Friday, 2 December, 2022

RMG exports to unconventional markets grow faster

  • Staff Correspondent
  • 25 September, 2022 12:00 AM
  • Print news

Bangladesh's apparel shipment to unconventional markets has increased in the last two months much faster than that of key export destinations-- the EU and US.

The record inflation has squeezed consumption demand in Europe and America, which has reflected the slow growth in Bangladesh readymade garment (RMG) exports to these markets, according to the apparel exporters.

In contrast, the RMG shipment to Asian markets, known as unconventional markets in the apparel sector, has marked a sharp rise during the months of July and August.   

Bangladesh Garment Manufacturers and Exporters Association

(BGMEA) data showed that their exports to the European Union (EU) market rose year-on-year by 23 percent in the last two months, while the export grew by 21 percent in the US market and 18 percent in Canada.

Apparel shipment to unconventional markets, on the other hand, surged by as high as 38 percent during the months of July and August.

Meanwhile, the unconventional market’s share in the country’s overall exports has risen to 17 percent this fiscal year so far, which was 15 during the same period a year earlier.

 Now, the EU's share slipped to 48 percent which was 50 percent one year ago. At the same time, the US market's share has fallen to 20 percent from 21 percent one year ago.

The EU, the US and Canada are considered to be conventional markets for Bangladesh RMG exports and other destinations are seen as unconventional markets.

Japan and India are the top two markets among 15 countries that are seen as comparatively new apparel export destinations for Bangladesh.

During the last two months, Bangladesh exported $220 million worth of apparel items to Japan which was 26 percent higher than that of the same period of last fiscal year.

Exports grew overwhelmingly by 99 percent to India, 31 percent to the Australian market and by 121 percent to the Turkish market. 

“The exports are rising in Asian market. The export in the Indian market will increase further in future because Bangladesh and India have discussed ways to remove trade barriers during Prime Minister Sheikh Hasina’s recent visit to India,” Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) executive president Mohammad Hatem said.

He informed that some new brands have opened showrooms in India, for which demand for apparel export to the neighbouring country has increased.