Bangladesh’s garment exports to major markets such as the European Union (EU) and the United States have increased in recent months, but the price per garment has fallen. International buyers and brands are pressuring Bangladeshi exporters to reduce prices even as they pay more for garments from other countries.
According to the Office of Textiles and Apparel (OTEXA), the price per garment in Bangladesh in the United States fell by 2.20 percent in January 2024. However, exports increased by 45.93 percent compared to the previous year to $799.65 million.
According to OTEXA, exports from Bangladesh to the United States increased by 49.21 percent, from Vietnam by 17.05 percent, from China by 9.36 percent, and from other countries by 18.49 percent during the period under review.
Meanwhile, according to data from the European Union’s statistical office Eurostat, the price per garment in Bangladesh in the EU decreased by 4.84 percent in 2023.
However, Bangladesh’s garment exports to the EU increased by 4.86 percent in the same year to $19.77 billion.
During the period under review, China’s exports increased by 12.5 percent, while the EU’s total apparel imports increased by 8.98 percent.
The average price of imported apparel by the EU increased by 6.83 percent, the price of Chinese products by 8.43 percent, and the price of products from Vietnam and Cambodia decreased significantly.
Experts believe that the Free Trade Agreement (FTA) between the EU and Vietnam, which came into effect in 2021, has gradually increased tariff benefits and put Vietnam ahead of the competition. As a result, Bangladeshi exporters are getting comparatively lower prices.
Former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Faruk Hasan, said that clothing prices have decreased due to the decrease in the prices of cotton, yarn, fabric and shipping costs. However, orders have increased due to the recovery of the economies of Europe and the United States.
Bangladeshi exporters generally produce low- and medium-priced apparel, which buyers want to buy at low prices. However, many companies are now focusing on exporting higher-priced apparel. It is believed that buyers will be willing to pay more if high-quality products are produced and delivered on time.
Bangladesh Apparel Exchange Managing Director Mohiuddin Rubel said that Bangladesh has less bargaining power compared to competing countries, which is one of the reasons for the decline in product prices.
According to the Export Promotion Bureau (EPB), Bangladesh’s ready-made garment exports increased by 10.64 percent from July to February of the current fiscal year to $26.79 billion.
Of this, exports to the EU amounted to $13.42 billion (50.10%), the United States to $5.06 billion (18.91%), Canada to $845 million (3.16%), and the United Kingdom to $2.93 billion (10.94%).
The price of garment exports to the EU increased by 11.53 percent, the United States by 16.38 percent, and Canada by 14.12 percent compared to the previous year. According to BGMEA data, garment exports to the United Kingdom increased by 3.74 percent.
Bangladesh’s garment exports to other countries increased by 6.23 percent to $4.52 billion, which is 16.90 percent of total exports.
