Bangladesh: Denim Goods Exporters Aim for $10 Billion Exports by 2030
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- Published: Saturday, 11 May 2024 02:14
Thanks to innovative designs and comfortable wearability, the demand for denim and denim-related products has surged in recent years. This has enabled Bangladesh to dominate the global denim market by emerging as a top supplier of these popular garment items to Western markets, including European Union countries and the United States. Entrepreneurs attribute their success in the global market to their hard work and innovative ideas.
However, there's still a substantial opportunity for them to increase their market share by adopting automation, sustainability practices, ensuring data availability, compliance, recycling, and fostering innovations. Entrepreneurs also disclosed that their investments in the denim industry of Bangladesh have grown from Tk8,000 crore to Tk26,000 crore over a decade.
Speaking to the Daily Sun, Managing Director of Sparrow Apparels Ltd, Shovon Islam, mentioned that currently, Bangladesh exports denim products constituting 14% of the total readymade garment exports valued at US$47 billion. "We have a great chance to increase our global share of denim item exports by adopting automation and ensuring data availability, recycling, and innovations," he said. "Although we currently hold a leading position in denim exports with an 8% market share, our aim is to increase this value to $10 billion by 2030 from the current $8 billion."
Shovon Islam, also a member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted that there are currently 40 denim fabric mills in the country. He further elaborated that entrepreneurs have collectively invested Tk26,000 crore in the denim sector, which is experiencing an annual growth rate of 5%. Currently, 60% of the raw materials are sourced locally, he added.
The principal exportable products of the industry include woven tops, bottom and outerwear, pants, shirts, jackets, and trousers.
According to the Export Promotion Bureau, Bangladesh exported readymade garments (RMG) worth $46,991.61 million in the fiscal year 2022-23. Of this, knitwear comprised $25,738.20 million and woven garments $21,253.41 million.
Better margin, better future
Experts in the denim sector emphasized the importance of sustainability, modern technology adoption, and ensuring data availability to tap into the untapped potential of the global denim market at a seminar held during the 16th edition of the Bangladesh Denim Expo.
Sharif Zahir, Managing Director of Ananta Group, noted that denim products offer better margins and a brighter future for the industry. He mentioned, "Bangladesh has already gained its top position exporting the products. But there is a lack of knowledge, data, and compliance."
Zahir also pointed out that competitive pricing, sustainability, recycling, and embracing new technology pose challenges for entrepreneurs. He highlighted that local investors are increasingly investing in the denim sector to seize opportunities.
Munir Ahmed, Director of M&J Group, acknowledged the challenge posed by the rising cost of production. "The denim market is growing in the international market. We have advantages to take it thanks to geographical location. Now, we should improve our image and expand to new markets," he added.
Asif Ashraf, Managing Director of Urmi Group, emphasized that Bangladesh currently exports 75% cotton-made products. He mentioned the vast opportunities in exports of manmade fiber (MMF) products. "We gained the second position in RMG exports and top in denim items exports in the international market thanks to our hard work. Now we need policy support from the government to expand our MMF items. Besides, we have to strengthen our backward linkage industry," he said.
Deepak Shah, CEO at Tex Fasteners, stressed the importance of environmental sustainability in denim production. "Entrepreneurs should focus on environmental issues and sustainability," he emphasized.
The two-day Denim Expo, aimed at showcasing innovative products and discussing future denim trends, commenced at the International Convention City, Bashundhara (ICCB) in Dhaka on Monday. With over 60 exhibitors from 11 countries participating, the event organized by the Bangladesh Apparel Exchange (BAE) aims to facilitate knowledge sharing and promote industry growth. Exhibitors include fabric mills for denim and non-denim, garment manufacturers, washing & laundry, accessories & trims, chemicals, machinery or technology, and logistics.