Ten products still dominate apparel exports

While experts and the government are focusing on diversification of the readymade garment, top ten traditional items are still capturing the majority share of export earnings and its contributions to total exports remain almost unchanged.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data showed that in 2021, the country earned $24.49 billion by exporting these top ten apparel products which accounted for 68.38 per cent of total RMG export earnings.

In 2021, globally traded values of these ten items were $160.44 billion, and the figure was 37.14 per cent comparing to total $431.94 billion global RMG export-import in the year. The total global trade figure of 2022 has not been published yet.

However, BGMEA claimed that they already entered into the high-value goods manufacturing and started getting its benefits. If the government continues providing policy support, the sector will be able to boost earnings from diversified items.

They also claimed that thanks to the initiatives, the export ratio of top ten apparel goods came slightly down to 67.70 per cent in 2022 comparing to total RMG exports in the year.

BGMEA President Faruque Hassan said, “Previously, we were exporting almost basic items, but now it is changing. Since last two years, we are exporting high-value clothes. That is why our export earnings are also increasing despite low orders.”

The top ten items are: cotton knitted T-shirt, men’s cotton woven trousers, women’s cotton woven trousers, cotton knitted jerseys and pullovers, manmade fibre (MMF) knitted jerseys and pullovers, men’s cotton woven shirt, women’s cotton knitted trousers, men’s synthetic woven trousers, men’s cotton knitted shirts, men’s cotton knitted trousers.

What items earned how much?

The BGMEA data showed that the country earned $7.12 billion and $8.94 billion in 2022 and 2022 respectively by exporting cotton knitted T-shirt while global trade was $32.32 billion in 2021.

In 2021 and 2022, exports of men’s cotton woven trousers fetched $4.83 billion and $5.94 billion respectively while the global export market was $22.65 billion in 2021.

Another major item, woman’s cotton woven trousers earned $2.44 billion and $3.05 billion in 2021 and 2022 while the global export market was $18.93 billion in 2021.

Cotton knitted jerseys and pullovers goods earned $2.72 billion and $3.42 billion in 2021 and 2022 respectively. However, the global export market for goods was $29.51 billion in 2021.

Earnings from manmade fibre (MMF) knitted jerseys and pullovers were $1.63 billion and $1.97 billion in 2021 and 2022 while the global market was $23.1 billion in 2021.

The data also showed that while men’s cotton woven shirt’s world market was $7.07 billion in 2021, the country exported shirts worth $$1.19 billion and $1.77 billion in 2021 and 2022 respectively.

During the period, earnings from women’s cotton knitted trousers were $1.41 billion and $1.68 billion respectively while the global market was $9.31 billion in 2021.

In 2021 and 2022, men’s synthetic woven trousers earned $1.3 billion and $1.65 billion respectively. On the other hand, in 2021, the global export market of goods was $8.11 billion.

Men’s cotton knitted shirts earned $652 million and $1.13 billion in 2021 and 2022 respectively while the global market was $4.48 billion in 2021.

The BGMEA data also revealed that the country earned through men’s cotton knitted trousers worth $584 million and $798 million in 2021 and 2022 while the global export market was $5.95 billion in 2021.

MMF is likely to change the scenario

Industry insiders said that they are exporting nearly 75 per cent of cotton-based apparel items and most of them are low valued. On the other hands, nearly 52 per cent of imported clothes are MMF-based and high-value items are also of the fibre.

That is why the country is focusing on manufacturing on MMF items in addition to cotton-based apparel goods.

Besides, due to the initiatives of research and development (R&D), buyers started placing orders for costly clothes such as suit, jacket and lingerie in Bangladesh.