Bangladesh's apparel exports to the European Union market increased by 8.5 per cent M-o-M to approximately €1.3 billion in February 2024, marking the highest increase in the past four months.
However, Bangladesh’s apparel exports to the EU declined by 18.6 per cent Y-o-Y, according to Eurostat.
In the first two months of 2024, Bangladesh’s apparel exports to the EU witnessed declined by 26.74 per cent. The country’s knitwear exports to the EU during the period declined to €1.42 billion compared to €2 billion in the same period a year ago.
Similarly, Bangladesh’s woven garment exports to the 27-nation economic bloc during the first two months of 2024 decreased to €1.06 billion from €1.38 billion in the corresponding period of last year, according to Eurostat data.
Recent data from the US Department of Commerce's Office of Textiles and Apparel (OTEXA) indicates, Bangladesh lagged behind its competitors in apparel exports to the American market during the Jan-Feb’24 period.
Bangladesh’s apparel exports to the US declined by 19.24 per cent during the first two months of this year. This contrasted with China, whose apparel exports to the US grew by 0.48 per cent, and Vietnam, which recorded an increase of 0.14 per cent during the same period.
According to Eurostat, clothing imports by the EU from various countries also declined by 15.31 per cent to €12.53 billion in the first two months of 2024 from €14.80 billion in the same period last year.
Specifically, apparel imports from China dropped by 13.12 per cent to €3.33 billion in the Jan-Feb’24 period, compared to €3.83 billion in the same period of 2023.
The EU's apparel imports from Turkey decreased by 10.69 per cent to €1.54 billion from €1.72 billion in the same period of the previous year.
Exporters voiced concerns over challenges faced by the industry, including increased production costs due to utility price and wage hikes, which have made Bangladesh less competitive in the global market. SM Mannan Kochi, President, BGEMEA, emphasised, despite heightened production, proper prices are not being met by buyers.
Echoeing these sentiments, Mohammad Hatem, Executive President, BKMEA, highlights, despite an increase in inquiries from western buyers, many manufacturers are unable to fulfill orders due to low prices offered by buyers.
Moreover, the ongoing gas crisis in the country has resulted in an increase in Bangladesh's lead times to 89-90 days from 50-60 days. This is making difficult for apparel makers to meet the demand for shorter lead times by buyers. Consequently, many western buyers are turning to Vietnam and China for their orders.
Bangladesh’s apparel exports to the US also declined notably during the Jan-Feb’24 period, according to data from the US Department of Commerce's Office of Textiles and Apparel (OTEXA).
Meanwhile, clothing imports by the EU from various countries, including China and Turkey declined during the first two months of 2024, indicating a broader trend of reduced apparel imports into the bloc.
