Exports of all T-shirt, trouser and sweater products have declined
Desk Report: There are thousands of product types in the global clothing market. There are low-cost T-shirts, as well as high-cost overcoats, suits and denim jackets. Although Bangladesh ranks second in this market of about 1 trillion dollars, it is dependent on a few products. T-shirts have been the country’s main export for a decade. Even before the Corona epidemic, exports of the product were declining. The arrival of Kavid has further reduced the export of top products including T-shirts. However, the demand for some new products including medical gowns has been created in the Corona situation. Merchant News
Bangladesh Bank has published quarterly review report on the pace of garment exports from Bangladesh. The latest review report was released last September. It compares the export figures of the top three products in the last three financial years in 10 HS codes. One-third of the country’s total exports of garments fall into this category.
T-shirts, singlet and other vests are among the top garment products exported from Bangladesh. In the 2018-19 financial year, the export of goods in this category was ৫ 855 crore. But in the 2019-20 fiscal year, it has come down to 529 crore dollars. As a result, the export of goods has decreased by 19.17 percent in one year.
Exporters say exports of top garment products, including T-shirts, have been negative since before Kavid. The Kavid situation has further reduced exports.
Narayanganj’s MB Knit Fashion regularly exports its own T-shirts to the US and European markets. The owner of the company is Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). He told Banik Barta that the demand for T-shirt exports was on the decline even before Kavid. After the arrival of Kavid, the buyers are offering new chemicals as a precaution in making the product, which is not very easy to comply with.
The BKMEA leader said some new types of garments are being exported around Kavid, for example medical gowns. Buyers are likely to call everyone who looks appropriate, if there are only a few. They want special chemical treatment on the clothes of such special products. Buyers are likely to call everyone who looks appropriate, if there are only a few. Now in the case of T-shirts, such new conditions are being introduced. All in all, Kavid has come up with new challenges in various forms.
Fazlul Haque, head of Plummy Fashion, one of the most compliant factories for knit products, did not deny that the buyers would follow new conditions or rules for the export of knit t-shirts. However, he said that the pace of exports is better than the fear. He told Banik Barta that the export of garments to Bangladesh started with oven products. However, later the export volume increased through net sector T-shirts. The biggest potential sector of the country’s garment sector is the T-shirt. Bangladesh is considered as the champion in the field of T-shirts in the world. Bangladesh still dominates in cotton-based T-shirts. Even in the context of Kavid, the effect of the product on exports is relatively good.
Men’s / Boys Trousers and Breeches are among the top 10 products after T-shirts. In the 2019-20 financial year, the export of the product was 432 crore dollars, which was 555 crore dollars in the previous financial year. As a result, the export of this category of products has decreased by 22.19 percent.
This is followed by women’s trousers and breeches for export. In the last financial year, the export of such products was 244 crore dollars, which was 306 crore dollars in the previous financial year. In one year, the export has decreased by 20.14 percent.
Jersey-pullovers made of cotton are in the fourth position among the other products in the top 10 HS code. In the last financial year, the export of such products was ১৯ 1.9 billion, which was ২ 2.2 billion in the previous financial year. In other words, the export has decreased by 13.59 percent in one year.
The fifth top garment product in exports is shirts for both men and women. In the last financial year, the export of the product was 1.5 billion dollars, which was 5.5 billion dollars in the previous financial year. In this case, the export has decreased by 23 percent.
New Age Group is one of the largest shirt exporters in the country. Asif Ibrahim, vice-chairman of the company, told Banik Barta that the purchase order for the oven, which was in the case of a few factories before Kavid and a few special buyers, is now close. That’s a good sign. However, the industry data as a whole shows that net purchases are in better condition than ovens. I don’t think it’s time to review the future situation yet. There is a need to wait until July next year.
Synthetic yarn or man-made fiber jersey-pullover ranks sixth in the top ten in exports. In the fiscal year 2019-20, the export of the product was কোটি 1.20 billion, which was ৮ 1.37 billion in the previous fiscal year. As a result, exports have declined by 12 percent.
Women / Girls trousers used by women are in the seventh position in the top ten. In the last financial year, the export of the product has decreased by 14.70 percent. Mens / Boys trousers made of synthetic fiber are in the eighth position. The export of the product has decreased by 14.60 percent. Exports of knitted or crocheted mens / boys cotton shirts, which are in the ninth position, have decreased by 26.10 percent in the last financial year. Tenth position single yarn of jute exports increased by 12.44 percent.
Garment industry experts say it is normal to reduce exports of top 10 garment products. The positive condition of a product is basically a jute product. Therefore, it can be said that all the top garment products exported have declined.
Regarding the current market situation, exporters say that the current market situation is that buyers have started thinking about placing orders. But now that the second wave of corona has appeared, buyers have to think anew. This has slowed down the pace of ordering again; The saying has come to a good halt, especially in the European market. However, some purchases are still coming from the US market.
Exporters expected the garment sector to turn around by December-January. An owner of a knitwear exporter told Banik Barta that hopes had been dashed. The biggest challenge in this situation is to survive for the next one year. And the second is to try to survive by adopting strategies on how to survive with the orders that are being placed at a lower price.
Anwar-ul-Alam Chowdhury Parvez, former president of BGMEA, said sales had declined due to the lockdown in Kavida across Europe. Some more products including sweaters are being exported now, but they are much less than before. Overall we are very worried about the future of the major garment products.
According to BKMEA sources, as much as was sold during the Kavidkala is online. Some products have been shipped in March-April-May-June as some products have been purchased online. Although we can’t catch all of the online shopping, some have been caught. Some of our products have gone to Amazon, not taken directly. Amazon is taking from those who have imported clothing from us. This is how some Bangladeshi products have gone for online shopping. It will be easier to survive if we can increase the export capacity in the field.
Asked about the pace of overall export of garments and demand for new products, BGMEA vice-president MA Rahim Firoz told Banik Barta that T-shirts are the main product among garments. So far most of them were cotton T-shirts. But now the export demand for synthetic T-shirts, called sportswear, is on the rise. The role of man-made fibers in increasing diversity in clothing products is expected to increase in the future.
T-shirts, trousers, shirts, jackets, sweaters উৎপাদন the production of these five basic products is the main potential of the garment industry in Bangladesh. Over the last 40 years, the industrialists have been building their capabilities around these basic products. But experts say the situation does not bode well for any industry to be sustainable in the long run. According to them, no industry can build a long-term future without increasing the production capacity of basic or low-end products as well as high-end products.
However, the future of the garment sector in Bangladesh will not be limited to T-shirts and trousers. Because a huge amount of money has already been invested in improving the quality of the factory. In making this investment, many factory owners have set up suitable technology to make expensive products. Entrepreneurs have also focused on how to add more value to T-shirts and trousers. However, in this case, there is a lack of local ability to design the garment. They also said that there is less opportunity to give their own opinion on the design as it depends on the demand of the buyers.
Mostafiz Uddin, managing director of Denim Expert Limited, said the production capacity of denim products has increased at a huge rate in the last few years. Now many high value products are being produced in Bangladesh. Bangladesh’s own brand of denim products is now being sold in the world market. The future of the garment sector is therefore not limited to just T-shirts or basic trousers.
According to a provisional report by the Export Promotion Bureau (EPB), the country’s garment exports grew by less than 1 per cent in the last quarter of July-September. In the first quarter of the fiscal year 2020-21, the country has exported garments worth ২ 612.63 crore. During the same period of the last fiscal year 2019-20, garments worth ৮ 605 crore were exported. As a result, the export growth is zero point 75 percent.
In this context, BGMEA President Rubana Haque said that the major garment markets have regained some momentum in the last two months. As a result, its effect has been seen in the purchase order. Although the amount of damage is extensive considering the price of the product.
According to the EPB’s total export statistics, in the July-September quarter of the fiscal year 2020-21, the country exported a total of ৮ 969.06 billion worth of goods. During the same period of the last financial year, Bangladesh exported goods worth a total of ৬ 964.69 billion. As a result, the country’s total exports increased by 2.57 percent in the first quarter.