Mohammad Nurul Alam
Bangladesh is the second largest apparel exporter in the world but the export destination was narrowing-confined with some traditional markets mostly EU and USA. So it was necessary to get new destination for the apparel market that could be an alternative and reliable new sourcing hub. The apparel makers of Bangladesh gradually started to shift towards diversified market and products from early 90s period. The outcome of the efforts came with successful positive growth in the nontraditional market.
Bangladesh’s total apparel exports amounted to $47.39 billion in 2023 and the share of apparel exports to non-traditional markets stood year-on-year growth at 18.72% in 2023. It was 16.10% in 2022 last year.
According to the Export Promotion Bureau (EPB) report Bangladesh’s apparel exports to non-traditional markets jumped to $8.87 billion from $7.36 billion from January to December of 2023, in the corresponding period of the previous year.
Among major non-traditional markets last year Japan was the top destination, imported apparel goods from Bangladesh around $1.68 billion, indicating a growth of 26.53% compared to 2022.
Australia, Russia, New Zealand, Saudi Arabia, South Korea and China those are also considered non-traditional markets also posted positive growth of apparel export. Japan and Australia are the only two non-traditional markets that received over $1 billion worth of apparels from Bangladesh.
During the war crisis Russia noticeably imported $479 million worth apparels from Bangladesh last year 13.13% growth from $423.21 million in 2022.
Moyeen Uddin Ahmed, Regional General Manager at Gloria Jeans (Russia) said “Gloria Jeans is the Russian apparel brand and is the leader in Russian market that are grown in a faster way rated 30% though Russian economy is in a challenging situation due to Russia-Ukraine war. The business of GJ is increasing and we are planning to increase more on expansion for international market too.” he further said “we are shifting some of high-end product from Vietnam, China to Bangladesh. By this way Bangladesh is getting more volume of business from Gloria Jeans but the country should focus more on competitive price to increase business.”
The other way calculation of nontraditional market growth, if considered fiscal year, as per data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), during the July-September period of the current fiscal year of 2023-24, non-traditional markets accounted for 19.3 % of the $11.6 billion earned through garment exports which was 17.4 % the same period a year ago.
Europe the biggest market for Bangladesh’s apparel exporters was 11.4 % US, the second largest destination from Bangladesh’s apparel estimated around 3%.
2023-24 if country-wise year-on year growth considered Australia registered the highest of 54 % to reach $344 million. Export to Japan recorded as 39% reaching nearly half a billion US dollars. South Korea 37%, $180 million as per data published by BGMEA.
The traditional markets as considered Europe, the US, UK and Canada, just three years ago, had generated around 84% of the total apparel export receipts from Bangladesh and at the end of fiscal year 2022-23, it was just over 82%.
The term of non-traditional market is considered other than European and North American destinations like Japan, Australia, Russia, India, Korea Rep, China, United Arab Emirates, Mexico, Malaysia, Saudi Arabia, Turkey, South Africa, New Zealand, Chile, Brazil.
| BD Apparel Export to Non-Trad. Markets (Jul-Dec FY 2022-23 & 2023-24) Export Value in Million US (Source BGMEA) | |||
| Country | July-Dec 2022-23 | July-Dec 2023-24 | Growth % |
| Japan | 754.72 | 830.08 | 998% |
| Australia | 516.63 | 644.07 | 2467% |
| Russia | 180.64 | 233.04 | 2901% |
| India | 548.87 | 454.1 | -1727% |
| Korea Rep. | 255.49 | 304.18 | 1906% |
| China | 127.24 | 183.86 | 4450% |
| UAE | 155.35 | 213.21 | 3724% |
| Mexico | 186 | 176.43 | -515% |
| Malaysia | 164.85 | 180.08 | 924% |
| Saudi Arabia | 104.31 | 146.68 | 4062% |
| Turkey | 117.43 | 183.93 | 5663% |
| South Africa | 62.44 | 65.11 | 427% |
| New Zealand | 60.81 | 76.75 | 2622% |
| Chile | 78.87 | 94.91 | 2034% |
| Brazil | 68.09 | 84.14 | 2357% |
| Other Countries | 661.29 | 668.75 | 113% |
| Total (Non-Trad. Markets) | 4,043.03 | 4,539.31 | 1228% |
| % of Non-Traditional | 17.58 | 19.41 | |
According to data from the Office of the Textile and Apparel (OTEXA) of the US. garment shipments from Bangladesh to the US declined 24.91 % year-on-year to $6.79 billion in the January-November period in 2023.
The positive growth to nontraditional market is a good sign for Bangladesh to shift towards diversification and reducing excessive dependence on traditional market place. Because Bangladesh’s garment entrepreneurs are bring urged for diversifying export markets and cut high reliance on Europe and the US is paying off.
Industry insiders believe one of the major reasons is the mind set and efforts of exporters for nontraditional market and also the scope for growth in Europe is shrinking on the other hand buyers of non-traditional markets are reducing their dependence on China.
Alamgir Kabir, Chief Executive Officer, Kaiser Bekleidungs GmbH, Bangladesh said “a ban on Xinjiang cotton centering the forced labor will help Bangladesh to gain shifted orders”
Faruque Hassan, President, BGMEA expressed his views that for diversified market require diversified product. He said “We should more focus on high-end product with man-made fiber rather to run after low value cotton base items as the country’s apparel export goes 75% on cotton and five basic items of products out of 200 items of export code.”
Kyaw Sein Thay (Dolly), Managing Director, Cloths R Us Limited said “Diversification towards nontraditional market is more important to keep running for sustainable growth in the RMG sector. The target set by BGMEA 100 billion, 2030 will never possible unless the nontraditional market grows and earn minimum 40 billion. So focusing to diversification of market and product undoubtedly important.”
