India's T-shirt exports decline, Bangladesh excels

21 July 2023, Mumbai

India's T-shirt exports have experienced a setback, decreasing by approximately seven percent over the past six years. 

In contrast, Bangladesh and Vietnam have seen remarkable growth in their T-shirt exports, outperforming India in this segment. 

What all you need to know

Quick Backdrop

Both Bangladesh and Vietnam have leveraged their strengths to capture global markets; Bangladesh's T-shirt exports surged by 48 percent from 2017 to 2022, and Vietnam's exports grew by 34 percent during the same period. 

Global T-shirts market valued at $185.4B (Sep 2021). India's T-shirt exports declined by around 7% in six years. Meanwhile, Bangladesh and Vietnam saw impressive growth, capitalizing on strengths and capturing global markets. India's challenges include higher manufacturing costs, while Vietnam excels in premium T-shirt production.

The global T-shirt market is expected to grow, presenting opportunities for Indian exporters to focus on customized top-wear with trendy designs.

The Challenges Faced by India

India is facing challenges due to relatively higher T-shirt manufacturing costs, which have impacted its export competitiveness. 

Despite price reductions, Indian T-shirt exporters have not been able to achieve significant export growth. In contrast, Vietnam has established itself as a major player catering to high-end T-shirts for global sportswear brands like Nike and Adidas. 

One of the key factors contributing to this difference is that Vietnam possesses the necessary raw materials, expertise, and infrastructure to produce premium T-shirts, which India lacks.

Positive Outlook for T-shirt Consumption and Exports

Despite India's recent struggles, the global T-shirt market is expected to maintain an upward growth trend in the near term. 

This positive outlook is driven by the ongoing global economic recovery, urbanization, rising population, and increasing income levels. 

From January to October 2022, India's exports of knitted T-shirts grew by ten percent, with significant increases in exports to the US and various European countries.

Customized Top-wear on the Rise

Globally, the demand for customized clothing is on the rise, with T-shirts being the most popular item, owned by over 51 percent of fashion-conscious consumers. 

Smart and bold quotes, bright colors, and logos on the front are trending for both men and women. 

Looking ahead to summer 2023, tie-dye, shirt pockets, and portrait photography are expected to be emerging fashion trends for T-shirts, shirts, and tops.

India's Market Competitiveness

India and Bangladesh have achieved the highest growth rates in T-shirt production among major producing countries, mainly due to their export-oriented production methods with the advantage of cheap labor costs. 

While China remains a key global center for T-shirt production, other Asian countries, including India and Bangladesh, are gaining traction as production shifts to the region.

In Summary

India faces challenges in its T-shirt exports due to higher manufacturing costs, Labor costs rising, innovation lagging, and Market shifts while Bangladesh and Vietnam continue to excel in the market. 

However, the global T-shirt market is projected to grow, offering potential opportunities for Indian exporters. 

To thrive in this competitive landscape, businesses should focus on meeting customer demands for customized top-wear with trending designs and concepts.

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