Opinion

Lockdowns in Europe and USA are killing our industry

Garment workers wait for their salary in front of a factory in the Ashulia industrial belt on the outskirts of Dhaka. Photo: Collected

For 12 months now, the global fashion industry has been in a state of flux. Shops are opened, shops are closed. They are reopened, then they are closed again. This story is playing out throughout the world, in the US, Europe and beyond.

Of course, we all know why this is happening and we all understand that the pandemic has necessitated a requirement for lockdowns (although I have yet to see evidence of the impact of lockdowns). The question we all need to start asking now is, how much longer can shops remain closed? The impact of these lockdowns is profound—for brands and retailers themselves, many of whom have already gone bust; and for their suppliers, most of which are clinging on by the skin of their teeth.

Plenty of scientists and health professionals are arguing the case for lockdown, and I understand that—that is their job. But who is arguing the case for businesses? Who is standing up for the retailers upon which millions of people depend for employment and to keep a roof over their heads? It seems that, right now, nobody dare raise the question. Coronavirus is all anybody talks about.

And yet, the fashion industry itself does not have a magic money tree to keep it afloat. In many cases, the money ran out last year and businesses are surviving on loans and government handouts or by trimming their operations. Many high street department stores have closed their doors permanently as a direct result of lockdowns which were introduced in the run up to Christmas. Why close clothing stores right before Christmas (while, meanwhile, people were crammed into supermarkets and malls in their thousands)? Where is the rationale? It's impossible to see any.

There are huge ramifications to these lockdowns. Have they been thought through? Everywhere I look, I see jobs being lost and businesses closed. It's carnage for us as suppliers and for our brand/retailer customers. Of course, some have done well out of all this, especially online-only retailers. There is a booming leisure-wear market and, of course, the market for protective facemasks continues to grow. For the rest of us, it's a battle to stay alive when fashion stores all over the world are closed. We simply cannot continue like this, and years—even decades—of hard work building up a business are being tossed into the bin.

This past week, I have written to the governments of Germany and Holland pleading with them to reopen fashion stores in their respective countries. My message to them is simple: these lockdowns are killing our industry. We cannot keep treading water indefinitely. I am unsure at times whether public officials understand what it is like to run a business. When they implement these lockdowns, we can't just switch off operations. We still have bills to pay, workers who need wages.

Those of us reading this may think I am being selfish and reckless with these requests. They will point to the millions of people who have died of coronavirus or who are ill with "Long Covid". Let me be clear here: I am fully aware of the risks and I also understand totally why lockdowns have been introduced (and the huge pressure governments have been on to implement them).

But I also talk to a lot of brands and retailers and many other people in the industry. The messages I get back are of confusion. Every day, they see people swarming around cities, mixing on public transport or in supermarkets (many of which are selling clothing!). People are mixing in parks and other public places. Schools are open in many countries. And yet, through all this, governments continue to squeeze the life out of fashion retail. What on earth is going? Where is the consistency? Our industry feels like it has been completely forgotten.

What is worse is the lack of communication from governments. People are trying to run businesses but how can they do that when they don't know if their retail outlets will be allowed to open from one week to the next? Nobody I talk to has a clue about what is happening or when normal business might resume. Many retailers only dare place tiny orders with their suppliers as they fear having another cancelled order crisis on their hands.

All of us in the industry have been living in a limbo for 12 months now. At some stage, surely life has to return to some kind of normalcy, doesn't it? Or is this it now, for good?

Even with vaccines being rolled out, I hear talk of new coronavirus variants and the need to "take things slow". Every time it looks like shops might re-open, another obstacle seems to be placed in the way. Are we now being asked to write off 2021 as well as 2020?

There is a lot of talk about the new normal. Well, my question is this: what will the new normal be like for supply chains in Asia? At this rate, this new normal is going to be millions of people made unemployed with no social security or safety net. Many will face poverty and destitution. In fact, this story is already playing out in countries such as ours, India and Pakistan.

Coronavirus is a killer, but so is poverty, and let us not be in any doubt about this. There are statistics which show that for every percentage increase in unemployment, there is a corresponding increase in national deaths. These statistics are borne out on a country-wide basis. I dread to think about what kind of impact the "response to the" coronavirus will have on South Asian garment production hubs in terms of indirect deaths caused. We are looking at a serious humanitarian crisis.

My message here is simple: this has gone on for 12 months. People can't hide away forever (and after all, other viruses may well come along in future). As an industry, we need to find our voice and tell the governments it's time to get on with business.

At this rate, it is starting to feel like the cure is worse than the disease as far as the coronavirus is concerned.

 

Mostafiz Uddin is the Managing Director of Denim Expert Limited. He is also the Founder and CEO of Bangladesh Apparel Exchange (BAE).

Comments

Lockdowns in Europe and USA are killing our industry

Garment workers wait for their salary in front of a factory in the Ashulia industrial belt on the outskirts of Dhaka. Photo: Collected

For 12 months now, the global fashion industry has been in a state of flux. Shops are opened, shops are closed. They are reopened, then they are closed again. This story is playing out throughout the world, in the US, Europe and beyond.

Of course, we all know why this is happening and we all understand that the pandemic has necessitated a requirement for lockdowns (although I have yet to see evidence of the impact of lockdowns). The question we all need to start asking now is, how much longer can shops remain closed? The impact of these lockdowns is profound—for brands and retailers themselves, many of whom have already gone bust; and for their suppliers, most of which are clinging on by the skin of their teeth.

Plenty of scientists and health professionals are arguing the case for lockdown, and I understand that—that is their job. But who is arguing the case for businesses? Who is standing up for the retailers upon which millions of people depend for employment and to keep a roof over their heads? It seems that, right now, nobody dare raise the question. Coronavirus is all anybody talks about.

And yet, the fashion industry itself does not have a magic money tree to keep it afloat. In many cases, the money ran out last year and businesses are surviving on loans and government handouts or by trimming their operations. Many high street department stores have closed their doors permanently as a direct result of lockdowns which were introduced in the run up to Christmas. Why close clothing stores right before Christmas (while, meanwhile, people were crammed into supermarkets and malls in their thousands)? Where is the rationale? It's impossible to see any.

There are huge ramifications to these lockdowns. Have they been thought through? Everywhere I look, I see jobs being lost and businesses closed. It's carnage for us as suppliers and for our brand/retailer customers. Of course, some have done well out of all this, especially online-only retailers. There is a booming leisure-wear market and, of course, the market for protective facemasks continues to grow. For the rest of us, it's a battle to stay alive when fashion stores all over the world are closed. We simply cannot continue like this, and years—even decades—of hard work building up a business are being tossed into the bin.

This past week, I have written to the governments of Germany and Holland pleading with them to reopen fashion stores in their respective countries. My message to them is simple: these lockdowns are killing our industry. We cannot keep treading water indefinitely. I am unsure at times whether public officials understand what it is like to run a business. When they implement these lockdowns, we can't just switch off operations. We still have bills to pay, workers who need wages.

Those of us reading this may think I am being selfish and reckless with these requests. They will point to the millions of people who have died of coronavirus or who are ill with "Long Covid". Let me be clear here: I am fully aware of the risks and I also understand totally why lockdowns have been introduced (and the huge pressure governments have been on to implement them).

But I also talk to a lot of brands and retailers and many other people in the industry. The messages I get back are of confusion. Every day, they see people swarming around cities, mixing on public transport or in supermarkets (many of which are selling clothing!). People are mixing in parks and other public places. Schools are open in many countries. And yet, through all this, governments continue to squeeze the life out of fashion retail. What on earth is going? Where is the consistency? Our industry feels like it has been completely forgotten.

What is worse is the lack of communication from governments. People are trying to run businesses but how can they do that when they don't know if their retail outlets will be allowed to open from one week to the next? Nobody I talk to has a clue about what is happening or when normal business might resume. Many retailers only dare place tiny orders with their suppliers as they fear having another cancelled order crisis on their hands.

All of us in the industry have been living in a limbo for 12 months now. At some stage, surely life has to return to some kind of normalcy, doesn't it? Or is this it now, for good?

Even with vaccines being rolled out, I hear talk of new coronavirus variants and the need to "take things slow". Every time it looks like shops might re-open, another obstacle seems to be placed in the way. Are we now being asked to write off 2021 as well as 2020?

There is a lot of talk about the new normal. Well, my question is this: what will the new normal be like for supply chains in Asia? At this rate, this new normal is going to be millions of people made unemployed with no social security or safety net. Many will face poverty and destitution. In fact, this story is already playing out in countries such as ours, India and Pakistan.

Coronavirus is a killer, but so is poverty, and let us not be in any doubt about this. There are statistics which show that for every percentage increase in unemployment, there is a corresponding increase in national deaths. These statistics are borne out on a country-wide basis. I dread to think about what kind of impact the "response to the" coronavirus will have on South Asian garment production hubs in terms of indirect deaths caused. We are looking at a serious humanitarian crisis.

My message here is simple: this has gone on for 12 months. People can't hide away forever (and after all, other viruses may well come along in future). As an industry, we need to find our voice and tell the governments it's time to get on with business.

At this rate, it is starting to feel like the cure is worse than the disease as far as the coronavirus is concerned.

 

Mostafiz Uddin is the Managing Director of Denim Expert Limited. He is also the Founder and CEO of Bangladesh Apparel Exchange (BAE).

Comments

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