Bangladesh exported denim apparel worth $531.23 million to the US in the first seven months (January-July) this year, fetching a year-on-year (YoY) growth of 46.6%.
According to recent data from the Commerce Department’s Office of Textiles and Apparel (Otexa), during the same period of 2021, Bangladesh exported denim apparel worth $362.37 million to the North American country.
The US imported denim apparel worth $2.45 billion during the mentioned period of 2022, noting a significant increase of 34.88% on a YoY basis, from $1.81 billion in the same period last year.
In 2021, Bangladesh became the top denim exporter to the US for the second consecutive year. The country remained the top exporter in the European Union (EU) market since 2017.
Currently, Bangladesh holds a 22.43% market share of the US denim market as the market leader, Otexa data showed.
According to industry insiders, Bangladesh is still on the right track despite global inflation and the Russia-Ukraine war.
Moreover, Bangladeshi denim is the biggest brand in the US market as US buyers consider it an elite product of high quality, they added.
“The denim sector has improved a lot with huge investments in denim processing plants,” said Mohiuddin Rubel, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), adding that fabric used to be imported before but now about 50%-60% of them are being sourced from domestic suppliers.
He also said that Bangladeshi manufacturers now produce high-end products with increased investment in research and development, in-house design studios, and technologically advanced washing plants.
“Despite global crises, the denim sector is doing well. So, we are optimistic that we will be at the top position by the end of 2022,” he added. Along with Bangladesh, all major denim apparel shippers witnessed an increase in their respective shipments to the US market, namely Mexico, Pakistan, Vietnam, China, Egypt and Cambodia.
According to the Otexa data, securing the second position, Mexico experienced significant progress and shipped $430.23 million worth of denim garments to the US. The country registered a YoY growth of 21.9% from $352.93 million in the January-July period, with a market share of 16.98%.
With an 11.33% market share, Pakistan exported denim apparel worth $287.9 million in the US market during the first seven months of 2022, registering a 52.38% yearly growth. It exported $188.9 million worth of denim in the same period last year.
Vietnam was fourth, exporting $267.64 million of denim with a 33.99% growth from $199.75 million in the mentioned period last year. It has a market share of 10.91%.
China shipped $225.55 million worth of denim garments – up by 17.27% – from last year’s $192.33 million, with a market share of 9.76%, Otexa data said.
Mohiuddin Rubel said that these orders came right after the lockdown when people started shopping a lot more than usual.
“Buyers were placing more orders because their sales projections were too high. However, since then, the orders started to decline as the global economy is going through an unstable situation due to war, inflation and energy crisis,” he added.
Moreover, according to the monthly data, the export has dropped and they have a fear that this trend will last in the coming months, he added saying that there is no chance to be very happy based on this export growth.
“Retailers now have a surplus of goods which is why they are ordering less,” he said, adding that they have to proceed by balancing everything and observing the situation now.
Zillur Rahman Mridha, managing director of Vintage Denim Studio Limited, told that Bangladesh has maintained its position in the US market as buyers are placing purchase orders and they’re working hard to ship it timely. It is an evaluation of their sincere efforts and work.
“A number of state-of-the-art fabric mills were established in the country due to the positive growth of denim. To strengthen this position, the ease of doing business needs to be further developed by resolving all the complexities related to infrastructure, ports, and NBR,” he added.
