Home ›› 24 Jun 2022 ›› Front
Apparel manufacturers are approaching new international brands and buyers with fresh and value-added products to convince them to place more orders with the aim to increase Bangladesh’s share in the global export market to 10 per cent by 2025.
According to the World Trade Statistical Review 2021 of the World Trade Organization (WTO), Bangladesh as a country had the third-highest share — 6.3 per cent — in the global market of clothing exports/imports with a value of $28 billion in 2020. The share was 6.80 per cent in 2019.
In 2020, China held 31.6 per cent global market share, Vietnam 6.4 per cent, and the European Union (EU) as the 27-nation bloc held 27.9 per cent.
After China, Bangladesh is currently the world’s second-largest exporter of apparel goods, with its earnings recording a 34.87 per cent rise and bringing in $38.52 billion during the July-May period of the FY2021-22.
To maintain this growth after the Covid-19 shock and increase work orders, apparel manufacturers are now travelling around the world knocking on the doors of new buyers, with their multi-dimensional approach and high-end products.
Their aim is also to avoid any crisis or unexpected situation in this sector in the near future as the world struggles with the rising inflation and the unprecedented impacts of the ongoing Russia-Ukraine war.
Sources said the manufacturers are trying to create a strong marketing baseline by connecting with more buyers as the industry has seen a severe drop in order placement in recent times.
According to them, buyers’ orders during the September-December period of FY2021-22 were 25 per cent lower compared to the same period last year.
However, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says they expect the country’s apparel export share in the global market to reach 10 per cent in 2025, alongside the aim to take it to 7.5 per cent at the end of the year.
No other way
Currently, since Covid restrictions on international travel were relaxed, dozens of apparel exporters are visiting the US and different European and export destination countries in search of new buyers.
The apex trade body leaders say they have received positive responses from many potential buyers because of their innovative initiatives, which are also encouraging new manufacturers in Bangladesh to join the effort to widen the share in the global export market.
Talking to The Business Post, BGMEA President Faruque Hassan said, “Our main goal is getting a higher number of work orders.
“Over the past two months, apart from existing buyers, I met with the Inditex chief executive officer in Spain and a group of buyers in Germany. I also met with a group of buyers in Italy who have never sourced apparel products from Bangladesh. Their responses have so far been good.”
Although Bangladesh’s export earnings have seen growth and manufacturers have expanded their capacity, industry insiders say this growth will not be sustainable in the long run.
Even the Finance Ministry has predicted that the growth rate could drop to 20 per cent in the upcoming FY2022-23, prompting the exporters to find new buyers and destinations to meet their demand.
Former BGMEA president and Sterling Group Chairman Md Siddiqur Rahman told The Business Post, “Buyers have been placing orders slowly due to the rising inflation in the US and EU and that has already impacted our production.”
“Bangladesh is manufacturing most of the major buyers’ clothing products, but many are yet to place new orders. We are focusing on attracting more buyers. My son [Laila Group managing director] Imranur Rahman is currently in Europe and working on that,” he added.
Mohammad Hatem, managing director (MD) of MB Knit Fashion Ltd, said they are already facing a work order shortage. “Many other factory owners have informed me that they are in the same situation.”
“All of us need more orders and new buyers to survive. Many exporters are abroad right now meeting the buyers. My son will soon go to the US for the same reason,” added Hatem, the executive president of Bangladesh Knitwear Manufacturers and Exporters Association.
Nipa Group MD Khosru Chowdhury, who visited several countries searching for new buyers over the past year, said, “Many reputed buyers are not placing orders even though we can manufacture their goods. Several Latin American and Asian buyers also do not place orders in Bangladesh.
“I have been talking to them for a long time and I have managed to convince some of them.”
Time to attract major brands
Meanwhile, veteran apparel manufacturers think the global business pattern has changed and buyers are now more comfortable doing business directly with suppliers.
They said this is the high time to attract the reputed brands and buyers to Bangladesh because China, the world’s largest apparel exporter, is facing a trade war with the West while Myanmar and African countries are facing political crises.
Still, some buyers think that Bangladesh is best for manufacturing basic items even though the country’s apparel industry has seen a huge transformation in the last five years while manufacturing value-added goods.
“If you directly approach the buyers and showcase your development, they will feel confident to start placing more orders in Bangladesh,” Anwar-ul Alam Chowdhury, the president of Bangladesh Chamber of Industries, told The Business Post. “But we will have to maintain time and quality and that will lead them to depend on us,” added Anwar-ul, also a former BGMEA president.
Another former BGMEA president, Abdus Salam Murshedy said that Bangladesh’s apparel manufacturing capacity is growing day by day. “To meet that capacity, the industry will need a huge amount of work orders.
“There is no alternative to creating a strong marketing chain. If we can attract new buyers, it will help ensure a fair price and work order security,” added Salam, also the MD of Envoy Group.
