As the market leader in denim garments to the United States during the first half of this year (January to June, or H1), Bangladesh’s supremacy persisted throughout this period, and the country sent items to the value of $445.5 million.
According to latest statistics from the Office of Textiles and Apparel in the Commerce Department, this represented a gain of 57.06% year on year (YoY) when compared to the same time in 2021. (Otexa). According to statistics provided by Otexa, Bangladesh shipped denim apparels to the region of North America with a total value of $283.64 million during the same time previous year. According to the data, during the first half of 2022, the United States imported denim apparels worth a total of $2.05 billion from global suppliers. This represents a significant increase of 42.62% on a YoY basis, as compared to the $1.43 billion that was imported during the same time period in the previous year. At the moment, Bangladesh is in the driver’s seat of the denim market in the United States, with a market share of 22.36%.
Despite the worldwide crisis caused by conflict and inflation in the West as well as interruptions in the supply chain, RMG insiders claim that Bangladesh is still on the right road to stay a market leader for denim garments.
They also stated that Bangladeshi denim is the most popular brand in the US market because buyers in the US consider it to be a premium product of superior quality. They expressed their hope that Bangladesh will continue to be the leading denim exporter to that market for a third year in a row by the time 2022 comes to a close. In 2021, Bangladesh maintained its position as the leading denim exporter to the United States for the second year in a row. Along with Bangladesh, the majority of big denim clothing shippers saw a rise in the amount of product they sent to the US market. These significant shippers include Mexico, Pakistan, Vietnam, China, and Egypt.
In the first half of 2021, Mexico had a market share of 17.02% and secured the number two position by shipping denim garments to the United States with a value of $362.02 million. This represented a gain of 26.46% YoY from the $286.26 million in the first half of the previous year. Denim clothing worth $242.76 million was exported from Pakistan to the US market during the first six months of 2022 by Pakistan, marking a 60.8% annual rise from the $150.97 million that was shipped during the same time period in 2021. Pakistan has an 11.21% market share. Vietnam came in at number four, with an export value of $217.98 million worth of denim. This represents a 44.57% increase from the $150.77 million worth of denim exports during the same time period the previous year. Vietnam’s market share was 10.94%.
According to statistics provided by Otexa, China had a market share of 9.95% and exported $188.45 million worth of denim garments, which is a 26.42% increase over the previous year’s total of $148.9 million.
Mohiuddin Rubel, deputy managing director of Denim Expert Limited and also a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated in an interview with the Dhaka Tribune that denim was one of the most prominent sectors within Bangladesh’s ready-made garment (RMG) industry. He made this statement in reference to the dominance of the US market. “The denim sector in Bangladesh has evolved tremendously over the last decade thanks to excellent goods, competitive prices, durability, and environmentally friendly production processes,” he noted. “This has made us the #1 denim import supplier for the United States.”
Huge investments have been made by Bangladesh in the denim industry, particularly in the local denim sector. This sector is worth more than $1.39 billion and has a strong backward linkage industry. It covers almost 50-60% of denim productions through local fabrics, design studios, and 40 world-class denim manufacturer mills. Bangladesh has also made significant investments in the global denim industry. “Bangladesh is now able to fulfil denim orders extremely quickly, which is also a good indicator for purchasers,” he added, adding that Bangladesh was producing high-end stylish denim items with value adds in addition to basic five-pocket denim.
In addition, since 2014, the Bangladesh Denim Expo has been playing an important part in the expansion of the Bangladesh denim industry by encouraging sustainability, transparency, innovation, circularity, and a responsible production process, as he further said. “Bangladesh has made enormous investments in the denim industry’s backward as well as its forward linking sectors. If we are able to keep our business competitive, we feel that we will continue to be the most important supplier of denim for the United States of America,” he went on to say.
Regarding the present state of affairs, he said that the prognosis for the global economy and commerce is discouraging, which is a cause for worry for the garment business.
“The annual inflation rate in the United States rose to 8.5% in July and in the Eurozone, it hit a record 8.9%,” Rubel further said. “According to the World Bank, the global economic growth will come down to 4% in 2022 from 10.3% in 2021,” he added. “The global economic growth will come down to 4% in 2022 from 10.3% in 2021.”
He was concerned that the likelihood of an economic recession occurring in those nations was growing at an alarming rate.
Our administration is making every effort to ensure the safety of our economy. The fact that exports have maintained their upward momentum and that there has been reported rise in remittances is a great development. “By taking all of these steps, imports will also be brought under control,” he continued.
Reference:
“Bangladesh Top Denim Exporter to US in First Half of 2022.” Dhaka Tribune, 11 Aug. 2022, https://www.dhakatribune.com/business/2022/08/11/bangladesh-top-denim-exporter-to-us-in-first-half-of-2022.
