Bangladesh: Least expensive, But challenges remain
08 September 2023, Mumbai
A recent survey by the United States Fashion Industry Association (USFIA) found that Bangladesh remains the least expensive apparel sourcing nation.
However, the survey also found that Bangladesh faces challenges in terms of speed to market, sourcing flexibility and agility, and environmental compliance.
Survey
The survey, which was conducted among 30 US-based fashion brands, found that Bangladesh scored 4.5 out of 5 in terms of sourcing cost, followed by Indonesia at 4 points.
However, Bangladesh scored the lowest among Asian competitors in terms of speed to market, with a mere 2 points. China led in this category with a score of 3.5.
In terms of sourcing flexibility and agility, China and Vietnam were rated the most competitive, while Bangladesh was ranked the lowest.
This is due to the fact that Bangladesh has been slow to recover from the COVID-19 pandemic, and has experienced supply chain disruptions.
Outcomes
Finally, Bangladesh scored 2.5 out of 5 in terms of environmental compliance, sharing the bottom spot with India, Vietnam, and China.
This is due to the fact that Bangladesh has been criticized for its poor labor practices and environmental record.
Despite these challenges, Bangladesh remains a popular apparel-sourcing destination for US brands.
This is because Bangladesh has a large and skilled workforce, and offers competitive production costs.
However, Bangladesh will need to address its challenges in order to remain competitive in the long term.
Commentary:
The USFIA survey highlights the challenges that Bangladesh faces as an apparel-sourcing nation. However, it also shows that Bangladesh remains a competitive option for US brands. If Bangladesh can address its challenges, it could continue to grow its apparel exports in the years to come.
Here are some specific steps that Bangladesh could take to address its challenges:
Improve its speed to market by investing in infrastructure and logistics.
Increase its sourcing flexibility and agility by reducing bureaucracy and improving the ease of doing business.
Improve its environmental compliance by implementing stricter regulations and enforcement.
By taking these steps, Bangladesh can position itself as a sustainable and ethical apparel sourcing destination for US brands.
