Impacted by Global Factors and Policy Intervention

RMG export from Bangladesh declined by 13.93% in October 2023, from 3.68 billion dollars in October 2022 to 3.17 billion dollars in October 2023. This decline is attributed to a number of factors, including:

Global economic downturn caused by historic high inflation and the Russia-Ukraine war

Labor unrest in Bangladesh in the final week of October

Rising cost of inputs, including fuel, gas, electricity, and transportation

Increase in minimum wages for garment workers

Despite the decline in October, RMG export from Bangladesh for the period of July-October 2023 still showed a 5.59% year-over-year growth. However, overall export earnings for July-October 2023 grew by only 3.52%, falling 9.31% short of the strategic export target for the same period.

Overall, the decline in RMG export in October is a reminder of the challenges that the industry is facing. It is important for the government and the industry to work together to address these challenges and to ensure that the RMG sector remains a competitive driver of economic growth in Bangladesh.

Import Export Show to Explore UK's Post-Brexit Status in Global Trade

Brexit has transformed the UK's trade landscape in many ways, and one key question is how it has affected the country's global trade reputation. Some supporters of Brexit hoped that the UK would gain more autonomy and influence in global trade affairs, but opponents contend that the UK has actually weakened its position and bargaining power outside the EU.

The upcoming Import Export Show, a prominent event in the UK trade sector, will explore this topic in depth. Two of the speakers at the event have shared their views on the UK's current role in global trade.

Overall:

It is clear that Brexit has had a significant impact on the UK's global trade reputation. The full extent of this impact is still being debated, but it is clear that the UK will need to work hard to rebuild its reputation as a trusted and reliable trading partner.

Speakers at the 15th Bangladesh Denim Expo emphasized the need to double denim exports to achieve the country's ambitious US$100 billion apparel export target by 2030.

Commerce Minister Tipu Munshi highlighted Bangladesh's strong position as the world's second-largest apparel exporter and its dominance in denim exports to the EU and USA, surpassing even China. He attributed this success, in part, to the Bangladesh Denim Expo's contributions.

Siddiqur Rahman, former president of BGMEA, underscored the significance of denim and denim-related products, accounting for about one-fourth of Bangladesh's total apparel exports. He expressed confidence in doubling denim exports by 2030, citing the country's advancements in workplace safety and sustainability, making it an attractive apparel sourcing destination.

Faruque Hassan, BGMEA president, emphasized Bangladesh's commitment to sustainability, with 200 green garment factories LEED certified by the United States Green Building Council (USGBC). He added that eight of the world's top 10 green factories are now located in Bangladesh.

The 15th Bangladesh Denim Expo, held in Dhaka, brought together industry leaders, manufacturers, and buyers to discuss the latest trends and innovations in the denim sector. The event showcased Bangladesh's capabilities and reaffirmed its position as a global denim manufacturing hub.

Currency-neutral revenue increased by 1%, driven by growth in all regions except North America.

Top-line growth reflects a focus on conservative inventory management and full-price sales.

Gross margin improved by 0.2 percentage points to 49.3%, driven by lower freight costs, a more favorable business mix, and lower inventory allowances. Discounting levels continue to improve.

Operating profit of €409 million includes extraordinary expenses of around €110 million.

Conservative sell-in strategy is paying off as inventory position improves substantially compared to the second quarter to €4.8 billion, down 23% year-over-year.

Overall, the company's results demonstrate the success of its focus on conservative inventory management, full-price sales, and cost reduction initiatives.