Bangladesh’s Ready-Made Garment Exports Soar in New Markets in 2024

In 2024, Bangladesh’s ready-made garment industry has made a big shift. Exports to new markets outside Europe and America have grown a lot. This change is important for the industry. Traditionally the industry has always relied on Western markets. Now, it is reaching out to more places around the world.

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Discover the rising trend of Bangladesh’s ready-made garment exports to alternative markets outside Europe and America in 2024.

 Explore how companies like Urmi Garments are thriving the challenges and opportunities in this evolving landscape.

Learn how diversification and quality improvements are shaping the future of Bangladesh’s garment industry.

 

Urmi Garments: A Success Story in Export Diversification

Take Urmi Garments, located near Narayanganj as an example. While Europe and America are still main destinations for their products, Urmi Garments has entered into several new markets. Countries such Japan, Australia, and India have become their big buyers.

In 2023, Urmi Garments saw a 20% rise in exports to these new markets compared to 2022. This is not just a one case. Many other Bangladeshi factories are also similarly expanding to new markets. Collectively, these new markets now make up 18.72% of the total garment export sector.

 

Crossing the American Market Income

For the first time, Bangladesh’s earnings from new markets have surpassed those from America. The American market now accounts for just over 17% of the country’s garment export income. New markets have become a bigger source of revenue.

 

Steady Growth Over the Years

Ten years ago, exports to new markets made up only 14.79% of Bangladesh’s total export earnings. By 2019, this number rose to 16.67%. In 2023, it reached 18.72%. This steady growth shows how Bangladeshi garments are successfully expanding into new markets.

 

Top New Markets Outside Europe and America

Japan is a leading new market. According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), earnings from Japan jumped from $111 million in 2009 to $1.67 billion in 2023. Other important markets include Australia, Brazil, China, Turkey, Saudi Arabia, Russia, and India.

 

Strategies for Growth and Further Market Expansion

The managing director of Urmi Garments says expanding further is possible but needs proper planning. For example, Japan has high quality standard requirement and is very strict in quality checks. On the other hand Australian buyers want unique specifications like their own thread standards. Environmental protection is also important to keep and grow market share. Product diversification and being able to make many items in one factory are key to meeting the needs of these markets.

 

Challenges in New Markets

Despite the opportunities, new markets have their own challenges. Each country has different needs and preferences. Market sizes can vary significantly compared to Europe and America. For examples, Order volumes in new markets are usually smaller, which means factories need to offer a variety of products.

High tariffs in countries like South America and South Africa are big obstacles. Government intervention through negotiations and trade agreements is crucial to lowering these barriers.

 

Government Support and Future Prospects

The Bangladeshi government is working hard to overcome these challenges. The Export Promotion Bureau is negotiating agreements to lower tariffs and improve market access. Bilateral or regional trade deals could make trade smoother.

The future success of the industry depends on overcoming these hurdles and capitalizing into the growing demand in new markets. Better control over export growth and pricing, along with new technologies, will drive success.

 

Conclusion

Bangladesh’s garment industry is at an important point. By focusing on quality and business-friendly practices, and solving challenges through strategic actions, both producers and the government can boost Bangladesh’s share in the global market. As a top sewing nation, Bangladesh is ready to succeed in this new era of diverse exports.

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