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With the intention of increasing its share of the global apparel market to 10% by 2025, Bangladesh regularly organizes various events and exhibitions to showcase “Made in Bangladesh” products at home and abroad. Here, a worker is seen putting price tags on locally produced American Eagle jeans. PHOTO: Rajib Raihan

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With the intention of increasing its share of the global apparel market to 10% by 2025, Bangladesh regularly organizes various events and exhibitions to showcase “Made in Bangladesh” products at home and abroad. Here, a worker is seen putting price tags on locally produced American Eagle jeans. PHOTO: Rajib Raihan

Local garment manufacturers have set a target to increase Bangladesh’s share of the global garment market to 10% by 2025, from less than 7% currently, by adding new products and entering new markets .

By 2022, they want to increase the market share to 8%, against 6.8% currently.

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“Political stability is important for us to achieve the target,” said Faruque Hassan, chairman of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), when disclosing the targets at a conference. release at the BGMEA office at Uttara in Dhaka yesterday.

The World Trade Organization is expected to announce global market share data this month.

The global apparel market is expected to reach $842 billion in 2025 and $1,138 billion in 2030.

Despite heightened global uncertainty amid the ongoing Russian-Ukrainian war and runaway inflation, local garment exporters are optimistic as labor orders shift from China to Bangladesh, largely due the lingering trade tension between the world’s two largest economies and a shortage of workers in China’s garment industry.

Asian markets such as India and Japan will be a focus for BGMEA as it seeks to capture the 10% stake and earn $100 billion from apparel exports by 2030.

Shipments to Japan have already passed the $1 billion mark. It rose 16.27% to $1.09 billion in the fiscal year that ended in June.

Exports to India jumped 69.58 percent to $715.41 million and to South Korea by 36.43 percent to $439.75 million, according to data from the Export Promotion Bureau.

“We expect higher growth in apparel shipments to India and Japan in the near future,” Hassan said.

The Asian apparel market is expected to reach $613 billion in 2022.

He also suggested the government accept India’s free transit offer which was extended last week during the meeting in New Delhi between Bangladesh’s Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi.

He said that when there was long congestion at Chattogram port last year, many exporters had to ship goods through Kolkata airport to maintain the delay.

A good amount of items are shipped to European countries via Colombo seaport.

Local manufacturers are also expanding their capacity to synthetic fibers (MMF) as well as cotton fiber to receive higher prices from international retailers and brands.

Indeed, if the price of a cotton t-shirt is $5, the same garment produced from MMF would fetch $10.

Of the garments shipped from Bangladesh, 74% is made from cotton fiber and the rest from MMF.

In contrast, MMF accounts for 78% of clothing sold worldwide, and only 22% is made from cotton fiber.

Bangladesh is also targeting a sizable share of the $224 billion global technical textile markets, which include products such as personal protective equipment, hospital linens and nurses’ uniforms.

Hassan said they recently got better prices due to buyers adjusting prices to soaring freight charges and industrial raw material costs.

He predicted a 20-30% decline in clothing shipments between September and November due to the protracted war and record inflation in Europe.

Inflation in the euro zone, which is home to more than 60% of Bangladesh’s exported wearables, jumped 9.1% in August, the ninth consecutive month of spikes.

“But such a situation is temporary,” Hassan said, adding that retailers and brands are also sitting on unsold inventory of clothing items as consumers have tightened amid a higher cost of living.

“In some cases, international retailers and buyers are suspending orders due to a slowdown in demand in Europe.”

The BGMEA chief expects at least 15% year-on-year growth in export earnings in the current financial year.

Apparel shipments recorded a 35.47% year-on-year growth in fiscal year 2021-22, bringing in $42.61 billion.

Currently, Bangladesh is the world champion in green clothing factories: the country has 170 Leadership in Energy and Environmental Design (LEED) factories certified by the United States Green Building Council. Of these, 52 are rated platinum and 104 rated gold.

LEED certification and improved workplace safety in line with recommendations from two foreign inspection agencies – Accord and Alliance – have also boosted the image of the sector and the country, according to Hassan.

During the press conference, he also announced the mega event “Made in Bangladesh Week”, which will be held at the Bangabandhu International Conference Center in Dhaka from November 12 to 18 to showcase the country’s strong performance in the industry. clothing.

Prime Minister Sheikh Hasina is to inaugurate the event.

Nearly a dozen events such as Dhaka Apparel Expo, Bangladesh Denim Expo and Dhaka Apparel Summit will take place during the week, while BGMEA Innovation Center would be launched.