Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25, which is 6.42 per cent higher than $3.72 billion in the same period of the previous financial year, according to the data from the Export Promotion Bureau.
The exports to the nontraditional market made up a significant 16.84 per cent of Bangladesh’s total RMG exports in the mentioned period.
According to the EPB data, Bangladesh exported apparel items worth $23.55 billion to their global export destinations in the July-January FY25. The earnings from woven was $10.86 billion, and knitwear was $12.68 billion.
In terms of apparel exports, countries like the US, Canada, the UK, and EU are considered traditional markets, while other countries are considered non-traditional markets.
Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico, and others are major non-traditional export destinations.
Of the $3.97 billion export earnings, $1.99 billion was from knitwear items, and $1.97 billion was from woven.
Among the nontraditional market, Japan was the top destination for Bangladeshi RMG products, as the exporters shipped apparel items worth $721.50 million to Japan in July-January of FY25.
This was followed by Australia, India, and South Korea, where Bangladesh exported RMG items worth $512.88 million, $427.62 million, and $271.48 million, respectively.
In the mentioned period, the export earnings from non-traditional Turkiye, Mexico, the United Arab Emirates, and China markets stood at $263.08 million, $208.03 million, $144.32 million, and $130.91 million, respectively, in July-January of FY25.
However, exports have decreased in several markets, including Russia, South Korea, China, the United Arab Emirates, Malaysia, Saudi Arabia, and New Zealand.
According to industry insiders, there is huge potential in nontraditional markets for the country’s apparel exporters. In this regard, detailed research on the trends, tastes, and clothing styles of local consumers is a must to increase exports manifold there.
In July-January of FY25, the European Union remained the largest destination for Bangladeshi apparel exporters where the country shipped apparel items worth $11.81 billion, which was 50.15 per cent of the total RMG exports.
Bangladesh shipped apparel worth $4.47 billion to the USA, the largest single destination for the country’s apparel, in the mentioned period. The US market covered 18.99 per cent of the total apparel exports.
Moreover, the EPB data added that in July-January of FY25, Bangladeshi manufacturers exported RMG products worth $2.55 billion to the UK, 10.83 per cent of the total export earnings from the RMG sector.
Bangladesh received $751 million from Canada in the period as mentioned above, which was 3.19 per cent of the total earnings from apparel exports.
Talking to New Age, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said that exports to the nontraditional market have witnessed a boost since 2009; however, for several years, they stood around 16-18 per cent.
‘We need to figure out the demands, trends and upcoming events at the nontraditional markets and focus on our production as per this. Like, Saudi Arabia will host FIFA World Cup 2034 and is spending much on domestic sports. We need to focus on Saudi to grab the market,’ he added.
He also urged the embassies in the respected countries to be proactive and urged the manufacturers to attend events and penetrate them.
Former BGMEA director Mohiuddin Rubel urged qualitative changes and diversifying product lines.
‘Development of infrastructure that meets product demand requires enhanced R&D,’ he added, saying that they must come out of the traditional way to grab non-traditional markets.
In FY24, Bangladesh earned $6.09 billion from the nontraditional markets.
