The Strategist

S&P Global: Levi's and H&M will suffer from lockdown in Bangladesh


06/30/2021 - 03:59



Analysts at research firm S&P Global Market Intelligence believe major mid-priced Western clothing manufacturers such as Levi's and H&M could be affected by the coronavirus restrictions in Bangladesh, which local authorities have been forced to implement due to a rise in infections.



Nicholas Eckhart via flickr
Nicholas Eckhart via flickr
The government of Bangladesh, where more than 5,000 new infections a day have been recorded in recent days, has advised its citizens to stay at home for seven days from Thursday. 

The percentage of fully vaccinated population in this Asian country is now about 2.5%. Businesses in the country of 170 million people are thus likely to be shut down for at least a few days.

Experts note that due to rising labour costs in China, many large clothing manufacturers have long ago moved their production to cheaper Asian countries. 

Bangladesh has become particularly popular with companies such as H&M, Levi's or Calvin Klein. According to S&P Global, H&M-related shipments to Bangladesh rose 13.5% between March and May; Levi's fell 47.8% and Calvin Klein's fell 68.7%.

source: spglobal.com
 




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