Shopping malls and markets in Bangladesh sell foreign clothing items imported mainly from India and Pakistan, with many smuggled products coming through land ports to evade taxes. The incursion of imported apparels and fabrics, have left Bangladesh's fashion industry in dire straits, despite the country's position as the second-largest readymade garment exporter in the world.

The lack of government policy support, high import cost of raw materials, absence of design and development facilities in most local fashion houses, declining number of weavers due to low wages, and academic fashion design curriculum not matching requirements of professional careers are the major barriers to the growth of the local clothing industry.

Although some Bangladeshi brands produce quality local products, many local fashion houses import fabrics from China and India to cater to consumer demand. The lack of vision among local fashion house owners and their inability to produce world-class merchandise further hampers the growth of the industry.