US fashion brands, importers, wholesalers, retailers are cautious about the business outlook, their sourcing prospects and trade policy. They are less optimistic about the five-year outlook for the US fashion industry. The trade war with China has increased their cost of doing business. But US buyers hesitate to shift their sourcing from China, since China does not have a near competitor in terms of the variety of products it can make. Bangladesh is not as attractive as many of its competitors regarding speed to market, flexibility and agility, and risk of compliance. Bangladesh’s strengths are restricted to cotton trousers and cotton shirts. These products have accounted for nearly 60 per cent of total US apparel imports from Bangladesh in the past ten years.

Bangladesh will face tough competition in coming days given its increasing unit value in recent past and price reduction by China. Unit price from Bangladesh grew at the highest rate among all other producing countries during 2018 to May 2019.

At the same time 80 per cent of fashion brands and retailers of the United States having business with Bangladesh have expressed their interest in expanding sourcing from the country in the next two years.