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in the past few months, worrying local exporters amid a renewed
competition from China whose sales in American market saw robust
growth. Industry sources told New Age that year-on-year growth of
shipments of jeans, the top-selling category, to Bangladesh's single
largest export destination dropped to 7.5 per cent compared with 26
per cent growth seen in 2008. The decline came in stark contrast to
the huge jump in China's shipment, 96 per cent in that category, in
January- September period of 2009. 'The trend is really alarming as
jeans and cotton trousers bring 4 in every 10 dollars of
Bangladesh's apparel export turnover from the USA,' said Abdus Salam
Murshedy, president of Bangladesh Garment Manufacturers and
Exporters Association. In 2008, trousers export amounted to $1.3
billion out of Bangladesh's $3.4 billion worth apparel shipments to
the USA that alone buys 26 per cent of Bangladesh's entire apparel
exports. Murshedy cited that in January- September period of 2009,
shipments of woven shirts, second largest product in Bangladesh's
apparel basket for US market, declined by more than 2 per cent, in
terms of volumes. Among other high turnover exports, shipments of
cotton-based underwear declined more than 11 per cent and brassieres
about 5 per cent. In the first nine months of 2009, Chinese
shipments to the USA grew 96 per cent in trousers, 14 in woven
shirts, 58 in underwear and 80 per cent in T- shirts. Giving a
comparative picture, Murshedy said Bangladesh exported about 21
million dozens of trousers in January-September 2009 against 19.5
million dozens in the same period of 2008. Shipments from China
totaled 34. 3 million dozens against 17.5 million dozens during the
period. Shipments of Bangladeshi underwear declined to 14.4
million dozens from 16.3 million dozens in the period, while China
shipped 25.2 million dozens up from 15.8 million dozens. The BGMEA
president said Bangladesh's apparel sales in the USA totalled $3.44
billion in 2008 with 11 per cent year-on-year growth. But in eight
months to August this year, the turnover totalled $2.35 billion with
4 per cent negative growth over the same period in 2008. The USA
has been a lucrative market for Bangladeshi woven apparels but in
the previous couple of years, shipment of knitted wear saw robust
growth. In 2008, shipments of knitted T-shirts rose 31 per cent over
the past year. But the US data showed the growth was only 5.5 per
cent in the first nine months of the current year. Bangladesh
Knitwear Manufacturers and Exporters Association president Fazlul
Hoque said decline in T-shirt shipments to the USA upset the
industry most. 'Falling shipments of many categories of garments to
the USA and Europe indicate how much the industry has been bleeding
for months,' he said. A senior executive at a US-based buying
house in Dhaka told New Age that return of stronger Chinese
exporters to the global market was an emerging reality and additional
efforts of Chinese government and industry helped it happen.
'Chinese exporters have reenergized their competitiveness on the back
of the government supports, improved productivity and vigorous
marketing drives,' he said. He pointed out that global recession
had restructured the market of imported apparels and forced US
retailers to change procurement approaches. 'US importers now
prefer deliveries in the shortest possible time, contractual
showcasing of apparels by the exporters to the shelves of retailers,'
the buyer's representative said. International trade expert
Mustafizur Rahman said declines in Bangladesh's shipments were
reflection of depressed US market. A drop in fresh orders from US
importers, as reported by local exporters in the second quarter of
current year, has led to drastic declines in shipments in the third
quarter, he pointed out. Mustafiz, executive director of Centre
for Policy Dialogue who is a member of the government's taskforce on
global recession, however, said he learnt from the industry insiders
that orders broke their losing streak in the past couple of months.
'Shipments from Bangladesh to the USA will increase in the last
quarter of the current year,' he hoped. Mustafiz suggested that
Bangladeshi exporters should improve their capacities regarding
productivity, marketing and designing. 'Suppliers' strength in
sourcing raw materials, developing designs and delivering goods
meeting the deadline strictly now matter most,' he said. Exporters
also require reduction in their dependence on marketing agents or
buying houses, he said.
