Apparel Online Bangladesh Magazine July Issue 2018 | Page 14

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German juggernaut rolls on …

In view of Germany dethroning USA as Bangladesh’ s biggest export destination, Apparel Online analyses its future prospects from Bangladesh’ s standpoint
One’ s loss is always another’ s gain … Bangladesh’ s exports to its once biggest export destination, USA, is definitely not at its pink any longer. Blame it on USA withdrawing the trade benefits that it previously offered to Bangladesh or the so-called‘ labour issues’ and‘ workplace safety’ improvements, neither of which seem to have cut much ice with the US administration, the country’ s import of‘ Made in Bangladesh’ apparels has taken a hit for sure. This has paved way for the European Union’ s most populous nation, Germany, to wrestle the tag of biggest apparel importer from USA – which it once held during the July-November period of 2016-17 fiscal only to lose it to USA later – during the July-February period of the current fiscal year, 2017-18.

Export earnings from Germany in the July-February period of FY’ 18 stood at US $ 3.92 billion which is US $ 23.22 million higher than earnings from the US( US $ 3.90 billion) in the period, so reflects the data from the Export Promotion Bureau. This has come as the much-needed respite to the Bangladesh apparel exporters, reeling under the slow growth in US market, till Germany emerged to cover up for US and saved the day for them. But can Bangladesh bank upon Germany as a long-term ally for apparel exports …? Apparel Online delves deeper to give a low-down on Germany, and its prospects from Bangladesh’ s standpoint.

Economic superpower with high consumer spending
Renowned for its technological innovation, art and science, Germany not only plays a leading role in Europe’ s economic and political field, but it is also the largest economy in the Euro zone( Germany is often regarded as an economic leader of Europe) and the world’ s fourthlargest economy with GDP of US $ 3.70 trillion in 2017.
Boasting per capita GDP of US $ 48.10( 31st in the world), German consumers enjoy higher spending
Armed with the right market information and insight and knowledge of appropriate distribution channels, apparel exporters stand a good chance to increase their market share in Germany, more so in the light of relaxed import regulations.
power than many. Though majority of the German population are ageing( the average age is of 47.1 years) with consumers over 50 years of age constituting the biggest high-buying power group( 50 per cent of the buying power per capita), Germans’ spending is said to be largely based on the criteria of quality, comfort, convenience, and price.
As per a recent Reuter report, the German Government has reportedly raised its 2018 growth forecast to 2.4 per cent from the previous 1.9 per cent, with exports expected to grow by 5.3 per cent and imports expected to rise by 5.8 per cent this year.
Employment is further predicted to grow by 4,90,000 to reach a record high of about 44.8 million in 2018, while unemployment is seen as falling to 5.3 per cent from 5.7 per cent in 2017; household spending is all set to grow further as consumers benefit from record-high employment, increased job security, rising real wages and low borrowing costs, thereby ensuring that the Europe’ s largest economy is firing on all cylinders.
Industry Synopsis
The second-largest consumer goods market after food and beverage,
textile and clothing industry is one of the most important sectors of Germany.
Germany is not only one of the prominent exporters of textiles and clothing globally but is also the second largest textile importer after the United States. This has turned Germany into a very significant market for many textile exporting
14 Apparel Online Bangladesh | July 2018 | www. apparelresources. com