Introduction:
Bangladesh is currently one of the world's fastest growing developing countries. Organized retail
industries have been increasing steadily in recent years specially garments industries. The performance of
Bangladesh's garment industry is regarded as one of the best success stories in the country's economic
history. Over the last two decades, the industry has played a vital role in the country's socioeconomic
stability. Nearly 10 million people benefit indirectly from the sector, with another two million benefiting
directly. Manufacturing companies have seen considerable expansion in less than two decades. The
COVID-19 pandemic has wreaked havoc on people's lives and habits all around the world. Currently with
1,353,695 Covid-19 cases and 22, 652 deaths Bangladesh is one of the most Covid-19 effected countries
in the world. COVID-19's impacts are having a huge impact on the garments industries of Bangladesh.
Thousands of garments in Bangladesh had to halt operations and close their facilities and establishments
in order to comply with the severe lockdown rules. As a result, in comparison to their low income,
garments industries are overwhelmed in terms of personnel pay, rent, and other establishment costs. This
report covers the implications of the COVID-19 pandemic on Bangladesh's garments industries, as well as
the issues that Bangladesh's garments industries are facing as a result of the uncertainty.
PESTEL Analysis:
A PESTEL analysis is a tool for measuring corporate performance. PESTEL is an acronym that stands for
Political, Economic, Social, Technological, Environmental, and Legal issues. It provides a bird's eye view
of the entire environment from a variety of perspectives that are important to consider while thinking
about Bangladesh's garments industry.
Political: The progress of our country is largely dependent on political stability. Bangladesh's political
turbulence, strikes, and labor-political party clashes have resulted in a significant loss for the garments
industry. The country is democratically compliant, but there is a significant level of corruption and
terrorism that has existed for a long time. The Bangladesh government, on the other hand, has made a
number of initiatives to combat this and help the garments industry.
Economical: Bangladesh's garments industry accounts for 11.2% of the country's GDP (BGMEA:2020).
It employs around 4.1 million people, with women accounting for almost 70% of the workforce. This
industry helps the unemployed in finding work, hence assisting the economy's growth.
Social: Bangladesh has a higher unemployment rate. The garment industry is helping the unemployed,
particularly women, in finding work. Women are working and supporting their families, while youngsters
are receiving an education and becoming more cognizant of population control. As a result, it is helping
to enhance living standards. However, because the garments are closed due to the pandemic, they may
find it impossible to work.
Technological: Bangladesh is not a technologically advanced country; they rely on old methods due to
the high expense of acquiring new technology. The current situation, in which garments are closing,
makes it extremely difficult to obtain the most up-to-date and premium technology.
Environmental: For garments industries, poor waste management is a cause of worry. The environment
is being harmed by inappropriate waste management. Sufficient safety and environmental protection are
necessary in the current situation.
Legal: Governments help the garments industry since it employs the majority of the population.
However, legal compliance must be prioritized in order to ensure safety. Workers must receive proper
salary and earnings, which must be paid on time. Due to the current unemployment caused by the
Coronavirus epidemic, it is more important than ever to consider legal issues.
Took information from:
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