US’s biggest denim distributor in 2020? Bangladesh
Image: Collected
In 2020, Bangladesh exported denim products worth $561 million to the US
Bangladesh became the major denim exporter to the US last year, in what may very well be a bright area for the country’s beleaguered garment sector that is reach hard by the global coronavirus pandemic.
In 2020, Bangladesh exported denim products worth $561 million to the US, down by practically 4 per cent from a year earlier, according to data from the US Business office of Textiles and Apparel.
However, it had been enough to give Bangladesh market share around 20 %, up from 15.7 % from a year earlier.
“This was a result of our relentless and collaborative efforts,” said Faruque Hassan, managing director of Giant Group.
Mexico, which became the marketplace leader in the US for denim products found in 2019, saw its show contract to 16.7 % from 21.5 % last year.
China, which was in pole position until 2018, saw its show of the US’s $2.8 billion-denim marketplace shrink further to about 11.9 per cent from 18.6 % a year earlier.
Vietnam, which is biting at Bangladesh’s heels found in the global outfits trade, saw its show of the market increase steadily in the last five years. It nowadays stands at number 3 situation, a notch above China.
In the last couple of years, Bangladesh witnessed plenty of investment in denim fabric making, which increased the country's development capacity to lessen import dependency for fabrics, stated Sayeed Ahmad Chowdhury, director of Square Denim.
As denim makers now can buy denim fabrics from regional sources easily, the lead period to ship goods came down drastically from the prior years.
“This helped a lot to manufacturers to draw in more buyers, which can be an opportunity for all of us to grab considerably more market share in export locations,” he added.
In the last couple of years, Bangladesh's capacity to meet up the demand for denim fabrics rose to practically 50 % from 30 per cent a couple of years ago, according to industry people.
There are 32 mills generating denim fabrics for the export-oriented denim manufacturers, according to the Bangladesh Textile Mills Association.
“Alternatively, we were able to start production following the Covid-induced lockdown sooner than Mexico. Mexico shed the marketplace and we gained from their losses, nonetheless it is not an ideal condition to compare,” Chowdhury explained.
In addition, the US-China trade conflict and the relocation of Chinese investment helped Bangladesh to grab more market share.
The US policy on banning procurement of cotton and even raw materials from China's Xinjiang region was a blessing for Bangladesh, said Sharif Zahir, managing director of Ananta Denim Technology.
“Since we are strong in denim manufacturing, customers were diverted here and located more orders.”
Besides, the trade battle and the then uncertainty due to the Trump administration also compelled purchasers to relocate their businesses.
However, the costs of goods is a big concern for the exporters: the raw material rates have risen but the buyers aren't calibrating their prices, Zahir added.
“To attract buyers' focus and present your goods to global buyers, you have to promote through exhibitions. For the last few years, I did it through some expos focusing simply on denim goods,” said Mostafiz Uddin, founder of the Bangladesh Denim Expo.
The expos informed the neighborhood manufacturers of the latest trends and also earned technological know-how.
“Today's success is because our nurturing of the last 6 years. As a maker, we spent a lot to innovate and develop services.”
For instance, the washing technology developed locally helped producers to create value-added items, said Uddin, also the managing director of Denim Expert, a leading denim manufacturer.
To wthhold the momentum, promotional actions and research and development must continue, he said, adding that the government and sector leaders will come forward.
“As a business head, in the times to come, my focus will be promoting the sector by paving techniques for high-value goods. To this end, knowledge-based solutions must be looked into,” said Hassan, who's top rated the Sammilita Parishad panel in the approaching biennial polls of the Bangladesh Garment Producers and Exporters’ Association.
Source: https://www.dhakatribune.com
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