LPP deepens Bangladesh garment partnerships with $750mn in annual contracts

Polish fashion retailer LPP has expanded its network of manufacturing partners in Bangladesh to more than 350 from around 100 a decade ago.

The company has annual contracts worth approximately $750 million, highlighting the growth of its ties with the country's garment industry, it said in a statement.

For around 30 percent of these factories, LPP is the main customer, according to the company.

LPP, one of the largest buyers of Bangladeshi garments, says its international expansion has gone hand in hand with the development of its local suppliers.

“As LPP grew, we were able to place larger and more diverse orders. At the same time, our partners invested in new technologies, skills and production capabilities, allowing us to grow together,” said Joanna Sikorska, purchasing director at LPP.

Over the years, LPP has expanded internationally, while Bangladesh has established itself as one of the world's leading garment manufacturing hubs and a major player in the global fashion industry.

Sikorska said she had seen small factories develop into large, modern businesses employing thousands of people, while partnerships that began with relatively small orders had grown into long-term business relationships.

“That trust is built over years, not overnight,” she said.

LPP now operates in 47 markets through more than 4,000 stores and ranks as the eighth-largest buyer in Bangladesh's ready-made garment sector, according to the company.

“Bangladesh has played an important role in LPP's growth, and we are proud of what we have built together with our partners here. We see our suppliers not simply as factories, but as long-term business partners,” Sikorska said.

She added that LPP wanted to continue developing these relationships and creating value for its businesses and for Bangladesh and Poland.