Apparel Online Bangladesh Magazine November Issue 2018 | Page 26

EXPORTER PERSPECTIVE
Dressmen Limited optimistic about India
as an export destination
I
ndia is at the cusp of a retail
revolution! Boasting GDP growth rate
of 7 per cent, far ahead of the so-called
developed markets of the
US, Europe and Japan (that are
expected to grow at a rate of 2-3 per
cent only), and coupled with increasing
disposable income and spending power
of the burgeoning middle-class, the
country’s retail scenario could not have
been more enticing.
As per statistics, the Indian retail
market, which was worth US $ 641
billion in 2016 is expected to touch an
overwhelming US $ 1,576 billion by
2026, growing at a Compound
Annual Growth Rate (CAGR) of 10
per cent, while the fashion retail
market (currently US $ 50 billion)
is expected to grow at a promising
CAGR of 7.7 per cent to reach US
$ 104 billion by 2027. This has opened
up new windows of opportunity for the
Bangladeshi apparel exporters
who are keen to capitalise on this huge
opportunity.
An early entrant in the Indian market,
Dressmen Limited (a pioneer in woven
shirt manufacturing in Bangladesh
with combined production capacity of
8,00,000 pieces monthly and catering to
names such as Ralph Lauren, TESCO,
VF Corporation, MANGO, Eddie Bauer,
Nautica, TARGET Stores, HAGGAR,
Springfield, etc.,), seems to have a
definite advantage vis-à-vis
the newcomers.
“India is very promising. It has a very
large population with considerable
buying prowess… Dressmen is
amongst the first to export to India
and we started with manufacturing
for Peter England. Currently we are
supplying to Max, Pantaloons, Red
Tape, etc.,” maintained Maashed
R Abdullah, the young and suave
Director of the more than three-
decade-old company, while underlining
that multi-national brands and
retailers operating in India would
have to source from Bangladesh,
considering its price-competitiveness
and expertise.
Maashed’s observations seem bang on
in the light of the recent export figures.
Bangladesh’s apparel exports to India
saw a steep climb during the July-
March 2018 period – amounting to an
increase of more than double. As per
BGMEA data, apparel export to India
saw an increase of 111 per cent (on a
point-to-point basis) in this time period.
In monetary terms, the total apparel
export amounted to US
$ 218 million, what was US $ 97 million
at the same time last year, while as
Maashed R Abdullah, Director, Dressmen Limited
26 Apparel Online Bangladesh | November 2018 | www.apparelresources.com
“India is very
promising. It
has a very large
population with
considerable
buying prowess…
Dressmen is
amongst the
first to export
to India and we
started with
manufacturing
for Peter England.
Currently we are
supplying to Max,
Pantaloons, Red
Tape, etc.”
– Maashed R Abdullah
per Bangladesh’s Export Promotion
Bureau, between July and December
last year, garment shipments to India
increased 5.99 per cent year-on-year
to fetch US $ 111.33 million.
What’s more, global retail giants
like H&M and Walmart have already
started sourcing from Bangladesh to
cater to the Indian consumers, with
many more following suit. With host of
retailers increasing their footprints in
the country, sourcing from Bangladesh
is set to get a further boost.
If M&S and GAP are planning to open
another 50 stores in India in next two
years, Adidas India Private Limited has
outlined plans to open around 30-40 big
flagship stores across Delhi, Mumbai
and Bengalore, by 2020, which in turn
has prompted many more to enter the
lucrative Indian market. Only recently,
Uniqlo announced its first store to
open in Delhi in 2019. Aeropostale, an
American teen fashion retailer, has
chosen to enter India over China, and
expects India to be among its top three
markets over the next four years with
revenue target of US $ 74.12 million.
Ikea has already opened its first store
in Hyderabad while future stores
are reportedly planned in Mumbai,
Delhi-NCR, Bengaluru, Pune, Surat,
and Ahmedabad.
The Indian Government’s recent move
to double import duty on 328 textile
products from 10 to 20 per cent is
going to play in Bangladesh’s favour,
feel the experts. “This decision will not
impact the imports from Bangladesh
since there is a full exemption of
‘Basic Customs Duty’,” reportedly
maintained Sanjay Jain, Chairman
of Confederation of Indian Textile
Industry (CITI) while speaking to the
media.
Even the domestic brands and retailers
are increasingly getting dependent on
Bangladesh for their requirements and
Maashed seems to have the inkling
why? “India basically has three main
seasons – the pre – and post-wedding
and the festival season. Considering
the country’s population and its
demand which peaks during these
periods, the retailers have no option
but to source from Bangladesh to meet
the requirements,” winded up Maashed
on an optimistic note.