Bangladesh needs investment to go into the high-end denim segment. It is doing well in basic items but is gearing up to cater to the needs of high-end and branded fashion segments. For this, manufacturers need to put emphasis on research and development and forward linkages. Focus needs to be put on a skilled workforce, especially on the mid- and upper-level management.

The country is the second largest readymade garment exporter in the world. The EU and the US are two main export destinations of Bangladesh’s denim. In the EU market, Bangladesh has a 25 per cent share and in the US market it has a 11 per cent share. Bangladesh is exploring non-traditional markets like Brazil, Chile, China, Russia, Australia, South Africa and Japan. But a high tariff rate in some non-traditional markets is a major bar to increasing denim exports to those countries. These tariff and non-tariff barriers have to be removed through diplomacy.

Investment can happen in Bangladesh’s denim fabric mills only if sufficient electricity and gas can be ensured. Right now lack of infrastructure is hampering investment. Bangladesh presently has 30 denim producing factories which can meet about 60 per cent of the domestic demand for fabrics.