Facing stiff competition from China, Bangladesh struggled to seize a larger portion of the expanding global apparel market in 2024.
As per a report by Quality Inspection Management (QIMA), China bagged maximum export orders during the first quarter of the year despite a 20 per cent increase in demand for textile and apparel inspections and audits from garment manufacturing countries like Bangladesh.
Though both the US and EU-based companies increased procurement from Bangladesh during the year, the government’s policy shift to reduce cash incentives for garment exports led a rise in China’s popularity among apparel brands.
Industry insiders like Fazlul Hoque, former President, BKMEA, also cited increasing production costs and aggressive pricing strategies by competitors as factors contributing to Bangladesh's loss of competitiveness in the global market.
Meanwhile, China witnessed a rebound in demand from Western markets, with US-based buyers showing a 12 per cent Y-o-Y growth in inspections and audits, and European brands experiencing even faster growth rates. Other regions, including Asia, Latin America, and South America, also displayed significant interest in China's manufacturing capabilities.
Recent data from the US Department of Commerce’s Office of Textiles and Apparel (OTEXA) and Eurostat highlights Bangladesh's declining apparel exports compared to its counterparts. In Jan-Feb’24, Bangladesh experienced a significant drop in exports to both the US and the EU, while China and Vietnam managed to maintain or slightly increase their export volumes during the same period.
These challenges underscored the need for Bangladesh to address rising production costs and enhance competitiveness to reclaim its position in the global apparel market.
