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The Bangladesh Garment Manufacturers and Exporters Association has apprehended that the export earnings’ growth might decline in March as global buyers changed their sourcing strategy due to geopolitical tensions and production plan in apparel factories were being disrupted.
BGMEA president Faruque Hassan at a press conference on Saturday held at the headquarters of the trade body in the city said that the global brands and buyers were changing their sourcing strategy and placing orders in small slots due to uncertainties in global economy.
‘Despite a decrease in work orders for the last few months, export earnings from readymade garments have maintained a positive growth up to February due to a better unit price and increased shipment of value added products but it may not be possible to retain the growth in March,’ he said.
Faruque said that the consumers of apparel products decreased in developed countries as inflation reached a record high in Bangladesh’s major export destinations – the European Union and the United States.
Consumers in the western countries have been becoming more interested in buying discounted apparel products and so buyers have decreased the volume of work orders amid the declining trend, the BGMEA president said.
He said that buyers and brands were placing orders in small slots instead of bulk quantity and the change of the sourcing strategy by the global buyers were upsetting the production plan of Bangladeshi factories.
Regarding the change in global trade policy, Faruque said that Bangladesh needed to enhance its capacity to comply with human rights and due diligence protocols adapted by the European Union to avert future challenges in the global business.
‘To cope up with the changed global scenario, Bangladesh’s apparel manufacturers are taking preparation through machinery and technology upgradation,’ he said.
Faruque said that to face the upcoming challenges in the global business, BGMEA’s efforts to explore the potentials of new markets remained uninterrupted.
‘We are getting good response from the new markets and share of Bangladesh’s total apparel exports to the nontraditional markets increased to 18.13 per cent in the financial year 2021-22 from 14.96 per cent in 2020-21,’ he said.
Regarding the allegations brought against Bangladesh over exporting counterfeit apparel products, BGMEA president said that they were discussing with the American Apparel and Footwear Association to introduce digital labeling through QR code instead of conventional labeling system.
Introducing QR code could ensure transparency and traceability of products and it also helps to check production of counterfeit apparel products, Faruque said.
He urged the developed countries to extend tenure for duty free market access up to 2032 after the graduation of Bangladesh from least developed country to a developing one in 2026.
Faruque urged all the apparel manufacturers to introduce Bangla tag ‘Bangladeshe Toiri’ (Made in Bangladesh) on their products from January 1, 2024.
‘We will start meeting with brands and buyers after Eid-ul-Fitr over the introduction of Made in Bangladesh tag in Bangla (Bangladeshe Toiri) on the products.’
BGMEA vice-president Md Nasir Uddin and chairman of the BGMEA’s Standing Committee on Press and Publicity Shovon Islam, among others, attended the press conference.
(NA)
