Bangladesh is the number one exporter of denim to the US
The country has managed to retain it’s status for a second year in a row amid the pandemic
Bangladesh is the number one exporter of denim to the US
The country has managed to retain it’s status for a second year in a row amid the pandemic
MAHMUD HOSSAIN OPU
Saddam Hossain
February 14, 2022 10:12 PM
Anyone visiting a clothing shop in the US will find most of the jeans are made in Bangladesh. From New York to San Francisco, high street racks are full of “Made in Bangladesh” pride
It’s no surprise then, that Bangladesh has become the top denim exporter to the United States for the second consecutive year.
According to the Commerce Department’s Office of Textiles and Apparel (Otexa) data, Bangladesh exported $798.42 million worth of denim garments to its biggest export destination in 2021, experiencing year-on-year growth of 42.25%.
In 2020, the country exported $561.29 million worth of denim garments to the US market, according to the Otexa data.
Despite labour and factory safety concerns, securing the first position, the market share of Bangladesh experienced a growth of 21.69% in 2021 from 20% in 2020, said the Otexa data.
The data also said that the US denim shipments came roaring back in 2021, increasing 31.36% to $3.68 billion after the denim import declined nearly 25% to $2.8 billion in 2020 as demand plummeted in the early onset of the Covid-19 pandemic.
Talking to Dhaka Tribune, Mostafiz Uddin, managing director of Denim Expert Limited, said that Bangladesh Denim Expo is contributing to Bangladesh becoming the number one denim exporter in the world.
“The news of Bangladesh becoming the number one denim exporter in the US market, outperforming Mexico and China, is very refreshing even during this troubled time of Covid-19,” he added.
He also said that Bangladesh already took the top position in denim export in the European Union (EU) market in 2017. “The Bangladesh Denim Expo started in 2014 and it played the role of a catalyst in this journey of the country to become the leading denim exporter both in the EU and US,” he added.
He also said that it is good to see the Expo contributing to the growth, and also successfully promoting sustainability, transparency, innovation, circularity and responsibility in Bangladesh denim Industry.
Zillur Rahman Mridha, managing director of Vintage Denim Studio Limited, said that it is very good to hear that Bangladesh has maintained its position in the US market.
“Buyers are placing purchase orders and we're working hard to ship it timely. It is an evaluation of our sincere efforts and works,” he added. He also said, to strengthen this position, the ease of doing business needs to be further developed by resolving all the complexities related to infrastructure, ports, and NBR.
Talking to Dhaka Tribune, Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that there are some very good denim factories in the country.
“We can cover almost 50-60% of denim productions through local fabrics. Moreover, there are a lot of in-house design studios and these reasons play a vital role in denim export,” he added.
He also said that denim is a common product and its demand is not affected by the season or trend but remains the same almost all year round.
“Moreover, it has fewer hassles to maintain, which impact its vast casual usage,” he added.
He also said that the demand for denim is increasing worldwide and the production of it is increasing in Bangladesh.
“We could not produce denim before, but now we have the capacity. We need to invest more in denim factories. Denim has value addition opportunities such as stone wash, random bleach wash and we need to look at more value additions,” he added.
Mohiuddin Rubel, director of the BGMEA said that they have been working with Denim Expo for many years. “As a result, a strong backward linkage industry of denim has gradually been created, denim factories continued to grow, and buyers also became interested in Bangladeshi denim,” he added.
He also said that a number of state-of-the-art fabric mills were established in the country due to the positive growth of denim. Bangladesh is now able to deliver denim orders very fast, which is also a positive sign for buyers.
“We want to shift to high-value products, and it all started with denim,” he added. He also said that the US market is always important and this position is a part of the continuity.
According to the Otexa data, the key production countries mounted clear comebacks, while other nations’ manufacturers saw more modest gains.
Besides Bangladesh, securing the second position, Mexico roared back with a 39.6% hike to $654.87 million for the year, rebounding from a 41.54% falloff in 2020. Mexico’s market share climbed to 17.79% in 2021 from 16.7% in 2020.
Imports from Vietnam experienced a growth of 9.32% to $401.49 million in 2021. Securing the third position, however, the market share for Vietnam fell to 10.94% from 13.1% in 2021.
Market observers said that Vietnam’s manufacturing capacity could be an issue in growing the sector.
Vertical denim manufacturing maven Pakistan also revived production in 2021, with imports from the country soaring 54.8% to $389.76 million.
Pakistan’s market share stood at 10.59% at year’s end, up from 9% in 2020, said the Otexa data.
Rounding out the top five suppliers with notable denim import market share was China, which was the biggest loser in 2020 with a dip of 52.29%, but came back with a growth of 16.87% in 2021 to $387.91 million.
However, China’s market share dipped to 10.54% in 2021 from 11.8% in 2020.
Meanwhile, Bangladesh's overall readymade garment (RMG) exports to the US experienced a 45.91% strong comeback in the first half (July-December) of the 2021-22 fiscal year.
According to the country-wise RMG export data published by the Export Promotion Bureau (EPB), Bangladesh exported apparel worth $4.2 billion in the first six months of the current fiscal year.
Export earnings from the US were $2.9 billion in the same period of FY21, EPB data shows.
