The Bangladeshi garment sector, a major supplier to global fashion companies, has recently encountered considerable hurdles. Internet interruptions and political turmoil have slowed production and shipment, hampering communication between suppliers and clients.

In such a case, Swedish clothing giant H&M has decided that it will not seek discounts from its Bangladeshi suppliers for any delays in order delivery.

H&M’s declaration is particularly notable because it demonstrates the brand’s commitment to supporting its suppliers in difficult times. The decision is consistent with H&M’s overall policy of maintaining strong and equitable partnerships with its suppliers. This strategy is expected to increase confidence and stability in the supply chain, ensuring that suppliers are not financially penalised for delays beyond their control.

H&M’s stance contrasts with some other global retailers who have pressured suppliers for discounts during delays, adding financial strain to an already stressed industry. By choosing not to follow this path, H&M is setting a precedent for ethical sourcing and supplier support.

This decision is consistent with H&M’s previous activities. The company had already raised unit prices to cover minimum wage increases in Bangladesh, proving its readiness to bear higher expenditures to support better salaries and working conditions for garment workers. This strategy is part of H&M’s larger commitment to ethical purchasing and environmentally friendly business operations.

H&M sources clothing from over 1,000 factories in Bangladesh, according to a supplier list on the company’s website.