Impact of Second Wave of Covid-19 On International Clothing Manufacturers 2020-2021

The word ‘new normal’ is giving us the needed hope to face this challenging time. Covid-19 has shifted our perception of life, work, economy, and made us realize the futility of having rigid plans. It has helped us understand why we need to have creative minds and determination. 2020 has changed the world economy, and there is no single domain that has not suffered from its impact. When the world just started to adapt to this “new normal,” we came to know about the second wave of Covid 19. But how is it going to affect International clothing manufacturers in this coming fiscal year?

In this blog, we will try to get that answer and be prepared to accept more changes ahead.

2020: A Year That Changed Retail and Clothing Manufacturers Overseas

At the beginning of this year, we experienced a huge shift in shopping habits. Retailers were shutting their doors and encouraging their buyers to shop online instead. But to understand the real impact of Covid 19, we need to talk about the business-to-business reality of this clothing industry.

In the international fashion industry, brands and retailers typically pay clothing manufacturers overseas weeks or even months after delivery. Hence, payment upon order is not a general practice in this domain. But International clothing manufacturers usually pay upfront for the fibers and other materials used to make the products retailers buy from them.

Due to Covid 19, many companies, fashion brands, and retailers started canceling the bulk orders and started holding payments as well. In most cases, the order has already been completed or partially done. So what happened then!

  • Factories left with no choice than wasting the done or partially done products. Because most big brands or retailers prefer tailor-made products that can’t be sold to some other clients, even if it can be sold, the clothing manufacturers overseas will not get the estimated value.
  • People working in the supply chain started getting underpaid, and many lost their jobs.
  • Many manufacturers lost their reputation because they failed to pay their suppliers after facing this blow.
  • Many International clothing manufacturers chose temporary closing after handling a number of losses.

According to a Bloomberg report, European retailers scrapped $1.5 Billion of Bangladesh clothing orders, and the canceled orders impacted 1.2 billion lives there!

Clothing Manufacturers Overseas: Will The Scenario Change in 2020-2021?

The world and world economy have endured many blows like Covid 19. We witnessed the 2008 financial crisis and recovered again. Yes, it can not be said that when or how things are going to be normal or how devastating the second wave will be, but we are still going through a transition stage. We are still surviving.

This new normal has closed many doors but opened new doors as well. Many aspiring entrepreneurs realized the potential of the e-com industry and started their online business in 2020. People utilized their time indoor and started new companies. The clothing industry is one of those few industries that got new members in the global fashion family. These new brands are the new hopes for International clothing manufacturers. So we can hope that slow but steady we will recover in this coming year.


We, humans, are born fighters. We adapt, innovate, and ultimately adjust to the gradual changes no matter what. So it can be said that International clothing manufacturers will keep fighting and survive this crisis together. Let’s hope for the best!