Bangladesh’s garment exports to non-traditional markets fell 6.07 per cent during July to October 2019. Among these are: Chile, China, Japan, India, Australia, Brazil, Mexico, Turkey, South Africa and Russia. Presently, non-traditional markets contribute 15 per cent to Bangladesh’s export earnings. Traditional markets for Bangladesh are the US, Canada, and Europe. Breaking into new markets is something apparel makers dread because it takes a lot of effort and time and patience. However with cash incentives the country’s garment makers have started to explore new destinations and markets.
During July to October, Bangladesh’s apparel exports to China fell 18.80 per cent. However exports to India grew 12.40 per cent. One reason for this growth is that Bangladesh supplies to brands such as Zara and H&M which have established their business in India. Another reason is that the Indian domestic market has grown and the number of fashion conscious consumers has increased. In fact it’s a win-win for both countries as Bangladesh also imports raw materials for readymade garments such as cotton and machinery from India.
In general, Bangladesh’s apparel exports have suffered due to a sluggish EU economy, the trade tension between China and the US and devalued currencies in major competitor countries.