Clothing giant H&M is testing the garment production waters by entering into exclusivity agreements with factories in Cambodia and Bangladesh, according to a report from Bloomberg News yesterday.
This means that Sweden-based H&M would buy all of the factory’s output. H&M, it seems, would still be free to source from other producers in Cambodia.
Anna Gedda, H&M’s social sustainability manager, told Bloomberg the initiative would allow the company to “try different things” on a larger scale across their supply chain. H&M did not disclose the name of the factory.
Ken Loo, Garment Manufacturers Association in Cambodia secretary general, was unaware of the agreement, but welcomed any initiative that gave better consistency of orders.
“It is definitely good for the factory, and then in turn, the factory will be able to give better job security to its workers,” he said.