Orders from new global markets and a decline in buy orders from China by global customers have boosted Bangladesh exports of woven garments by 13.6 percent for the first seven months of the 2012-2013 fiscal year.
Driving the spike in exports are Bangladesh’s low labor costs, a diversity of products, competitive pricing and increased demand for woven apparel. The healthy appetite for woven garments has not declined despite lackluster economies in both the U.S. and Europe.
Bangladesh exports of woven garments rose from July last year to January 2013 from U.S.$5.39 billion to the current level of U.S.$6.12 billion.
Among the global brands and retailers buying from Bangladesh are Gap, H & M, JCPenney, Kohl’s, Marks & Spencer, Tesco and Wal-Mart.
An ambitious export goal of U.S. $28 billion for fiscal year 2013 has been set by the government.
Bangladesh officials have HYPERLINK “http://emergingfrontiersblog.com/2013/01/16/bangladesh-woven-garment-exports-up-12-in-h1/” said they’re hopeful of hitting their export target if the current trend continues.
Forecasts for the booming Bangladesh apparel and textile sector are even more HYPERLINK “http://dawn.com/2013/01/07/bangladesh-eyes-20bn-in-garment-exports/” bullish.
Apparel exports from Bangladesh could reach U.S.$36 billion by 2020, predicted McKinsey & Company, an international management consulting firm.
Still nagging at Bangladesh’s apparel sector is the fallout from the disastrous fire at Tarzeen Fashions Ltd., in which 112 workers died. Unsafe working conditions and fire hazards at many factories have as yet to be resolved. Poor wages for apparel industry workers are an additional problem for factory owners as labor leaders and organizations demand raises.
In the wake of the Tarzeen Fashions Ltd. fire, numerous non-government agencies urged a boycott on Bangladeshi garment purchases until working conditions and fire safety issues were improved.
Nevertheless, Bangladesh still exports apparel at a vigorous rate and is now the second biggest exporter of apparel to Europe, right below China.