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Bangladesh overtakes China as top denim supplier to EU
Bangladesh has overtaken China to become the largest denim supplier to the European Union --
a development that would give confidence to the country's garment sector as it looks to hit $50
billion in exports by 2021.
In the January-June period of 2016, Bangladesh exported €567.97 million worth of denim
products to the 28-nation bloc -- enough to secure a 21.18 percent market share, the highest.
The country has also become the third largest denim supplier -- after China and Mexico -- to the
US.
It exported $186.30 million worth of denim products to the US, registering a 12.03 percent
market share, eclipsed only by China (26.04 percent) and Mexico (25.40 percent).
The headway has been possible because of the millions of dollars that the local denim fabrics
makers invested to set up state-of-the-art facilities in their plants.
Currently, Bangladesh has 30 denim mills for which investment to the tune of $1 billion was
made, said Mostafiz Uddin, managing director of Denim Expert Ltd, a leading denim exporter.
The collective production capacity of the mills is 435 million yards a year, he said.
“Bangladesh could win in the European denim segment not only for the competitive prices, but
also for the quality of its products, shorter lead time and better commitment,” said MS Hasan,
director of operations of Amber Denim, another major denim maker.
For instance, Amber Denim invested heavily to acquire a modern denim laboratory for testing
and certification, which helped in reducing the lead time, he said. In terms of denim sales, the US
and the UK are two major markets of Bangladesh.
Almost 70 percent of the population in the US wear denim products regularly, according to
industry insiders. An average consumer owns seven denim products at any given time, they said.
Over in the UK, one of the largest clothing markets in Europe, each consumer owns an average
of 17 denim garments.
Bangladeshi entrepreneurs supply denim products to major global retailers including Levi's,
Diesel, G-Star RAW, H&M, Uniqlo, Tesco, Wrangler, s.Oliver, Hugo Boss, Walmart, and Gap.
The denim sub-sector could play a significant role in achieving the $50 billion export target by
the end of 2021, said Mostafiz Uddin, who organises denim expositions twice a year in
Bangladesh.
Annually 2.1 billion pieces of denim are sold globally, according to Bangladesh Denim Expo,
the organiser of the exposition.
In 2014, the size of the global denim market stood at $56.20 billion, Mostafiz said. By 2020, the
global denim market will reach $64.1 billion, while Bangladesh's denim export is forecasted to
reach $7 billion by the end of 2021.
It is estimated that the global denim market will grow by about 8 percent a year until 2020,
Mostafiz said citing data from the Cotton Inc USA.
BJMC takes up US$71M project to make denim
Bangladesh Jute Mills Corporation (BJMC) has designed a USD 71M (BDT 568 crore) plan to
establish a composite jute textile plant to make fabrics, particularly denim.
The denim fabrics will be made by mixing jute and cotton to meet the rising demand, both at the
domestic and global markets.
The state-run corporation said it has already received the approval from the project evaluation
committee of the planning ministry.
The project is now awaiting the final approval from the Executive Committee of the National
Economic Council.
“We have found that this project will be profitable,” said Mahmudul Hassan, chairman of BJMC,
which operates 26 jute mills.
Over the years, hessian fabrics and jute sacks have been dominating BJMC's annual production
basket. The latest step was taken to diversify the production basket and expand market
opportunities for the natural fibre, officials said.
BJMC, which accounted for one-fifth of total production of jute goods of 0.963 Million tonnes in
fiscal 2015-16, has also taken an initiative to set up new production units to make more
diversified products including viscose, said Babul Chandra Roy, an adviser of BJMC.
Home textiles will also be produced at the composite jute garment factory, which will be set up
on seven acres of land in Demra, Roy said.
“Globally, there is a huge demand for denim. Our aim is to cater to the demand,” he said.
The global denim market is expected to hit $64 billion by 2020, according to Bangladesh Denim
Expo that takes place twice a year. In 2014, the size of the global denim market was $56.20
billion.
Currently, Bangladesh has 30 denim mills whose collective production capacity is 435 million
yards a year against the demand for 800 million yards a year, according to Bangladesh Denim
Expo.
“There is a huge supply gap for denim fabrics,” Roy said, adding that an estimate on fabric
production from jute and cotton is yet to be prepared.
The price of a kilogram of jute is now BDT 50 (USD 0.625), but value addition will bring higher
prices for the state mills, he added. The prime minister has already given consent in principle to
the project, said Hassan of BJMC. “We want to start work for the venture from this year,” he
added.
Bangladesh producing eco-friendly jeans
Bangladesh has 67 garments factories already that have the Leadership in Energy and
Environment Design (LEED) certificates and around 220 garments factories are in the pipeline to
get the LEED certificates soon. The information was revealed to The Independent by the founder
of Denimsandjeans, Sandeep Agarwal.
LEED provides green building certificates worldwide. This shows that keeping environmental
sustainability in mind, Bangladesh is building more eco-friendly factories.
Agarwal was speaking to The Independent at the seventh edition of ‘Denimsandjeans
Bangladesh’, an exposition of jeans products, which concluded in Dhaka on Thursday.
Asked about the importance of green factories, Agarwal replied that making the factories eco-
friendly has become more important worldwide because the planet is turning out to be more
vulnerable for its inhabitants by the day.
Bangladesh earns around EUR 1.3 billion every year by exporting denim jeans and stands
number one in the European market. This shows the massive opportunities that lie in building
more green factories that will produce denim jeans in a sustainable, environment-friendly and
productive manner, he added.
A Spanish company, Jeanologia, which has participated in the Denimsandjeans expo, specialises
in the development of sustainable technologies for garments. The company presented its new ‘e-
flow technology’.
This correspondent asked the project manager of Jeanologia, Fabien Liautard, about the working
pattern of ‘e-flow technology’. He replied that the traditional method is to wash functional denim
fabrics in water. E-flow technology uses air and has basically two different parts: laser and eco.
“e-flow technology gets the air from the atmosphere and transforms it into nano-bubbles. These
bubbles consume minimum proportions of water and functional elements that are not harmful for
the environment,” Liautard said.
The marketing officer of Jeanologia, Kazi Nahidul Alam, said that by using e-flow technology,
an exact amount of chemicals are used on denim jeans and none of it is wasted. So, there is no
chance of emitting excess chemicals that are harmful to the environment.
He explained that the traditional method needs 1,800 litres of water to wash 100 kg of denim
garments, while the e-flow method uses only 30 litres of water to wash 100 kg of denim jeans.
He also added that e-flow technology saves 1,770 litres of water compared to the traditional
method. It is entirely sustainable and environment-friendly for the product.
Envoy Textiles Ltd is a renowned denim jeans manufacturer in Bangladesh. It has got the
Platinum award from LEED.
Envoy marketing manager Asif Wares Khan told this correspondent that Envoy uses a water
treatment plant to wash the denim fabrics. “It is a modern technology. It recycles water and is not
hazardous for the environment,” he said.
Product sustainability is the prime concern for any manufacturing industry, especially readymade
garments, because it emphasises environmental, social and economic benefits without harming
the environment. It gets product benefits too.
The event manager and cofounder of Denimsandjeans Bangladesh, Rubaiyat Ahsan, said that
natural dyes derived from plants, invertebrates or minerals are being used to dye denim fabrics in
Bangladesh for quite some time.
“This discharges less emission and is not harmful for the environment at all,” Ahsan added.
Rubaiyat also told The Independent that in the near future, the export market of denim jeans
would exceed the market of the woven fabric because the price of woven products is not
increasing as compared with denim fabrics or jeans.
Garment factories like Ha-Meem Group, Shasha Denims Ltd, and Envoy Group produce top-
quality denim jeans in Bangladesh and export these, said Ahsan.
According to Denimsandjeans officials, Bangladesh is the second largest jeans exporter in the
world after China. Currently, 29 renowned mills are producing denim jeans in Bangladesh.
Around 28 companies from Bangladesh, Turkey, India, China, Germany, Spain, Brazil, Pakistan,
Hong Kong, among others, participated in the expo to showcase their denims, fabrics and latest
accessories.
Bangladesh can benefit from HK trade council
The trade council can work as a platform for proper use of Hong Kong’s geographic and
economic advantages.
Bangladeshi businesses have potentials to go global by expanding into Chinese mainland and
using Hong Kong Trade Development Council (HKTDC), said an expert based in Hong Kong.
The trade council can work as a platform for proper use of Hong Kong’s geographic and
economic advantages.
Bangladeshi corporations including Small and Medium Enterprises can take the advantage
through exhibition and can source opportunities from the year-round HKTDC fairs, HKTDC
Director (Exhibitions Market Development) Johnny Wan said on Wednesday.
Johnny termed housewares, home textiles, garments, food, tea, as well as information and
communications technology potential sectors.
The director is now visiting Dhaka to explore business and investment opportunities via Hong
Kong. He has met with different ministries and trade associations to deepen economic relations
between Hong Kong and Bangladesh.
Established in 1966, HKTDC is a statutory body dedicated for creating opportunities for Hong
Kong businesses.
The top official has requested Bangladeshi companies to attend its trade fairs that serve as the
prime facilitator to boost business opportunities and forge stronger trade links between
Bangladesh and Hong Kong.
“Leveraging on Hong Kong’s intrinsic geographic and economic advantages, Bangladeshi
companies can expand businesses into the Chinese mainland and the world using this value-
adding gateway,” Johnny said at a press briefing at a city hotel on Wednesday.
He presented the media about Hong Kong, business and investment opportunities via Hong and
HKTDC’s robust trade platform that may assist Bangladeshi companies to look for new markets
to expand business and meet potential partners in Hong Kong.
“There are lots of potential in Bangladesh. Garment is the major potential of the country as the
second largest RMG exporter in the world. In addition, food, sea food and frozen foods are
another sector,” he said.
IT products like e-commerce, retail technologies, enterprise solutions and home-grown
innovations and Houseware including jute products and ceramic products are also potential
products to Hong Kong.
“Bangladeshi suppliers can meet with global buyers in Hong Kong to utilise their potentials.”
The total trade value between Bangladesh and Hong Kong amounted to nearly US$ 1.7 billion in
2016.
Major trade commodities between the two regions include telecommunications equipment and
parts, leather, various kinds of fabrics such as knitted or crocheted fabrics, cotton fabrics, textile
fabrics as well as other articles of apparel.
The total export to Bangladesh from Hong Kong was US$1.5 billion including telecom
equipment, fabrics as major export category while the total import to Bangladesh from Hong
Kong stood at US$0.2billion, mostly leather, textile, fabrics, etc.
Highlighting enormous and diverse opportunities awaiting Bangladeshi enterprises at HKTDC
trade fairs, Johnny said they have signed a Memorandum of Understanding (MOU) with Export
Promotion Bureau (EPB) of Bangladesh in 2016 to pursue a strong, effective and mutually
beneficial partnership.
“The HKTDC has been eying opportunities in emerging markets. As a manufacturing
powerhouse in South Asia with a rapidly expanding economy, and an important partner on the
Bangladesh-China-India-Myanmar (BCIM) Economic Corridor under the Chinese mainland’s
Belt and Road Initiative, Bangladesh has been identified as a market with great potential for
uncovering more bilateral opportunities.”
According to the official, a Bangladesh pavilion will be formed in the April HKTDC Hong Kong
Houseware Fair with the support from the EPB, featuring 21 exhibitors.
HKTDC organises over 30 international exhibitions annually in Hong Kong that attracts a large
number of exhibitors and buyers from across the globe.
The fairs that offer one-stop marketing and sourcing platforms may present prime opportunities
for Bangladeshi traders to gather the latest market intelligence and form partnership and develop
their business through Hong Kong.
HKTDC is going to host HKTDC Hong Kong Warehouse Fair, HKTDC Hong Kong
International Home Textiles and Furnishing Fair on April 20-23, 2017; HKTDC Hong Kong
Fashion Week for Spring/Summer on July 10-13, 2017; HKTDC Food Expo, HKTDC Hong
Kong International Tea Fair on August 17-21, 2017; and HKTDC International ICT Expo on
April 13-16, 2017 where Bangladeshi businesses were requested to attend to showcase their
products to meet global buyers.
Garment's green initiatives impress top IMF official
A top official of the International Monetary Fund has expressed optimism about the future of
Bangladesh's garment sector after he saw firsthand the industry's efforts to embrace green
practices.
“The future of Bangladesh's apparel industry is very bright because of the good workers and the
vibrant private sector entrepreneurs,” Mitsuhiro Furusawa, deputy managing director of the IMF,
said yesterday.
He said the garment sector of Bangladesh has progressed a lot over the years, and turning the
factories into green units to save water, energy and the environment is a good initiative.
The IMF official visited two green factories -- Eco Couture Ltd and Ecofab -- both owned by
Viyellatex Group, a leading garment maker based in Gazipur.
“The atmosphere is excellent for the workers. I am very much impressed,” Furusawa said.
“I think the garment sector has a bright future. But Bangladesh needs to improve infrastructure
further.”
Furusawa, who came to Dhaka on Sunday on a two-day visit, said the IMF stands ready to offer
support to the private sector of Bangladesh.
“An improved business climate is important for the country. Bangladesh should simplify the
rules by reducing red tape.”
Some 67 garment factories of Bangladesh have obtained a highly regarded global certification --
the Leadership in Energy and Environmental Design (LEED) of the US Green Building Council.
Another 222 factories have registered to obtain the recognition, according to Bangladesh
Garment Manufacturers and Exporters Association.
Currently, Bangladesh has 13 platinum-rated, 20 gold-rated, 27 silver-rated and 7 LEED-
certified garment factories. Seven of the world's top 10 green factories are from Bangladesh,
including the top three platinum-rated industrial units, said KM Rezaul Hasanat, chairman of
Viyellatex Group.
Platinum is the highest level of certification that a factory can earn. Hasanat said he can save
more than 40 percent energy thanks to the green initiative.
He said green factories are not only about saving energy and water or protecting the
environment, but also about ensuring a safe workplace.
“In a green factory, workers feel safe and confident,” he said.
The entrepreneur said a green factory also houses schools, childcare, health care, recreation and
training facilities dedicated to workers.
Speaking about his two green units, Hasanat said Eco Couture was designed in the concept of an
opera house where artistes work. “Garment workers are also like artistes as they are involved in
innovative work.”
Located in Jogitola in the industrial belt, the LEED gold-certified two-storey Eco Couture is
located on an 144,000-square feet space where all operations from sewing to packing of a
product take place.
Ecofab is an extension of the group's woven business, Interfab Shirt Manufacturing Ltd. It is a
modern environment-friendly production unit and was set up following the concept of a resort.
Both the units went into production last year. Hasanat has invested Tk 200 crore to construct the
two units which employ 5,000 workers.
Olymp, Hugo Boss, Calvin Klein, PVH, DKNY, Marks & Spencer, Esprit and s.Oliver are the
major customers of the group.
Tofail urges labour bodies to press buyers to raise RMG prices
Commerce Minister Tofail Ahmed on Saturday urged labour organisations in ready-made
garments (RMG) industry to insist on increasing product prices while talking to foreign buyers.
He said export income from the RMG sector has recently been reduced mainly due to
devaluation of foreign currencies. This should be recovered by raising product prices, he
suggested.
The Minister made the remarks at a job fair held to recruit for RMG sector skilled workers
trained under 'Skills for Employment Investment Programme (SEIP)' organised by the
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at International
Convention City Bashundhara (ICCB) in the city.
The fair was also addressed by State Minister for Labour and Employment Md Mujibul Haque
Chunnu, Finance Ministry Senior Secretary Hedayetullah Al Mamun, BGMEA President
Siddiqur Rahman and BGMEA Senior Vice-President Faruque Hassan.
The Commerce Minister said, "The labour organisations of the RMG sector should tell the
buyers to raise product prices which would help increase labour wages in the sector."
He said the government will provide all necessary assistance to the highest foreign exchange-
earning sector of the country to fetch US$ 50 billion by 2021.
Stating that there is no reason for RMG entrepreneurs to be afraid of trade unions, Mr Mujibul
Haque Chunu said, "I don't understand why the apparel makers request me not to allow trade
unions in their factories."
Agreeing with the Commerce Minister, he also suggested the labour organisations to address the
issue of increasing product prices with the buyers as increased product prices would ensure hike
in labour wages.
Speaking at the programme, the BGMEA President said billions of taka have been stolen from
the country's banks which is adjusted through providing loans to the businesses at 12 to 15 per
cent interest.
He said, "We are taking the responsibility of the stolen money by giving 12 to 15 per cent
interest rates on our loan money. The people who stole the money should face justice to reduce
pressure on us."
About 40 companies are participating in the job fair where a large number will be recruited from
nearly 1,000 trained individuals.
The BGMEA has undertaken a plan to train 43,800 workers under the SEIP project within 2018.
$50b RMG export target seems more challenging
Achieving the $50 billion export target by 2021 from readymade garment sector is becoming
more challenging due to slow growth in RMG exports and other external factors, analysts and
exporters said.Movements of buyers to Vietnam and other neighbouring countries, increased
facilities to RMG sector in several Asian nations, gradual fall in prices and some domestic
factors are affecting the competitive edge of Bangladeshi garment manufacturers in the
international market.
Moreover, while the government is targeting to take RMG exports to $50 billion by 2021, the
export growth has not been adequate and even missed the target in the July-February period of
the current fiscal.According to Export Promotion Bureau (EPB) data, RMG exports in the first
eight months of the current fiscal stood at $28.09 billion, which is 5.64 percent lower than the
target of $30.38 billion. Achieving the $50 billion target would require the export growth at more
than 12 percent, but the growth currently hovers around 3 percent.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md
Siddiqur Rahman said, “In the last two years, production cost has increased by up to 17 percent
due to gas crisis, devaluation of euro, price fall in EU and US market on the back of the US
election and Brexit.As a result, we are gradually losing competitiveness in the global market.”
Bangladeshi exporters have lost 7 percent market share in Canada, and 6 percent in the UK
market in last one year.
According to BGMEA data, prices of apparel products plunged by 3.81 percent and 0.76 percent
respectively in the US and EU countries in 2015. In 2016, the prices of Bangladeshi RMG items
came down by more than 1 percent in the US market and 3.19 percent in the EU countries.
Dr Nazneen Ahmed, senior research fellow at Bangladesh Institute of Development Studies
(BIDS), said if the current growth rate maintained by the readymade garment sector will not
suffice to achieve the $50 billion export target by 2021.“It will require more than 12 percent
export growth to achieve the dream,” she said, adding that maintaining last fiscal’s growth will
take RMG exports to $45 billion by 2021.
She also blamed internal factors including infrastructure deficiency and lack of smooth energy
supply for the sluggish growth in RMG exports, arguing that there is no immediate solution to
the infrastructure issue. The researcher, however, said addressing the electricity and gas supply
shortage will be helpful to reach the target by the stipulated time.
Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said the global
apparel market is shrinking gradually. “The size of the global apparel market was $483 billion in
2015, which came down to $443 now,” he said.
He also said Bangladesh’s RMG sector has been facing a series of challenges including lack of
competitiveness advantages, currency devaluation in the EU Zone, and the impacts of Brexit and
US election.“The whole world is doing business in US dollars and Bangladeshi currency remains
very strong against the US currency over the last 4 -5 years,” he said, adding that the competitors
are taking the full advantage of devaluation their currencies against the greenbacks.
Turkish currency has been devalued by around 68 percent while India and Vietnam devalued
their currencies by 40 percent, which is helping their export growth.“We have quality electricity,
but we need quality supply of gas and electricity,” Salam Murshedy said.
The EAB president also said the government has set a rather conservative export target for FY
2016-17. “We still lag far behind from the dream,” he said.
Regarding the remediation process in apparel sector after the Rana Plaza incident, he said though
remediation involves huge cost, the process is moving ahead.“The government is giving a lot of
support to the sector, but this is not enough compared to the facilities being provided in other
countries. Our competitors are maintaining double-digit export growth while we are stuck in
around 3 percent,” he said.
Mentioning that the RMG sector currently employs nearly 4.4 million people of whom 80
percent are women, Salam Murshedy urged the government to establish special industrial zones
for the RMG sector out of Dhaka on a priority basis to help boost the production.“The Prime
Minister has announced establishing 100 industrial zones and that might take some time. So we
would request the government to set up four industrial zones for apparel sector on a priority
basis,” Salam Murshedy said.
Bangladesh apparel sector has 95% local investors: BGMEA
Over 95 per cent of the total investors in the Bangladesh apparel industry are local. Moreover,
Bangladesh also has a number of foreign investors in textile and apparel sectors. The country
encourages foreign investments in the areas of high value added items, non-traditional apparel
items and in the primary textile industry, especially woven textiles.
"Investors will invest in industries, which are more viable in the longer term," Md Siddiqur
Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association
(BGMEA) told Fibre2Fashion.
Speaking about the concept of awarding special economic zones (SEZs) to countries like UK and
China, Rahman said, "Garment industry in Bangladesh has a clear prospect to grow further. This
indicates the need for planned industrial zones where factories can be set-up as we have scarce
land. SEZs will be a vital force to flourish this industry further in a more organised way,
resolving the issue of land availability to a significant extent."
Bangladesh is also working on decreasing its dependency on imports as there has been a
significant capacity building in the area of yarn and fabrics manufacturing, especially for
knitwear items.
"Around 80 per cent of the knitted fabrics are produced in Bangladesh. Denim production
capacity has also got a significant boost in the last decade. Almost 50 per cent of the demand for
denim fabric by our export oriented garment industry is being fulfilled by our local denim mills.
Besides, Bangladesh produces almost 100 per cent of its accessories needed locally," added
Rahman.
The country is dependent on external sources mostly for fibre, because it does not grow cotton or
petrochemical products. It is lagging behind in woven fabric production, which has potentials for
investment, noted the president of BGMEA.
Talking about the internal apparel market of Bangladesh, Rahman said, "The purchasing power
and per capita income is growing in Bangladesh leading to increasing consumption and retail
market size in the country."
Bangladesh progress on doing own labels/brands is still not mentionable, but it is producing for
global brands.
"Our factories are now getting prepared for the next leap forward. In-house design development,
presentation of collections to buyers, investments in high value added production capacity, etc.
are happening in our apparel industry," said Rahman.
Global yarn makers see Bangladesh as a potential market
Global textile and yarn makers see Bangladesh as a potential market despite the country's apparel
export is facing challenges in some of its strong markets, including the United States and Europe.
Though fabrics and yarn are being locally made, Bangladesh still needs to import a good quantity
to meet the growing demand.
In Bangladesh, local spinners meet over 90 percent demand for raw materials of the knitwear
sector and over 40 percent demand of the woven sector.
“Bangladesh is a good market for us as the demand for fabrics here is rising from the garment
makers,” said Lavender Zhang, manager of Jiangsu Wulong Knitting Co, a knitwear fabrics
maker.
Zhang spoke at the 11th Dhaka International Yarn & Fabric Show 2017—Winter Edition and
Dhaka Int'l Denim Show 2017.
Mirza Azam, state minister for textiles and jute, inaugurated the fair jointly organised by CEMS
Global and CCPIT (CCPIT-TEX) at International Convention City Bashundhara in the capital.
Around 180 companies from six countries are showcasing their products at the three-day event.
Bangladesh's apparel exports to the US, its single largest destination, declined 1.96 percent year-
on-year to $5.49 billion in 2016, due to the volatile US economy and the recent presidential
election.
Exports to the UK and some other European markets also fell last year.
“Bangladesh is our future market as China has been losing its market share in the global apparel
business,” Zhang said.
She said the demand for specialised textile like linen is very high in Bangladesh, which is quite
capable of supplying fabrics in bulk to the garment makers.
“We have a plan to open a sales office in Dhaka in future as the business is growing,” said
Zhang, who came in Bangladesh for the first time to take part in the fair.
“The fabrics and yarn market in Bangladesh is growing riding on the higher demand from the
customers,” said Arifur Rahman Dewan, manager for sales and marketing at Huaren Linen
Group (Bangladesh), a major supplier of linen fabrics from China worldwide.
Dewan said currently his company supplies linen fabrics to 15 customers and it has a target to
increase the customer base to 100 by the end of 2020.
“Achieving the target of 100 customers is not difficult in Bangladesh, as there is huge demand
for linen products,” Dewan said. His company produces nearly 60 million yards of fabrics a year.
Ma Mingqiang, ambassador of China to Bangladesh; Shubhashish Bose, secretary in charge of
the ministry of textiles and jute, and Faruque Hassan, senior vice-president of Bangladesh
Garment Manufacturers and Exporters Association, also attended the opening ceremony of the
fair.
H&M launches sustainable clothing line for 2017
H&M has launched its sustainable clothing line for women and children for 2017. The new
Conscious Exclusive collection includes sustainable material Bionic-recycled polyester made
from plastic shoreline waste. It is a collection of pieces with a sense of occasion, each one
showing different ways that sustainable materials can create the best style.
Conscious Exclusive is a driver in H&M's move towards a more sustainable fashion future.
H&M is one of the world's biggest users of recycled polyester and one of the biggest buyers of
organic cotton. The goal for cotton is that it is to be 100 per cent sustainably sourced by 2020. It
is part of H&M's ambition to make sustainable, good-quality fashion accessible to as many
people as possible.
"For the design team at H&M, this year's Conscious Exclusive is a chance to dream and create
pieces that are both quirky and beautiful. It’s great to be able to show just what is possible with
sustainable materials like we have done with the delicate plisse dress made of Bionic,” said
Pernilla Wohlfahrt, H&M's head of design and creative director.
Supermodel and philanthropist Natalia Vodianova is starring this year's Conscious Exclusive in
her first ever campaign for H&M. "I am proud to appear in the H&M Conscious Exclusive
campaign. It is amazing to see the advances in sustainable fabrics that are used in the collection,
pointing towards a more sustainable future for all fashion," said Vodianova.
It is for the first time that the collection will incorporate clothing line for children which will be
available in around 160 stores worldwide and in India as well.
US apparel industry grows 3%, reaches $218.7 bn in 2016
Apparel sales across women, men and children grew by 3 per cent in the US in 2016, to reach
$218.7 billion, according to a recent report. Changing consumer needs and an evolving retail
marketplace were the drivers behind the apparel industry's overall sales performance last year.
The industry had positive overall performance with growth in most categories.
The apparel industry of the US has struggled to exceed 3 per cent sales growth since 2013, as
significant gains in select consumer and retail segments were offset by declines in others, says a
report by The NPD Group, a leading global information company.
The growth of online shopping, which was underscored during and immediately following the
holiday season, was one of the most highlighted retail shifts of 2016. In 2011 online represented
only 11 per cent of total US men’s, women’s, and children’s apparel sales, but in 2016 that
number rose to 19 per cent.
Pure-play e-commerce sites have been an important piece of online's growth, outpacing the
overall channel performance. Online's continued growth has come at the expense of in-store
sales, affecting the more traditional apparel department, national chain and specialty channels.
The growth that occurred in the online, off-price, and mass channels came from a consumer
focus on convenience, value, and price, said The NPD Group in a press release.
"The apparel industry is being pushed and pulled in different directions by consumers who are
demanding something different, and looking to less traditional buying channels to find it," said
Marshal Cohen, chief industry analyst, The NPD Group, Inc.
The apparel consumer's desire for comfort and style combined has sustained the growth of the
athleisure movement for the last few years. Athleisure, which is heavily driven by millennials but
appeals to all age groups, continued to be a top growing apparel segment through 2016 with an
11 per cent increase that made it a $45.9 billion market.
The emphasis on casual comfort attempted to take deeper roots in the women's intimates space
last year, with increased emphasis on athletic-inspired products and newer bralette styles, but
results fluctuated and ended in a slight uptick in year-over-year results. Despite the strength of
active, sales of tailored clothing increased 5 per cent.
Dresses retained their rank as one of the top performing categories in overall sales and growth
with 5 per cent growth to reach $15.6 billion. Last year was also a positive one for jeans, another
critical category for apparel, which finally rebounded in 2016 to align with the industry’s 3 per
cent growth rate, reaching $15.3 billion in sales.
"Consumers may be driving the recent trends in apparel, but retail needs to respond and take
ownership of the business back in order to capture the greater growth opportunities that exist,"
added Cohen.
Form committees at factories to monitor violence against female
workers: analysts
Apparel factory management must form a committee that monitors and resists violence against
female workers inside the factory, speakers said at a programme yesterday.
The female workers will be able to approach the committee to raise their voice against
harassment and thereby, help reduce gender-based violence remarkably in the garments industry,
they added.
They spoke at a certificate giving ceremony organised by Fair Wear Foundation (FWF), a
Netherlands-based organisation working to improve workplace conditions at garment factories,
at The Daily Star Centre in Dhaka.
FWF gave certificates to seven apparel factories for successfully establishing an Anti-
Harassment Committee to resist gender-based violence through its Workplace Education
Programme, which is working with 29 garments factories in Bangladesh.
The factories are -- MM Knitwear, Ahsan Composite, Eve Dress Shirts, Crown Fashion and
Sweater Ind, MM Fashion, DIRD Composite Textiles and Ahmed Fashions.
Manusher Jonno Foundation Director Rina Roy said, “Sexual harassment is one of the reasons
why female workers leave their jobs and most garments factories do not have a particular section
where they can complain about it.”
Factory authorities should form a committee for this as soon as possible, as it is their
responsibility to ensure workers' safety, she added.
Md Arifuzzaman, manager (HR and compliance) of Sayem Group, said the committee formed by
FWF's Workplace Education Programme helped his company reduce gender-based violence
significantly.
Shahanaz Parvin Putul, a garments worker, said, “We have to raise our voice. If we do so, further
violence against us can be resisted.”
Bablur Rahman, country representative of FWF; Rokeya Rafique Baby, executive director of
Karmojibi Nari, a platform of working women; Pieter de Vries, first secretary (economic affairs
and RMG) of the Dutch embassy in Dhaka; Nahida Anjum, lead trainer of FWF, and
representatives of different garments factories, brands and labour organisations also spoke.
Cotton futures market showed volatility last month
While most benchmark prices moved higher over the past month, volatility was a feature of
cotton futures markets in February 2017, Cotton Incorporated said in its latest Monthly
Economic Letter. The A Index rose a couple of cents over the past month. In early February, A
Index values were near 85 cents/lb. The most recent values have been near 87 cents/lb.
The May NY futures contract was volatile over the past month. Values dropped several cents/lb
near the middle of February, but made up for those losses and climbed above the values posted
mid-February in several spurts in early March. The latest values have been near 78 cents/lb, the
report 'Cotton Market Fundamentals & Price Outlook' said tracking recent price movements.
However, in both international and domestic terms, the China Cotton (CC) Index has been
comparably stable, holding to levels around 16,000 yuan/ton or 105 cents/lb.
The stability of CC Index has contrasted with the volatility in Chinese futures. Values for the
May ZCE futures contract gained nearly 500 yuan/ton early in the week of March 6 and reached
levels just above 16,400 yuan/ton before collapsing later in the week and dropping to levels near
15,600 yuan/ton.
Meanwhile, prices for Indian Shankar-6 variety increased from values equivalent to 80 cents/lb
in early February to those near 83 cents/lb in the latest trading. In domestic terms, values rose
from Rs 42,000/maund to Rs 43,400/maund.
Pakistani prices were mostly stable. In international terms, values held near 78 cents/lb. In
domestic terms, values held near 6,700 PKR/candy.

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Economial view of denim in Bangladesh

  • 1. Bangladesh overtakes China as top denim supplier to EU Bangladesh has overtaken China to become the largest denim supplier to the European Union -- a development that would give confidence to the country's garment sector as it looks to hit $50 billion in exports by 2021. In the January-June period of 2016, Bangladesh exported €567.97 million worth of denim products to the 28-nation bloc -- enough to secure a 21.18 percent market share, the highest. The country has also become the third largest denim supplier -- after China and Mexico -- to the US. It exported $186.30 million worth of denim products to the US, registering a 12.03 percent market share, eclipsed only by China (26.04 percent) and Mexico (25.40 percent). The headway has been possible because of the millions of dollars that the local denim fabrics makers invested to set up state-of-the-art facilities in their plants. Currently, Bangladesh has 30 denim mills for which investment to the tune of $1 billion was made, said Mostafiz Uddin, managing director of Denim Expert Ltd, a leading denim exporter. The collective production capacity of the mills is 435 million yards a year, he said. “Bangladesh could win in the European denim segment not only for the competitive prices, but also for the quality of its products, shorter lead time and better commitment,” said MS Hasan, director of operations of Amber Denim, another major denim maker. For instance, Amber Denim invested heavily to acquire a modern denim laboratory for testing and certification, which helped in reducing the lead time, he said. In terms of denim sales, the US and the UK are two major markets of Bangladesh. Almost 70 percent of the population in the US wear denim products regularly, according to industry insiders. An average consumer owns seven denim products at any given time, they said.
  • 2. Over in the UK, one of the largest clothing markets in Europe, each consumer owns an average of 17 denim garments. Bangladeshi entrepreneurs supply denim products to major global retailers including Levi's, Diesel, G-Star RAW, H&M, Uniqlo, Tesco, Wrangler, s.Oliver, Hugo Boss, Walmart, and Gap. The denim sub-sector could play a significant role in achieving the $50 billion export target by the end of 2021, said Mostafiz Uddin, who organises denim expositions twice a year in Bangladesh. Annually 2.1 billion pieces of denim are sold globally, according to Bangladesh Denim Expo, the organiser of the exposition. In 2014, the size of the global denim market stood at $56.20 billion, Mostafiz said. By 2020, the global denim market will reach $64.1 billion, while Bangladesh's denim export is forecasted to reach $7 billion by the end of 2021. It is estimated that the global denim market will grow by about 8 percent a year until 2020, Mostafiz said citing data from the Cotton Inc USA. BJMC takes up US$71M project to make denim
  • 3. Bangladesh Jute Mills Corporation (BJMC) has designed a USD 71M (BDT 568 crore) plan to establish a composite jute textile plant to make fabrics, particularly denim. The denim fabrics will be made by mixing jute and cotton to meet the rising demand, both at the domestic and global markets. The state-run corporation said it has already received the approval from the project evaluation committee of the planning ministry. The project is now awaiting the final approval from the Executive Committee of the National Economic Council. “We have found that this project will be profitable,” said Mahmudul Hassan, chairman of BJMC, which operates 26 jute mills. Over the years, hessian fabrics and jute sacks have been dominating BJMC's annual production basket. The latest step was taken to diversify the production basket and expand market opportunities for the natural fibre, officials said. BJMC, which accounted for one-fifth of total production of jute goods of 0.963 Million tonnes in fiscal 2015-16, has also taken an initiative to set up new production units to make more diversified products including viscose, said Babul Chandra Roy, an adviser of BJMC. Home textiles will also be produced at the composite jute garment factory, which will be set up on seven acres of land in Demra, Roy said. “Globally, there is a huge demand for denim. Our aim is to cater to the demand,” he said. The global denim market is expected to hit $64 billion by 2020, according to Bangladesh Denim Expo that takes place twice a year. In 2014, the size of the global denim market was $56.20 billion. Currently, Bangladesh has 30 denim mills whose collective production capacity is 435 million yards a year against the demand for 800 million yards a year, according to Bangladesh Denim Expo. “There is a huge supply gap for denim fabrics,” Roy said, adding that an estimate on fabric production from jute and cotton is yet to be prepared. The price of a kilogram of jute is now BDT 50 (USD 0.625), but value addition will bring higher prices for the state mills, he added. The prime minister has already given consent in principle to the project, said Hassan of BJMC. “We want to start work for the venture from this year,” he added. Bangladesh producing eco-friendly jeans Bangladesh has 67 garments factories already that have the Leadership in Energy and Environment Design (LEED) certificates and around 220 garments factories are in the pipeline to get the LEED certificates soon. The information was revealed to The Independent by the founder of Denimsandjeans, Sandeep Agarwal.
  • 4. LEED provides green building certificates worldwide. This shows that keeping environmental sustainability in mind, Bangladesh is building more eco-friendly factories. Agarwal was speaking to The Independent at the seventh edition of ‘Denimsandjeans Bangladesh’, an exposition of jeans products, which concluded in Dhaka on Thursday. Asked about the importance of green factories, Agarwal replied that making the factories eco- friendly has become more important worldwide because the planet is turning out to be more vulnerable for its inhabitants by the day. Bangladesh earns around EUR 1.3 billion every year by exporting denim jeans and stands number one in the European market. This shows the massive opportunities that lie in building more green factories that will produce denim jeans in a sustainable, environment-friendly and productive manner, he added. A Spanish company, Jeanologia, which has participated in the Denimsandjeans expo, specialises in the development of sustainable technologies for garments. The company presented its new ‘e- flow technology’. This correspondent asked the project manager of Jeanologia, Fabien Liautard, about the working pattern of ‘e-flow technology’. He replied that the traditional method is to wash functional denim fabrics in water. E-flow technology uses air and has basically two different parts: laser and eco. “e-flow technology gets the air from the atmosphere and transforms it into nano-bubbles. These bubbles consume minimum proportions of water and functional elements that are not harmful for the environment,” Liautard said. The marketing officer of Jeanologia, Kazi Nahidul Alam, said that by using e-flow technology, an exact amount of chemicals are used on denim jeans and none of it is wasted. So, there is no chance of emitting excess chemicals that are harmful to the environment. He explained that the traditional method needs 1,800 litres of water to wash 100 kg of denim garments, while the e-flow method uses only 30 litres of water to wash 100 kg of denim jeans. He also added that e-flow technology saves 1,770 litres of water compared to the traditional method. It is entirely sustainable and environment-friendly for the product. Envoy Textiles Ltd is a renowned denim jeans manufacturer in Bangladesh. It has got the Platinum award from LEED. Envoy marketing manager Asif Wares Khan told this correspondent that Envoy uses a water treatment plant to wash the denim fabrics. “It is a modern technology. It recycles water and is not hazardous for the environment,” he said. Product sustainability is the prime concern for any manufacturing industry, especially readymade garments, because it emphasises environmental, social and economic benefits without harming the environment. It gets product benefits too.
  • 5. The event manager and cofounder of Denimsandjeans Bangladesh, Rubaiyat Ahsan, said that natural dyes derived from plants, invertebrates or minerals are being used to dye denim fabrics in Bangladesh for quite some time. “This discharges less emission and is not harmful for the environment at all,” Ahsan added. Rubaiyat also told The Independent that in the near future, the export market of denim jeans would exceed the market of the woven fabric because the price of woven products is not increasing as compared with denim fabrics or jeans. Garment factories like Ha-Meem Group, Shasha Denims Ltd, and Envoy Group produce top- quality denim jeans in Bangladesh and export these, said Ahsan. According to Denimsandjeans officials, Bangladesh is the second largest jeans exporter in the world after China. Currently, 29 renowned mills are producing denim jeans in Bangladesh. Around 28 companies from Bangladesh, Turkey, India, China, Germany, Spain, Brazil, Pakistan, Hong Kong, among others, participated in the expo to showcase their denims, fabrics and latest accessories. Bangladesh can benefit from HK trade council The trade council can work as a platform for proper use of Hong Kong’s geographic and economic advantages. Bangladeshi businesses have potentials to go global by expanding into Chinese mainland and using Hong Kong Trade Development Council (HKTDC), said an expert based in Hong Kong. The trade council can work as a platform for proper use of Hong Kong’s geographic and economic advantages. Bangladeshi corporations including Small and Medium Enterprises can take the advantage through exhibition and can source opportunities from the year-round HKTDC fairs, HKTDC Director (Exhibitions Market Development) Johnny Wan said on Wednesday. Johnny termed housewares, home textiles, garments, food, tea, as well as information and communications technology potential sectors. The director is now visiting Dhaka to explore business and investment opportunities via Hong Kong. He has met with different ministries and trade associations to deepen economic relations between Hong Kong and Bangladesh. Established in 1966, HKTDC is a statutory body dedicated for creating opportunities for Hong Kong businesses. The top official has requested Bangladeshi companies to attend its trade fairs that serve as the prime facilitator to boost business opportunities and forge stronger trade links between Bangladesh and Hong Kong.
  • 6. “Leveraging on Hong Kong’s intrinsic geographic and economic advantages, Bangladeshi companies can expand businesses into the Chinese mainland and the world using this value- adding gateway,” Johnny said at a press briefing at a city hotel on Wednesday. He presented the media about Hong Kong, business and investment opportunities via Hong and HKTDC’s robust trade platform that may assist Bangladeshi companies to look for new markets to expand business and meet potential partners in Hong Kong. “There are lots of potential in Bangladesh. Garment is the major potential of the country as the second largest RMG exporter in the world. In addition, food, sea food and frozen foods are another sector,” he said. IT products like e-commerce, retail technologies, enterprise solutions and home-grown innovations and Houseware including jute products and ceramic products are also potential products to Hong Kong. “Bangladeshi suppliers can meet with global buyers in Hong Kong to utilise their potentials.” The total trade value between Bangladesh and Hong Kong amounted to nearly US$ 1.7 billion in 2016. Major trade commodities between the two regions include telecommunications equipment and parts, leather, various kinds of fabrics such as knitted or crocheted fabrics, cotton fabrics, textile fabrics as well as other articles of apparel. The total export to Bangladesh from Hong Kong was US$1.5 billion including telecom equipment, fabrics as major export category while the total import to Bangladesh from Hong Kong stood at US$0.2billion, mostly leather, textile, fabrics, etc. Highlighting enormous and diverse opportunities awaiting Bangladeshi enterprises at HKTDC trade fairs, Johnny said they have signed a Memorandum of Understanding (MOU) with Export Promotion Bureau (EPB) of Bangladesh in 2016 to pursue a strong, effective and mutually beneficial partnership. “The HKTDC has been eying opportunities in emerging markets. As a manufacturing powerhouse in South Asia with a rapidly expanding economy, and an important partner on the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor under the Chinese mainland’s Belt and Road Initiative, Bangladesh has been identified as a market with great potential for uncovering more bilateral opportunities.” According to the official, a Bangladesh pavilion will be formed in the April HKTDC Hong Kong Houseware Fair with the support from the EPB, featuring 21 exhibitors. HKTDC organises over 30 international exhibitions annually in Hong Kong that attracts a large number of exhibitors and buyers from across the globe. The fairs that offer one-stop marketing and sourcing platforms may present prime opportunities for Bangladeshi traders to gather the latest market intelligence and form partnership and develop their business through Hong Kong. HKTDC is going to host HKTDC Hong Kong Warehouse Fair, HKTDC Hong Kong International Home Textiles and Furnishing Fair on April 20-23, 2017; HKTDC Hong Kong
  • 7. Fashion Week for Spring/Summer on July 10-13, 2017; HKTDC Food Expo, HKTDC Hong Kong International Tea Fair on August 17-21, 2017; and HKTDC International ICT Expo on April 13-16, 2017 where Bangladeshi businesses were requested to attend to showcase their products to meet global buyers. Garment's green initiatives impress top IMF official A top official of the International Monetary Fund has expressed optimism about the future of Bangladesh's garment sector after he saw firsthand the industry's efforts to embrace green practices. “The future of Bangladesh's apparel industry is very bright because of the good workers and the vibrant private sector entrepreneurs,” Mitsuhiro Furusawa, deputy managing director of the IMF, said yesterday. He said the garment sector of Bangladesh has progressed a lot over the years, and turning the factories into green units to save water, energy and the environment is a good initiative. The IMF official visited two green factories -- Eco Couture Ltd and Ecofab -- both owned by Viyellatex Group, a leading garment maker based in Gazipur. “The atmosphere is excellent for the workers. I am very much impressed,” Furusawa said. “I think the garment sector has a bright future. But Bangladesh needs to improve infrastructure further.” Furusawa, who came to Dhaka on Sunday on a two-day visit, said the IMF stands ready to offer support to the private sector of Bangladesh. “An improved business climate is important for the country. Bangladesh should simplify the rules by reducing red tape.” Some 67 garment factories of Bangladesh have obtained a highly regarded global certification -- the Leadership in Energy and Environmental Design (LEED) of the US Green Building Council. Another 222 factories have registered to obtain the recognition, according to Bangladesh Garment Manufacturers and Exporters Association. Currently, Bangladesh has 13 platinum-rated, 20 gold-rated, 27 silver-rated and 7 LEED- certified garment factories. Seven of the world's top 10 green factories are from Bangladesh, including the top three platinum-rated industrial units, said KM Rezaul Hasanat, chairman of Viyellatex Group. Platinum is the highest level of certification that a factory can earn. Hasanat said he can save more than 40 percent energy thanks to the green initiative.
  • 8. He said green factories are not only about saving energy and water or protecting the environment, but also about ensuring a safe workplace. “In a green factory, workers feel safe and confident,” he said. The entrepreneur said a green factory also houses schools, childcare, health care, recreation and training facilities dedicated to workers. Speaking about his two green units, Hasanat said Eco Couture was designed in the concept of an opera house where artistes work. “Garment workers are also like artistes as they are involved in innovative work.” Located in Jogitola in the industrial belt, the LEED gold-certified two-storey Eco Couture is located on an 144,000-square feet space where all operations from sewing to packing of a product take place. Ecofab is an extension of the group's woven business, Interfab Shirt Manufacturing Ltd. It is a modern environment-friendly production unit and was set up following the concept of a resort. Both the units went into production last year. Hasanat has invested Tk 200 crore to construct the two units which employ 5,000 workers. Olymp, Hugo Boss, Calvin Klein, PVH, DKNY, Marks & Spencer, Esprit and s.Oliver are the major customers of the group. Tofail urges labour bodies to press buyers to raise RMG prices Commerce Minister Tofail Ahmed on Saturday urged labour organisations in ready-made garments (RMG) industry to insist on increasing product prices while talking to foreign buyers. He said export income from the RMG sector has recently been reduced mainly due to devaluation of foreign currencies. This should be recovered by raising product prices, he suggested. The Minister made the remarks at a job fair held to recruit for RMG sector skilled workers trained under 'Skills for Employment Investment Programme (SEIP)' organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at International Convention City Bashundhara (ICCB) in the city. The fair was also addressed by State Minister for Labour and Employment Md Mujibul Haque Chunnu, Finance Ministry Senior Secretary Hedayetullah Al Mamun, BGMEA President Siddiqur Rahman and BGMEA Senior Vice-President Faruque Hassan. The Commerce Minister said, "The labour organisations of the RMG sector should tell the buyers to raise product prices which would help increase labour wages in the sector." He said the government will provide all necessary assistance to the highest foreign exchange-
  • 9. earning sector of the country to fetch US$ 50 billion by 2021. Stating that there is no reason for RMG entrepreneurs to be afraid of trade unions, Mr Mujibul Haque Chunu said, "I don't understand why the apparel makers request me not to allow trade unions in their factories." Agreeing with the Commerce Minister, he also suggested the labour organisations to address the issue of increasing product prices with the buyers as increased product prices would ensure hike in labour wages. Speaking at the programme, the BGMEA President said billions of taka have been stolen from the country's banks which is adjusted through providing loans to the businesses at 12 to 15 per cent interest. He said, "We are taking the responsibility of the stolen money by giving 12 to 15 per cent interest rates on our loan money. The people who stole the money should face justice to reduce pressure on us." About 40 companies are participating in the job fair where a large number will be recruited from nearly 1,000 trained individuals. The BGMEA has undertaken a plan to train 43,800 workers under the SEIP project within 2018. $50b RMG export target seems more challenging Achieving the $50 billion export target by 2021 from readymade garment sector is becoming more challenging due to slow growth in RMG exports and other external factors, analysts and exporters said.Movements of buyers to Vietnam and other neighbouring countries, increased facilities to RMG sector in several Asian nations, gradual fall in prices and some domestic factors are affecting the competitive edge of Bangladeshi garment manufacturers in the international market. Moreover, while the government is targeting to take RMG exports to $50 billion by 2021, the export growth has not been adequate and even missed the target in the July-February period of the current fiscal.According to Export Promotion Bureau (EPB) data, RMG exports in the first eight months of the current fiscal stood at $28.09 billion, which is 5.64 percent lower than the target of $30.38 billion. Achieving the $50 billion target would require the export growth at more than 12 percent, but the growth currently hovers around 3 percent. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Md Siddiqur Rahman said, “In the last two years, production cost has increased by up to 17 percent due to gas crisis, devaluation of euro, price fall in EU and US market on the back of the US election and Brexit.As a result, we are gradually losing competitiveness in the global market.” Bangladeshi exporters have lost 7 percent market share in Canada, and 6 percent in the UK market in last one year.
  • 10. According to BGMEA data, prices of apparel products plunged by 3.81 percent and 0.76 percent respectively in the US and EU countries in 2015. In 2016, the prices of Bangladeshi RMG items came down by more than 1 percent in the US market and 3.19 percent in the EU countries. Dr Nazneen Ahmed, senior research fellow at Bangladesh Institute of Development Studies (BIDS), said if the current growth rate maintained by the readymade garment sector will not suffice to achieve the $50 billion export target by 2021.“It will require more than 12 percent export growth to achieve the dream,” she said, adding that maintaining last fiscal’s growth will take RMG exports to $45 billion by 2021. She also blamed internal factors including infrastructure deficiency and lack of smooth energy supply for the sluggish growth in RMG exports, arguing that there is no immediate solution to the infrastructure issue. The researcher, however, said addressing the electricity and gas supply shortage will be helpful to reach the target by the stipulated time. Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said the global apparel market is shrinking gradually. “The size of the global apparel market was $483 billion in 2015, which came down to $443 now,” he said. He also said Bangladesh’s RMG sector has been facing a series of challenges including lack of competitiveness advantages, currency devaluation in the EU Zone, and the impacts of Brexit and US election.“The whole world is doing business in US dollars and Bangladeshi currency remains very strong against the US currency over the last 4 -5 years,” he said, adding that the competitors are taking the full advantage of devaluation their currencies against the greenbacks. Turkish currency has been devalued by around 68 percent while India and Vietnam devalued their currencies by 40 percent, which is helping their export growth.“We have quality electricity, but we need quality supply of gas and electricity,” Salam Murshedy said. The EAB president also said the government has set a rather conservative export target for FY 2016-17. “We still lag far behind from the dream,” he said. Regarding the remediation process in apparel sector after the Rana Plaza incident, he said though remediation involves huge cost, the process is moving ahead.“The government is giving a lot of support to the sector, but this is not enough compared to the facilities being provided in other countries. Our competitors are maintaining double-digit export growth while we are stuck in around 3 percent,” he said. Mentioning that the RMG sector currently employs nearly 4.4 million people of whom 80 percent are women, Salam Murshedy urged the government to establish special industrial zones for the RMG sector out of Dhaka on a priority basis to help boost the production.“The Prime Minister has announced establishing 100 industrial zones and that might take some time. So we would request the government to set up four industrial zones for apparel sector on a priority basis,” Salam Murshedy said. Bangladesh apparel sector has 95% local investors: BGMEA Over 95 per cent of the total investors in the Bangladesh apparel industry are local. Moreover, Bangladesh also has a number of foreign investors in textile and apparel sectors. The country
  • 11. encourages foreign investments in the areas of high value added items, non-traditional apparel items and in the primary textile industry, especially woven textiles. "Investors will invest in industries, which are more viable in the longer term," Md Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told Fibre2Fashion. Speaking about the concept of awarding special economic zones (SEZs) to countries like UK and China, Rahman said, "Garment industry in Bangladesh has a clear prospect to grow further. This indicates the need for planned industrial zones where factories can be set-up as we have scarce land. SEZs will be a vital force to flourish this industry further in a more organised way, resolving the issue of land availability to a significant extent." Bangladesh is also working on decreasing its dependency on imports as there has been a significant capacity building in the area of yarn and fabrics manufacturing, especially for knitwear items. "Around 80 per cent of the knitted fabrics are produced in Bangladesh. Denim production capacity has also got a significant boost in the last decade. Almost 50 per cent of the demand for denim fabric by our export oriented garment industry is being fulfilled by our local denim mills. Besides, Bangladesh produces almost 100 per cent of its accessories needed locally," added Rahman. The country is dependent on external sources mostly for fibre, because it does not grow cotton or petrochemical products. It is lagging behind in woven fabric production, which has potentials for investment, noted the president of BGMEA. Talking about the internal apparel market of Bangladesh, Rahman said, "The purchasing power and per capita income is growing in Bangladesh leading to increasing consumption and retail market size in the country." Bangladesh progress on doing own labels/brands is still not mentionable, but it is producing for global brands. "Our factories are now getting prepared for the next leap forward. In-house design development, presentation of collections to buyers, investments in high value added production capacity, etc. are happening in our apparel industry," said Rahman. Global yarn makers see Bangladesh as a potential market Global textile and yarn makers see Bangladesh as a potential market despite the country's apparel export is facing challenges in some of its strong markets, including the United States and Europe. Though fabrics and yarn are being locally made, Bangladesh still needs to import a good quantity to meet the growing demand.
  • 12. In Bangladesh, local spinners meet over 90 percent demand for raw materials of the knitwear sector and over 40 percent demand of the woven sector. “Bangladesh is a good market for us as the demand for fabrics here is rising from the garment makers,” said Lavender Zhang, manager of Jiangsu Wulong Knitting Co, a knitwear fabrics maker. Zhang spoke at the 11th Dhaka International Yarn & Fabric Show 2017—Winter Edition and Dhaka Int'l Denim Show 2017. Mirza Azam, state minister for textiles and jute, inaugurated the fair jointly organised by CEMS Global and CCPIT (CCPIT-TEX) at International Convention City Bashundhara in the capital. Around 180 companies from six countries are showcasing their products at the three-day event. Bangladesh's apparel exports to the US, its single largest destination, declined 1.96 percent year- on-year to $5.49 billion in 2016, due to the volatile US economy and the recent presidential election. Exports to the UK and some other European markets also fell last year. “Bangladesh is our future market as China has been losing its market share in the global apparel business,” Zhang said. She said the demand for specialised textile like linen is very high in Bangladesh, which is quite capable of supplying fabrics in bulk to the garment makers. “We have a plan to open a sales office in Dhaka in future as the business is growing,” said Zhang, who came in Bangladesh for the first time to take part in the fair. “The fabrics and yarn market in Bangladesh is growing riding on the higher demand from the customers,” said Arifur Rahman Dewan, manager for sales and marketing at Huaren Linen Group (Bangladesh), a major supplier of linen fabrics from China worldwide. Dewan said currently his company supplies linen fabrics to 15 customers and it has a target to increase the customer base to 100 by the end of 2020. “Achieving the target of 100 customers is not difficult in Bangladesh, as there is huge demand for linen products,” Dewan said. His company produces nearly 60 million yards of fabrics a year. Ma Mingqiang, ambassador of China to Bangladesh; Shubhashish Bose, secretary in charge of the ministry of textiles and jute, and Faruque Hassan, senior vice-president of Bangladesh Garment Manufacturers and Exporters Association, also attended the opening ceremony of the fair.
  • 13. H&M launches sustainable clothing line for 2017 H&M has launched its sustainable clothing line for women and children for 2017. The new Conscious Exclusive collection includes sustainable material Bionic-recycled polyester made from plastic shoreline waste. It is a collection of pieces with a sense of occasion, each one showing different ways that sustainable materials can create the best style. Conscious Exclusive is a driver in H&M's move towards a more sustainable fashion future. H&M is one of the world's biggest users of recycled polyester and one of the biggest buyers of organic cotton. The goal for cotton is that it is to be 100 per cent sustainably sourced by 2020. It is part of H&M's ambition to make sustainable, good-quality fashion accessible to as many people as possible. "For the design team at H&M, this year's Conscious Exclusive is a chance to dream and create pieces that are both quirky and beautiful. It’s great to be able to show just what is possible with sustainable materials like we have done with the delicate plisse dress made of Bionic,” said Pernilla Wohlfahrt, H&M's head of design and creative director. Supermodel and philanthropist Natalia Vodianova is starring this year's Conscious Exclusive in her first ever campaign for H&M. "I am proud to appear in the H&M Conscious Exclusive campaign. It is amazing to see the advances in sustainable fabrics that are used in the collection, pointing towards a more sustainable future for all fashion," said Vodianova. It is for the first time that the collection will incorporate clothing line for children which will be available in around 160 stores worldwide and in India as well. US apparel industry grows 3%, reaches $218.7 bn in 2016 Apparel sales across women, men and children grew by 3 per cent in the US in 2016, to reach $218.7 billion, according to a recent report. Changing consumer needs and an evolving retail marketplace were the drivers behind the apparel industry's overall sales performance last year. The industry had positive overall performance with growth in most categories. The apparel industry of the US has struggled to exceed 3 per cent sales growth since 2013, as significant gains in select consumer and retail segments were offset by declines in others, says a report by The NPD Group, a leading global information company. The growth of online shopping, which was underscored during and immediately following the holiday season, was one of the most highlighted retail shifts of 2016. In 2011 online represented only 11 per cent of total US men’s, women’s, and children’s apparel sales, but in 2016 that number rose to 19 per cent. Pure-play e-commerce sites have been an important piece of online's growth, outpacing the overall channel performance. Online's continued growth has come at the expense of in-store sales, affecting the more traditional apparel department, national chain and specialty channels. The growth that occurred in the online, off-price, and mass channels came from a consumer focus on convenience, value, and price, said The NPD Group in a press release.
  • 14. "The apparel industry is being pushed and pulled in different directions by consumers who are demanding something different, and looking to less traditional buying channels to find it," said Marshal Cohen, chief industry analyst, The NPD Group, Inc. The apparel consumer's desire for comfort and style combined has sustained the growth of the athleisure movement for the last few years. Athleisure, which is heavily driven by millennials but appeals to all age groups, continued to be a top growing apparel segment through 2016 with an 11 per cent increase that made it a $45.9 billion market. The emphasis on casual comfort attempted to take deeper roots in the women's intimates space last year, with increased emphasis on athletic-inspired products and newer bralette styles, but results fluctuated and ended in a slight uptick in year-over-year results. Despite the strength of active, sales of tailored clothing increased 5 per cent. Dresses retained their rank as one of the top performing categories in overall sales and growth with 5 per cent growth to reach $15.6 billion. Last year was also a positive one for jeans, another critical category for apparel, which finally rebounded in 2016 to align with the industry’s 3 per cent growth rate, reaching $15.3 billion in sales. "Consumers may be driving the recent trends in apparel, but retail needs to respond and take ownership of the business back in order to capture the greater growth opportunities that exist," added Cohen. Form committees at factories to monitor violence against female workers: analysts Apparel factory management must form a committee that monitors and resists violence against female workers inside the factory, speakers said at a programme yesterday. The female workers will be able to approach the committee to raise their voice against harassment and thereby, help reduce gender-based violence remarkably in the garments industry, they added. They spoke at a certificate giving ceremony organised by Fair Wear Foundation (FWF), a Netherlands-based organisation working to improve workplace conditions at garment factories, at The Daily Star Centre in Dhaka. FWF gave certificates to seven apparel factories for successfully establishing an Anti- Harassment Committee to resist gender-based violence through its Workplace Education Programme, which is working with 29 garments factories in Bangladesh. The factories are -- MM Knitwear, Ahsan Composite, Eve Dress Shirts, Crown Fashion and Sweater Ind, MM Fashion, DIRD Composite Textiles and Ahmed Fashions.
  • 15. Manusher Jonno Foundation Director Rina Roy said, “Sexual harassment is one of the reasons why female workers leave their jobs and most garments factories do not have a particular section where they can complain about it.” Factory authorities should form a committee for this as soon as possible, as it is their responsibility to ensure workers' safety, she added. Md Arifuzzaman, manager (HR and compliance) of Sayem Group, said the committee formed by FWF's Workplace Education Programme helped his company reduce gender-based violence significantly. Shahanaz Parvin Putul, a garments worker, said, “We have to raise our voice. If we do so, further violence against us can be resisted.” Bablur Rahman, country representative of FWF; Rokeya Rafique Baby, executive director of Karmojibi Nari, a platform of working women; Pieter de Vries, first secretary (economic affairs and RMG) of the Dutch embassy in Dhaka; Nahida Anjum, lead trainer of FWF, and representatives of different garments factories, brands and labour organisations also spoke. Cotton futures market showed volatility last month While most benchmark prices moved higher over the past month, volatility was a feature of cotton futures markets in February 2017, Cotton Incorporated said in its latest Monthly Economic Letter. The A Index rose a couple of cents over the past month. In early February, A Index values were near 85 cents/lb. The most recent values have been near 87 cents/lb. The May NY futures contract was volatile over the past month. Values dropped several cents/lb near the middle of February, but made up for those losses and climbed above the values posted mid-February in several spurts in early March. The latest values have been near 78 cents/lb, the report 'Cotton Market Fundamentals & Price Outlook' said tracking recent price movements. However, in both international and domestic terms, the China Cotton (CC) Index has been comparably stable, holding to levels around 16,000 yuan/ton or 105 cents/lb. The stability of CC Index has contrasted with the volatility in Chinese futures. Values for the May ZCE futures contract gained nearly 500 yuan/ton early in the week of March 6 and reached levels just above 16,400 yuan/ton before collapsing later in the week and dropping to levels near 15,600 yuan/ton. Meanwhile, prices for Indian Shankar-6 variety increased from values equivalent to 80 cents/lb in early February to those near 83 cents/lb in the latest trading. In domestic terms, values rose from Rs 42,000/maund to Rs 43,400/maund. Pakistani prices were mostly stable. In international terms, values held near 78 cents/lb. In domestic terms, values held near 6,700 PKR/candy.