H&M to raise apparel sourcing from BD
A Sweden-based clothing retailer Hennes & Mauritz (H&M) has announced to increase its sourcing from Bangladesh, said Dow Jones Newswires quoting H&M Head Helena Helmersson. It also intends to launch a trial programme for the current and next year, the news agency stated.
H&M head said they have already informed the Bangladesh Government, its other stakeholders and clothing producers regarding their growth plans. However the ongoing labour unrest in the country is restraining suppliers from planning production, as strikes and protests often hamper production and cause delays, she added.
She said that a stable market would prove to be greatly beneficial for the company as well as its suppliers and workers.
The firm intends to utilize its power to build pressure on its suppliers in Bangladesh to improve work conditions, and push for constitution of democratic labour committees that can negotiate with factory workers on wages and working conditions.
Operating a network of more than 2,500 retail outlets in 44 markets across the world, with a staff of 94,000 people, H&M is a leading buyer of garments from Bangladesh. It currently sources around 25 percent of its products from Bangladesh and it intends to raise this volume in future.
Bangladesh has now emerged as a reliable readymade garment-sourcing destination for leading global retailers, due to its competitive prices.
A recent study undertaken by McKinsey, a leading research company in US, states that Bangladesh’s apparel exports are expected to grow almost two-fold by 2015 and three-fold over the next 10 years. This is because leading buyers from China are shifting to Bangladesh as capacity constraints and rising labour costs in China are eroding their profit margins.