For the first time since 2019, the inspection and audit demands by western apparel buyers in Bangladesh declined by 10 per cent year on year (YoY) between January and September this year, while rising by 14 per cent in China, according to a new report by Hong Kong-headquartered quality control and supply chain audit company QIMA.

Global apparel brands and retailers are pushing for higher sourcing from China and lower from Bangladesh, it noted.

US-based buyers, in particular, appear to be scaling back textile and clothing sourcing from Bangladesh, it said.

Bangladesh’s Export Promotion Bureau data also revealed that the country’s garment exports in October this year saw about 14 per cent YoY decline to $3.16 billion, monthly lowest since August 2021 when the sector earned only $2.73 billion.

Interest in China sourcing may be picking up again among the US- and EU-based buyers - in the first nine months of 2023 - the relative share of China in their supplier portfolios has increased for the first time since 2019, according to the report.

As consumer spending in the West is slowing down due to fears of economic downturn, brands and retailers may be prioritising China as a supplier again, to leverage the benefits of its well-established manufacturing infrastructure, the report noted.

The QIMA report, however, suggested that Bangladesh should diversify its supplier offering to protect its exports from future shocks.

"The country's apparel industry, which is currently heavily cotton-oriented, can benefit from branching out into manmade textiles," it said.

Bangladesh holds 34.7 per cent share in the EU's cotton imports, whereas its share for non-cotton garments is only 12 per cent.

Besides readymade textiles, there is a lot of potential in export of footwear, leather and home textiles, it noted.

Fibre2Fashion News Desk (DS)

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