Bangladesh apparel exports in the last six months amounted to $20 billion, which is 15 percent higher than the same period of the previous fiscal year. Despite the energy crisis in the country and the decline in demand in the global market, the contribution of non-traditional markets is higher than ever behind a large number of export earnings. Apparel exports to new or non-traditional markets have grown at a much higher rate than traditional markets.
In the last six months, garment exports to non-traditional markets have increased by more than 32 percent over the same period in the previous period. During this period, exports to the United States increased by only 1 percent. Apparel exports to the European Union (EU) grew by a little less than 17 percent.
The non-traditional market share in Bangladesh’s garment exports is now around 18 percent. This rate was a little more than 15 percent at the same time last year. A total of $4.04 billion worth of clothing went to countries known as non-traditional markets which were $3.06 billion in the same period of last financial year.
President of BGMEA Faruque Hassan told the media that they want to reduce over-dependence on European and American markets. Several initiatives have been taken by BGMEA targeting countries in the Middle East and Africa region. Research is being done on which type of clothing is more in demand in these markets, and which clothing is more expensive in which season. Regular contact is being maintained with the businessmen and diplomats of these two new blocs.
15 countries are notable among non-traditional markets like China, Japan, India, Russia, Turkey, and Australia are in this list. To diversify the market with products, the government is giving a 4 percent incentive to export to new markets.
Among the non-traditional markets, Japan is the largest buyer of Bangladeshi apparel. Exports to the country have increased by 43 percent in the last six months. Garments worth $750 million have been exported. Exports to India, the second largest market, increased by 50 percent and $550 million worth of clothing was exported to India. Exports to the third major market, Australia, increased by 30 percent consisted $520 million worth of garments exported.
In the first six months of the fiscal year, Malaysia saw the highest increase in apparel exports. The country’s garment exports have increased by 97.52 percent. The next position in terms of export growth is Turkey, the country’s garment exports increased by 83.70 percent. Exports increased by 35.66 percent in Korea, 15.27 percent in China, 22.28 percent in the United Arab Emirates, and 51.12 percent in Mexico.