Brands are paying 30 percent less in real terms for a cotton T-shirt than they did 25 years ago, even after adjusting for European inflation, according to Wwd. This drastic price reduction forces suppliers to absorb higher costs, placing immense economic pressure on manufacturing nations. Bangladesh, the world's second-largest garment exporter, now faces a significant decline in export value, with ready-made garment exports reaching only $31.7 billion during the first ten months of the 2025–26 fiscal year, a year-on-year decline, as reported by Newagebd. This downturn occurs despite Bangladesh's substantial investments in sustainable practices, as global brands actively undermine these efforts by demanding historically low prices.

This traps suppliers in an economic crisis, making ethical production financially unviable. Without a fundamental shift in global sourcing practices and a commitment to fair pricing, the economic viability of Bangladesh's garment industry and the welfare of its workers are at severe risk.

The Human Cost: Workers Trapped in Poverty Wages

  • The minimum monthly wage for Bangladeshi garment workers stands at 12,500 taka (approximately $113), according to economicsobservatory. This is far below the estimated local living wage of $460 per month.
  • A study reported that 37 percent of 1,138 brands and retailers engaged in unfair practices, Aljazeera reported.

Workers struggle to meet basic needs, despite driving a multi-billion dollar industry. Unfair practices, like demanding retrospective discounts or cancelling orders without compensation, combined with poverty wages, reveal systemic exploitation. This prioritizes brand profits over human dignity and ethical sourcing standards.

The Relentless Squeeze: How Brands Drive Down Prices

Brands' relentless downward pressure on prices means suppliers receive significantly less, eroding margins and investment capacity. For example, in 2025, the average EU import price was $16 per kilogram, but sourcing prices from Bangladesh were roughly $13 per kilogram, according to Wwd. This three-dollar difference reveals the persistent cost advantage brands seek from Bangladeshi producers. Suppliers are forced to cut costs wherever possible, often at the expense of worker welfare or environmental investments. This economic squeeze directly impacts Bangladesh garment manufacturers, challenging ethical production standards.