Exports to countries known as new or non-traditional markets for readymade garments are quite consistent. Exports are increasing in these countries despite all the adverse conditions, whether local or global. Apparel exports to at least three markets are close to a billion dollars.
Export entrepreneurs say that it is possible to bring the volume of exports to these three markets close to the main markets. At present, the export market of one billion dollars stands at 10.
The country’s export sector is dependent on a single garment product. There is a risk of over-reliance on conventional markets like commodities. To avoid risks, entrepreneurs are taking initiatives to expand unconventional markets. The government is encouraging exports to unconventional markets by providing cash assistance at the rate of 4 percent.
According to the Export Promotion Bureau (EPB) and the BGMEA, an organization of ready-made garment manufacturers and exporters, the three major unconventional markets are Japan, Australia, and India. In 2024, the amount of garment exports to Japan stood at $1.12 billion. In local currency, this amount stands at about Tk 13.5 billion. Data analysis shows that the export of knit jersey-type garments and woven shirts and pants-type garments to Japan is almost equal. The demand for woven garments is high in the US and Canada as major markets. Among the other two markets, $830 million worth of garments were exported to Australia. The export to India was $610 million. Of these two markets, the amount of net exports to Australia and the amount of woven exports to India is higher.
Export trends suggest that exports from these two markets will soon exceed one billion dollars. Export entrepreneurs are also saying the same. When asked, former BGMEA director and additional managing director of Denim Expert, Mohiuddin Rubel, told to Media that the demand for clothing in conventional Western countries was decreasing due to the impact of the pandemic Corona. As an alternative, the economies of emerging Asian countries were comparatively good. Demand has increased in these countries. Prices are also getting a little better compared to them. Again, the advantage of being an Asian country is the lead time, that is, after receiving an export order, it takes a little less time to prepare the product and reach the buyer. Overall, entrepreneurs have increased their attention to new markets.
He said that among the new markets, Russia is also a big market that can exceed a billion dollars. To increase exports to such potential countries, there should be diplomatic activities on the part of the government to increase the brand image of Bangladesh and the country’s clothing sector. Arrangements should be made to participate in roadshows, fairs and exhibitions. Communication with businessmen from such countries should be increased.
Currently, the traditional and main markets for Bangladeshi garments are the 27-nation European Union (EU), the United States, and Canada. Garment exports started through these countries. In terms of total volume, exports are still higher in these countries. The remaining countries outside these three countries are considered non-traditional markets.
Among the non-traditional markets, exports are more to 18 countries. Of these, Japan, Australia, China, Russia, Turkey, the United Arab Emirates, Korea, and India have the highest exports. Last year, exports to non-traditional markets accounted for 16.46 percent of the total export income of ready-made garments. Clothing worth $6.33 billion was exported to these countries.
A look at the export data shows that the US, UK and Canada are the only countries currently in the billion dollar markets. Apart from this, France, Germany, Netherlands, Italy, Denmark, Spain and Poland are the export markets of one billion dollars as EU alliance countries.
