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Bangladesh aim to achieve the Third Global Denim Producer

“Bangladesh’s denim producers aimed at achieving the third largest position in the globe as denim exporting destination after the USA and Italy by the year 2021 when the country’s total RMG export is targeted to reach $50 billion landmark The denim producers, who are presently exporting $3.5 billion worth products to the international markets, are expecting to achieve $7 billion export target by 2021 by penetrating the $ 64.1 billion global trade, according to the exporters.”

Bangladeshs_denimBangladeshi denim will play an important role in raising country’s export earnings. The country has already become the second largest RMG exporter globally after China. Bangladesh’s denim producers aimed at achieving the third largest position in the globe as denim exporting destination after the USA and Italy by the year 2021 when the country’s total RMG export is targeted to reach $50 billion landmark.

The denim producers, who are presently exporting $3.5 billion worth products to the international markets, are expecting to achieve $7 billion export target by 2021 by penetrating the $ 64.1 billion global trade, according to the exporters.

Mass production Sector insiders said that the local denim producers are also increasing their production capacities as they are receiving higher orders from the foreign customers. Entrepreneurs here have already invested $834 million in 26 denim fabric mills and over 10 more new denim fabric mills are waiting for manufacturing to boost the country’s denim sector.

Many entrepreneurs including a number of largest business groups are willing to set up denim fabric plants across the country. According to the statistics of the Export Promotion Bureau (EPB), the country has witnessed an 8 per cent increase in denim jeans export in 2015.

As per denim market research report, the use of denim is on the rise worldwide and that is why its growth in Bangladesh would be 300 per cent in the next 10 years, while the global growth would be between 8 per cent and 10 per cent.

Industry insiders said, the industries are producing 360 million yards of fabric per year to meet 45 per cent to 50 per cent of the total annual demand.

For huge potentials, the largest business groups are coming to invest in the denim sector. But most of them are interested to produce basic denim only; which will create competition among them. The new investment in basic denim will not play vital role to achieve the targeted goal by 2021, experts opined.

Infrastructure hurdles Owners of the denim industries said they are now facing internal and external challenges including information of market research, products diversification and lack of innovative technical knowledge and non-availability of gas connection.

Said, Mostafiz Uddin, Managing Director of Denim Expert Bangladesh, Bangladesh is much known and favorite as a major source of denim products among the international retailers for its low prices.

He also said it is time to produce high quality denim fabrics and denim products, at the same time entrepreneurs would concentrate more on product diversification.

According to Anwar-ul-Alam Chowdhury Parvez, Managing Director of Evince Group, skilled manpower shortage, recruiting management and workers’ level team with adequate technical know-how, lack of gas connection and low pressure of gas supply are the main challenges for boosting the sector. The sector is growing in the country year by year, but the skilled manpower is not being developed comparing to the industry demand, he added.

Parvez also former BGMEA president said that the prices of denim are not increasing, rather it is decreasing due to global competition. Technical know-how is needed to check the hike in production cost to make the product competitive in the global market.

Abdus Salam Murshedy, President of the Exporters Association of Bangladesh (EAB), said locally-produced denim fabric meet about 50 per cent of the total export orders and the rest of the orders are met by imported fabrics.

He said some local denim factories are producing high quality fabrics. Earlier they used to produce per yard of fabrics by $2; now they are producing the same by $6.

According to the industry insiders, the country has 5.10 per cent share in the global apparel business, and it contributes 16 per cent to the country’s GDP.

Bangladesh is the second largest denim products exporting country, especially jeans to the EU, while it is holding the third largest position in the USA market.

Already, the industry achieved 15.53 per cent growth by exporting denim products worth euro 932.86 million to the EU in 2014. Among the global players in the $60 billion denim market, Bangladesh lags behind China, the US, Italy and some Latin American countries.

The country supplies denim products to major retailers and brands including H&M, Wrangler, S. Oliver, Hugo, Levi’s, Uniqlo, Nike, Tesco, Boss, Puma, Primark, JC Penney, C&A, Tommy Hilfiger, Inditex, Walmart, M&S, Calvin Klein, Diesel, Gap, and G-Star.


Source: Fashionatic World

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