Australian retailers are keen to explore Bangladesh as a sourcing destination, aiming to reduce their dependence on China to make a sustainable supply.
A delegation of the Country Road Group – one of Australia’s largest specialty fashion retailers – is currently visiting Bangladesh to find new suppliers for apparel and footwear items, according to the Australia-Bangladesh Chamber of Commerce and Industry Vice President Ibnul Wara.
“We have been in business with the Country Road Group for the last few years but now we want to increase the market share,” said Ibnul Wara, also managing director of Austan Ltd, one of the leading tanneries based in the Dhaka Economic Processing Zone.
“We [Australia-Bangladesh Chamber] are trying to bring more leading Australian companies to explore this market,” he told The Business Standard.
He added that Bangladesh has an opportunity for market and product diversification.
Stressing the importance of the visit, Wara said the Country Road Group owns five runarounds Australia brands with more than a billion-dollar turnover.
Talking to TBS, Rachid Maliki, general manager of Global Supply Chain and Sourcing of Country Road Group, said, “I have visited Bangladesh several times, but now I have a new responsibility to diversify our supply chain.”
Maliki, who landed in Dhaka on 9 December, has already visited several export-oriented garments, textile and formal wear manufacturing plants.
He said Bangladeshi manufacturers have invested in their capacity development and diversified their product range.
Maliki said the Country Road Group highly depends on China, which contributes above 90% of the group’s total sourcing value.
Due to geopolitical issues, the Group now wants to diversify its sourcing destinations to make a smooth supply chain.
He said the Group sources around 5% of its total demand from Bangladesh but is looking to take that to 25% by next year. They also have plans to import ceramic items from Bangladesh.
On the Group, he said, “We do everything from a range of fashion items for adults and kids, and accessories for formal wear. We also have a home textiles line.”
He said the Country Road Group is one of Australia’s largest specialty fashion retailers with a market-leading position in the mid to upper tier of the segment.
It comprises five iconic brands – Country Road, Mimco, Trenery, Witchery, and Politix. Each brand has its own inspiring story, be it through modern Australian designs, urban sophistication, or accessories with a quirk.
The Country Road Group is part of the leading Southern Hemisphere retail group Woolworths Holdings Limited (South Africa).
At an event of the Metropolitan Chamber of Commerce and Industry on Tuesday, its president Md Saiful Islam underscored Bangladesh’s need for product and market diversification in the export market, mainly due to the effects of the pandemic and the Russia-Ukraine conflict effects.
With LDC graduation in 2026, Bangladesh would have to overcome the challenges of losing preferential treatment in its export markets.
Saiful Islam also praised Australia’s decision to allow preferential treatment for Bangladeshi exports even after LDC graduation.
Addressing the event as special guest, Rachid Maliki said since Bangladesh’s shares in Country Road Group’s sourcing were very low, it had much room for improvement.
Maliki praised Bangladesh’s latest factories and how those underscored safety, security, and green transition.
He also highlighted the local entrepreneur’s positive change in mentality, which he thought could ultimately help the Country Road Group decide to source more from Bangladesh.
Addressing as the chief guest at the event, Jeremy Bruer, Australian high commissioner to Bangladesh, said as Australia and Bangladesh produced complementary products, tapping into those could push the bilateral trade up.
Australian LNG and wool could be helpful for Bangladesh, while Australia could utilise Bangladesh’s agricultural products.
According to data from the Export Promotion Bureau, Bangladesh exported $916.24 million worth of goods to Australia in the last fiscal 2021-22, of which 88.6% were apparel items.
On the other hand, Bangladesh’s imports from Australia were about $1.24 billion in the same fiscal year, according to the Bangladesh Bank.
Bangladesh’s major import items were vegetables, oil seeds, iron, steel, cotton and mineral fuels.
