Market Observation: Bangladesh'S Garment Export Declines And Orders Are Decreasing

In the past two years, Bangladesh has occupied an increasingly important position in the global clothing trade, becoming the second largest clothing exporter in the world. However, the latest data shows that Bangladesh's garment exports are declining.

According to the Daily Sun of Bangladesh, according to the latest data released by the Bangladesh Export Promotion Bureau, in October, the overall export of the country fell 13.64% compared with the same period last year, of which the export of ready to wear fell 13.93%, from 3.68 billion dollars in the same period last year to 3.17 billion dollars.

In response, Farouk Hassan, president of Bangladesh Garment Manufacturers and Exporters Association, said that in the past few months, the country's garment production orders continued to decline. Hassan believes that, on the one hand, historical high inflation has led to low sales and demand. In order to curb inflation, developed economies have raised bank interest rates, further limiting consumers' purchasing power and demand. On the other hand, the continuous labor unrest around the minimum wage problem has seriously disturbed the industry in the past week.

It is reported that although the government has repeatedly taken measures to control inflation, inflation in Bangladesh is still "high fever". According to the Daily Star on November 7, Bangladesh's inflation data in October hit a new high, rising 30 basis points to 9.93%, according to the data released by the Bangladesh National Bureau of Statistics.

Recently, textile workers in Bangladesh are discussing with textile enterprises to raise the minimum wage standard, which has also caused hundreds of textile factories in Bangladesh to be closed, further affecting the country's clothing exports. According to the Bangladesh Financial Express, Hassan held a press conference on October 31 to address the wage rise protests in different industrial areas in Bangladesh, saying that members of the Association had been instructed to close the factory in case of labor unrest to protect workers and property. Hassan said that foreign importers were worried about this and had not placed new orders for the time being.

As for the decline of ready-made clothing exports in Bangladesh, Qimai QIMA, a company that provides quality control and supply chain audit for more than 30000 brands in more than 100 countries, also gave its views in a report. According to the Financial Express on November 5, recently, the company released a report saying that due to worries about economic recession, western consumer spending is slowing down, brands and retailers may again give priority to China as a supplier to take advantage of its perfect manufacturing industry system. The report points out that this year, global brands and retailers are pushing to increase their clothing purchases from China and reduce their purchases from Bangladesh. From January to September, the inspection and audit demand of major garment buyers in Bangladesh decreased by 10% year on year, while that in China increased by 14%.

(Source: International Business Daily)