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Global Textile Forecast - 2013 - 2020

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The global apparel industry is now worth of 510 billion USD and it is expected to reach 1 trillion USD by 2020. [1]Bangladesh is expected to grab a major share of this business. China is still conquering with more than 50% of the share and Bangladesh is right behind with surprisingly only 5% share.

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Fig: The figure clearly depicts the rise of export in 2014 and the share of knit and woven are still evens to even according to value (Billion USD).

It easily depicts the big gap in capacity and scope of capitalizing. China is gradually leaving textiles production as environmental issues are rising and clothing production as labor and operation cost is rising. This is the normal global trend but in reality, is Bangladesh gaining the amount of business that it should have been grabbed?

Clothing export is growing but we need sustainability ahead

Clothing export rose by a loud 19.95 per cent year-on-year during the first half of financial year 2013-14, confronting various odds like image crisis and political instability during the period.

From July to December 2013, Bangladesh’s garment exports totaled USD 11.932 billion as against exports of USD 9.946 billion made during the corresponding period of the previous year.

The exports of woven garments from Bangladesh jumped by 20.37 per cent to $5.983 billion during the six-month period, compared to exports of $4.971 billion made during the same period in FY ’13.Knitwear exports from the country leaped to $5.948 billion during the period under review, registering a growth of 19.55 per cent over exports worth $4.975 billion made in July-December 2013 period. [2]

The 19.95 per cent year-on-year growth in exports of apparel was higher than the 16.56 per cent year-on-year rise observed in overall exports from Bangladesh during July-December 2013 period.

In fiscal year 2012-13 that ended on June 30, Bangladesh exported US$ 21.515 billion worth of knitted and woven garments, and the country has set an export target of US$ 24.147 billion for the current fiscal year, which would be an increase of 12.33 per cent.

In the meantime, Bangladesh implemented a 76.66 per cent hike in minimum wage for entry-level workers in the clothing industry since December 1, 2013. The extent of impact of this wage rise on the competitiveness of the country’s apparel industry, and thereby its exports, would be visible in the export figures of the country in the second half of the ongoing financial year.

The growth is good in naked eye but when you consider the potential of growth than one should say that it should have been better. The growth in other neighboring countries in the mean time has been rapid and no doubt many of them are transferred orders from Bangladesh due to undesirable conditions here.

India gets diverted orders& tries to get European GSP

One of the most renowned textile intelligence providers stated that, Indian garment exports are on the rise as the world's buyers divert orders from China and Bangladesh. Ordersdiverting from China is absolutely normal as their cost of production is not anymore feasible enough for the

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Month wise rise of Indian garments export Year on Year (million USD)

buyers in EU and USA when basic clothing items are in concern, but this is really alarming for us when you hear that orders are also diverting from Bangladesh to India.

India’s garment exports to EU increased by 5.9 per cent year-on-year in January-May 2013, whereas those of China and Bangladesh declined by 9.7 per cent and 1.8 per cent year-on-year, respectively, in the same period. [3]

Apparel exports for the month of September 2013 grew by 14.95 per cent registering to the $1.11 billion for September 2013. This is the sixth consecutive month where garment exports grew at an average of 13 per cent. In the first half of the current fiscal, India exported apparel worth $7.9 billion, a growth of 13 per cent over last year.