Global Fashion Brands Say to Raise Purchase Prices for Bangladesh-made Clothes

Garment workers gather along a road during a protest in Gazipur on November 9, 2023, after the Minimum Wage Board authority declared the minimum wage of 12,500 taka ($113) for garment workers. (Photo by AFP)
Garment workers gather along a road during a protest in Gazipur on November 9, 2023, after the Minimum Wage Board authority declared the minimum wage of 12,500 taka ($113) for garment workers. (Photo by AFP)
TT
20

Global Fashion Brands Say to Raise Purchase Prices for Bangladesh-made Clothes

Garment workers gather along a road during a protest in Gazipur on November 9, 2023, after the Minimum Wage Board authority declared the minimum wage of 12,500 taka ($113) for garment workers. (Photo by AFP)
Garment workers gather along a road during a protest in Gazipur on November 9, 2023, after the Minimum Wage Board authority declared the minimum wage of 12,500 taka ($113) for garment workers. (Photo by AFP)

Global fashion retailers including H&M and Gap are committed to raising purchase prices for Bangladesh-made clothing to help factories there offset higher workers' wages, a U.S.-based association representing more than 1,000 brands said.
Bangladesh is the world's biggest garments exporter after China. This week, after deadly protests between police and factory workers, the government mandated an almost 60% raise to the minimum monthly wage to 12,500 taka ($113) from December, the first increase in five years, Reuters reported.
Factory owners had said the wage hike, which comes ahead of a January general election, would eat into their profit margins by increasing costs 5-6%. Labor accounts for 10-13% of total manufacturing costs, industry estimates show.
Asked if they would raise purchase prices by the 5-6% that costs will rise, Stephen Lamar, chief executive of the American Apparel & Footwear Association (AAFA), told Reuters: "Absolutely".
"As we and our members have reiterated several times now, we are committed to responsible purchasing practices to support the wage increases," Lamar said in an email.
"We also renew our pleas for the adoption of an annual minimum wage review mechanism so that Bangladeshi workers are not disadvantaged by changing macroeconomic conditions."
Low wages have helped Bangladesh build its garment industry, which employs about 4 million people. Readymade garments are a mainstay of the economy, accounting for almost 16% of GDP.
Even after the increase in minimum wage, which some workers said was too little, Bangladesh lags other regional garment manufacturing hubs such as Vietnam, where the average monthly wage is $275, and Cambodia, where it is $250, data from the International Labor Organization shows.
Last month, several members of the AAFA including Abercrombie & Fitch and Lululemon, told Bangladesh Prime Minister Sheikh Hasina they wanted worker wages to rise, and to take into account inflation, which is currently at 9%. Lamar also wrote to Hasina in July.
Retailers in the United States and Europe are the main buyers of Bangladesh-made clothes. Like most consumer goods retailers, fashion companies are grappling with high inventories and a slowing global economy, where shoppers in key markets are buying less as they feel the pinch.



Saudi 100 Brands Returns to Paris Fashion Week

Saudi 100 Brands Returns to Paris Fashion Week
TT
20

Saudi 100 Brands Returns to Paris Fashion Week

Saudi 100 Brands Returns to Paris Fashion Week

The Saudi Fashion Commission will present homegrown talents at Paris Fashion Week, held from June 24 to 27 on the fifth floor of La Samaritaine. The exclusive showroom dedicated to Saudi 100 Brands will highlight 11 trailblazing designers and their Spring–Summer 2026 collections.

This exceptional showcase, spearheaded by the Fashion Commission and its flagship Saudi 100 Brands program, aims to foster meaningful cultural exchange through contemporary Saudi fashion, the Saudi Press Agency (SPA) reported. It represents a key step in a long-term vision to establish the Kingdom as an essential presence in the global fashion industry.

CEO of the Fashion Commission of Saudi Arabia's Ministry of Culture Burak Çakmak said that the return of the Saudi 100 Brands program to Paris Fashion Week reflects a commitment to showcasing Saudi creativity at the highest levels.

He noted that the platform not only presents designers to a global audience but also deepens connections with the international fashion community, reinforcing the vision of making the Kingdom a driving force in shaping the future of fashion and fostering meaningful global partnerships.

CEO of Tranoï Boris Provost stated that Saudi fashion is experiencing remarkable momentum, expressing pride in the creative energy showcased by the Saudi 100 Brands program at Tranoï.

According to SPA, he highlighted the exhibition's role in presenting emerging talents on a global scale, noting that the collaboration with the Saudi Fashion Commission perfectly embodies this mission by providing an international stage for a new generation of designers in Paris, the fashion capital of the world.

The Saudi 100 Brands program is a long-term strategic initiative by the Saudi Fashion Commission. It aims to support generations of Saudi brands and contribute to the development of a sustainable local fashion industry.