Bangladesh is strong in basic garment items, also trying to produce the high-end value-added items
Both Bangladesh and Türkiye have been playing very important role in the global apparel supply chain as they are supplying clothing items to the end consumers at affordable prices. However, the production, styles, prices, productivity, export destinations and designs are very different from each other. Türkiye is very advanced in machinery and technology use as this country itself produces those machineries. On the other hand, Bangladesh is a net importer of machinery and technologies.
Türkiye is strong in raw materials
Türkiye is also a good producer of fine cotton which is an advantage for the Türkiye in the global apparel supply chain.
Türkiye also has the advantage of geographical location as this country is very close to European countries and the USA.
As a result, it can export goods with shorter lead time and with the reduced rate of freight charge of goods to the main export destinations.
On the other hand, Bangladesh has to cross a long a lead time to ship goods to the country’s main export destinations in the European countries and the USA.
Türkiye is very strong in production of high-end value-added garment items, while Bangladesh is very strong in basic and middle range apparel items.
Bangladesh is performing strong in volume
Bangladesh has been trying to produce the high-end value-added garment items and Türkiye is already strong in this segment. As a result, the value of total export of garment from Türkiye is more with less number of workers while Bangladesh has been earning better but the number of workers is too high and prices are too low for the Bangladeshi exporters. However, with the improvement of the COVID-19 situation, the earning from the garment sector of both Bangladesh and Türkiye has been rising fast.
COVID recovery creates strong demand for clothing items
For instance, when the major players of global garment supply chain were struggling Bangladesh has performed strong, especially in the knitwear segment as the use of the casual dress was higher than the formal dresses during the peak time of COVID for longer stay at homes by the end consumers.
Bangladesh still in the second position in global RMG supply chain
Currently, Bangladesh is the second largest garment exporter after China with grabbing 6.3 percent market share of the while Türkiye is the third largest exporter with grabbing 3.4 percent market share, according to data from the World Trade Organization (WTO).
In the year 2020, Bangladesh exported garment items worth $28.0 billion while Türkiye exported apparel items worth $15.0 billion, the WTO data also said. Currently, the garment items contribute 7.0 percent of the nation’s total export in Türkiye while in Bangladesh the apparel items contribute more than 84 percent of the national export of Bangladesh in a year.
With the improvement of the COVID-19 situation worldwide, the global apparel supply chain is also recovering fast.
As a result, exports from Bangladesh are growing at a faster clip. From July to April, apparel shipment, which accounts for about 85 percent of the national exports, swelled by 35.98 percent to $35.36 billion. Of the total, $19.24 billion came from knitwear shipments, up 37.49 percent, and $16.11 billion from woven shipments, a rise of 34.23 percent.
The buoyancy in the shipment of apparel came as international clothing retailers and brands are flocking to Bangladesh in droves to place orders as many other producing countries are struggling to meet rebounding demand. Orders are shifting from China, India, Pakistan, Vietnam, Sri Lanka, Myanmar and Ethiopia to Bangladesh as the cost of production has gone up there.
Türkiye is performing strong in value added garment items
Apparel exports from Türkiye increased by 5.52 percent year-on-year in January 2022, according to the data from the Turkish Statistical Institute and the country’s ministry of trade, according to different media reports. During the first month of the current year, Türkiye exported apparel worth $1.418 billion, compared to exports of $1.344 billion during the corresponding period of 2021.
Category wise, exports of knitted and crocheted clothing and accessories (HS chapter 61) earned $758.138 million in January 2022, registering a growth of 7.7 percent over $585.836 million earned during the same month of the previous year. Exports of non-knitted apparel and accessories (HS chapter 62) were valued at $816.434 million, showing an increase of 2.7 percent compared to $601.721 million exports made in January 2021.
Among non-apparels, exports of cotton, cotton yarn and cotton textiles (HS chapter 52) shot up by 25.2 percent to $203.659 million, compared to $162.691 million in the same month of the preceding year, the data showed. Exports of old clothing and other textile articles and rags (HS chapter 63) also grew by 6.4 percent year-on-year to $244.253 million during the period under discussion.
Meanwhile, Türkiye’s imports of cotton, cotton yarn and cotton textiles (HS chapter 52) increased substantially by 117.5 percent to $396.575 million, over $182.346 million in January 2021, media reports also said. Türkiye is the third-largest exporter of clothes to the EU, the bloc’s statistical authority said.
Türkiye belongs to the top five world export champions in the textile sector. According to the figures published on Jan. 7, the industry recorded an export volume of $12.9 billion in 2021, increasing 33.2% compared to the previous year. With this volume, Türkiye has broken a record, peaking at the highest point in its history.
In 2022, this growth is to be exceeded with the target volume set at $15 billion. Although this sounds far-fetched at first glance, it is not when considering the potential of the Turkish textile market.
Türkiye has been enjoying the benefit of geographical location
Türkiye is home to many production facilities of European fashion brands, with more and more factories being opened here (e.g., Hugo Boss). Production locations in Far Asia are becoming increasingly unattractive due to logistics problems in connection with the coronavirus pandemic.
Türkiye has become a more popular choice for the industry because of its proximity to the European market and cost advantages in production. It is also noteworthy that many European luxury brands source fabrics from Türkiye and process them in their ateliers in Europe, often to produce garments for fashion shows.
This is because the materials are of very high quality. Anyone who has been to the Grand Bazaar in Istanbul must have heard from the vendors in some fabric stores that Chanel, Dior or Armani regularly buy from them. And it’s true. It’s not just a means of attracting customers. You will quickly notice the reason for this when you run your hand over the fabrics on offer. Such quality cannot be found anywhere else in the world.