Bangladesh remained a top denim sourcing choice for the European buyers as it edges out global rivals, especially China. The country’s popularity as a denim sourcing hub is growing as retailers move away from China for rising labour costs, they said. The average price offered by local denim makers to the EU was about euro 6.23 per piece, while the same by China and Mexico was 7.02 and euro 7.61 per piece respectively during last year, according to denimsandjeans.com-a website which is dedicated to the world denim industry. Similarly, the average rate for Bangladeshi denim products in the US market was $6.47 per piece compared to $7.53 for Chinese, $8.72 for Mexican and Pakistani, Egyptian $8.88 and Vietnamese $8.42, the website said. Founder of the site Sandeep Agarwal said, “Price is the advantage of Bangladeshi denim makers that helps them retain the top exporting position in the EU and maintain the third position in the US.” The average value of euro 5.4 per piece in 2014 and this is a sizeable increase of about 17 per cent in unit value, he said. He added the country is climbing up the value chain as far as denim exports are concerned and can no longer be viewed as a low-end supplier. Exports of Bangladeshi-made denim products reached euro 1.07 billion to the EU during January to November of 2015, showing a 25.35 per cent growth compared to the same period of 2014, according to the BGMEA data based on Eurostat. The country fetched euro 932.86 million from the EU in 2014 marking a 15.53 per cent growth, it showed. Bangladesh surpassed Turkey and China to become the top exporter of denim items to the EU in that year. In 2009, the country fetched only euro 376.08 million by exporting denim products to the EU. Between January and November 2015, Turkey, the largest denim exporter to the regional market in 2013, earned euro 879.95 million registering a 10.92 per cent growth. China’s exports to the market in the same period grew by 4.04 per cent to euro 622.93 million, according to the association data. However, exports of Pakistan’s denim products grew by 32.50 per cent to euro 686.14 million during the period, the BGMEA data revealed. But the local sub-sector failed to keep the same pace in the United States as earnings from the market recorded a meagre 0.68 per cent growth with earnings worth $430.29 million in 2015 calendar year, the BGMEA data revealed. China and Mexico earned $984.32 million and $958.44 million respectively from the US in the last calendar year, it showed. “Denim is an item used by both men and women all the year round and rising cost in China has created an opportunity for us to grab the market,” said Abdus Salam Murshedy, managing director of Envoy Group. In denim segment, Bangladesh now produces more value-added products, BGMEA senior vice president Faruque Hassan said. To attract more global denim buyers and introduce the country’s strength to them, two shows titled ‘Denim in Fashion Dhaka’ and ‘Bangladesh Denim Expo’ will begin on March 02 and April 25 this year respectively. The first show will be organised by denimsandjeans.com at Radisson Blu hotel, while the later by Chittagong-based Denim Experts Ltd at International Convention City Bashundhara.
