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26 Sep 2024

Bangladesh: Big apparel brands are reportedly diverting orders to other countries, following protests in July; incl. co. response

Garments workers of Intraco Design and Intraco Fashion Limited stage a protest rally demanding their payment of statutory dues before Eid Al-Adha festival in Dhaka, Bangladesh, on June 22, 2023.

Bangladesh's garment industry, a vital component of the country’s economy, is facing significant challenges following the protests that erupted in July 2024 over quota reforms. These protests have drawn global attention to the deep-rooted vulnerabilities within the supply chain, particularly concerning how brands and their suppliers are addressing demands for fair wages, improved working conditions, and responsible purchasing practices that don’t exacerbate worker exploitation.

The Business & Human Rights Resource Centre is actively monitoring the evolving situation in Bangladesh, specifically examining how companies are addressing these disruptions, how existing purchasing practices are being upheld, and what support is being extended to suppliers and, ultimately, to the workers affected. To gain deeper insights, we conducted a survey targeting 20 international apparel brands, asking critical questions about their response to the crisis. Our analysis, including the responses and non-responses, can be found here.

Despite public commitments from many brands to uphold ethical sourcing and support their supply chains, concerning reports have emerged. During our ongoing monitoring, we came across a media article, where "three firms that help supply to companies such as Disney, US supermarket chain Walmart and other global apparel companies" said that "Already, some big brands have looked elsewhere for next season’s clothes".

In response to this alarming development, we reached out to Disney, inviting them to provide clarification or additional details regarding any decision to reduce their orders from Bangladeshi garment producers. Disney has assured that "we are not aware of any actions taken by anyone at Disney to encourage diversification away from Bangladesh because of the civil unrest". Their response can be read in full below.

We had reached out to Walmart through our survey mentioned above, where Walmart had responded to our question saying "Walmart’s strategy in Bangladesh remains unchanged, and we are not looking elsewhere to source next season’s clothes". Walmart's response can be read here by visiting our story on the survey.

We will continue to monitor the situation in Bangladesh.