Low costs alone won’t sustain apparel growth
Bangladesh’s ready-made garment industry has reached another significant milestone by overtaking China in the US apparel market for the first time in decades.
Yet the latest US Fashion Industry Association (USFIA) Benchmarking Study offers a timely reminder that success in today’s global sourcing landscape is no longer measured by cost alone.
Although Bangladesh remains among the world’s most-utilised sourcing destinations, its utilisation rate has fallen from 88.2 per cent to 78.9 per cent.
The report rightly cautions against interpreting this as a decline in competitiveness. Instead, it reflects a fundamental shift in global sourcing strategies driven by geopolitical uncertainty, protectionist trade policies and companies’ determination to diversify supply chains.
For Bangladesh, however, the message is unmistakable. The country’s traditional strengths-competitive pricing and large-scale production – are no longer sufficient to secure long-term leadership.
Global fashion brands increasingly demand speed, flexibility, traceability and sustainability alongside affordability.
The report identifies several structural weaknesses that policymakers and industry leaders can no longer afford to ignore. Slow lead times continue to undermine Bangladesh’s competitiveness, while dependence on imported fabrics and accessories limits its ability to respond quickly to changing market demands.
Equally concerning are the country’s modest scores in labour, social and environmental compliance, areas that are becoming decisive as international regulations grow stricter.
The industry’s production model also requires modernisation. Buyers are increasingly seeking smaller, specialised orders and agile manufacturing rather than relying solely on mass production of basic garments.
Bangladesh’s limited flexibility in accommodating such orders risks excluding it from fast-growing market segments.
Encouragingly, nearly half of the surveyed US companies still intend to increase sourcing from Bangladesh over the next two years, underscoring continued confidence in the country’s manufacturing capability. This provides a valuable window of opportunity-but not an indefinite one.
The government’s role is crucial. Investments in ports, transport infrastructure, customs efficiency and domestic textile capacity must accelerate. At the same time, stronger enforcement of labour rights, environmental standards and supply-chain transparency should be viewed not as regulatory burdens but as strategic investments in future competitiveness.
Bangladesh has earned its place as a global apparel powerhouse through resilience and enterprise. Yet the next chapter of Bangladesh’s garment success story will depend not on how cheaply it can produce, but on how quickly and sustainably it can adapt.
