Bangladesh’s apparel industry is seeing a strong rebound in exports to major markets like the European Union (EU) and the United States. However, there’s a catch – the price per unit of garments has dropped reportedly.
Despite international brands and buyers paying higher prices to other countries, they continue to pressure Bangladeshi exporters to sell at lower rates.
According to The Office of Textiles and Apparel (OTEXA), Bangladesh’s garment exports to the U.S. grew by 45.93% in January, reaching $799.65 million compared to the same month last year. But the price per unit dropped by 2.20%.
Similarly, Eurostat data shows that from January to December last year, exports to the EU increased by 4.86% to $19.77 billion. Yet, the price per unit fell by 4.84%.
This trend isn’t unique to Bangladesh. Across the EU market:
✅ Overall garment prices fell by 6.83%
✅ Chinese apparel prices dropped by 8.43%
✅ Vietnamese and Cambodian garment prices also declined significantly
Exporters point to several factors behind the global price drop:
- Cheaper raw materials – The prices of cotton, yarn, and fabric have declined.
- Lower shipping costs – Freight rates have significantly decreased over the past year.
- Bangladesh’s focus on low to mid-range products – Many local exporters still specialize in lower-priced garments, which means lower profit margins.
- Longer lead times – Some buyers prefer faster production, reducing Bangladesh’s bargaining power.
- Unhealthy competition – Local garment manufacturers often undercut each other’s prices, making it harder to negotiate better rates.
Read more: Bangladesh’s RMG Exports Surge to $38.48 Billion in 2024
From July to February of the current fiscal year, Bangladesh’s total apparel exports stood at $26.79 billion.
Exports to the EU: $13.42 billion (50.10% of total exports)
Exports to the U.S.: $5.06 billion (18.91% of total exports)
Despite the challenges, some Bangladeshi exporters are now shifting to higher-value garments to boost prices and profits. But for now, the industry is navigating a tough balancing act – higher exports but lower earnings per piece.
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