Though Bangladesh dominates the global denim market, it witnessed a negative export growth of the items in both the European Union and USA during the first quarter (Q1) of this calendar year.
Exporters have attributed the fall to a sluggish demand in the markets due to economic slowdown triggered by the Russia-Ukraine war-induced high inflation that forced the consumers to prioritise their basic needs.
Exports of denim garments to the USA in January-March period of 2023 recorded over 33 per cent negative growth to US$131.44 million which was $196.25 million during the same quarter last year, according to data from OTEXA, an affiliate of the US Department of Commerce.
Bangladesh’s denim export earnings from the USA stood at US$943.70 million in 2022 which were US$798.42 million in 2021, data showed.
Bangladesh is the top denim goods supplier to its single largest destination, USA, since 2020. In 2019, Mexico was the top supplier with $802 million exports, but it fell to $161.24 million only in Q1, 2023.
OTEXA data showed that the total US imports of denim apparel from the world in the Q1 decreased by 31.37 per cent to $662.44 million which was $965.28 million during the corresponding period of 2022.
Once the biggest denim exporter, China scored fifth position in the US market with $58.60 million, marking over 34 per cent negative growth.
Pakistan and Vietnam ranked third and fourth position with $74.11 million and $62.85 million respectively, according to data. When asked, Md Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association, said RMG exports to almost all the major destinations witnessed negative growth in the recent months and so did the denim goods.
“The main reason is the Russia-Ukraine war while high inflation forced consumers to prioritise their basic needs, mostly food, and discouraged fashion buying,” he said.
Talking to the FE, Mr John of Chinese company Zhejiang Xinlan Textile Co. Ltd., also attributed the sluggish denim business in recent times to the war.
His company is participating at a two-day denim show – Bangladesh Denim Expo – organised by the Bangladesh Apparel Exchange at International Convention City Bashundhara (ICCB) in Dhaka.
He, however, said he is here in Dhaka to display their latest products, hold business meetings with his existing clients and explore new customers.
Md Hasibul Huda, deputy general manager of Pioneer Denim, said they also got less work orders from US and Canada, but work orders from the EU increased in recent months.
Tanvir Hossain, project manager of Jeanologia, a technology supplier company, said that despite a bleak economic situation in major export destinations, the global fashion brands are placing orders here in Bangladesh as the majority of the denim fabric makers and exporters are adopting new technologies that help reduce water consumption.
Jeanologia, a Spanish company, is also taking part in the expo that began on Tuesday. Some 90 exhibitors from home and abroad are showcasing their latest denim products, fabrics, accessories, chemicals and technologies.
Almost all the denim manufacturers in Bangladesh adopted new technologies like Ozone and laser in line with buyers demand, Mr Tanvir Hossain said, adding that the business is now going slow due to no or little expansion of local factories because of scarcity of work orders fueled by the global economic crisis.
He claimed that the expansion of denim factories as also the adoption of new technologies has brought down the use of water to 9-30 litres from around 360 litres to produce a pair of jeans. Brant Tong, sales manager of XDD Textile from Vietnam, hoped that the business would turn around within the next six months.
According to available BGMEA data for January-February period of 2023, Bangladesh fetched $234.06 million from denim exports to the EU, marking a 14.37 per cent negative growth.
Turkey shipped denim goods worth $184.08 million, followed by Pakistan $140.51 million during the period, marking over 23 per cent and 11 per cent negative growth respectively.
Bangladesh sustained its top position in the EU market since 2017, according to BGMEA data.
In 2022, Bangladesh fetched $1.55 billion from denim exports to the EU which was $1.18 billion in 2021, data showed.
According to Bangladesh Textile Mills Association, some 40 local mills produce denim fabrics
