According to the Clean Clothes Campaign, fashion companies canceled many billions of dollars worth of orders earlier this year because a series of stores around the world were closed because of COVID-19 translation.
Results of a survey of 75 garment factories in 15 countries around the world showed that suppliers had to wait an average of 77 days for their orders to be paid, compared with 43 days before the outbreak of COVID-19. This situation raises concerns that the global garment industry with 60 million workers will have to close more factories.
Mr. Mark Anner, Director of CGWR and author of the study, warned that suppliers are facing great pressure to lower product prices as well as delay payment and cancel orders, affecting sales. revenue and employment of workers. Mr. Mark Anner noted that small and medium-sized suppliers will be affected first.
According to the Clean Clothes Campaign, fashion companies canceled many billions of dollars worth of orders earlier this year because a series of stores around the world were closed because of COVID-19 outbreaks. Many suppliers have had to cut 10% of their employees and this number could reach 45%, or millions of employees, if the number of orders continues to decrease. Meanwhile, more than 50% of garment factories participating in the survey said they would close if the situation did not improve.
Currently, fashion brands and suppliers around the world are trying to find solutions in the difficult period caused by the current COVID-19 translation. According to the International Employers' Organization (IOE) based in Geneva (Switzerland), fashion brands have committed to participate in the Call to Action program in the textile industry.
This program is designed to assist manufacturers to overcome the COVID-19 epidemic crisis and to secure income for garment workers through loan and social protection schemes.