Bangladesh’s export earnings in December 2022 fell by four per cent year on year compared to December 2021.

Among the reasons for this fall in export earnings are the fall in work orders from global retailers and brands stemming from the Russia-Ukraine war as well as rising inflation. However the industry is bouncing back with high-hopes despite multifaceted global challenges apparel entrepreneurs have upgraded the technology and product quality as well as capacity. Thus, despite Covid and the Russia-Ukraine conflict brands and buyers keep on placing orders with the readymade garment industry.

Bangladesh wants to elevate its share in the global apparel business to ten per cent by 2025 from the current six per cent. The industry is focusing on diversifying markets and apparel products to swell its growth. In July to November of fiscal year 2022-2023, Bangladesh’s apparel exports to non-traditional markets grew by 24 percent.

Bangladesh is the second-largest exporter of clothing after China. The country is gaining from its favorable sourcing destination with its high reputation in transparency and circularity i.e. sustainable factories, comparatively low labor cost, smooth supply chain while globally leading fashion retailers are trying to down their apparel sourcing from China. Despite China’s strong performance in 2021, China accounted for only 23 per cent of US apparel imports in 2022, much lower than 36 per cent in 2015.