Shawdesh desk:

Apparel exports to unconventional markets have been on the rise thanks to government incentives and exporters focusing more on the non-traditional markets.

Exports of ready-made garments to such destinations grew 32 percent compared with 28 percent growth a year earlier, EPB data showed.

RMG exporters see the trend positively and hope apparel exports to unconventional markets will continue to grow.

The EU, the US, the UK and Canada are the main export destinations for the country’s apparel sector.

Japan, Australia, Russia, India, China, Korea, UAE, Mexico, Saudi Arabia, Turkey, South Africa, New Zealand, Chili, Brazil, and other countries are considered unconventional markets.

In contrast to unconventional markets, the country’s RMG exports to its main destination, the EU market, grew at a slower rate of 16.61 percent during the July-December period, according to the latest data from the Export Promotion Bureau (EPB).

During the period, apparel exports increased by 1.11 percent in the US market, 11.89 percent in the UK market, and 28.42 percent in the Canadian market.

According to the Bangladesh Garment Manufactures and Exporters Association (BGMEA) data, apparel exports to unconventional markets reached $4 billion in the first half of this fiscal year, up from $3 billion a year earlier.

The highest growth of nearly 98 percent was achieved in the Malaysian market, while RMG exports grew by 83.70 percent in Turkey, 42.54 percent in Japan, 29.52 percent in Australia, 50 percent in India, 35.66 percent in Korea, 15.27 percent in China, 22.28 percent in UAE, 51.12 percent in Mexico, 41.62 percent in Saudi Arabia, 57 percent in Brazil, 47 percent in Russia, and 7 percent in South Africa and 3.55 percent in Chile.

“We’ve been putting special emphasis on unconventional markets for the last few years as exports to conventional markets have already met our expectations. However, there’s still room for growth in unconventional destinations,” said Mohammad Hatem, president of the knitwear exporters’ body.

The government is providing incentives on export to these unconventional markets. As a result, exports to these destinations are rising, he explained.

“China has stepped back from many markets. For instance, Japan has withdrawn itself from China, which has created a gap there. Bangladesh is trying to fill the gap. This has contributed to the rise in our exports,” he pointed out.

“Now, unconventional markets for apparel exports are expanding. Our exports to these markets are increasing and will continue to do so,” he added.

BGMEA president Faruque Hassan informed that they have taken a number of initiatives to increase exports to unconventional markets.

“We’re working on enhancing exports to the markets of Japan, Malaysia and India. In the future, exports will also rise to the Chinese market as well, he noted.

“There will be challenges in the new year. There might be negative growth in RMG exports in the first few months. However, we hope that our export growth will remain higher compared to those of other countries,” he added.

EPB data also showed that apparel exports to the EU market stood at $11.5 billion, up from $9.87 billion during the first six months of last fiscal year, while exports to Spain and France increased by 17.62 percent and 33.08 percent, respectively, to $1.7 billion and $1.41 billion.

Exports to Poland dropped by 18.43 percent, while exports to the US market surged only 1.11 percent to $4.27 billion. In UK and Canadian market, RMG exports rose 11.89 percent and 28.42 percent to $2.39 billion and $774.16 million respectively.

“Even though RMG exports to main markets rose in the first half of FY23, the growth rate slowed compared to the previous months. It indicates that growth will decline further in the months to come,” BGMEA director Mohiuddin Rubel said.