Dhaka, Saturday, 12 June 2021

High-priced World Clothing Market

BD Share only $ 300m out of $ 15,000m World Market

BD Share only $ 300m out of $ 15,000m World Market

Special Reporter :The market of expensive fashion products— the price is several times higher than conventional clothing; the market is also growing fast. So the chances are also high. Exporting a simple polo shirt costs $5. If the price of yarn, cloth is different or extra embroidered, printing, washing, the price would be at least eight dollars. Bangladesh the second biggest apparel supplier in the world accounting for a 6.5 per cent market share, is still far behind in this market. One factor that has consolidated Bangladesh’s position in the global apparel trade is bulk orders for value added items. As much as 40 per cent of Bangladesh’s garment exports comprise value added items, which fetch more money for exporters.Bangladesh’s garment shipments are up 8.76 per cent year-on-year. The country’s image has brightened after the near-completion of factory remediation as per recommendations made by Accord and Alliance. Almost all top clothing retailers like H&M, Wal-Mart, JC Penney, Inditex, Zara, Gap, M&S, Uniqlo, C&A, Tesco, Hugo Boss and Adidas have been sourcing garments worth billions from Bangladesh every year. For the last few years, garment manufacturers of Bangladesh have been trying to make and export expensive and fashionable products beyond conventional clothing. The entrepreneurs of many manufactured garment factories are now trying to capture the high-priced world market of fashionable and expensive garment product. A large number of new factories are developing just to make this kind of garment. But Bangladesh have to swim a lot to grab this market.

Buyers are looking for good quality and good style but they can not pay high prices. That is why Bangladesh survive. We are doing mass reduction at low cost and that is exactly what Bangladesh can do. The whole world is in a recession nowadays. Buyers are under pressure. They don’t want the shops to be empty of stock but they can’t pay higher prices. People go shopping and they expect to buy a pair of jeans for a few dollars so we have to find the things they want at the prices they want.

But it is not always possible to attract buyers with lower prices. The ability to make good products depends on various factors. Basically, the cost of the clothing depends on the type and design of the cloth. In addition to cotton, yarn is also made from various organic materials, including leaves, mushrooms of different plants. These things made clothes more valuable. Customers also buy uniformed garments of special forces more than ordinary shirts, pants and T-shirts. There are also sports and athletic items.
As the use of technology in the world increases, so does the touch of clothing. Adding sensors, devices that can carry the device. Modern printers, including 3D printers, are now producing clothing. The market for such smart clothing is also increasing day by day. Basically value addition is calculated considering the import price of raw materials including cotton, synthetic or viscose fiber, synthetic or mixed yarn, cotton yarn and textile fabrics and accessories. Gross value addition from Bangladesh’s readymade garment sector was 63.23 percent in the first half of the current financial year. Import price of raw materials in the July-December period of fiscal 2019 was 36.77 percent of total export earnings from the readymade garment sector in the period. Thus, raw materials prices were 36.77 percent of the total value of readymade garment exports. Local value addition is estimated at 63.23 per cent. This can reach up to 75 per cent if the textile sector can produce high quality fabrics.
The country’s knitwear sector is making a more than 80 per cent value addition. So the woven sector has to concentrate on developing fabrics. The import value of raw materials in fiscal ’18 was 39.06 per cent of the total export earnings from the readymade garment sector and the local value addition was 60.94 per cent. The local value addition from the readymade garment sector has remained static between 60 per cent to 63 per cent in the past six years.
Results of the 2018 Global Lifestyle Monitor conducted biannually by Ipsos, an international market research firm, found that the type of fiber used in clothing has a significant impact on consumer decision-making. In fact, 86% of consumers surveyed reported checking clothing labels for fiber content. In a study of over 10,000 consumers in ten of the largest consumer markets in the world (China, Colombia, Germany, India, Italy, Japan, Mexico, Thailand, Turkey, United Kingdom) in January/February 2018, 81% preferred their clothing to be made from cotton. The results of this research suggest that not only do consumers spend the time to research the type of fiber used in their clothing, but when they do, they are seeking cotton. This was true across clothing categories as 86% of consumers preferred cotton for their jeans, 76% for t-shirts, 71% for sleepwear, 62% for pants and 58% dress shirts.
Results from the Global Lifestyle Monitor suggest that consumer’s perceptions of cotton match their desired clothing performance characteristics. The most important characteristic consumers look for when purchasing clothing is comfort (83%), which is also the characteristic consumers are most likely to associate with cotton (69%).
This market of expensive or fancy garments is increasing every year. Mackenzie & Company publishes its annual report on trends in the fashion industry worldwide. According to their ‘The State of Fashion 20’ report, the garment market will grow 5 to 5 percent this year. And the market for luxury or luxury products will grow from 5 to 8.5 percent. However, 5 per cent of users of luxury goods say they are willing to pay higher prices when it comes to sustainable clothing.
Bangladesh exports garments to the world at the second position. There is no substitute for holding this position and consolidating Bangladesh’s position in the market of valuable apparel for its promotion. But in this case the barrier is many, one of which is the ability to make garments at a high cost to the garment factory. Incredible but true, only 20 percent of Bangladeshi factories have this capability. Basically the clothing cycle goes like this: Buyers send pictures and a sample. In that case, clothing is made in the factory. For this, certain cloths are cut, stitched according to the pattern and added to the pair. Most workers in Bangladesh are involved in this last level cutting and sewing work. In addition to making expensive garments, there is a need for some additional value addition. For this, technological upgrades are necessary, said additional research director of the private research firm CPD. Moazzem. Their research shows that only 20% of garment factories in Bangladesh have made this technical upgrade. He said that now common machinery is used in all factories. But the fact that factory efficiency or capacity is used by only 5% of the factory. According to him, 20 percent of Bangladesh’s factory is able to meet the needs of any buyer or make high quality clothing. However, many new specialized factories are being created to capture the market of high quality clothing only. Export of clothing for three decades, but Bangladesh entered the high-value clothing market less than a decade ago.
Recent reports revealed that the readymade garments (RMG) sector in Bangladesh is continuing its positive trend in export earnings fueled by value-added products. Compared to 2017–18, export earnings in the RMG sector has maintained a steady growth of 15.65% in July–December of FY 2018–19, amounting to USD 17.08 billion. According to the quarterly review of Bangladesh Bank, the gross value addition from the readymade garment sector stood 63.23% in the first half or the current financial year 2018-19. The value addition in FY 18 was 60.94%. The report showed that the local value addition from the RMG sector remained static between 60-63% in the past six years. The import value of raw materials in FY 18 was 39.06% of total export earnings from RMG and the local value addition was 60.94%.
Policy Research Institute Executive Director Ahsan H Mansur said that the existing trend of local value addition in the RMG sector is satisfactory and we have little scope to increase the value addition more as we have no cotton. The local value addition could reach 70-75% if the textile sector can produce high-quality fabrics.
According to statistics from the BGMEA website, there are currently around 5,600 factories associated with exports. About 250 of them are currently exporting high quality clothing. Factories in Bangladesh are slowly moving towards producing suite, bledger-type value added products. Earlier, Bangladesh used to do only normal wash denim, but now it is doing Illustrate denim, lycra denim, knit denim. There are different types of washes. Garments are also making a difference.
DBL, a top level Bangladeshi garment maker with an annual turnover of $450 million, is branching out its production to high-priced product like sportswear and lingerie. According to Head of DBL M A Jabbar, the company currently handles only cotton fabric, but in the coming days, they are looking at man-made fiber. DBL is also adding upstream processes, such as spinning, dying, printing, fabric washing and embroidery production. Most garment makers in Bangladesh specialize in knitting operations, with fabrics and accessories imported mostly from China. With materials costs accounting for 65% to 70% of an item’s selling price, profit margin is razor-thin.
Yoshiaki Kamiyama, senior researcher at the Japan Textiles Importers Association predicts that if Bangladesh focuses on the knitting business, it will eventually lose to even lower-cost producers like Ethiopia. He said, “Bangladesh has to be more innovative. It has to develop expertise other than just knitting.”
Analysts said that the responsibility lies with consumers. They are supporting the culture of cheap products. If you have an order for a million T-shirts and Bangladesh can’t meet the price, the buyer will go to a noncompliant factory because they will do it very cheaply. If people start to think: ‘I don’t only need to buy cheaply but I need to buy responsibly’, that is when things will start to change. When customers say, ‘I will only buy a sustainable product that has been made responsibly,’ the entire supply chain will change, because of the market rules. It is the customer who is the king.
Bangladesh is battling to keep its position as the world’s second-largest exporter of clothing after China, as it faces intensifying competition from Cambodia, Vietnam, Myanmar and now African countries like Ethiopia as global brands search for cheap labor. But To grow more, we have to concentrate on developing fabrics in the woven sector as the knitwear sector is making more than 80% value addition.