[🇧🇩] Textile & RMG Industry of Bangladesh

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Christmas apparel shipments slow on weak demand

Christmas apparel shipments from Bangladesh to major Western markets have slowed this season as weak consumer demand abroad and energy shortages at home disrupt factory production.

www.thedailystar.net

Christmas apparel shipments slow on weak demand

Refayet Ullah Mirdha

Christmas apparel shipments from Bangladesh to major Western markets have slowed this season as weak consumer demand abroad and energy shortages at home disrupt factory production.

The slowdown comes as garment exports to both Europe and the United States continue to decline.

Christmas shipments are at least 10 percent lower than during the same period last year, according to a local exporter that mainly supplies the US market.

The Christmas season is one of the busiest periods for the country’s readymade garment industry, with more than 60 percent of annual apparel exports shipped between August and the first week of December.

Exporters said high inflation in Western markets, fuelled by energy shocks linked to the Middle East conflict, has weakened consumer demand. They also blamed the export slowdown on excess inventories held by major international buyers.

At home, low gas pressure and frequent power outages are reducing production. The long-running gas shortage worsened after an accident at a floating LNG terminal in Cox’s Bazar. The disruption became so severe that many factories across the Gazipur garment belt sent workers on a four-day leave last week, as gas supply was expected to improve around Monday.

Anwar-Ul Alam Chowdhury Parvez, chairman and managing director of Evince Group, said the industry has been struggling with low gas pressure and the energy crisis for several months, severely affecting factory production.

Major international buyers and retail clients of Evince include Levi’s, Armani, Zara, H&M and C&A.

Parvez, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said buyers “were a bit cautious in placing the work orders as it happens in times of general elections in any country”.

Bangladesh held its national election in February. Official data show exports to both the European Union, Bangladesh’s largest export market, and the United States, its largest single-country market, recorded negative growth during the January-May period.

Eurostat data showed Bangladesh’s garment exports to the EU fell 18.89 percent year-on-year to €7.28 billion in January-May.

For the fiscal year 2025-26, apparel exports to the EU declined 3.31 percent to $19.06 billion, according to the Export Promotion Bureau (EPB).

The US market also showed a downward trend.

Garment exports to the United States fell 5.75 percent year-on-year to $4.01 billion during January-June, according to the US Office of Textiles and Apparel (OTEXA). However, exports to the US rose 5.74 percent year-on-year to $763.57 million in June alone.

Kutubuddin Ahmed, chairman of Envoy Legacy and Sheltech Group, said the slowdown is affecting all major garment-exporting countries because demand in Western markets has weakened.

“Because of the slowdown in export trend, the Christmas shipment will also be low this season to some extent,” he said.

Sharif Zahir, chairman of Ananta Group, said shipments of woven garments are normal this season, but demand for knitwear is lower.

Ramzul Seraj, managing director of Elite Garments Ltd, which exports to the United States, said his company has been facing at least 10 percent lower exports this season than during the same period last year because buyers delayed placing work orders.

BGMEA President Mahmud Hasan Khan said he expects exports by the end of the current fiscal year to match or slightly exceed last year’s level, although shipments have slowed in recent months.

“Because it is expected that the gas supply situation will improve soon. And the factories will be able to go into production in full swing as the government has been taking measures. The government’s stimulus package will also play a positive role in the business,” said Mahmud.

Photo: star/file

Requesting anonymity, a major European buyer recently suggested Bangladesh shift from producing basic garments to higher-value products and diversify its product range.

The buyer said Bangladesh’s top five products, including T-shirts, trousers, formal shirts, sweaters and underwear, account for 78 percent of the country’s garment exports.

Md Fazlul Hoque, managing director of Plummy Fashions Ltd, said, “Following the Trump tariff, competition in the global supply chain has become more intense as all the major global players such as China, Vietnam, Indian and Pakistan are sending the same goods to the same markets.”

Mostafa Q Sobhan Rubel, chief executive officer of Dragon Group, said shipments to North American markets, including the United States and Canada, are normal, but exports to Europe have slowed this season.​

 

[Saif]

RMG exports to US: China rapidly losing market share, Bangladesh unable to capitalise

The reciprocal tariffs imposed by US President Donald Trump were declared illegal by the US Supreme Court in February this year. Following that ruling, Trump announced a new 10 per cent tariff on products from all countries under the Trade Act of 1974. The law allows such tariffs to remain in...

en.prothomalo.com

RMG exports to US: China rapidly losing market share, Bangladesh unable to capitalise

Shuvongkor Karmakar
Dhaka

Workers at a readymade garment factory Prothom Alo file photo

China lost nearly $2 billion worth of readymade garment exports to the United States in the first six months of this year (January–June) compared with the same period last year.

However, Bangladesh failed to capture a significant portion of that lost market. Instead, competitors such as Vietnam, Cambodia and Indonesia increased their exports and took advantage of the opportunity.

According to data from the US Office of Textiles and Apparel (OTEXA), the United States imported readymade garments (RMG) worth $35.09 billion during the first half of the year, down 8 per cent from the same period last year.

Although overall US garment imports declined, Bangladesh's exports fell by a comparatively smaller 5.75 per cent. Imports from China, India, Mexico, Pakistan and Honduras also declined during the same period. In contrast, imports from Vietnam, Indonesia and Cambodia increased.

Local entrepreneurs in Bangladesh's garment industry say demand for apparel in the US has been slowing since reciprocal tariffs came into effect last year.

According to them, while purchase orders have been shifting rapidly away from China, a large share has gone to Vietnam, with Indonesia and Cambodia also benefiting.

They said Bangladesh has received comparatively fewer orders because much of the business moving out of China consists of man-made fibre garments, an area where Bangladesh's capacity remains relatively limited. In addition, Bangladesh continues to lag behind in fast-fashion orders due to its longer lead times.

Bangladesh's exports decline

The United States is the single largest export market for Bangladeshi readymade garments. In February this year, Bangladesh overtook China to become the second-largest apparel exporter to the US market. Although it retained that position at the end of June, exports during the January–June period fell by 5.75 per cent.

Bangladesh exported RMG worth $4.01 billion to the United States during the six-month period.

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Prothom Alo that Bangladesh's capability in non-cotton garments remains relatively weak. As a result, the country is not buyers' first choice for such products.

He also said Vietnam and Indonesia are able to deliver products with lead times of around one month. Bangladesh's exports have declined mainly because of weaker sourcing and logistics, he added.

Last year, however, Bangladesh's readymade garment exports to the US market grew by nearly 10.5 per cent to reach $8.2 billion.

Who is taking over China's lost market?

The US-China trade war began before the Covid-19 pandemic. Since then, China's garment exports to the US market have been declining. The decline accelerated further after the United States imposed retaliatory tariffs last year.

During the first half of this year, China exported RMG worth $3.57 billion to the United States, a decline of 37.69 per cent compared with the same period last year. In the first half of last year, China exported garments worth $5.73 billion. That means China's exports declined by $2.16 billion in just one year.

Most of China's lost market has been captured by Vietnam, Indonesia and Cambodia. During the first half of this year, Vietnam exported RMG worth $7.85 billion to the United States, posting growth of 1 per cent. Indonesia exported $2.33 billion worth of garments and Cambodia exported $2.13 billion. Their export growth rates were 3 per cent and 12 per cent respectively.

Entrepreneurs see opportunities ahead

The reciprocal tariffs imposed by US President Donald Trump were declared illegal by the US Supreme Court in February this year. Following that ruling, Trump announced a new 10 per cent tariff on products from all countries under the Trade Act of 1974. The law allows such tariffs to remain in effect for 150 days, and that period expired last month.

Last month, the Trump administration imposed additional tariffs of 10 per cent and 12.5 per cent on products from 60 countries, including Bangladesh, alleging they had failed to adequately enforce restrictions on goods produced through forced labour.

A 10 per cent tariff has been imposed on products from Bangladesh, Cambodia, Honduras, Indonesia, Mexico, Pakistan and Sri Lanka, while products from Vietnam, Turkey and China face a 12.5 per cent tariff. As a result, Bangladesh now enjoys a lower tariff rate than several competing countries.

Shovon Islam, managing director of Sparrow Group of Industries, told Prothom Alo, "We now have a 2.5 percentage-point tariff advantage. So although we performed poorly in the first half of the year, there is a good possibility of doing better in the coming months. We have already received two major purchase orders from US buyers. Both orders are shifting to Bangladesh from Vietnam. Many other manufacturers like us may also receive similar orders."

However, Shovon Islam expressed concern over the energy crisis.

"If the energy crisis remains at a tolerable level, it will not create major problems. But production has already started to be disrupted, and foreign buyers have also expressed concern over the situation," he said.​