Until recently, Bangladesh’s dominance in the world apparel market remained unchallenged. However, in the last few years, Vietnam has slowly begun to usurp Bangladesh’s position as leading fashion manufacturer of the world. Recent World Trade Organization (WTO) report shows, Vietnam’s fashion industry is at least one score ahead of Bangladesh on 10 leading indices. On the other hands, its score on sustainability and political stability are 1.5 and 2 points ahead respectively.

Titled ‘Textiles and clothing in Asian graduating LDCs: Challenges and options’, the report was prepared after surveying at least 150 exporters and 30 global brands and retailers for their efficiency in creating value added products, innovation, efficiency, flexibility of order quantity, financial stability and political stability.

Bangladesh lags on many indices

As per the report, Vietnam’s score on product quality, lead time, and sustainability is also higher than Bangladesh which lags on 10 out of 12 indices covered in the report. Also, Vietnam can source raw materials in a better way and import them to its ports within 24 hours whereas Bangladesh takes 48 hours for the same, as per a Business Standard report.

Vietnam scores on labor efficiency and quick deliveries

In terms of labor efficiency also Vietnam scores as its workers are known to be 10 to 15 per cent more efficient in manufacturing. The country is able to deliver shipments to European buyers 10-15 days ahead of Bangladesh, says Shovon Islam, Managing Director, Sparrow Group. Also, Bangladesh is unable to send its products to buyers from seaports as it does not have any. It sends products first to Singapore and Sri Lanka and then transfers them to their final destination in Europe and the US. The country also lags in ports and customs management, explains Fazlul Hoque, Former President, BKMEA.

Price, tariff advantages save Bangladesh

However, Bangladesh manages to sustain some of its reputation by scoring on price and tariff advantage points, says the report prepared in collaboration with several UN agencies including the United Nations Conference on Trade and Development (UNCTAD).

Fazlee Shamim Ehsan, Vice President, BKMEA, adds, Bangladesh’s flexibility in terms of order quantity also remains unchallenged. The country manufactures products as per buyers’ demand. Faruque Hassan, President, BGMEA, challenges the wrongful citing of environmental compliance related risks as a downside for sourcing from Bangladesh. He says the country has made huge progress in terms of workplace safety, workers' wellbeing and environmental sustainability.

PTAs, FTAs to help sustain access to EU

Abdur Razzaque, Economist and Writer of the report believes, Vietnam scores with strong FDI in the apparel sector that help improve standards and bargaining power. Vietnam is also on its way to secure duty-free access to the EU apparel market with a FTA. On the other hand, Bangladesh stands to lose this access in 2029, three years after its graduation from LDC in 2026. The report estimates, Bangladesh may lose $5.37 billion with LDC graduation. To avoid this and continue enjoying access, Bangladesh needs to sign a preferential trade agreement and free trade agreement (FTA) with countries and trade blocs, adds Md Fazlul Hoque, former President, BKMEA.

Commerce Minister Tipu Munshi affirms, Bangladesh is looking at signing FTAs and PTAs with several countries this year. It also plans to avail duty-free export facility until 2031, he concludes.

Retailers in the US expect the rate of product returns to increase in 2022. As a report by the National Retail Federation and Appriss Retail, consumers are expected to return goods worth more than $761 billion sold last year to be returned by consumers.This accounts for an average of 16.6 percent of total U.S. retail sales, which soared to $4.583 trillion in 2021.

According to Mark Mathews, Vice President, National Retail Federation, the rate of returns in the US increased to 16.6 per cent in 2021 from 10.6 percent during 2020, but online returns are in line with recent years at an average of 20.8 percent. According to NRF, online sales accounted for $1.050 trillion of total US retail sales last year. Approximately $218 billion of online purchases were returned, with $23.2 billion deemed fraudulent.

The survey reveals, categories with the highest return rates were: auto parts (19.4 percent), apparel (12.2 percent) and home improvement and housewares (tied at 11.5 percent). Steve Prebble, CEO, Appriss Retail says, the retail industry is dealing with an influx of returned items. Retailers need to view this as an opportunity to truly engage with your consumers.

The 34th edition of Milano Unica will be held from February 01-02, at Rho Fieramilano in Milan, Italy and will feature < The Japan Observatory > (JOB).

To be co-organised by the Japan Fashion Week Organization (JFW) and the Japan External Trade Organization (JETRO), JOB will feature ten companies plus one group in the physical exhibitors’ space. It will also feature fabrics from twelve companies that will be displayed in a newly installed JOB Plus booth

Some of the companies that will participate in JOB include StylemTakisada-Osakathat will mark its 12th participation in JOB this year. Assisted by a local subsidiary in Italy and a business agency in Milan, the company will handle its business at the fair in absence of its staff from Japan due to COVID-19 related travel restrictions. It will showcase abundant products and color variations, plus scope to handle even small-batch orders.

Another exhibitor Silk Textiles Global Promotion Consortium will enhance alignment of the three traditional textile industry players: Nishijin, Tango and Yuzen, from each production hub in Kyoto Prefecture, with five of its companies set to make their debut in the JOB area on this occasion.Morisan from Nishijin will present the ‘Nishijinori-Kinran’ series

Third exhibitor Miyashinwill showcase outstanding textile development ability, including those with hard-twisting silk yarns that generate a three-dimensional surface effect, alongside silk-washifabrics representing a highly focused ecological material.

Tayuh Textile Industry Corp will showcase a collection leveraging twisting and weaving techniques nurtured in Tango chirimen manufacturing. Three companies representing Japan Denim from Hiroshima Prefecture will also join JOB.

UK Fashion and Textile Association (UKFT) I is hoping for the success of the North West Adoption Program. The technology adoption program urges textile firms to drive sustainability and growth through digitization of operations. The program is being adopted by 125 companies from the sector by tapping into impartial expert technology advice, organizing digital transformation workshops to help them take their first steps, a leadership program, digital technology internships, and skills development support.

Of these, 13 textile businesses are investing in new digital technology to solve key challenges while increasing productivity, growth, and creating new high value jobs. To continue building on its achievements and ensure the UK remains competitive against global competition, manufacturers need to embrace current and emerging technologies, and the huge potential digitization offers, as well as to raise the skills and productivity of the people who work in the sector to the highest level, says Adam Mansell, CEO, UKFT.