Garment exports to non-traditional markets stall amid global slowdown

Bangladesh's readymade garment (RMG) exports to non-traditional markets recorded sluggish growth in the first quarter of the current fiscal year, reflecting persistent global demand weakness and economic uncertainty across key economies.

Official data show that exports to new destinations - including Japan, Australia, India, Korea, China, Mexico, and Turkey - rose by only 0.77 per cent year-on-year to US$1.65 billion during July-September quarter (Q1) of FY2025-26.

The figure stood at US$1.64 billion in the same period a year earlier, Export Promotion Bureau (EPB) data show.

Industry insiders attributed the marginal rise to weak consumer demand in advanced and emerging markets alike, driven by high living costs, sluggish global growth, and ongoing geopolitical tensions.

Of the total earnings, woven garments outperformed knitwear in Q1. Woven garment exports increased by 2.99 per cent to US$847.37 million, while knitwear shipments fell by 1.45 per cent to US$808.91 million.

China emerged as the fastest-growing destination, with RMG exports soaring by 59.52 per cent to US$71.14 million. The surge was driven by an 85.88 per cent jump in woven garment exports, although knitwear shipments dipped by 3.83 per cent.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the muted performance reflected a broader slowdown in the global apparel market.

"The global economy remains sluggish, and so are the non-traditional markets," he told The Financial Express. "Uncertainty and disruptions, including the impact of new US tariff regimes, have dampened demand."

Hoque, also managing director of Plummy Fashions, shared his recent experience in Australia, saying that rising living costs have forced consumers to prioritise essential needs over clothing purchases.

Mohiuddin Rubel, additional managing director of Denim Expert Ltd, said the first quarter is typically a "lean period" for apparel shipments. He added that exports to major traditional markets such as the US, EU and Canada also slowed during the same period.

Despite the overall weakness, several non-traditional destinations showed notable growth.

Exports to Saudi Arabia, Chile, Brazil, Japan, and South Africa rose by 34.38 per cent, 14.37 per cent, 9.66 per cent, 10.56 per cent, and 9.72 per cent respectively, EPB data show.

Japan retained its position as the largest non-traditional destination, importing apparel worth US$334.91 million during the quarter.

Bangladesh earned US$216.59 million from India (up 1.27 per cent), US$48.87 million from Saudi Arabia, US$44.46 million from Brazil, and US$34.63 million from South Africa.

In contrast, exports to Australia, Turkey, Korea, and Mexico declined by 8.13 per cent, 31.30 per cent, 13.48 per cent, and 22.16 per cent respectively.

Meanwhile, exports to the United States, Bangladesh's single largest apparel market, increased by 8.60 per cent to US$2.01 billion during the quarter under review, up from US$1.85 billion in the same period a year ago.

Shipments to the European Union rose by 3.14 per cent to US$4.74 billion, while exports to the United Kingdom grew by 6.74 per cent to US$1.21 billion.

Canada imported apparel worth US$336.70 million, reflecting a 13.63 per cent rise.

Overall, Bangladesh's total RMG exports grew by 4.79 per cent year-on-year to US$9.97 billion in the first quarter of FY2025-26, compared with US$9.51 billion during the same period of the previous fiscal year.

munni_fe@yahoo.com