Apparel Online Bangladesh Magazine October Issue 2018 | Page 25

BANGLADESH INSIGHT
in the country’s apparel industry
has also drawn the attention of
more global buyers lately. World’s
top LEED certified factory, Envoy
Textiles is located in Bangladesh
and the group produces 60 million
metre of denim fabric every year.
Growth opportunity for
Bangladesh…
According to market research firm
Technavio, the global denim and
jeans market is worth about US $ 60
billion, out of which around US $ 14
billion market exists in USA alone.
The denim industry is expected
to grow at a CAGR of over 6.5 per
cent by 2020. Since Bangladesh
is now the largest exporter to the
EU and holds a large share in the
US market, there is an enormous
opportunity to grow in the US,
surpassing Mexico, and pacing up to
match the export figures of China,
especially in premium denim jeans
segment which is expected to grow
at a CAGR of 12.23 per cent by 2020.
Challenges for the
country…
Despite growth, Bangladesh faces
some great challenges. Expensive
utility services including gas and
electricity are somehow hindering
new investment in the country’s
denim sector. Further, the country is
still dependent on fabric importation
for 50 per cent of its denim fabrics’
demand, which is somehow
increasing the cost of the product
and the shipping time is also
more compared to Mexico. Lately,
the country has been seeing the
manufacturers’ inclination towards
value-added products to a great
extent but it certainly needs more
attention if the country wants to
stay ahead in the race as its another
close competitor Vietnam is moving
rapidly in the US market.
During H1 ’18, Vietnam exported
US $ 110.71 million worth of denim
apparels in the USA market,
growing at a rate of 44.79 per cent
on Y-o-Y basis. Though its export
figure is more than half to that of
Bangladesh’s, the growth rate of
Vietnam is a worry for the country
as the growth here is surely an
indicator that US buyers may
shift to Vietnam in future, seeing
to the country's experience of
manufacturing high-end clothing.
How did Bangladesh
perform in the major
markets last fiscal?
B
angladesh’s apparel exports
ended fiscal 2017-18 on a high,
crossing the US $ 30 billion export
target and registering an impressive
growth of 8.76 per cent on a Y-o-Y
basis – very much in line with the US
$ 50 billion export target by 2021.
As analysed by Apparel Online,
knitwear exports fetched a total of
US $ 15.18 billion during the fiscal,
jumping a whopping 10.4 per cent on
Y-o-Y basis. On the other hand, woven
exports fetched US $ 15.42 billion –
a growth of 7.18 per cent. Combined,
apparel exports occupied over 83 per
cent of Bangladesh’s total exports –
as usual.
But how did Bangladesh fare in
exports compared to its major
individual markets? Here’s how:
United States
United States remained the biggest
market – country-wise – for apparel
export to Bangladesh. During the
fiscal 2017-18, products worth US
$ 5.98 billion were exported –
which is over 16 per cent of the
total export of Bangladesh. Export
earning was 2.3 per cent higher
compared to the US $ 5.84 billion
exported during 2016-17.
The main exported item in this
market was woven garments at US
$ 3.97 billion, followed by knitwear
products at US $ 1.37 billion,
The main
exported item
to USA was
woven garments
at US $ 3.97
billion, followed
by knitwear
products at US
$ 1.37 billion,
home textiles at
US $ 180 million,
and caps at US
$ 126 million. US
procured over
25 per cent of
Bangladesh’s
woven products,
9 per cent of
knitwear and 18
per cent of home
textiles products.
home textiles at US $ 180 million,
and caps at US $ 126 million.
US procured over 25 per cent of
Bangladesh’s woven products,
9 per cent of knitwear and 18 per
cent of home textiles products.
Germany
The next biggest export market
was Germany at US $ 5.89 billion
– which witnessed a major surge
during 2017-18, basking over 7.5
per cent gain. Bangladesh fetched
over 16 per cent of its total export
sum from this European country.
The main exported item in
Germany were knitwear products
which fetched US $ 3.2 billion,
followed chronologically by woven
garments at over US $ 2.3 billion,
and home textiles at US $ 83
million. Notably, Germany procured
over 21 per cent of Bangladesh’s
knitwear products and 15 per cent
of woven garments.
United Kingdom
The third biggest trade partner of
Bangladesh, the United Kingdom,
contributed to over US $ 3.9 billion
of export earnings. The Britain,
despite uncertainty over Brexit
concerns, saw over 10 per cent
of total export shipping from
Bangladesh. The major export
items to this country were knitwear
products at over US $ 1.89 billion,
closely followed by woven products
at over US $ 1.82 billion, and home
textiles at US $ 76 million.
Spain
Bangladesh exported US $ 2.45
billion worth of products to Spain
– 6.7 per cent of the country’s total
export basket. Garment products
occupied most of the basket with
knitwear products remaining the
top item fetching US $ 1.2 billion,
followed by woven garments at over
US $ 1 billion, and home textiles at
over US $ 27 million.
France
Bangladesh exported a total of
US $ 2 billion worth of products
to France during this fiscal, which
was nearly 5.5 per cent of the
country’s total export. The major
products exported were knitwear
at US $ 1 billion, woven garments
at US $ 780 million, and home
textiles worth US $ 65 million.
www.apparelresources.com | October 2018 | Apparel Online Bangladesh
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