Locally produced readymade garment exports continued to record negative growth in major destinations, including both traditional markets like the European Union, the US and the UK as well as emerging non-traditional markets this fiscal year amid external headwinds.
They observed that some major buyers like H&M is shifting sourcing away from Bangladesh, though not in large volume, indicating that the country is losing ground in cost competitiveness.
Germany, France, Italy, Denmark, Spain, the Netherlands and Poland are among the EU's billion-dollar markets for Bangladeshi garments.
Shipments to these countries during the first eleven months of the current fiscal year recorded negative growth ranging from 4.0 per cent to over 12 per cent, with only a few markets posting marginal growth, according to Export Promotion Bureau (EPB) data.
Shipments to the Netherlands recorded a 2.13 per cent decline, while Spain and Poland registered declines of 4.0 per cent and 7.98 per cent respectively.
The downturn across 16 nations also resulted in a 4.88 per cent negative growth in exports to the 27-nation bloc of EU.
Bangladesh received US$17.35 billion from garment export to the EU during the July-May period of 2025-26, down from US$18.24 billion in the corresponding period of the last fiscal year(2024-24), EPB data showed.
Out of the $17.35 billion earnings, knitwear accounted for US$ 10.42 billion, down from US$ 11.12 billion, reflecting a 6.26 per cent decline.
Similarly, earnings from woven items during the period also marked a 2.71 per cent fall to US$6.93 billion from US$7.12 billion.
Readymade garment shipments to the US and UK fetched US$7.02 billion and US$4.01 billion respectively, marking declines of 0.04 per cent and 0.50 per cent over the corresponding period of FY 2024-25.
Non-traditional markets also witnessed a 5.95 per cent fall during the eleven months, reflecting persistent global demand weakness and economic uncertainty across key economies, data analysis showed.
Official data show that exports to new destinations, including Japan, Australia, India, South Korea, Mexico, Russia and Turkey, decreased by 10 per cent to 30 per cent year on year.
Earnings from non-traditional markets during the period stood at US$5.68 billion, which was US$ 6.04 billion.
When asked about the trade situation, Khan Monirul Alam, managing director of Fashion.com, said the performance reflected a broader slowdown on the global apparel market.
"Uncertainty and disruptions, including the impact of wars-- Russia-Ukrain and in the Middle East, have dampened demand," he told the FE.
US tariff regime is further worsening the market condition in both America and EU, he noted.
With an elected political government now in power, he said political uncertainty has gradually eased, but the internal issues, including rising cost of production due to energy price hike, labour costs and others, are eroding their competitiveness.
The strategic plans of one of the major buyers like H&M has also hinted at a loss of local competitiveness, he said, adding that the buyer is reportedly shifting to India, possibly due to the neighbouring country's price competitiveness, availability of raw materials and government's support to enhance competitiveness.
Talking to the FE, Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the rising cost of living due to high inflation forced consumers to prioritise essential needs over clothing purchases.
"And following the weak demand, buyers are also purchasing less," he noted.
Echoing Mr Alam, he, however, noted that the latest price hike in electricity would surely raise the cost of production which has already gone up by 20 per cent due to a number of factors.
The government last time did not raise diesel price to support consumers while the electricity price hike would affect them and manufacturers most, he said, adding the government should incentivise for some more time to help curb inflation.
Despite the overall weakness, Canada showed 2.27 per cent growth to fetch US$1.22 billion during July-May period of fiscal 2025-26, according to the EPB data.
Overall, Bangladesh's total RMG exports fell 3.41per cent year on year to US$35.31 billion in the first eleven months of FY2025-26, compared with US$36.55 billion during the same period last fiscal year.
Munni_fe@yahoo.com