Just like consumers have been stocking up on toilet paper in turbulent times, fashion brands have been trying to hoard cash flow.
In times of economic downturn, using cost-cutting measures to shore up cash flow makes sense for businesses. But is it fair to pass financial risk down the chain to suppliers, especially ones in developing countries?
Many clothing brands have recently canceled production orders from their manufacturers, but there are still a few good eggs who are weathering the storm together with their vendors. Let’s applaud for good business ethics.