The “fast fashion” movement, which started in the 1970s and continues to grow on a large scale today, has become one of the main economic sources for countries in Asia. Due to economic instability, low wages, and unemployment in these countries, global brands prefer these nations as production sites, while for the same reasons, citizens are also turning to the textile industry. However, this situation brings up issues such as workers’ rights and capitalism.
One of the notable countries in the textile industry, Bangladesh hosts factories for many fast fashion brands. While the existence of this sector is of great importance to Bangladesh, as it constitutes a large part of the economy, it has also brought about many problems. Recently emerging political issues in the country have raised questions about the future of this industry.
The problems in the energy sector that began in 2022 have worsened in 2024, causing significant issues in Bangladesh’s textile industry. Factories have struggled to meet demands, with production capacities dropping by 40%. Additionally, workplaces have downsized, and there have been difficulties in paying workers’ wages. Furthermore, international companies have shifted orders worth $50 million to other countries such as Sri Lanka and India.[1]
As energy problems persist, disruptions in factory production processes in Bangladesh are expected to increase. The decrease in production capacity could lead to layoffs and, consequently, higher unemployment rates. Difficulties in paying wages may further deepen the country’s existing economic issues. The shift of production to other countries could worsen the crisis in Bangladesh and lead to a prolonged downturn in the textile sector.
Due to the global economic crisis and a decline in sales in the West, buyers are demanding discounts of up to 20% on prices, despite production costs in the country rising by 20-33%. This has led to manufacturers missing delivery deadlines and being forced to reject low-priced orders.[2]
In this context, manufacturers may resort to methods such as reducing quality or increasing efficiency to balance costs. However, this could negatively impact the reputation of brands and their global market share in the long term. Additionally, the rejection of orders and delivery delays could weaken Bangladesh’s reliability in the supply chain, accelerating the shift to alternative production centers. This could further complicate the position of the local economy in international markets.
Recent protests and the political atmosphere have also spread to the textile industry. At least four factories were set on fire, and producers have struggled to continue their operations under nationwide internet outages. The recent political unrest could lead to a “10-20% decrease in exports” this year. Considering that fast fashion exports account for 80% of Bangladesh’s export income, this is not a negligible amount. Staff are protesting with various demands, including higher wages.[3]
Mohammed Hatem, President of the Bangladesh Sweater Manufacturers and Exporters Association, states that the unrest and protests in early August 2024, along with the disruptions, led to a 50% decrease in clothing production.[4]
The protests in the country have erupted due to economic reasons, directly affecting the textile sector, which constitutes a significant portion of the country’s exports. The decline in the textile sector is leading to millions of people facing the risk of unemployment due to existing economic instability and issues such as unemployment. If wages do not increase and working conditions do not improve, protests are expected to continue, and production in factories may be disrupted.
Recent floods in the country are another factor that has disrupted the textile sector. With the flooding, issues arose in cotton supply to factories, and the factories have faced problems in meeting orders. Continued rainfall is expected in the country.[5]
Bangladesh and other South Asian countries are considered some of the most vulnerable regions to climate change. The impact of environmental factors on the textile industry is expected to increase. The current floods and heavy rains are likely to intensify, causing further difficulties in raw material supply.
Since a large portion of Bangladesh’s economy relies on the textile industry, the future of this sector has a decisive impact on the country’s economic issues. Diversifying the country’s economic sectors and reducing dependence on the textile industry could be a solution strategy for the economic instability Bangladesh is experiencing.
It would not be correct to limit this issue to factors within Bangladesh alone. Global brands also play a significant role in this problem. If brands do not take on the necessary responsibilities and fail to make the required improvements in workers’ conditions, it is unlikely that the issues in the textile sector will be resolved. While the fast fashion trend and the demand associated with it are seen by some as providing economic opportunities for countries like Bangladesh, the conditions of these countries (high population, low minimum wage, etc.), which are preferred as production sites, also bring with them major issues such as workers’ rights, working conditions, and environmental sustainability.
[1] Bangladesh: Garment industry facing crisis as global buyers reduce orders & demand low costs during energy crisis-Business & Human Rights Resource Centre. (n.d.). Business & Human Rights Resource Centre. https://www.business-humanrights.org/en/latest-news/bangladesh-garment-industry-facing-crisis-as-global-brands-reduce-orders-demand-low-costs-during-energy-crisis-wpftc/, (Access Date 23.11.2024).
[2] Ibid.
[3] Inamdar, N. (2024, September 6). Fast fashion drove Bangladesh-now its troubled economy needs more. https://www.bbc.com/news/articles/cd6ye3e8x9po, (Access Date: 23.11.2024).
[4] Choubey, A., & Paul, R. (2024, August 30). Bangladesh garment industry short on cotton as floods worsen protest backlog. Reuters. https://www.reuters.com/world/asia-pacific/bangladesh-garment-industry-short-cotton-floods-worsen-protest-backlog-2024-08-30/, (Access Date: 23.11.2024).
[5] Ibid.
