It will not be an exaggeration if we say Bangladesh’s next business is denim because the demand for this specialised kind of clothing items is on the rise worldwide due to changes in the fashion and style both by the males and female.
-REFAYET ULLAH MIRDHA
With the huge demand from the renowned global clothing retailers and brands the local entrepreneurs
have also established 30 mills where they invested more than $1billion in the country so far over last few years.
The millers have been meeting more than 40 percent demand for fabrics from the garment makers. The remaining demand is met through import mainly from China India Turkey and Pakistan. Currently 30 denim factories have been producing 40 million yards of denim fabrics in a month against the demand for 70 million yards. If we analyse the trend of establishing of denim mills we can see most of the modern mills were set up over the last 10 years with higher production capacity. Previously denim products were not so much known items to the local textile millers and garment makers. As a result mainly the Turkey India Pakistan and China were leaders in the global denim markets. Bangladesh is relatively a new entrant in the global denim markets which is currently nearly $60 billion. However until now the share of Bangladesh in global denim market is very low at $3 billion in a year.
Denim Expert Ltd . presenting their latest denim products at Bluezone , the Europeandenim tradefair .
But the prospect is very high for Bangladesh as the globally renowned retailers and brands are flocking in Bangladesh for the quality denim products at competitive prices.Bangladeshi garment makers are expecting that the total denim export will reach to $7billion by the end of 2021 for the higher demand of the products.The market trend is also in favour of Bangladesh as the country has already overtaken China in denim supply to the EU the largest denim market in the world. Now Bangladesh is the largest supplier of denim garment to the EU.In the January-June period of 2016 Bangladesh exported 567.97million euro worth of denim pro-ducts to the 2-nation bloc securing 21.1 percent mar-ket share the highest. Not only the highest supplier to the EU Bangladesh is also the third largest denim supplier to the US in a year.Bangladesh exported $186.30 million worth of denim products to the US in January-June period of the last year registering a 12.03 percent market share while China’s share is 26.04 percent and Mexico’s share is 25.40 percent.The entrepreneurs have invested $1billion in the denim sub-sector as the demand is on the rise in local and international markets. Many more invest-ment proposals are pending for setting up denim units in the country. The millers have been expan-ding their current capacity to meet the growing demand. The collective production capacity of the mills is 435million yards a year in Bangladesh.
WHY BANGLADESH SHOULD FOCUS ON THE DENIM
Mainly for two important reasons Bangladesh should on denim business. The reasons are ever changing style and fashion and for growing demand for the denim garment worldwide.Let us talk about the fashion first. The fashion trend analysts are saying denim has become the main gar-ment for both male and female due to its wider range of usability. Although the denim garment was not so much adorned item even 50 years ago now it turned the most favoured item to the people.The denim garment can be used both as formal and casual dresses. Now many things like ,quilts pillow cover bed sheets and even show pieces are also made from denim fabrics. So the uses if denim products widened in human life. Denim fabrics can be designed as much as possible.
THE DEMAND SIDE
With the rising use of denim the demand of the pro-duct is also increasing worldwide. Almost 70 percent of the population in the US wear denim products regularly. An average consumer owns seven denim products at any given time.In the UK each consumer owns an average of 17 denim garments. Annually 2.1 billion pieces of denim are sold globally. The denim sector will grow by percent year-on-year until 2020. It is also predicted that the size of the global denim market will reach to $64.1billion by the end of 2021. Bangladeshi entrepreneurs supply denim to major global retailers and brands like Levi’s G-Star Raw H&M Uniqlo Tesco Wrangler s. Oliver Hugo Boss Walmart and Gap. So both the fashion and design are suggesting for more denim business by Bangladeshi entrepreneurs.
Sylhet’s beautifull and scape
THE CHINA FACTOR
China is the largest supplier of clothing items world-wide. However the country is losing its market share to other players like Bangladesh Vietnam Cambodia Pakistan and India.Basically China has been leaving the garment business for two reasons including the country is shifting to the high-end garment items and dearth of skilled workers as cost of production has gone very high in China.So most of the work orders are shifting to Bangladesh and Vietnam and to some extent to Myanmar a new entrant to the apparel trade.
THE FLIP SIDE
There is no doubt that Bangladesh has a lot of work order for the denim products. However the country should also do some home works for grabbing more market share.First of the government should ensure adequate supply of gas and power to the industrial units improving the infrastructures and the capacity of the country’s premier Chittagong port. Political sta-bility is the most important factor for the business.Both the businessmen and the government high ups should improve the diplomatic relationship with the major markets like the US and the EU so that the trade privileges those the counry has been enjoying remains intact.
Sylhet’s beautifull and scape
The government and businessmen must keep a constant eye in the market dynamics in fashions and demand so that they can replenish with the changes of the market dynamics.Suppose the demand for clothing items worldwide declined by more than 7 percent in 2015 because of increases of use of electronic gadgets like smart mobile and other appliances.So the western consumers reduced spending on clothing items and the impact of such changes in consumer behavior has been felt by Bangladeshi manufacturers. If there is a market trend analysis the manufacturers can take well decision in business.Similarly the election in major EU countries inclu-ding The Netherlands Germany and France has impacted negatively on export of Bangladeshi pro-ducts to the EU as the consumers and businessmen in those countries were in wait and see mood due to the election. The Brexit has also impacted negatively on export of apparel items to the UK the third largest export destination of Banglades Despite some internal and externalities the future of Bangladeshi denim is bright. The buisenssmen can grab more market share now. This is the time to make denim business. R.U.M.