast Retailing with 29 factories, Primark, which sources from more than 100 factories, and Levi Strauss & Co with 33 facilities. Calls for actionEarlier this month, Swedish apparel retailer H&M, which sources garments from about 1000 factories in Bangladesh, expressed its concerns over the developments in the country. Meanwhile, during the latest earnings call, the CEO of VF Corp Bracken Darrell said the company is facing some disruptions in the country, where about 15 per cent of its production comes from. The IAF’s Altan highlighted that these delays don’t just have implications for businesses but also for the people operating within the system.“Our industry is a people’s industry and it stands to reason that at the moment the people in Bangladesh are reshaping their future, and this greatly impacts the apparel industry,” Altan said. “But the responsibility our industry bears towards the well-being of the many workers also means that in situations like this, the system keeps a cool head and offers the necessary support. Currently, this means that brands and retailers that source in Bangladesh and that have witnessed the industry’s sizeable safety and environmental investments remain patient and committed.”The critical question for brands is how the political situation in Bangladesh will evolve under the new government and what this will mean for retailers sourcing from the country. Bangladesh faces significant pressure to reassure brands amid the political unrest, especially as competition intensifies, with some brands already considering diversifying their sourcing to other countries like India and Vietnam. According to a survey conducted by the US Fashion Industry Association earlier this year, US companies were showing a preference for India over Bangladesh for clothing orders, even before the turmoil. India scored higher in areas such as vertical integration, minimum order quantity, adaptability, and turnaround time. The report highlighted ongoing concerns about Bangladesh, particularly noting “the significant social compliance risks associated with sourcing from the country.”On Sunday, BGMEA and other business organisations talked to the Bangladesh Army’s GOC 9th Infantry Division about the need to ensure the smooth operation of all industrial factories, including the garment sector.Khandoker Rafiqul Islam, the acting president of BGMEA, said that partnering with the military has shown immediate benefits. Almost all factories in major industrial zones like Gazipur, Savar-Ashulia, Dhamrai, Narayanganj, and Chittagong, have now resumed their operations. The meeting also addressed various law-and-order issues affecting industrial factories.“The sourcing community can actually play a role in fostering the stability in the country that it seeks, and that is by simply not leaving at this pivotal moment,” Altan added. “The support of the global apparel industry is a factor determining the speed with which transformation in Bangladesh unfolds and stability returns. This is the moment where the obvious need for collaboration and solidarity across the supply chain is on full display to the world,” he concluded.