BERLIN (dpa-AFX) - The fashion industry in Germany is looking to Bangladesh with concern these days. There have recently been violent protests in the country in the Far East. The government of former head of government Sheikh Hasina, who has since fled the country, ordered curfews and deployed police and military forces. According to reports, more than 400 people were killed.

After China, Bangladesh is the most important import country for clothing for the fashion industry in Germany. According to the Federal Statistical Office, goods worth a total of 7.1 billion euros were imported into Germany in 2023. What are the consequences of the crisis in Bangladesh for fashion manufacturers and retailers?

Retailers anticipate effects

The German Retail Association (HDE) expects noticeable effects and possibly even rising prices for consumers. "As an important production location for the global fashion industry, short-term factory closures and production interruptions can lead to bottlenecks," HDE Managing Director Stefan Genth told the German Press Agency. For consumers, this could lead to higher prices and reduced availability of fashion items.

According to the Bangladesh Chamber of Commerce, there has recently been looting, destruction and arson attacks on a number of textile factories. Many factories have remained closed for the last few days for fear of new attacks due to the absence of law enforcement officers, according to the president of the German-Bangladeshi Chamber of Commerce, M Maksud.

He fears that foreign customers may place fewer orders with Bangladesh if the situation does not calm down. Many factory owners hope that normality will quickly return with the interim government under Nobel Peace Prize winner Muhammad Yunus, who was sworn in on Thursday.

Kik: "We are monitoring the situation in Bangladesh very closely"

Axel Augustin, Managing Director of the German Textile, Footwear and Leather Goods Retail Association (BTE), says: "If there are longer production restrictions, problems for individual brands and retailers cannot be ruled out. "However, I doubt that customers will even notice this, as warehouses are full at the start of the season." If the temperatures are right, summer goods may still be available.

The German Textile and Fashion Industry Association is not currently experiencing any noticeable abnormalities as a result of the situation in Bangladesh. So far, there has been no feedback about disruptions in the supply chains, said a spokeswoman. The association mainly represents medium-sized textile and fashion producers.

Many large companies such as Zara, Hennes & Mauritz (H&M) and Kik have a considerable amount of clothing produced in Bangladesh. When asked, a spokesperson for the textile discounter Kik said: "We are monitoring the situation in Bangladesh very closely." The top priority in this tense situation is the well-being of the local people. Suppliers in Bangladesh have reported that the situation has calmed down and operations in the factories have resumed.

According to the company, Kik's supplier network in Bangladesh comprises around 100 textile factories. In the event of delivery failures, quick and uncomplicated solutions will be found, it said. Orders for goods are planned on a long-term basis, so customers can rely on finding the full range in the stores. The Swedish fashion chain H&M announced: "According to the latest information, most factories are gradually reopening. Safety remains a priority."

Hugo Boss and Intersport want to produce more in Europe again

Bangladesh has been one of the most important supplier countries for clothing for years, but recently the country has become increasingly important for the fashion world and trade in Germany, according to figures from the Federal Statistical Office. Bangladesh's share of imports rose from 12 percent in 2013 to more than 20 percent recently.

There are almost 4,000 textile factories in the South Asian country, which employ more than four million predominantly female workers. This is according to figures from the Bangladesh Garment Manufacturers and Exporters Association. According to the figures, the sector generates more than 46 billion dollars a year, which is more than 80 percent of the country's total export volume. Most textiles are exported to the USA and Europe.

What is the local fashion industry doing to cushion its dependence on individual locations in crisis situations? In order to minimize the risk of supply bottlenecks, retailers and manufacturers say they have increasingly diversified their production and spread it across several different supplier countries. The aim is to secure supplies.

Several retailers recently announced their intention to relocate their production away from Asia. The fashion group Hugo Boss wants to have more production in Europe and America again. Sending goods from one continent to another is no longer in keeping with the times, it said. Another motive is geopolitical tensions and, as a result, the attempt to prevent dependencies.

The sporting goods retailer Intersport also wants to have its own brands produced less in the Far East and more in Europe and North Africa. This was justified with faster deliveries and greater independence from Asia. The company also wants to support production in Europe./cr/DP/zb