Bangladesh remains at the forefront of garment exports to the UK in sheer volume, yet faces the challenge of fetching relatively lower prices compared to other nations in the British market.
During the January-October span of the previous year, Bangladesh exported 178.39 million kilograms (kgs) of garment items to the UK, surpassing China’s shipment of 159.25 million kgs, as per data from the BGMEA.
However, Bangladesh experienced an 8.83 percent decline in garment exports by volume during this period, slightly less than China’s 11.39 percent decrease.
In 2022, Bangladesh exported 232.68 million kgs compared to China’s 222.83 million kgs. The overall import of garment items by UK retailers decreased notably due to inflationary pressures stemming from the aftermath of the Covid-19 pandemic and the Russia-Ukraine conflict.
Despite Bangladesh’s volume dominance, its garment exporters received comparatively lower prices in the UK market, largely attributed to the shipment of low-cost basic garments. In contrast, countries like China and Turkey fetched better prices by exporting higher value-added garment items.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh’s average garment price was 21.39 percent less than China’s, 32 percent lower than Turkey’s, and even 26.75 percent less than India’s. BGMEA President Faruque Hassan emphasized the need to explore and strategize for the mid-to-higher priced market segment to enhance competitiveness.
Hassan also highlighted that Bangladesh’s share in the UK’s clothing import amounts to 23 percent in value and 28 percent in volume, indicating untapped opportunities. However, Bangladesh’s strategy primarily focused on cost leadership, timely delivery, and quality to maintain its competitive edge.
The concept of ‘higher value-added garments’ goes beyond items like outerwear or activewear. It involves moving into the mid-to-higher price market segment through techniques like advanced fabrication, embroidery, printing, or enhancing functionality, even with items like t-shirts or polo shirts.
Regarding the value of garment shipments to the UK, Bangladesh closely rivals China. In the January-October period of the previous year, Bangladesh exported apparel worth US$3.01 billion, experiencing a 8.98 percent decrease compared to 2022. In the same period, China’s garment shipments to the UK declined by 21.01 percent to US$3.18 billion.
Before the pandemic, UK clothing imports stood at US$16.83 billion in 2018 and slightly reduced to US$16.45 billion in 2019. The Covid-19 impact was evident with imports dropping to US$15.54 billion in 2020. In 2021, imports further reduced to US$14.35 billion before a recovery to US$17.34 billion in 2022, though still below pre-Covid levels in terms of quantity.
Contrary to expectations of sustained growth in 2023, the UK’s global clothing imports decreased by 16.44 percent to US$12.09 billion in the January-October period.
Presently, Bangladesh stands as the second-largest apparel supplier to the UK after the USA and Germany. There’s anticipation that Bangladesh will surpass China in terms of value in this market soon, as it has already done in volume for garment shipments to the European Union (EU) and denim exports to both the EU and the USA.
