Bangladesh maintains denim dominance in US even amid slowing demand
The reduced lead time, thanks to the timely supply of fabrics by local backward linkage industries, is also attracting buyers to Bangladesh
Bangladesh's denim shipments to the United States continue to be on a roll even when the North American country is slowing down sourcing amid falling consumer demand caused by runaway inflation.
Bangladeshi suppliers exported $639 million worth of denim apparels in the first eight months (January- August) this year, fetching a year-on-year growth of 46.37%, according to the Commerce Department's Office of Textiles and Apparel (OTEXA).
Industry people say Bangladesh has been an attractive destination for sourcing denim garments mainly because of shorter lead backed by a strong backward linkage and availability of products at competitive prices.
Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard that US buyers are still coming to Bangladesh because they can buy denim garments at comfortable prices, which is helping the country maintain its leading position in that market.
Keep updated, follow The Business Standard's Google news channel
The reduced lead time, thanks to the timely supply of fabrics by local backward linkage industries, is also attracting buyers to Bangladesh, he also said.
The US total imports of jeans increased 31.29% to $2.85 billion year-to-date in the first eight months of the year, said data from OTEXA.
Levi's, one of the largest US buyers, now predicts that sales will grow 6.7%-7% to $6.15 billion to $6.17 billion instead of $6.4 billion to $6.5 billion, reports Sourcing Journal.
But things do not look rosy when it comes to denim shipments to Europe.
"Our major export markets are grappling with depressed consumer demand for clothing amid soaring inflation fuelled by the ongoing Russia-Ukraine war," Shahidullah Azim pointed out.
Envoy textile founder Engineer Kutubuddin Ahmed said local denim producers have to halve their production owing to a drop in demand from European customers.
He further explained that during such an economic crisis, people are not willing to buy apparels instead of food and medicines and other essentials.
Mohiuddin Rubel, additional managing director of Denim Expert Ltd, said the European denim market has largely been affected by the war.
A number of buyers are asking for delayed shipments and some are going slow to place new orders, he added.
Bangladesh's denim export has fallen in the EU market with some buyers deferring their payments, putting additional pressure on exporters, said Mohiuddin Rubel, also a director of the BGMEA.
