From January 2021 to September 2021 denim exports from Bangladesh to the US rose 31.40 per cent, making Bangladesh the top denim supplier to the US reveal OTEXA figures. But in the same period prices of Bangladesh-made denim fell 2.46 per cent. While unit prices of denim made in Mexico grew by 1.25 per cent.
China’s dominance as one of the top denim sourcing countries has diminished significantly. Despite the fact that the country offers one of the bottommost unit prices among the top five denim exporting countries, all brands are lowering their reliance on Chinese cotton. And other prominent denim exporters are grabbing this opportunity. An array of suppliers from Vietnam, Pakistan and Cambodia to Egypt, Jordan and Nicaragua, have consistently posted gains. US companies look elsewhere to save costs and reduce risks. They are accelerating the efficient and effective diversification of their manufacturing base.
Meanwhile consumers in the US are more into basic denim rather than high end denim. The US market is embracing denim clothing well in 2021 after falling in 2020 and 2019 on a yearly basis. And prices of denim have drastically gone down. This shows that consumer buying trends have shifted from high end denim to basic jeans and the US is looking for low-cost sourcing countries.