Bangladesh’s knitwear garment exports to the 27-nation economic bloc reached an impressive $9 billion in the first three quarters of 2023
File Photo: Mumit M/TBS
Bangladesh has overtaken global giant China as the leading knitwear garment exporter to the European Union (EU) market for the first time, both in dollar value and volume.
This significant milestone, observed from January to September 2023, follows Bangladesh’s prior dominance in denim exports to the European markets.
Eurostat, the statistical office of the European Union, reports that Bangladesh’s knitwear garment exports to the 27-nation economic bloc reached an impressive $9 billion in the first three quarters of 2023. This narrowly edged out China, which exported $8.96 billion worth of knitwear during the same period.
In a statement issued on Monday, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan attributed Bangladesh’s success to recent investments in higher value-added items, particularly active wear.
He expressed confidence that the industry’s focus on non-cotton-based athleisure items would lead to further successes in diverse product categories in the coming years. Faruque Hassan also emphasised the industry’s commitment to responsible and sustainable manufacturing, setting a global example.
Despite this accomplishment, both Bangladesh and China experienced declines in knitwear exports, with Bangladesh witnessing a 20.94% decrease from the previous year. This dip is attributed to sluggish demand amid high inflation in the EU.
Similarly, China, the world’s largest apparel exporter, faced a 21.51% decline in the same period.
“As Bangladesh’s position in EU markets continues to strengthen over the years, 2023 sets a significant landmark for the knitwear sector in the EU market,” Faruque Hassan said.
The BGMEA president further highlighted that in 2022, the volume of the EU’s clothing imports from Bangladesh exceeded those from China. However, in terms of value, Bangladesh fell short by $7.3 billion compared to China.
The statement also underlined Bangladesh’s leadership in denim sourcing for the EU since 2014, surpassing Turkey and Pakistan.
The significance of Bangladesh as a sourcing destination is further evident in its top-ranking position for denim sourcing in the USA in 2020, surpassing Mexico.
While Bangladesh briefly secured the top spot for ‘cotton apparel’ sourcing in the USA during January-June 2023, a slight setback occurred in the subsequent months due to Vietnam’s rebound in exports.
Faruque Hassan stressed the importance of retaining and enhancing Bangladesh’s share in cotton apparel, especially in selected categories like denim and ladies’ dresses. He acknowledged the challenges faced in the global market but remained optimistic about the industry’s rebound.
EU’s sluggish demand for apparel
Eurostat data reveals a downturn in the European Union’s knitwear sector, experiencing a 17.71% decline amounting to €31.94 billion in the January-September period compared to the previous year.
Sluggish demand for apparel products in the EU led to a 17.66% year-on-year decline in apparel exports to the region, totalling €13.69 billion. China’s exports also declined by 20.17% to €17.12 billion in the same period.
Despite these challenges, apparel exporters expressed optimism about industry rebound, citing easing inflation and stabilising interest rates in the Western world as positive indicators.
Fazlee Shamim Ehsan, vice president of the Bangladesh Knitwear Manufacturers and Exporters Association, attributed Bangladesh’s leading position to China’s shift away from low-end products and Bangladesh’s successful establishment of strong backward linkages.
While acknowledging lower earnings in the recent period, BGMEA President Faruque Hassan attributed this to a global apparel demand slowdown, falling unit prices, and disruptions in production due to worker unrest in November.
However, he remains hopeful, pointing to positive signs such as cleared inventories ahead of peak festival sales and the upcoming festive season in December.
Despite a decline in apparel exports to the United States by 23.33% year-on-year to $5.78 billion, Faruque Hassan asserted that Bangladesh continues to outperform its competitors in the face of a shrinking global apparel market.
He attributed the recent slowdown to a gloomy global economic outlook, predicting a challenging year for the apparel trade in 2023.
