DHAKA, Bangladesh (CU)_ Bangladesh is expected to surpass China in garment exports to Europe, the largest market in the world, in the near future due to a shift in work orders and its low pricing. According to Eurostat, from January to June 2022, Bangladesh’s exports totaled $11.31 billion, recording the highest annual increase of 44.60 percent. According to figures from the statistical office of the European Union, China’s exports increased by 21.78 percent, hitting $12.22 billion.
China is currently the world’s top exporter of clothes, which accounts for a 38 percent market share. Bangladesh holds the second place with a 6.8% market share. As per the estimation of local exporters, it will reach seven percent by the end of the year. Turkey secured third place. Its exports to the European Union (EU) increased by 20.38 percent annually and reached $10.89 billion.
According to MA Jabbar, managing director of DBL Group, a major garment exporter to European markets, the results may have been much higher if the mills and factories had appropriate electricity sources. He said: “There will be even more garment exports to Europe if the government can supply gas to the mills at adequate pressure.” He added that as a result of trade concerns with China, the United States is also placing large orders.
According to Jabbar, in recent times, China’s cotton imports have decreased dramatically, indicating that garment orders are transferring to Bangladesh and other nations. He added that Bangladesh might perform well since it already possesses the potential to serve foreign businesses and brands. Statista, a market research firm based in Hamburg, states that apparel sales in Europe totaled $397.20 billion thus far in 2022. Between 2022 and 2026, the annual growth rate is projected to be 6.94 percent.
According to Jabbar, who distributes garments to large shops and brands in European markets, local manufacturers increased their capabilities by more than 10 percent to handle the inflow of work orders last year. However, inflation caused by the Russia-Ukraine conflict may have a negative impact on consumers, which may have a small rippling effect on garment exports to Europe.
According to Md Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the January-June period revenues include orders placed on hold by European shops and brands for earlier work. He said: “We are trying to make up for the losses by increasing shipments of garments to new and emerging Asian markets like Japan, India and Korea as those markets are still performing strong and showing great promises.”
