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The new virus known as Covid-19 is affecting the heart of the supply industry of the textile and clothing sector in the West: the epidemic has shut down factories and limited shipments, which is restricting productions of all the big fashion brands around the world. And the next campaigns are at risk – if restrictions are maintained, it is possible that another outbreak may hit the sector.
The groups who focus their production in China will be the most affected. On the other hand, geographies that are distant from the epicentre of the coronavirus are receiving new contracts. Portugal, Turkey and Morocco are the countries where companies are setting their eyes on, once that many regions in Asia – from Vietnam to Cambodja – are to be avoided these days.
Among the most affected brands by the crisis are big distribution groups specialized in commodities, such as Primark or H&M. The Irish group is one of the most susceptible to interruptions of production in China, where half of the factories with which the group works are located: 525 out of 1.033. The Swedish brand, in its turn, has suppliers in 952 factories in China (adding 350 in Bangladesh, another geography to avoid).
Inditex, on the other hand, has a more diversified supply chain due to its own business model. China is the main manufacturer for the Galician giants – 449 Chinese factories are a huge contributor to that fact –, however, their overall weight in the company’s production does not exceed 30%.