The readymade garment industry of Bangladesh has transformed over the last five years. Global apparel brands and retailers are placing a higher volume of work orders to compliant factories in Bangladesh. Bangladesh’s overall apparel exports to the US rose by 3.76 per cent during January to May 2018.

Bangladesh is the fifth sourcing destination for US-based apparel and fashion companies in 2018 mainly because of the most competitive price it offers. Bangladesh was also the fifth sourcing hotspot in 2016.

Made in Bangladesh enjoys a prominent price advantage over many other Asian suppliers. In terms of sourcing cost, China scores 3 points, Vietnam 4 and Bangladesh 4.5. Companies are interested in expanding sourcing from Bangladesh in the next two years. They are actively seeking alternatives to Chinese and Vietnamese products.

Besides Vietnam and Bangladesh, buyers also plan to increase sourcing from India, Indonesia, Cambodia and Africa. Trade barriers as well as compliance with factory, social, and environmental standards are driving up sourcing costs this year. Labor cost remains the top factor driving up sourcing cost in 2018.

Wage levels are continuing to rise quickly in many Asian countries where US fashion companies primarily source, including China, Vietnam, Cambodia, Sri Lanka and Bangladesh.