Retail in Asia

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H&M expresses concern about growth in Bangladesh

Swedish fashion retailer Hennes & Mauritz AB said it wants to obtain more products from Bangladesh to take advantage of inexpensive labour but that unrest presents a hurdle.

About 25 percent of H&M’s products are made in Bangladesh and the company, the world’s second largest clothing retailer, aims to increase that figure.

Fashion accounts for about 80 percent of Bangladesh’s exports and employs about three million people. Consulting firm McKinsey & Co. expects Bangladesh’s apparel exports to double by 2015 and triple in 10 years, with big buyers moving from China as capacity constraints and wage inflation decrease profits.