Exports of denim items to the European Union (EU) posted double-digit growth last year, enabling the country to elbow out Turkey and China in the regional market, industry insiders said.
Bangladesh shipped denim products, especially trousers worth euro 932.86 million, to the EU in 2014 marking a 15.53 per cent growth compared to that of 2013, the BGMEA data based on Eurostat showed.
In 2009, the country fetched only euro 376.08 million by exporting denim products to the EU.
Turkey - the largest denim exporter to the 27-nation market in 2013 - earned euro 871.08 million in 2014 registering a 7.73 per cent growth while China's export to the market dropped by 7.40 per cent to euro 657.65 million last year, according to the association data.However, Bangladesh sustained the third position in the US market in the last couple of years and exported denim products worth $ 418.42 million in 2014 while Mexico earned $ 1.02 billion and China $ 970.12 million during the same period.
Bangladesh exported denim products worth $ 343.14 million to the US in 2009, according to BGMEA data.
The gradual decline in China's exports to the US and the EU has opened up the opportunities for other competitors including Bangladesh, industry insiders said.
"Bangladesh mainly produces low-end denim products particularly five-pocket denim jeans while the competing countries produce high-value-added products," Md Shahidullah Azim, vice president of BGMEA, said.
"Now we are the largest denim exporter in the EU in terms of value, but the quantity is also high compared to that of other competing countries like Turkey," he said, adding that Bangladesh now needs to focus further on value-added products.
The average FoB price of denim trouser is euro 5.5 to 6.5 for low- end products that retailed at euro 12 and euro 8.5 to 12 for some mid-end items with an average retail price of euro 36, according to industry insiders.
"Bangladesh knows well how to stitch garment from the specialised denim fabric because it has the know-how," said Arshad Jamal Dipu, Chairman of Tusuka Fashions Ltd that produces denim jeans.
The country will lead denim garment making across the globe as it has already developed a strong washing capacity, he said, adding that China, India and Pakistan are major competitors of Bangladesh in terms of fabric manufacturing as they are cotton-producing countries.
But in Bangladesh, Mr Dipu said, local mills are mainly dedicated to producing fabric required for knit items.
Due to the growing demand, especially for more value-added products, a few denim fabric makers are now introducing the latest technology including rope dyeing, he added.
Rope dyeing is considered to be the best possible indigo dyeing method for yarn as short dyeing time doesn't allow indigo to fully penetrate the fibres, thus creating ring-dyed yarn that fades better and faster than fully-dyed yarn.
Abdus Salam Murshedy, managing director of Envoy Group said, "Denim is a 12-month product for both men and women. Rising cost in China has created an opportunity to grab the increasing demand."
The country is now producing mid-segment of denim products on a small scale following growing demand from upscale customers, he said, adding that due to such demand, one of his units-Envoy Textiles Ltd (ETL)--introduced rope dyeing for the first time in the country.
ETL manufactures high-quality fashion denim and is one of the largest denim fabric makers in Bangladesh with an annual capacity of 48 million yards.
"Some big brands demand for rope-dyed denim products and offer 10 to 15 cent more per yard," he said.
Partex Group that also makes denim products has recently introduced rope dyeing along with its existing slashed dyeing process mainly to meet the increasing demands made by some buyers. "Bangladesh is still well-known for its low price that is discouraging some big brands to source from here," SM Tanvir, director of Pacific Jeans, said.
Anwar-ul Alam Chowdhury, chairman of Evince Group, a sister concern of Argon Denims Ltd, said local entrepreneurs have the capacity to set up industry and bag work orders as they have technical know-how for production.
"We don't need government support in those areas, but what we need is government's policy support especially for infrastructure development and energy," he said, explaining that the sub-sector requires considerable energy, water and chemicals.
He demanded the government supply energy and offer more support in setting up the central ETP and economic zones.
In the last five years, only two units got gas connections, he said.
Some 26 units are involved with denim fabric and product making while the figure was only four to five in 2001. Total investment in the sub-sector stood at $ 900 million, according to industry people.
The sub-sector earns about $ 3.5 billion and plans to increase exports to $ 7.0 billion in next five years, they added.
munni_fe@yahoo.com
Denim exporters shine
Monira Munni | Published: May 26, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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