Bangladesh emerges as the most competitive source of denims and looks set to be global market leader on the back of robust export growth both in US and EU, say market analysts and industry people.
Trousers, mostly jeans, topped the country’s export basket in the last fiscal, fetching $2.07 billion, which was 42 per cent higher than the previous year’s earning.
Global market reports reveal that Bangladeshi trouser makers are beating fast their competitors in the US and EU markets and grabbing significant market shares.
According to the US commerce department, exports of cotton denim trousers increased 126 per cent in terms of volume. Bangladeshi exporters doubled their share to 2.33 per cent in the US market in 2005 and commanded over 5 per cent share in the first quarter of the 2006.
During the period, share of number one supplier Mexico shrank to 37 per cent from 43 per cent in 2005, while supply from the second biggest exporter China dipped to 1.93 per cent from 6.45.
If the trend continues, Bangladesh would have at least 10 per cent share in US denim trousers market by the yearend, analysts say.
Price competitiveness and interim restrictions on Chinese garments have helped Bangladesh gain foothold in the global denims market.
In the first quarter of 2006 Bangladeshi exporters sold per dozen of trousers at $78 in the USA, against $99 of China and $102 of Mexico.
Export performance in the European market is also impressive. The latest report from the European Commission shows Bangladesh had consolidated its leading position in EU’s jeans market during the first half of 2006.
‘We see a brighter future for Bangladeshi trousers and denims as those are very competitive,’
Globally denim products have a $70 billion worth annual export market, said an executive of the Bangladesh Garment Manufacturers and Exporters Association and the global buyers were rushing to Bangladesh after the expiry of the quota regime, finding most competitive prices.
‘We are undoubtedly the most competitive denims suppliers and this is why more buyers are diverting from other countries,’ said Abdus Salam Murshey, the immediate past vice- president of BGMEA.
Salam said his Envoy Denim, with a daily stitching capacity of 4,000 dozens trouser, is booked with advance orders. Bright prospects inspired him in venturing into fabric production.
Envoy’s Tk 100 crore plus modern denim unit will go into production soon. At least one dozen of others invested more than Tk 1000 crore during last one year in the sector, Salam said.
Anisul Islam Mahmud, chairman of the county’s largest denim fabric producer- Shasha Denims- said local production capacity crossed 200 million meters, which is now adequate.
‘Bangladesh heads to be a top supplier in the global denim market,’ said Mahmud, a former foreign minister of the country.
