Readymade garment exports to new markets fall

The country's readymade garment (RMG) export to the non-traditional markets witnessed a negative growth during the month of July-October of the current Fiscal Year (FY2019-20) due to trade tension between China and US, declining price trend of raw materials, especially cotton and yarn, said industry experts.

Garment shipments to non-traditional major markets have registered a negative growth of 6.07 per cent year-on-year to $1281.84 million in month of (July-October) of the current fiscal year compare to the same period of the previous year 2018-19 which was $1364.66, according to Export Promotion Bureau (EPB). Rather than traditional markets such as-- US, Canada, and EuroThe apparel makers did not want to go to those markets because it takes a lot of hassle and time to enter a new market and a businessperson needs to talk to different people, make their own research and gradually penetrate into the market, Siddiqur Rahman, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The Independent.

Rahman said when a manufacturer enters a new market he or she needs to lower the product price rather than average. Manufacturers didn’t want to explore the market but since the government is kind enough to provide cash incentive for long period of time, garment owners have started to explore the new destinations and markets.

“However, the number of work orders had declined followed by China and US trade tension, global impacts like falling consumption, and devalued currencies in major competitor countries, he added.

Source: the independent
When asked, he said that the cash incentive is 4 per cent which was set from last year (2018) at this moment.

“Presently, non-traditional markets are contributing 15-16 per cent of total export earnings,” he informed.