RMG buyers, technology suppliers as well as fabrics and garments manufacturers are hoping Bangladesh’s apparel exports will make a return to positive trends in the next six months.
Global demand is expected to be higher than in the previous year as most brands and retailers will have their stocks cleared by that time frame, apparel stakeholders told The Business Standard during the Bangladesh Denim Expo on Tuesday.
Shafiur Rahman Safiq, regional operations manager of G-Star Raw, said people are touring everywhere in Europe, which he termed a a positive sign.
“Apparel sales go up when people are on tour,” he said, sharing his recent Amsterdam visit experience.
“Besides, stores are clearing their inventories and it will create more demand,” he said, adding that they are hoping business to grow further by December as indications of the business cycle starting to bounce back are apparent.
Pioneer Denim Deputy General Manager Md Hasibul Huda echoed the same, saying, “Demands will increase in all markets by September and October ahead of Christmas Day.”
He said that they are optimistic about doing better in the North American markets, where business in recent times has dropped to half.
“Monthly exports to the US mark came down from $2.5 million to $1 million,” he said, adding that exports to the EU market have already started to take off thanks to some orders shifting from Pakistan and Turkey.
Brant Tong, sales manager of XDD Textile from Vietnam, said business is slow now because of inflation.
He also hoped business would turn around after six months with the global crisis easing by then in the major export destinations in the western world.
“Bangladesh is a big market for us,” he said, adding that they have been doing business in Bangladesh for 15 years with an annual growth of 30-40%.
Alice Tonello, research and development and marketing director at Tonello, an Italian technology company, said the garment business is down in Europe now because of high inflation resulting from the Russia-Ukraine war.
Tonello pointed out that consumers’ buying preferences have changed a lot after the pandemic. People are now more inclined to spend on tourism and other experiences rather than on spending money for garment items.
Syed Mohammed Tahmir, director of Pacific Jeans Group, agreed. He added that the war too has impacted people’s buying patterns.
John, representative of the Chinese textile manufacturer Zhejiang Xinlan Textile Co. Ltd, said all businesses are passing through tough times in the aftermath of the Ukraine-Russia war.
Tanvir Hossain Dipu, project manager at Jenologia, a Spanish technology company for denim washing and processing, said that their business is going slow as most of their customers are producing less than their capacity as inflation bites into global demands.
Bangladesh’s overall exports plunged for two months in a row in April with the RMG sector, the country’s export might, also witnessing negative growth.
In April, exports for the RMG sector stood at $3.32 billion, which is a significant decline of 15.48% compared to April of 2022.
Export sectors earned $3.95 billion in April, while it was $4.73 billion in the same month in the last fiscal year, according to the Export Promotion Bureau (EPB).
The two-day long Bangladesh Denim Expo will wrap up today at the International Convention City Bashundhara (ICCB) in the capital.
Over 90 local and international exhibitors are attending the event to display fabrics, garments, threads, machinery, finishing equipment and accessories.
The expo has brought together major denim stakeholders from across the world under one roof, according to Mostafiz Uddin, founder of Bangladesh Denim Expo.
