Mohammad Nurul Alam
After ready-made garments knit and woven and leather goods, Home textile is the third-largest foreign currency earner for Bangladesh. The export in fiscal year 2021 (FY21) is$1.13 billion. But the current situations including the ongoing Russia-Ukraine war, excess post-Covid inventory slugging the customers demand for the sector.
Bangladesh Home Textile export
According to official data the sector experienced $1.63 billion in the fiscal year 2021-22 but exports has been declined about 32 % in the just-concluded fiscal year of 2022-23.
Home textile exports stood at $1.09 billion in the last fiscal year as per Export Promotion Bureau data. The textile exporters foresee no signs of improvement until next January even the crisis may longer up to next year because the Russia-Ukraine war throws the situation towards uncertainty.
The declining experience in the Home Textile exports follows two consecutive fiscal years of over 40 % growth, with fiscal year 2021 that was heavily impacted by the Covid-19 pandemic. Industry experts attribute that was resulting of extensive sourcing by Buyers during and after the Covid-19 period.
Export of Home Textile is dropping 10.90 % to $758.91 million in fiscal year 2020, down from $851.72 million in FY19, according to data from the Export Promotion Bureau (EPB).
Product of Home Textile and Bangladesh manufacturer
Home textile sector is included with bed sheets, bedcovers, pillow covers, cushion covers, curtains, rugs, quilts, kitchen aprons, gloves, napkins and tablecloths, mainly to export for countries in the European Union, the products are also exported to the USA and Canada.
The major players in the Home Textile market from Bangladesh include Zaber and Zuber Fabrics, Saad Musa Group, AllTex Industries Limited, Classical HomeTex, and ACS Textiles. International manufacturers are also prefer setting up manufacturing units for home textiles in Bangladesh owing to low labor costs in the country. Z&Z Fabrics Ltd, a subsidiary of Noman Group, is one of the largest home textile producers in South Asia alone exports an estimated $200 million worth of home textile products annually with a daily production capacity of 0.3 million meters of fabric and employing nearly 8,500 workers.
Global Market size for home textile
Sources said The global home textile market size was accounted for USD 124.9 billion in 2022, and it is expected to hit around USD 225.37 billion by 2032, growing at a CAGR of 6.08% during the forecast period from 2023 to 2032.
Bangladesh’s share in the global home textile export market is only 7%. So, manufacturers said Bangladesh has the potential to grab the global market through proper planning and innovation.
Factors that are reasons for declining the business
There are many factors to be considered for declining the export and among all local gas-price hike, has significantly impacted Bangladesh home textile sector, industry insiders said. Bangladesh home textile manufacturers are asking subsidy on fuel price from the government to be sustainable and competitive in the global market.
The demand of Home Textile in major markets, including the European Union has been observed to be slowdown is a result of Russia-Ukraine war. Even the suspension of business operations in Russia by global fashion giants such as H&M and IKEA has further compounded the challenges faced by the sector, opined industry insiders. Actually the situation is complex as an uncertain time lies ahead and entrepreneurs are trying their best to maintain the growth.
Bangladesh exporters of Home Textile said that the rival countries like China, India and Pakistan are graving the market share and Bangladesh lags far behind because they can control 40-50 % of the production cost, due to their own cotton supply whereas Bangladesh has to import cotton about 98 % of total required cotton. So price and supply of cotton is the biggest problem for the home textile sector and Bangladesh has to depend on the fluctuating price of cotton in the world market.
Lenzing’s Global Consumer Perception Survey on Sustainable Raw Materials in Fashion and Home Textiles concludes that “Transparency” is key for brands who wish to win consumer trust and confidence, paving the way for greater transparency and collaboration in the industry supply chain.
Bangladesh requires
Industry insiders said that Bangladesh should invest in research, quality products, innovation and set up latest technology for Home textile and for sustainable growth requires governmental support by policy and incentive. Research and innovation requires because consumers in the international markets are giving importance to changing home decor more frequently and looking for new and innovative products to innovate their homes and offices.
Government must put off the bureaucratic complexity, corruption and custom-related harassment as these are the main hindrances to the flourishing of Home textile business.
Increasing the cash incentive for exports to 10% from the current 4% and providing seamless service at ports will be positive for flourishing the business, opined industry insiders.
Need to showcase products in the international exhibition
Bangladesh manufacturer should showcase their products in the international exhibition. Recently a total of 18 Bangladeshi home textile manufacturing companies took part in the four-day trade show ‘Heimtextil Frankfurt 2023’ that held in Germany from January 10 to 13. This will help the manufacturer to get attraction from the new Buyers. Upcoming home textile fairs ‘Heimtextil Frankfurt 2024’ will be held from 9 to 12 January 2024, the next Heimtextil will present a global range of product innovations in textile interior design.
There are some company who exhibits their product every year to the international buyers. The 12th edition of the Zaber & Zubair (Z&Z) Fabric Week 2023 hold Gulshan in the capital Dhaka as part of the showcasing fabric collections for the international market. This is a good sign for the industry to sustain its growth in the global arena.
In conclusion in could be said the Home Textile has huge potential in Bangladesh. But if cumulative artwork is accomplished in this sector and research fields are developed, there is no question that this segment will bring manifold growth. To attract overseas buyers many textile factories are working to offer the right high-exceptional products through sustainable practices and the practice has to done by the all exporters who are expecting good business for future.
