Apparel Online Bangladesh Magazine December Issue 2018 | Page 31

EXPORTER PERSPECTIVE
SKY APPARELS BULLISH ON
OPPORTUNITIES IN NEW AND
NON-TRADITIONAL MARKETS
S
tarting its journey, by primarily
exporting apparels to USA and
Europe (considered the traditional
markets), Bangladesh is now looking
at spreading its wings to reach new
export destinations. The second
biggest garment exporter globally
after China, the former’s declining
stronghold in apparels – due to
rising labour cost and other issues
– has opened doors of opportunities
for Bangladesh. So much so, that
today China, despite being the biggest
exporter of apparels in the world, is
slowly but surely turning into a good
market for Bangladesh.    
“The market equation is significantly
different today compared to what it
was a few years ago. Even though
Europe and USA continue to be our
main markets; in terms of percentage,
if these two markets account for
around 60 per cent of our total apparel
export, the remaining 40 per cent is
now going to the non-traditional and
new destinations. I personally feel in
the coming days, the share of non-
traditional markets would increase
considerably,” maintains Uttam
Prasad, Director of Sky Apparels
Limited, interacting with Apparel
Online.
Sky Apparels Limited is a
100 per cent export-oriented sweater
and woven apparel manufacturer
(with its very own cone dyeing, piece
dyeing, hanks dyeing and washing
facilities) catering to a wide range of
buyers across geographical locations.
Prasad’s observations, seen in the
light of Bangladesh’s current export
figures, seem bang on! Bangladesh
RMG exports have continued to
perform better in the non-traditional
markets during fiscal July to March
2018, during which the country
FA C T S
l

As analysed by
Apparel Online,
Japan topped the
tally with imports
from Bangladesh
worth US $ 626.68
million; a figure
which jumped by
5.83 per cent on
the yearly note.
Australia too saw
a steep climb of
9.83 per cent in
its imports from
Bangladesh to
help the country
earn US $ 495.31
million in the
review period.
During the
previous fiscal, in
the same period,
the figure stood
at US $ 450.85
million. Third
in the tally,
Russia, which
is an emerging
market as far as
clothing retail is
concerned, also
imported more
apparels from
Bangladesh over
the last fiscal.
Bangladesh
increased its
RMG exports to
Russia by 18.76
per cent.
exported apparels worth US $
3,457.34 million in these markets
(which exclude US, EU and Canada),
marking a growth of 7.31 per
cent on Y-o-Y basis.
As analysed by Apparel
Online, Japan topped the tally
with imports from Bangladesh
worth US $ 626.68 million; a figure
which jumped by 5.83 per cent on
the yearly note. Australia too saw
a steep climb of 9.83 per cent in its
imports from Bangladesh to help the
country earn US $ 495.31 million in
the review period. During the previous
fiscal, in the same period, the figure
stood at US $ 450.85 million. Third
in the tally, Russia, which is an
emerging market as far as clothing
retail is concerned, also imported
more apparels from Bangladesh
over the last fiscal. Bangladesh
increased its RMG exports to
Russia by 18.76 per cent and
apparel shipments were valued
at US $ 298.11 million.
The only concerned area is perhaps
China where ‘Made in Bangladesh’
apparels could not see any major
turnaround in the Chinese markand
hence it grabbed the fourth rank in the
table; values of apparel shipments also
fell by 5.65 per cent on Y-o-Y basis.
However, things are all set to change
now! To improve trade facility
and export of more apparel items,
Bangladesh has sought duty-free
market access in China and already
a Letter of Exchange (LoE) in
this regard has been forwarded to
China, and if China approves the
LoE, Bangladesh will enjoy duty-
free benefit for 97 per cent of the
products exported under the World
Trade Organization (WTO) rules. As
per Bangladesh Commerce Minister,
China has also expressed its interest
in Bangladesh with Free Trade
Agreement (FTA). In this regard, the
MoU has already been signed between
the two countries. Once the FTA comes
into effect, RMG export to China is
expected to go up significantly.
In another very prospective market
of India, Bangladesh is emerging as
a strong contender, which is going to
strengthen further after the Indian
Government’s move comes into the
picture, to make free access of 61
items (48 of them in apparel) from
Bangladesh to balance the trade
between the two countries.
www.apparelresources.com | December 2018 | Apparel Online Bangladesh
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