A new study highlights around 55 per cent of US fashion brands plan to increase sourcing from Bangladesh in next two years. The ‘2020 Fashion Industry Benchmarking Study’ jointly conducted by the United States Fashion Industry Association (USFIA) and the University of Delaware reveals though Bangladesh faced work order cancellation or postponement during the COVID-19 pandemic, it managed to become the third largest sourcing destination for the US with 85.7 per cent respondents opting for US, while China and Vietnam secured 100 per cent and 95.2 per cent respectively followed by India 81 per cent, Indonesia 71.4 per cent, Cambodia 66.7 per cent, Philippines 57.1 per cent and Sri Lanka 52.4 per cent.

In the first five months of 2020, Bangladesh accounted for 9.4 per cent of total US imports. Its exports to the country increased despite COVID-19 and the US-China trade war. The country’s strong ability to produce yarn and fabric locally without relying on imports despite labor cost contributed to a significant price advantage for ‘made in Bangladesh’, products.

Moreover, US fashion companies’ eagerness to diversify sourcing from China especially for MMF apparel also boosted Bangladesh’s position as a preferred sourcing destination. However, respondents consider sourcing from Bangladesh involves higher compliance risk with 2.0 rating score, same as last year. The study surveyed some of the country’s largest brands and retailers, including the top 25 US-based fashion brands, retailers, importers and wholesalers.