Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Cattle - Hogs / Livestock News Currencies News Energy News Grain News Index News Interest Futures News Metals Futures News Reports: Crops, CFTC, etc Soft Commodities News

Futures and Commodity Market News

COMMENT: Bangladesh's garment trend lines look pretty poor

Jun 06, 2014 (MarketLine via COMTEX) --

Bangladesh's share of the US apparel market has been in decline since February this year. But a closer look at the figures shows that while it is holding up in basic men's wear, women's wear fashion is on a downward trajectory.

We are all aware that Bangladesh's garment industry is in trouble. While the totals do not look too bad, the trend lines look pretty poor. The US data appears to be somewhat conflicted.

The year-on-year data shows ever-increasing market share, with the rate of increase accelerating from 2012 to March 2014.

But the month-to-month market shares shows a somewhat more depressing picture. 

Everything looked fine until November 2013 when market share first stagnated then, as of February 2014, went into decline.

Bangladesh has always been a very special case. It has been the world's number one commodity commodity garment exporter. There are four great commodity products: Cotton T-shirts, cotton trousers, cotton woven shirts and underwear.

For the past 20 years these four products accounted for 41% of all US garment imports. In the case of Bangladesh, exports for these four products have been rising almost every year to reach over 67% in 2013. As of YTD March 2014 they accounted for 71% of all Bangladesh exports.

However, while Bangladesh's market share for the period January-March 2014 declined by -3.4%, market share for cotton T-shirts rose by 8.9%, underwear rose by 5%, with cotton trousers and cotton woven shirts showing only marginal declines of 1.2%.

If indeed these four products account for 71% of total Bangladesh garments, and declines have been at worst marginal - then where are the missing garments?

The answer lies in gender:

Woven Cotton PantsPCT of Total Exports YTD 03-13YTD 03-14PCT ChangeMen/Boy30.3%30.8%+1.60%Women/Girls16.4%14.2%-13.0%Woven Cotton Shirts/BlousesPCT of Total Exports YTD 03-13YTD 03-14PCT ChangeMen/Boy11.9%12.8%+7.1%Women/Girls2.0%1.7%-13.0%Cotton T-shirtsPCT of Total Exports YTD 03-13YTD 03-14PCT ChangeMen/Boy4.4%5.2%+18.4%Women/Girls3.1%2.9%-4.5%Woven MMF PantsPCT of Total Exports YTD 03-13YTD 03-14PCT ChangeMen/Boy4.1%4.7%+15.0%Women/Girls1.5%1.2%-21.9%Woven MMF Shirts/BlousesPCT of Total Exports YTD 03-13YTD 03-14PCT ChangeMen/Boys1.4%2.3%+10.1%Women/Girls0.6%0.4%-25.6%BrassieresPCT of Total Exports YTD 03-13YTD 03-14PCT ChangeCotton0.8%0.4%-42.1%MMF1.0%0.5%-52.4%The Bangladesh garment industry has always favoured men's wear, so the loss of women's wear business is not in itself cause for alarm. At the same time, we should not rush to provide explanations for this loss.

However, three points are clear:

The loss of women's wear business is real. We cannot write it off as some statistical anomaly. The problem will not solve itself.There must be underlying reasons, which Bangladesh's industry leaders must make an effort to understand and if possible remedy. Relying on men's wear is a very tenuous strategy.This last point should be a matter of serious concern. Men's wear is very much a commodity. Women's wear is relatively more about fashion.

If customers plan to reduce their orders in Bangladesh, finding new suppliers for men's wear commodities will much easier than finding suppliers for women's wear fashion.

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon

Copyright (C) 2019 Datamonitor. All rights reserved

Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.


Extreme Futures: Movers & Shakers

Hottest

Actives

Gainers

Today's Hottest Futures
Market Last Vol % Chg
Loading...

close_icon
open_icon