H&M Confirms Continued Commitment to Bangladesh’s Garment Industry
H&M has reiterated its commitment to Bangladesh as one of its most important global sourcing destinations, following market speculation that the Swedish fashion retailer may reduce apparel purchases from the country.
As Bangladesh’s largest garment buyer, H&M currently sources apparel worth approximately US$5 billion annually from nearly 300 manufacturing factories across the country.
The retailer stated that Bangladesh continues to play a critical role in its global sourcing strategy. H&M has been sourcing garments from the country since the early 1980s and has developed long-standing partnerships with local suppliers over the decades.
According to company information, H&M works with more than 554 commercial product suppliers that manufacture products across over 969 Tier-1 factories located in Europe, Asia, and North America. Bangladesh and China remain the company’s two largest sourcing markets for apparel production.
Industry representatives in Bangladesh have also clarified that H&M has not issued any official statement indicating a reduction in sourcing activities. Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), confirmed that no formal announcement has been made regarding lower procurement volumes.
However, apparel manufacturers acknowledged that overall order volumes have softened this year due to weaker global consumer demand and continued uncertainty in international markets. Industry leaders noted that H&M representatives recently indicated order levels were lower than the previous year, although specific figures were not disclosed.
Bangladesh’s garment sector is also facing several external challenges, including the country’s upcoming graduation from Least Developed Country (LDC) status, increasing competition from India supported by government incentive programmes, global economic volatility, tariff uncertainties in key export markets, and supply chain disruptions caused by geopolitical tensions.
Despite these challenges, H&M reaffirmed that Bangladesh remains one of its largest and most strategic sourcing destinations, highlighting the strength of its long-term partnerships with local garment manufacturers.