Bangladesh is turning into a major source of denim products as international retailers attracted by cheaper prices place higher volumes of denim-based work orders. Bangladesh’s popularity as a denim destination comes on the back of rising denim costs in China, the largest garment supplier worldwide, which is deflecting its buyers towards cheaper options. The overwhelming response by international retailers to the first Bangladesh Denim Expo in November last year proves the strength of the country’s denim sub-sector, said Mostafiz Uddin, managing director of Denim Expert. More than 100 exclusive retailers and brands from Europe and the US have registered to participate in the two-day second denim show that begins at Radisson hotel in Dhaka tomorrow. Mostafiz has been organising the shows. Almost all renowned retailers and brands will participate in the show and Mostafiz is also planning to organise a similarly large scale denim-exclusive exhibition in Europe soon.Besides the retailers, denim producers from India, China, Pakistan, Germany, Thailand, Turkey, the US, Japan, Spain and Thailand will showcase their denim products at the exhibition. Of the total 25 booths at the show, nine are booked by local denim makers. The fair expects more than 350 global invitees and guests.Denim Expert supplies its BlueXonly brand products to boutiques in different European countries, including the Netherlands, Belgium, Hungary and Italy. It makes jeans for both men and women, and 60 percent of its products are sold under its own brand.On the growing strength of the sector, Mostafiz said by 2020 every four out of five denim products in Europe would be sourced from Bangladesh.Currently, 25 denim factories are operating in Bangladesh, who produce around 20 million yards of the fabric every month to meet half of the local demand. The rest is imported. Total investment in the sub-sector stands at Tk 6,500 crore. Five new companies are also setting up factories.Local entrepreneurs supply denim products to major retailers and brands, including H&M, Levi’s, Uniqlo, Nike, Tesco, Wrangler, s.Oliver, Hugo Boss, Puma, Primark, JC Penney and C&A.The global denim market will cross $65 billion in the next four to five years, Mostafiz said, adding that denim will contribute around $2 billion to the country’s garment export target of $50 billion by 2021.Among the global players in the $60 billion denim market, Bangladesh stands behind China, the US, Italy and some Latin American countries.Currently, Bangladesh is the third largest denim exporter to the US after Mexico and China with an 11.3 percent market share, according to the US Department of Commerce.Bangladesh exports denim products worth more than $500 million to Europe a year, according to industry insiders.Anwar-ul-Alam Chowdhury Parvez, managing director of Argon Denims, said the response in the first exhibition was very good.“The brands and retailers could know from the exhibition that Bangladesh is a major player in the global denim market. Our next major business opportunity is denim, as orders are shifting from China to Bangladesh,” Parvez said.He produced 13.21 million yards of denim in 2014 and aims to manufacture 18 million yards this year. “We have huge potential in denim business, but we need an adequate supply of gas and power to utilise it,” he said.
Source: https://www.thedailystar.net/business/denim-opens-big-export-opportunity-81394
