Apparel Online Bangladesh Magazine December Issue 2018 | Page 42

BANGLADESH CANVAS Pacific Jeans on an expansion spree; two new units in the offing Pacific Jeans, one of Bangladesh’s renowned denim manufacturers, is reportedly planning to come up with two new manufacturing units in Chittagong in next couple of years. To be built at a cost of US $ 100 million, the two units – Pacific Knitex and Pacific Casuals – will reportedly produce fabrics and activewear respectively. “Activewear is not a traditional garment product. Rather, it is a specialised product that Bangladesh is yet to explore,” stated Director of Pacific Jeans Syed M Tanvir, while speaking to the media underlining the company’s intent of diversifying its product offerings. It may be mentioned here that in an earlier interview with Apparel Online, Tanvir had observed that considering the country’s growth and maturity, when it comes to denim, from here on it will be all about efficiency, product development and innovation for the denim sector. The company as such has invested heavily in product development and innovation. It has set up its own PD team dubbed ‘Pacific Jeans Innovation Centre’, which works in close collaboration with the leading fashion designers of premium denim brands from US, EU and Japan to come up with value-added innovations, besides taking help of strategic partners in different geographical locations to get real time information on trends, forecast and developments. As to Pacific Jean’s new venture to produce activewear, Tanvir is reportedly expecting good business in light of activewear strongly emerging as a very prospective product category due the recent global trend of active and healthy lifestyle. As per a study by US- based market research firm Research and Markets, the global activewear market, valued at US $ 351.164 billion in 2017, is expected to grow at a CAGR of 6.5 per cent between 2017 and 2023 to reach US $ 512.39 billion. Cotton trousers make up 27 per cent of Bangladesh's apparel exports to US in 2018 Cotton trousers made up for 27 per cent of Bangladesh’s total apparel exports to the US, the country’s single biggest export destination in 2018. According to latest data of OTEXA, Bangladeshi- made cotton trousers fetched US $ 1.13 billion during January- September 2018, what was an impressive 9.31 per cent gain on a year-to-year basis in comparison to the same time period last year. Data shows that during the said period, Bangladesh’s apparel exports to the US amounted to US $ 4.16 billion, up by 5.84 per cent from last year. The major garments export items were cotton trousers, cotton dresses, knit blouses, slacks, cotton underwear and sweater. Further analysis shows that slacks marked a significant rise, fetching over US $ 59 million. This sum was an impressive 9.32 per cent gain from US $ 54 million during the said period in 2017. On the other hand, export of woven shirts declined during January-September 2018. It fetched US $ 41 million during this time, down by 1.14 per cent from the previous year. Cotton-made underwear was perhaps the biggest falling point, losing 8.74 per cent during the said period and fetching US $ 17 million. Last year, the sum was US $ 19 million. Bangladesh’s apparel export to the US is currently gaining for what industry stakeholders believe to be the pursuit of China plus sourcing strategy. Also, the recent trade war between the two giant economies is proving beneficial for Bangladesh. Apparel Online spoke to Mohammad Hatem, Vice- President of Exporters Association of Bangladesh, and Mohammed Nasir, Vice-President (Finance) for Bangladesh • Export of slacks gain by 9.32 per cent • Woven shirts fall by 1.14 per cent • Underwear exports slide by 8.7 per cent • Overall apparel exports gain by 5.8 per cent 42 Apparel Online Bangladesh | December 2018 | www.apparelresources.com Garment Manufacturers and Exporters Association (BGMEA) in this regard. Both of them believe that the apparel export to the US is rising because of the two said factors. They say the void that is being created because of this is too large to be filled by emerging suppliers like Bangladesh and Vietnam. But, they unilaterally said that this is an opportunity for Bangladesh.