Instability hits apparel competitiveness
Kamruzzaman Bablu :
Bangladesh, a longstanding leader in global apparel sourcing, faces growing competition from India as vulnerabilities in its supply chain, political instability, and climate-related disruptions take a toll.
In 2024, these challenges prompted brands to relocate up to 40 percent of their orders to emerging markets like India, Vietnam, and Indonesia.
A recent report by the United States International Trade Commission (USITC) highlights India’s rising prominence as a preferred apparel-sourcing destination, stating, “The global apparel sourcing landscape is shifting, with countries like India emerging as dominant players in Asia.”
The report emphasised India’s growing credibility in producing high-value and fashion items, as global brands increasingly seek politically stable and reliable sourcing options.
Bangladesh, despite remaining a significant player, has faced growing pressure to address its challenges and adapt to changing market dynamics. India has witnessed remarkable growth in its textile and apparel sector.
Between April and September 2024, exports rose by 5.13 percent year-on-year to $17.66 billion, with apparel exports surging 17.30 percent in September alone. The sector has attracted a threefold increase in foreign direct investment (FDI) since 2019, underlining global confidence in its potential.
India’s cost-effective labour, improved infrastructure, and sustainability-focused initiatives further strengthen its appeal. The country’s strategic shift towards high-value products and efforts to decarbonise its industry are positioning it as a key alternative to China for global brands seeking to diversify their sourcing.
Bangladesh’s Export Promotion Bureau (EPB) reported an 11.8 per cent year-on-year growth in apparel exports during the first five months of the 2024-25 financial year. However, its gains are being overshadowed by rising competition.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), urged action to safeguard the country’s position. He told The New Nation, “To counterbalance India’s rise, Bangladesh needs to prioritise political stability to retain buyer confidence.
Emphasising renewable energy, investing in infrastructure, and diversifying into high-value products like technical textiles are crucial steps forward.”
Rising trade restrictions and shipping costs (up by 165 percent between December 2023 and February 2024) are pushing brands to explore nearshoring and diversify away from traditional hubs. With 70 percent of fashion emissions stemming from upstream activities, brands are prioritising countries with lower emissions.
India’s focus on decarbonisation aligns with these goals. Between 2020 and 2023, India’s share of apparel exports to the US and EU grew by 3 percentage points, compared to a 2-point rise for Bangladesh, underscoring India’s expanding influence.
Bangladesh must act swiftly to address its challenges and adapt to evolving market demands. Strengthening political stability, advancing sustainability initiatives, and focusing on innovation are pivotal to maintaining its position as a global leader in apparel sourcing.
As global sourcing preferences shift, the race between Bangladesh and India underscores the need for resilience, adaptability, and a forward-thinking approach to navigate a dynamic and competitive landscape.