In textile manufacturing, crease marks pose significant challenges, detracting from fabric quality and impacting businesses. Causes range from operational errors to material properties. Such flaws lead to increased rejection rates, higher production costs, and diminished brand reputation. Understanding these issues is crucial for implementing effective strategies to mitigate crease formation and maintain competitiveness in the market.
Crease marks cause factors such as fabric load, bleaching, nozzle diameter, and yarn tightness contribute to creasing. Optimizing cycle time and implementing smart storage solutions are essential for minimizing crease impact.
Figure 1: Crease mark defects in fabric.
Causes of crease marks on knit fabric
Issues contributing to crease marks in the dyeing processes include fabric overload or underload in the dyeing machine, which can cause crease marks due to improper tension. Improper bleaching, such as over-bleaching, weakens fibers, increasing susceptibility to creasing. Nozzle diameter and entry angle errors result in fabric bunching and uneven tension. High fabric loading speeds stress fabric, leading to abrasion and weakened fibers prone to creasing. Temperature gradient errors from incorrect control or improper grading systems cause thermal shock to fabric fibers, damaging their internal structure. Optimizing cycle time is crucial for uniform dyeing and minimizing crease formation. Excessively tight knitting creates stiffness in the fabric, affecting its drape and creating new crease lines. Extended storage, especially in compressed or folded conditions, allows wrinkles to set, leading to permanent crease marks. Stitch length in knitting influences crease formation and should be adjusted according to fabric type and GSM following standard operating procedures.
Figure 2: Factors of creating Crease mark in fabric.
Crease marks can be particularly noticeable and challenging to eliminate as it’s caused by lots of factors as mentioned above. The countermeasures against crease marks is given below.
Potential countermeasures
Optimum yarn tension: Maintaining appropriate tension levels during knitting processes is critical to minimize crease formation. Monitoring and adjusting machine settings, such as yarn tension can help achieve uniform fabric tension and reduce the likelihood of crease marks.
Roll-wise fabric storage: After inspection, fabric transitions to the storage section, often in a rough and tumble manner. To enhance, organize, and minimize wrinkles, implement a fabric roll device. This ensures a more orderly storage process.
Nozzle diameter increase: Smaller nozzle diameters may result in high load and excessive pressure during dyeing, leading to crease marks. As per Industry experts nozzle diameter less than 140mm causes permanent crease marks.
Anti-creasing agents: Exploring proper anti-crease agents can enhance the fabric’s resistance to crease formation.
Stitch Length: For 180 GSM fabric with 24s comb compact yarn, it is recommended to maintain a range between 2.75 mm to 2.85 mm, with higher values required for darker shades to optimize dye penetration.
Temperature Gradient: To prevent thermal shock, it is crucial to maintain a temperature gradient within the range of 2 to 4, ensuring stable fabric processing conditions.
Cycle Time: The standard cycle time for 180 GSM fabric is stipulated to be within the range of 2.7 min to 3 min. However, it is noteworthy that cycle time tends to increase proportionally with GSM increments.
Softener: Instead of silicone softener, consider the integration of a fatty acid-based alternative to preserve fabric flexibility and mitigate creasing tendencies.
Business case study
The business impact of crease marks in textile products encompasses buyer dissatisfaction and returns, as well as increased production costs and compromised profits. Creased garments are perceived as low-quality, tarnishing brand image and sales potential. Despite efforts to eliminate crease marks, they often persist, leading to either rejection by buyers or acceptance with commercial approval for minor creases. Both scenarios can detrimentally affect business operations. Additionally, crease marks indicate poor fabric quality, resulting in rejected or reprocessed products, escalating production costs and reducing profit margins. Material consumption rises due to reprocessing, while lead times and machine engagement are affected, further compromising profitability for textile manufacturers.
To create a sustainable apparel manufacturing supply chain, ensure more value addition in apparel export and attain $100-billion apparel shipment target by 2030, it is high time to take the primary textile sector to the next level.
The primary textile sector provides the raw materials and foundational processes necessary for garment production. By improving this sector’s capabilities in areas such as yarn production, fabric weaving, and dyeing, the overall quality and variety of materials available for garment manufacturing can be enhanced. This, in turn, enables garment manufacturers to add more value to their products through diverse fabric options, innovative designs, and improved quality control measures.
The value addition in Bangladesh’s apparel export is more than 60 per cent when local yarn and fabrics are used to make garments. However, the value addition is 30 per cent when yarn and fabrics are imported from foreign market, according to the Bangladesh Textile Mills Association (BTMA).
Apparel manufactures are adding value using local yarn, fabric and accessories. Now-a-day, many of them are using high end fabrics to make trendy attire analyzing consumer behavior. Value addition for fabrics refers to the systematic enhancement of fabric quality, aesthetics, functionality, and overall worth. This multifaceted process encompasses the application of diverse techniques, treatments, or processes aimed at elevating the visual appeal, performance, and utility of textiles.
Textile millers are diversifying their product ranges due to the rise on uses of local yarn and fabrics by the garment exporters. Producing yarn and fabrics require importing a huge amount of chemicals and dyestuffs. The more the garment manufacturers purchase the local fabrics, the more chemicals and dyestuffs are sold for washing and dyeing purposes. The more value addition yarn and fabric manufacturers will willing to ensure in their products, the more sustainable and specialty chemicals and dyestuffs will be used in fabric manufacturing.
Earlier, a report forecast that Bangladesh’s textile chemicals market will be $1.38 billion worth in 2024 which was $864 million in 2018. The demand of chemical is mostly meet by chemicals that are exported. The local production of chemicals is not sufficient to meet the demand, but reliance on imports should be reduced.
“Instead of importing chemicals from abroad, textile mills can save valuable foreign currency, reduce their inventory, and ease the lead time of garments export if they buy from local textile auxiliaries manufacturing companies,” recently in a conversation with Textile Today Md. Amanur Rahman, Managing Director of Dysin Group, said this.
“Reducing chemical and dyestuffs export and increasing uses of the locally produced chemical and dyestuffs can add more value in the overall apparel industry,” he added.
Using manmade fibre (MMF) is another way to add more value. Our exporters mostly dependent on exported MMF. As MMF production status is still insignificant in Bangladesh.
However, according to the recent data of Bangladesh Textile Mills Association (BTMA), around 85-90% yarn demand for knit RMG and 35-40% yarn demand for woven RMG are met by primary textile sector.
Local fabric demand i.e 7 billion meter of fabric are being produced locally to meet the domestic requirement and the yarn demand for handloom are also met by primary textile sector.
Current state of local value addition
Local value addition in the readymade garment (RMG) exports is increasing, indicating a shift towards higher-quality products and enhanced competitiveness in global markets. According to a report titled “Quarterly Report on RMG” released by Bangladesh Bank showed that the value addition in the RMG export increased by 11.59% over a one-year period.
The report said that the value addition in the RMG export was 54.38% in FY2021-22, which climbed to 65.97% in FY2022-23.
The central bank obtained export data from the Export Promotion Bureau (EPB) and sourced raw material import information from the Bangladesh Bank’s Foreign Exchange Operations Department, primarily gathered through back-to-back letters of credit.
The report said that in FY22, Bangladesh exported worth $46.99 billion RMG items for which the country imported raw materials like cotton, yarn, fabric, equipment and others worth $15.99 billion, meaning the net export of the RMG was $31.0 billion-dollar, accounting for 65.97% of value addition.
In FY22, Bangladesh exported RMG worth $42.61 billion. To produce that $19.44 billion was spent on importing raw materials. So, the export of net RMG was $23.17 billion and the value addition in apparel exports stood at 54.38% in that financial year.
Driving forces behind the value addition
Value addition is crucial for differentiating products in the market and meeting consumer demands. Incorporating value addition into the production of apparel products is also essential for creating a healthy supply chain, which is important for the long-term success and viability of the industry.
Now-a-day, international clothing retailers and brands are demanding a significantly shorter lead time to catch business in line with the recovery in the global supply chain from the severe fallouts of the pandemic and Russia-Ukraine war, so that garments exporters are relying more on local primary textile suppliers.
Global retailers and brands are eager for fresh fashion items, eyeing to expand sales seasons from six or eight to twelve due to heightened competition. Consequently, they demand swift delivery, often opting for costly air shipments instead of the traditional sea route.
Following such a change in the business behavior of international retailers and brands, the local garment suppliers, textile millers, weavers, spinners and knitters have also changed their production and procurement behavior to match up.
The local garment suppliers started procuring fabrics from local sources instead of imported fabrics to comply with demands for a shorter lead time.
Currently, international retailers and brands demand a lead time of 45 days to 60 days as opposed to the previous 90 days and 120 days for the delivery of goods.
Challenges ahead
Though Bangladesh is not a textile giant like India, Pakistan, or China, the primary textiles sector of the country always had a dominating presence in its apparel manufacturing sector. But the sector is suffering with many challenges, hindering value addition to the garment exports.
Some of the common challenges the sector is facing are raw material prices, increased production cost and gas shortage, the sector.
However, one of the major challenges in the Bangladesh textiles industry include an increase in competition as a result of cheap imports of yarn and fabrics from India, China, and Pakistan.
These nations are encouraged by their governments to engage in such trade practices. For instance, China offers exporters a cash return ranging from 15% to 20% when they sell goods to countries like Bangladesh.
The act of yarn-dumping, where India and China sell yarn at prices up to 30% lower than local production costs, severely hampers the ability of local textile industries to compete. Consequently, numerous textile companies find themselves forced out of the market due to an inability to maintain profitability.
This challenge is further exacerbated by local Ready-Made Garment (RMG) businesses importing raw materials via bonded warehouses, which are exempt from tariffs.
Md. Amanur Rahman pointed out the struggle primary textile sector is facing saying, “Duty drawback in many countries is automated. In Singapore, as exporter whatever GST you pay in the input, you will get refund of the input GST. And the process is fully automated. But in Bangladesh the process and regulation of duty drawback is very lengthy and clumsy. So that most of the industrialists of Bangladesh choose bond facility skipping duty drawback system. Because in bond facility they do not need to pay duty rather they can enjoy duty free import of input materials which puts the primary textile sector in jeopardy.”
Some companies unethically misusing the bonded warehouse facility affecting government revenue earning as well as impacting on primary textile sector. Customs has detected some irregularities and found that those products are often sold in the open market. Transparency and accountability should be ensure to eliminate the misuse of bonded warehouse facility.
Also, faster duty drawback process, stronger anti-dumping policies will need to be implemented by the government to protect the PTS. In addition to this, there must be greater regulation to prevent cases of smuggling of yarn and improper Utilization Declaration (UD) Certification in the case of RMG.
Apparel exporter should keep in mind that while they are thinking that low yarn prices as an advantage for the apparel exporting sector, it creates a problem of not being able to generate sufficient added value in the case of the final product and reduce net profit.
As Bangladesh strives to maintain its foothold in the global textile industry, it becomes crucial to shift focus towards value added products, particularly man-made fibers. With the fashion landscape evolving rapidly, man made fibers emerge as the future of the industry, Given Bangladesh’s heavy reliance on cotton, now is the opportune moment to transition towards man-made fibers, particularly polyester.
Amidst the backdrop of escalating labor, gas and electricity costs, which have surged by 156% reaching Tk 30.75, the need for strategic shifts towards value added products becomes even more pronounced. To remain competitive in the global textile market and achieve its ambitious target of $100 billion by 2023, Bangladesh must embrace polyester as a potential game-changer.
Global market analysis for Polyester Polyester dominates global textiles, constituting 54% of total fiber production, reaching 60.5 million tonnes in 2021. The polyester fiber market was worth over USD 90 billion in 2020 and is expected to grow at a CAGR of 7.8% from 2021 to 2027. Growth is fueled by textile industry demand, fashion sector expansion, and consumer preference for blended polyester. In 2023, polyester market share by application was: Furnishing (30.55%), Textile (19.44%), Clothing (13.89%), Other (36.11%).
Bangladesh current situation
Bangladesh’s textile and apparel industry primarily relies on cotton, with only 26% of products being man-made fiber (MMF)-based, in contrast to the global trend where 78% of items are MMF-based. Despite this, Bangladesh has emerged as a significant player in ready-made clothing, with over 4600 factories and 430 spinning mills, albeit with only a fraction producing synthetic fibers like polyester.
In recent years, Bangladesh has imported significant amounts of Polyester Staple Fiber (PSF), mainly from China, India, and South Korea. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to increase MMF-based apparel exports from 26% to 40% by 2030, reflecting the growing global demand for polyester-based clothing.
Figure: Polyester market share% in 2023 as per application
With polyester derivatives constituting 74% of global apparel sales, there’s a lucrative opportunity for Bangladesh to tap into the $750 billion worldwide market by focusing more on polyester-based garments. Research suggests that if Bangladesh can increase its MMF-based garment shipments alongside cotton-based products, it could potentially earn $95 billion from ready-made garment exports by 2030.
Challenges to manufacture 100% polyester
Bangladesh textile industries already processing polyester derivatives (CVC/PC). Bangladesh dye houses have sufficient technologies to handle polyester. Dye houses employ MCS, Athena 3A, multi-flow machines, Fong’s, etc. to dye polyester & its derivatives.
But Bangladesh are not capable of manufacturing 100% polyester because of some challenges. The challenges are:
Raw Material Availability: Polyester yarn production heavily relies on the availability and cost of raw materials. Fluctuating prices and supply chain disruptions pose challenges for manufacturers.
Cost Competitiveness: With increasing global competition, polyester yarn manufacturers in Bangladesh face the challenge of maintaining fabric manufacturers cost competitiveness. Factors like energy costs, labor wages can impact the overall cost structure.
Expertise: Bangladesh has less experts to manufacture polyester.
Skilled man power: As Bangladesh polyester plants are limited there are limited skilled worker.
Technology : for knitting & spinning 100% polyester, there are limited technology available in Bangladesh.
Investment : It is very costly to go for 100% polyester plant. As Bangladesh doesn’t have sufficient technology and expertise.
It’s critical to concentrate on polyester in RMG to provide value-added products. But by overcoming those challenges by strategic planning, technological advancements, and sustainable manufacturing practices Bangladesh textile sector can switch toward polyester and go for value-added products.
Statistics institute Istat showed, that in March of this year, Italy’s seasonally-adjusted retail trade index showed stability in month-over-month (MoM) value terms, maintaining equality, although volume dropped by 0.1%.
Figure: Italy’s retail trade volume remains stable by 0.1% in March’24.
This year’s first quarter (Q1) saw a decline in sales value while volume decreased by 0.4% every quarter (QoQ).
March had a 2% gain in the value of retail trade, continuing the upward trajectory in the year-over-year (YoY) series and maintaining the upward trend that began in March 2021.
Accordingly, sales volume demonstrated consecutive growth for the second month, expanding by 0.3%, the Istat said.
While small-scale distribution dropped by 1.5% year over year and non-store retail sales fell by 2.6% year over year in March of this year, large-scale distribution saw growth of 6.1% YoY.
Notably, in March of this year, internet sales showed a decline of 2.4% YoY following a five-month increasing trend.
Leaders of the country’s textile and apparel sectors expressed concern over the central bank’s recent directive not to provide gas and electricity connections to new factories outside the government-designated economic zones (EZs) and industrial areas.
The banks have also been asked to ensure mandatory clearance certificates from utility service providers before approving loans.
Bangladesh Bank has recently issued two separate circulars in these regards.
Expressing concern, the leaders said the garment industry is at a crossroads due to the current geopolitical crisis that is causing disruptions in global trade.
“And the implementation of the central bank circulars would exacerbate the crisis of the garment industry, hindering its growth and discouraging entrepreneurs from setting up new factories,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President SM Mannan Kochi said.
He expressed the concern while presiding over a meeting with the leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at BGMEA’s Uttara office in the city on Wednesday night.
The meeting was to discuss the current pressing issues of the ready-made garment (RMG) industry.
BKMEA Executive President Mohammad Hatem, BTMA President Mohammad Ali Khokon, FBCCI Vice President Md Munir Hossain, BGMEA Vice Presidents (Finance) Md Nasir Uddin, Abdullah Hil Rakib, Directors Md Imranur Rahman, Mohammad Sohel Sadat, Shams Mahmud, Rajiv Chowdhury, Md Jakir Hossain, and Md Rezaul Alam (Miru), among others, were present.
Talking to the FE, Mr Hatem said during the meeting, various issues of the garment industry came up for discussion, especially focusing on two circulars recently issued by the Bangladesh Bank, source tax and customs-related issues.
The leaders highlighted that many garment factories established outside the designated economic zones or areas are undergoing expansion, and new factories are under construction.
Therefore, implementation of the BB circulars at this point would disrupt ongoing expansion works and new establishment efforts, they noted.
The leaders urged the government to exempt the garment industry from the purview of the circulars for at least five years, while reiterated the demand for uninterrupted power and gas supply.
The issues related to customs, VAT, and income tax in the garment industry were also discussed in the meeting.
The business leaders urged the National Board of Revenue (NBR) to make customs, VAT, bonds, and tax-related processes faster, easier and hassle-free to facilitate sustainable industry development, aiming to achieve the target of US$100 billion from garment exports by 2030.
When asked, BTMA President Khokon said that the exporters proposed reducing the tax at source applicable to the garment industry from existing 1.0 per cent to 0.5 per cent to mitigate the increased costs of doing business and maintain competitiveness.
The leaders also discussed Bangladesh’s graduation from the Least Developed Country (LDC) status and possible strategies to retain competitiveness in the post-graduation era.
They emphasized the need for necessary policy support to attract increased investment in promising sectors for overall economic benefits
The American Apparel and Footwear Association (AAFA) told US Trade Representative (USTR) hearing on supply chain resilience that more free trade agreements are needed in addition to the removal of prison labor, while the National Council of Textile Organizations (NCTO) focused on Effect of de minimis.
Figure: FPIs receive significant preferences that essentially give FPIs the right of first refusal on US government contracts.
AAFA Senior Vice President Nate Herman said at the hearing that 3.2 million US jobs depend on the apparel industry, and they depend on access to foreign customers and global supply chains for their existence.
Resilient supply chains depend on certainty, clarity and flexibility, he added, but tentative signals from Washington suggest a willingness to diversify away from China without negotiating a new free trade agreement (FTA).
“We have seen little effort by the administration or Congress to renew expired trade programs or update existing trade agreements to make them more resilient,” Herman continued.
Meanwhile, NCTO President and CEO Kim Glas called on the United States to be more deliberate in developing trade and investment policies that support the growth and resilience of domestic textile supply chains and counter the so-called dominance of Chinese goods through alleged illegal trade practices.
She believes there are eight ways the US government can help stop the domestic damage to the apparel and textile industry:
Immediately close the de minimis tariff loophole.
Dramatically ramp up and publicise customs enforcement and trade penalty activities.
Preserve and protect the yarn forward rules of origin.
Reject proposals to expand Generalized System of Preferences product coverage to textiles or apparel.
Immediately pass the Miscellaneous Tariff bill.
Increase Section 301 penalties on textiles and apparel imports.
Fully implement the Make PPE in America Act and expand procurement opportunities.
Enhance tax incentives to bolster domestic and regional production.
Glas suggests that, despite the domestic textile industry being an integral part of the military and public health industrial base, unregulated foreign predatory trade practices, lack of effective tariff enforcement, and confusing trade policy proposals are creating unstable and unsustainable market dynamics.
In her testimony, Glas said: “The confluence of these factors is threatening the future of domestic textile manufacturing as well as the textile and apparel coproduction chain between US and our Western Hemisphere free trade agreement (FTA) partners responsible for $40bn in annual two-way trade.”
She also explained that 14 US textile factories have closed permanently in recent months and an estimated 100,000 jobs have been lost in the US and the wider hemisphere.
AAFA’s Herman defended the need for foreign input in the apparel supply chain, saying: “Successful contracting and reliability programs are fundamental building blocks for resilient supply chains, supply chains not dependent on China. Further, commodity contracting and reliability programs undermine American values on the environment and labor.” strengthens.”
Harman was keen to highlight the rigidity of the yarn forward rule limiting apparel investment and, in turn, apparel demand and textile investment: “With this vicious cycle and inflexibility the size of the pie never grows and supply chains don’t get more resilient.”
He continued, “The core rules of FTAs and trade programs aim to preserve the benefits of tariff-free trade for beneficiaries. However, restrictive regulations intended to ‘close the back door’ to China may impose substantial barriers and administrative burdens.”
On the other hand, the NCT also claims that China and other Asian countries compete by sourcing subsidized textile inputs from China, including those made with slave labor in Xinjiang where it claims 20% of the world’s cotton is produced and where synthetics like rayon have been tied to forced labor production.
Glas maintained that closing the de minimis loophole is the most important step the US Congress and the Biden administration can take to combat illegal trade practices. She said, “This loophole in US trade laws allows four million packages a day to enter the US duty-free and, in most cases, without inspection.”
AAFA acknowledged that the concept of resilient supply chains is often code for trying to create more US manufacturing and noted that it’s a goal it supports “wholeheartedly.”
However, Herman was quick to add, “The single biggest threat to US manufacturing in our sector – bigger than all others – is the US government’s own addiction to forced labor, the federal prison industry, otherwise known as Unicor or FPI, which pays US prisoners as low as $1.10 an hour.”
He explained that under US law, FPIs receive significant preferences that essentially give FPIs the right of first refusal on US government contracts, including the ability to win contracts that exclude small, minority-owned and women-owned businesses.
He alleged that US taxpayer dollars were used to promote FPI to foreign investors under the Select USA program, “robbing” critical contracts to maintain and expand US apparel and footwear manufacturers. US workforce.
Herman also claimed that the US government is actively promoting an entity that violates at least four but as many as seven of the International Labor Organization’s 11 mandatory labor indicators.
He concluded, “These are the same indicators that US Customs and Border Protection use to enforce US forced labor laws and the UFLPA against US imports of goods made with foreign forced or prison labor.”
Soft launch of German athletic apparel and footwear giant Adidas store will be held on 11 May at Gulshan-1 and there will be a formal launch later with the presence of Adidas regional Managing Director
Adidas is set to open its first outlet in Bangladesh this month at Gulshan-1 in the capital. MA Rahim Feroz, Vice Chairman of DBL Group, confirmed it saying that “We’ve scheduled a soft launch for May 11th. A formal launch, graced by the presence of the Adidas regional managing director, will follow.”
Adidas will partner up with the Bangladesh’s leading apparel manufacturer DBL Group. Earlier, DBL Group introduced the German sportswear brand Puma, the American athletic footwear and apparel brand Nike, and the American fashion brand Levi’s in the country.
Presently, DBL Group oversees five Puma stores across strategic locations such as Banani, Dhanmondi, Bashundhara City, Gulshan Unimart, and Chattogram. Additionally, there’s a Nike experience store in Banani and a Levi’s outlet in Dhaka, with plans for further expansion, including in the port city.
With the local apparel market’s annual sales exceeding $15 billion, international brands are eager to tap into this vast opportunity. For DBL Group, the primary objective behind launching these international brand stores is to bolster its brand image in conjunction with these global giants.
Under the Puma portfolio alone, DBL Group witnesses a robust 10% year-on-year sales growth, prompting them to import approximately 15% of high-end products to meet local demand.
As Bangladesh’s economy burgeons and the number of consumers opting for international brands rises, DBL Group’s initiative aligns with the aspirations of high-end customers.
Despite customer desires for discounts due to perceived high prices, DBL Group refrains from offering them, as import duties and taxes range from 100% to 125%, leaving little room for markdowns.
The country’s dominance of the global denim market — built on its position as the top supplier to the United States and the European Union — was challenged last year by a decline in shipments to both regions, show data.
For the fall, local denim-makers point the finger at a sluggish demand in the global market and high production costs at home.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), denim exports to the US and EU bloc saw negative growth of 31.07 per cent and 23.42 per cent respectively in 2023.
Denim exports to the US market fetched Bangladesh $649.96 million in 2023 calendar year — down from $942.96 million in 2022, according to OTEXA, a body under the US Department of Commerce.
Bangladesh has held the top denim supplier position in the US market since 2020, displacing Mexico.
OTEXA data also shows a decrease in total US denim apparel imports from the world last year — down 23.97 per cent to $3.16 billion from $4.16 billion in 2022.
Once the leading exporter, China fell to fifth place in the US market in 2023 with $312.47 million in exports. Pakistan and Vietnam ranked third and fourth, respectively, with $374.56 million and $336.31 million.
According to BGMEA data, Bangladesh’s denim exports to the EU also declined last year, fetching $1.20 billion compared to $1.57 billion in 2022.
Turkey and Pakistan followed Bangladesh in the EU market, with both countries experiencing negative growth exceeding 12 per cent. Bangladesh has maintained its top position in the EU market since 2017, according to BGMEA.
For the decline in denim shipments to both the US and EU, exporters blame a sluggish demand caused by the economic slowdown triggered by the Russia-Ukraine war and the resulting high inflation.
This, they say, forced Western consumers to prioritise essential goods, while rising production costs due mainly to the local energy crisis were also contributing factors.
Anwar-ul-Alam Chowdhury Parvez, managing director of Argon Denims Ltd, said consumers are focusing on meeting basic needs due to the economic climate, with fashion taking a back seat.
“This has led to a decrease in international demand for denim, not just for Bangladesh but for other exporting countries as well,” he said. “On the other hand, sales of functional wear and activewear are increasing.”
According to Mr Parvez, the situation is unlikely to improve unless global demand picks up.
Rising energy costs and central bank policies were also cited by denim-makers as factors contributing to a decline in local production.
Optimism as innovation in focus at denim expo
Referring to positive buyer projections, exporters at an international denim expo in Dhaka expressed optimism for an upturn in orders from September onwards.
The two-day Bangladesh Denim Expo, held at the International Convention City Bashundhara (ICCB) in Dhaka, features over 60 exhibitors from 11 countries showcasing their latest innovations.
Organised by the Bangladesh Apparel Exchange, the event began on Monday. Manufacturers are displaying a wide range of products, from sustainable fabrics to cutting-edge designs, highlighting the diversity of the denim industry.
The show’s theme, “Reimagine”, reflects the industry’s focus on continuous innovation and the integration of digitalisation. Organisers believe this approach can reshape the denim landscape and leverage the power of technology.
Shovon Islam, managing director of Sparrow Apparels Ltd, a company exporting value-added denim, told the Financial Express that Bangladesh controls 9-10 per cent of the global denim market, worth $85 billion, with annual exports of $8 billion.
High buyer inventory in 2021 and 2022, due to lower consumer demand during the pandemic, led to weaker sales in 2023, he said. However, he was optimistic for an upturn in orders from September onwards for the next season, based on positive buyer projections.
Mr Islam added that global demand has been on an upward trend since the beginning of 2024. Buyers are booking capacity as their inventory levels have depleted.
He also said that some orders are shifting from Egypt due to war and safety concerns.
Mr Islam, who moderated a session at the expo, told the FE that Bangladesh is adapting to changing fashion trends by producing high value-added denim goods.
Shams Mahmud, managing director of Shasha Garments Ltd, said, “Inflation and historically high interest rates set by the Federal Reserve are still impacting the US market.”
“This has led to a decrease in disposable income, affecting demand for denim, particularly entry-level high street products which are price-sensitive,” Mr Mahmud added.
However, he too expressed optimism for the future. “We are seeing new orders coming in and are hopeful that demand will pick up and exports will rebound in the near future.”
The Bangladesh Textile Mills Association estimates that over 40 local mills currently produce denim fabrics.
As India grapples with a mounting water crisis intensified by climbing temperatures and unpredictable rainfall patterns, the nation’s cotton cultivation sector faces unprecedented challenges.
According to recent data from The Aqueduct Water Risk Atlas by the World Resources Institute, a staggering 31% of global GDP, amounting to $70 trillion, is at risk due to high water stress by 2050. India, along with Mexico, Egypt, and Turkey, is expected to bear the brunt of this crisis, contributing half of the exposed GDP.
Cotton industry that supports millions of farmers and contributes significantly to India’s GDP is under threat due to its heavy reliance on water. The lack of widespread adoption of water-saving irrigation technologies in conventional cotton farming exacerbates resource strains and contributes to environmental and agricultural concerns.
Cotton, often referred to as “white gold,” is deeply ingrained in India’s agricultural landscape. However, its cultivation places immense pressure on water resources, making it particularly vulnerable to the impacts of climate change-induced water scarcity. Traditional irrigation methods, such as flood irrigation, not only waste water but also contribute to soil erosion and water pollution, exacerbating environmental degradation.
The failure to adopt water-saving irrigation technologies in conventional cotton farming exacerbates these challenges. Drip irrigation, for example, delivers water directly to the roots of plants, minimizing wastage and maximizing efficiency. Similarly, laser land leveling ensures uniform water distribution, reducing runoff and erosion. Despite the proven benefits of these technologies, their adoption remains limited across India’s cotton belt, straining water resources and perpetuating environmental and agricultural concerns.
To address these issues, stakeholders must prioritize the widespread adoption of water-saving irrigation technologies in cotton cultivation. Government support and incentives can play a pivotal role in promoting the uptake of these technologies, making them accessible to smallholder farmers who form the backbone of the cotton industry.
Many cotton farmers in India have adopted rainwater harvesting techniques to capture and store rainwater for irrigation purposes. Rainwater harvesting helps recharge groundwater resources and reduces dependence on surface water sources, making cotton cultivation more resilient to droughts and water scarcity.
Crop rotation and diversification practices are employed to improve soil health and reduce water usage in cotton farming. Intercropping cotton with legumes or other crops helps break pest cycles, enhance nutrient availability, and reduce water stress on cotton plants.
Moreover, raising awareness among farmers about the importance of water conservation and the benefits of adopting sustainable farming practices is essential. Training programs and capacity-building initiatives can empower farmers to implement water-saving technologies effectively, enhancing both productivity and environmental sustainability.
As India confronts the dual challenges of climate change and water scarcity, the future of cotton cultivation hangs in the balance. By embracing sustainable practices and fostering collaboration between stakeholders, the nation can chart a path towards a more resilient and prosperous cotton industry, safeguarding the livelihoods of millions of farmers while preserving precious water resources for future generations.
The global leather goods market value was $255.55 billion in 2023 which is expected to reach $457.53 billion by the end of 2032 at a CAGR of 6.7 percent during the furcated period.
Figure: Bangladesh and Pakistan are important suppliers of major leather raw materials in Asia.
Polaris Market Research & Consulting has recently published a research report on Leather Goods Market Share, Size, Trends, Industry Analysis Report, By Type (Genuine Leather, Synthetic Leather, and Vegan Leather); By Product; By Region; Segment Forecast, 2024 – 2032.
According to the research report, Primary market drivers include rising consumer disposable incomes, rising living standards, changing fashion trends and increasing domestic and international tourism. Demand for fashionable, current, and comfortable leather clothing, accessories, and footwear is expected to increase, which will be excellent news for the leather goods market.
The research also highlighted that Asia Pacific dominated the global market in 2022. China and India are leading the expansion of the premium and luxury goods market in the Asia Pacific region. Bangladesh and Pakistan are important suppliers of major leather raw materials in Asia.
According to the research, the footwear segment occupied the first position in this market in 2022. Major athletic footwear manufacturers such as Nike, New Balance, Adidas, Puma, Reebok, Allbirds and Converse have entered the leather athletic footwear manufacturing market in response to growing consumer demand for leather athletic footwear.
The research also suggested that the craft behind leather goods is an art form in itself, requiring skill, precision and attention to detail. Experienced craftsmen carefully select the best hides, ensuring that each piece has its own unique characteristics and texture. From cutting to stitching, every step of the manufacturing process is carried out with precision, resulting in products boasting superior quality and longevity. This dedication to craftsmanship is what sets leather goods apart, making them coveted possessions for discerning individuals.
