Zara’s parent company, Inditex, has announced its decision to phase out sourcing from Myanmar in response to a campaign by global workers’ union IndustriALL. The move is part of an effort to convince companies to divest from the country, which has been under the control of a military junta since a coup in February 2021.
Inditex confirmed that it is currently undergoing a phased and responsible exit from Myanmar, following IndustriALL’s call. The company spokesperson stated, As a result, we continue to reduce the number of active manufacturers in the country. However, no specific timeline was provided for the company’s exit. Inditex does not disclose its list of suppliers, making it difficult to determine the exact number of factories in Myanmar that have been supplying the fast-fashion giant.
Myanmar has long been a significant producer of garments for Western brands and retailers. However, the military regime’s actions, including the violent suppression of protests and labor rights violations, have drawn international condemnation. In light of these circumstances, various organizations and unions, including IndustriALL, have been urging companies to disengage from the country to avoid supporting the oppressive regime.
The decision by Inditex to cease sourcing from Myanmar could have broader implications for the country’s garment industry, given the company’s size and influence. While the exact impact on Myanmar’s economy remains uncertain, it sends a powerful message to other companies operating in the region.
It is worth noting that Inditex is not the first major fashion retailer to respond to the calls for divestment from Myanmar. Last month, news site Sourcing Journal reported that the company was planning its exit from the country. This move reflects a growing trend among international brands to distance themselves from Myanmar in response to the ongoing human rights crisis.
As the situation in Myanmar continues to evolve, it is crucial for companies to prioritize ethical sourcing practices and consider the potential implications of doing business in countries with oppressive regimes. The decisions made by companies like Inditex will not only impact their supply chains but also have wider social, economic, and political ramifications.
By taking a stand against the military junta in Myanmar, companies have an opportunity to not only safeguard their reputations but also contribute to positive change by supporting workers’ rights and promoting fair and ethical business practices. The actions of Inditex should serve as a wake-up call to the fashion industry as a whole and inspire other companies to reassess their commitments to ethical sourcing. Through collective efforts, businesses can play a significant role in promoting human rights and driving positive change in countries affected by similar crises.
