Bangladesh’s yearly exports of sweaters have grown 39 per cent. Sweaters hold a prominent position in Bangladesh’s apparel export dynamics and have seen a double-digit increase in product penetration out of the total garment exports of Bangladesh, which turned into a major sourcing hub for sweaters for international retailers and brands after work orders started shifting from China since Chinese manufacturers are no longer interested in making sweaters because of the complexities in the manufacturing process, higher cost of production and shortage of skilled workers. Europe is Bangladesh’s second biggest market for sweaters.

The continent is home to more than 60 per cent of garments exported from Bangladesh.But Europe has been plagued for months by extreme heat, drought and wildfires. August 2022 was particularly brutal. The European Union has also been hit by inflation. This is the highest inflation rate reported since 1997. Given the situation, sweater makers in Bangladesh have been impacted and have been receiving fewer orders. Clothing retailers and brands in Europe have started delaying the placing of fresh work orders from Bangladesh or have cut down on order volumes as sales have taken a massive hit. They are making delays in taking the delivery of products for which orders were placed between December and March, citing pile up of unsold stocks.