24 October 2023, Mumbai
Bangladesh's garment industry is diversifying its export markets and reducing its dependence on Europe and the United States, the traditional primary markets. This strategy has paid off, with positive results.
The share of apparel exports to non-traditional markets, such as Asia, Latin America, Africa, and Australia, is growing and becoming more significant.
Data points
Data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) shows that non-traditional markets accounted for 19.3% of the $11.6 billion garment exports in the first quarter of the current fiscal year 2023–24, up from 17.4% in the same quarter last year.
Moreover, garment exports to these non-traditional markets grew by a remarkable 25% year-on-year, while growth in Europe, Bangladesh's biggest market, was only 11.4%.
In contrast, growth in the United States, the second-biggest market, was much lower, at about 3%.
Bangladeshi garment workers inspect clothes
One key reason for this shift is that exporters are looking for new opportunities as Europe's market is saturated. He also said that buyers in non-traditional markets are shifting away from Chinese suppliers.
The diversification of Bangladesh's garment export markets is a positive development for the industry and the country as a whole.
It reduces Bangladesh's reliance on a few key markets, making the industry more resilient to shocks. It also opens up new opportunities for exporters to grow their businesses.
The government is supporting the diversification of export markets through initiatives such as export promotion campaigns and trade shows.
It is also working to improve the infrastructure and business environment to make Bangladesh more attractive to foreign investors.
Set to consolidate its leadership
With its strong track record and the government's support, Bangladesh's garment industry is well-positioned to continue to grow and diversify in the coming years.
Short Point:
Bangladesh's garment industry is diversifying its export markets and reducing its dependence on Europe and the United States. This strategy is paying off, with strong growth in exports to non-traditional markets.
The government is supporting this diversification through initiatives such as export promotion campaigns and trade shows.
With its strong track record and the government's support,
Bangladesh's garment industry is well-positioned to continue to grow and diversify in the coming years.
5 key insights :
- Diversifying export markets
- Reducing dependence on Europe, US
- Strong growth in non-traditional markets
- Government support for diversification
- Well-positioned for future growth
