Amidst all the clatters of global recession, Bangladesh is holding optimistic views regarding its apparel export segment.

 

Global recession is sendingshivers all across the globe not leaving any business untouched. Despite allthe turmoil, apparel sector in Bangladesh is on a growth trajectory. There is arapid shift in the spending pattern of the consumers due to the advent ofdownturn. They have started to curtail their expenditures, and for essentialitems, they opt for inexpensive substitutes. The same attitude applies whileshopping for their clothes as well. China is losing its international ordersdue to its high prices, and falling dollar values. This has favored the apparelindustry in Bangladesh, as countries worldwide, have a demand for cheap clothing.

 

Apparel industry in Bangladesh accounts for 80% of the total exports. It generates employment for more than 40%of the total industrial workforce. During the past year, the country witnesseda 17% increase in apparel sales with a projected 6.5% further growth. Knittedapparels accounted to one fourth of their exports as the main growth driver ofthe country.

 

During the first quarter,shipment of apparels grew by 45% to reach $3.4 billion. As per the export data,more than 90% of apparels exported from Bangladesh are to Europe, and US. Asrecession initially started in US and Europe, and has experienced an adverseconsequence of colossal job losses, consumers here have started minimizingtheir expenditures by substituting inexpensive items in place of lavish goods.People in the Western countries have stopping buying luxury goods, and areswitching to low-priced items. Retail giants who were once sourcing fromChinese manufacturers are now looking as Bangladesh as a better option.

 

As a result many small ordersfrom China is being diverted to Bangladesh. Apparels such as T-shirts, sweater,shirts, and denim pants have become a top choice of sourcing. The country hasspecial access to markets in EU, Canada, and Japan. As it is a least developedcountry, its textile and apparels is quota free, and duty free. This concessionalong with less labor costs, and low priced apparels offer a strong competitiveadvantage in the global market.

 

As global recession boosts thesales of apparels with cheap price tags, Bangladesh is preparing itself formeeting the global requirements and handle the flood of orders. Growth of theapparel export sector of Bangladesh is one of the most significant social andeconomic developments. It is specialized in making inexpensive clothing and isthe countrys main industry. With an increased investment in the apparelsector, and enhanced capacity in backward linkages such as dyeing, yarnmanufacturing, and washing, the country would continue to dominate the globalarena as the second largest apparel maker.

 

References:

 

  1. http://www.chinapost.com
  2. http://news.alibaba.com