Apparel export to Japan may cross $2bn by 2025
Al Amin :
Bangladesh apparel export earnings from Japan is expected to cross $2 billion mark by 2025 as the market is promising, dynamic and competitive for fashion brands and retailers.
Japan has one of the world’s largest apparel consumption markets, with retail sales totaling $100 billion and like many other developed economies, most clothes consumed in the country are imported.
Although China is still top apparel supplier to the country, Japanese fashion brands and retailers have been diversifying their sourcing base.
Since the elimination of the quota system in 2005, China was the single largest apparel supplier for Japan, with an unparalleled market share of more than 80 per cent measured by value.
But, as “Made in China” became more expensive, among other factors, China’s market share dropped to 56.4 per cent in 2021.
Japanese fashion brands and retailers actively seek China’s alternatives like their US and EU counterparts and the apparel imports of the South-East Asian nation from Vietnam, Bangladesh and Indonesia have grown fast.
Following this, Bangladesh has able to export apparel items worth $1.22 billion to Japan marking a 43.79 per cent growth during July-March period of the current fiscal year.
On the other hand, considering bilateral trade and investment exposure, Japan emerged as the 11th largest export destination and 7th largest import sourcing country of Bangladesh recording total bilateral trade to $3.79 billion in last fiscal year.
According to a research of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Japan is going to be emerged a top most promising market in the coming years and following this, it has set a target of doubling the current export to Japan by 2025.
“Achieving the target, the leaders of the BGMEA made several round trips to the country and exchanged views with its businesses along with product development,” BGMEA Vice-President Md Shahidullah Azim told The New Nation.
Exports to Japan have soared mainly due to increased investment in manmade fiber garments in recent times as there is a high demand for such value-added clothes, he added.
“Besides, the China-Plus-One policy is also playing a big role as China is gradually withdrawing from garment exports,” Azim said.
Grabbing the Japan’s apparel market, Bangladesh needs to align its business strategies with changing trends in the fashion industry and develop capabilities to sustain the global competitive market.
Around 68 per cent of Bangladesh’s annual export earnings from apparels is still confined to just 10 items, indicating that product diversification in the industry is yet to reach expected levels. So, the sector should come out from this.
Terming Japan a ‘specialized market,’ Abdullah Hil Rakib, Managing Director of Team Group, said Japanese buyers are very much conscious and focused on quality of product materials.
“We have to have the proper mindset with the right business module to get into the market with a separate team and unit,” he explained.
