A more transparent supply chain and individual traceability for every item: the strategic partnership with retraced represents another important milestone in the Marc O’Polo sustainability strategy.
Desk Report
Bangladeshi fabric makers have introduced a key innovation to bring excellence in order to stay up with the fast-growing global denim market and the changing trends. Bangladesh is currently the second-largest exporter of clothing in the world and is a major supplier of denim products for the US and European markets. Europe produces one out of every three denim products marketed there.
| Denim Export to the US | Jan-Sep, 22 | Growth Y/Y |
| Bangladesh | 3250m$ | 27% |
| China | 291m$ | 6% |
| Vietnam | 348m$ | 25% |
| Mexico | 561m$ | 19% |
| Pakistan | 377m$ | 36% |
In the previous five years, Bangladesh has increased its production capacity by 40%, and 40 denim mills are currently producing 280 lakh meters of denim fabric annually. Industry analysts predict that the worldwide denim market will grow to $76.1 billion in 2026 from $57.3 billion in 2020.
By 2030, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) wants to export ready-made clothing valued at $100 billion, with denim playing a big part. Bangladeshi denim producers are currently exhibiting at international trade shows to showcase their country’s manufactured goods.
Bangladesh’s denim shipments to the United States continue to be on a roll even when the North American country has slowed down sourcing amid falling consumer demand caused by runaway inflation. Bangladeshi suppliers exported $739 million worth of denim apparel in the first nine months (January-September) this year, fetching a year-on-year growth of 42.01%, according to the Commerce Department’s Office of Textiles and Apparel (Otexa).
The demand for denim products increased in the recession as it can be worn several times before needing a wash helping consumers to check their spending for additional cloths and laundry
Industry insiders say Bangladesh has been an attractive destination for sourcing denim garments mainly because of its shorter lead time backed by a strong backward linkage and availability of products at competitive prices. Besides, Bangladesh has also been investing in green industries, which acts as another incentive for importers.
Otexa data shows Bangladesh has been maintaining the top rank in supplying denim goods to the US with a 22.73% market share. Mexico comes second, followed by Pakistan.
Brands from the US imported $3.25 billion in denim goods in the first nine months of 2022, registering a 27.78% growth. It was $2.54 billion in the same period last year, according to Otexa.
| 1 out of 3 pairs of denim worn by Europeans are made in Bangladesh |
| The global denim market is set to be more than 76 b$ in 2026 |
| 40 denim fabric mills with over 1600cr investment |
In January-September 2022, Mexico’s denim exports to the US rose by 18.99% to $561 million and Pakistan’s rose by 36.63% to $377 million.
Bangladesh’s major competitor Vietnam exported $348.64 million worth of denim products to the US market in the period, registering a 25.12% growth rate.
China, the leading apparel exporter, achieved only a 6.12% growth in January-September by exporting $291 million, slightly up from the $275 million in the same period of last year.
Bangladesh is currently just slightly behind China, but it is fully capable of competing with the major player. However, there are concerns with quality and a lack of diversification among the nation’s manufacturers. With a few exceptions, the majority of denim manufacturing facilities in Bangladesh continue to produce affordable clothing. These industrial facilities must increase both quality and output.
Significant advancements can be developed in this industry to meet the objective by 2030. Adapting to market demands and implementing new technologies are two examples. Most denim makers use slub yarn, but as they transition to stretched denim to meet market demand, some of them are running into problems. Additionally, innovative liquid washing facilities with nanotechnology can reduce water use by laundry by 60%. Additionally, energy-saving equipment can be used because it helps manage waste chemicals and conserve energy.
According to experts, manufacturers can finally accomplish the predicted goals by increasing their R&D spending.
One big advantage of denim is that even in the recession the demand of denim products increases as they can be worn several times before needing a wash. Denim is a sturdy yet comfortable material that can be worn by a consumer for a longer period. As a result, consumers are prioritizing denim products over other garments so that they do not have to spend money for other garments in the recession.
