Trousers, blue denim fuel Bangladesh’s exports to USA

Bangladesh, which has been unbeaten in the US market with trousers and denim products, still remains top there, grabbing 23 percent of the market even amid the global economic downturn.  

According to the Office of Textiles and Apparel (OTEXA), Bangladesh fetched $2.4 billion by shipping trousers and $639 million by exporting blue denim in eight months of 2022.

Bangladesh’s arch rival Vietnam fetched $1.69 billion, China $1.18 billion and Pakistan $780 million by exporting trousers while denim earned them $306 million, $264 million and $329 million, respectively at the same period.

The OTEXA data shows 47.54 percent growth in trouser export and 46.37 percent in denim export from Bangladesh. 

“The USA market has remained unaffected by the war. As dollar price has been appreciated during Russia-Ukraine war, their trade is doing better than EU and Asia,” Muhammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA,) told Business Insider Bangladesh. 

Another exporter could not agree fully.

“We have gained high growth as the buyers rushed to Bangladesh after the pandemic and prior to the war. But now the buyers are holding the orders for next season,” Mohiuddin Rubel, Director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said.

He said: “During that time, buyers projected higher prices for importation apparels but they were not prepared for the abrupt Russia-Ukraine war, so they had booked many of the factories. Unfortunately, they are now adopting a go slow policy to receive the consignments. The manufacturers are overstocked.”

Some exporters, however, are optimistic.

“Work orders from global markets have declined by 25 percent due to the global recession. I hope at the end of this year the situation may turn around,” Shupolo Dewan, Assistant General Manager (AGM) of Chittagong Denim Mills Ltd, said.     

Currently, Bangladesh has 40 denim factories with $1.5 billion investment and those factories could produce 443 million yards of denim annually with 15 percent growth against the demand for 800 million yards.

“Mainly the USA used to buy their major volume of fabrics from China, but recently, a cool relationship has been developed between two mighty countries…that has been rewarding for us,” Shofiqur Rahman, head of marketing of Zaber and Zubair Fabrics Limited, a sister concern of Noman group, said.

An expert, however, said China is phasing out cheap apparels.

“China is phasing out apparels. Therefore, the orders will be diverted to Bangladesh and elsewhere. It will accrue bigger growth for Bangladesh,” said Dr Khondaker Golam Moazzem, an industrial economist and Research fellow of the Centre for Policy Dialogue.

Bangladesh, the highest denim products exporter of the globe, shipped $8.40 billion in the international market in 2021-2022 fiscal year.

Within a shorter span of period, Bangladesh has emerged as a powerful manufacturer of Denim, taking the lead in the United States and European market.

According to Technavio, a market research and advisory firm, the global denim industry net will be worth about $83 billion by 2023. APAC (Asia Pacific Countries) is expected to hold the largest share in the US and EU market.

Bangladesh and China are the two peer nations which have been leading the US and EU markets. But China is now struggling due to the US-China trade war. Such stalemate, the covid-19 issues and the US-China Trade war are yielding extra benefits to Bangladesh and other apparel manufacturers in Vietnam, India and Pakistan.

US’s top suppliers of denim include China, Bangladesh, Vietnam, Mexico, Pakistan, India, etc. Bangladesh apparel industry is now the second biggest just behind China, in the world.