Eurostat’s recent data on EU apparel imports for January-November 2024 paints a concerning picture for the global apparel industry. While overall EU imports saw a modest 0.86% value increase (US$85.36 billion), a substantial 8.04% rise in volume reveals a significant 6.65% drop in average unit prices. This downward price pressure significantly impacted major sourcing countries, including Bangladesh.
Bangladesh achieved a 2.99% increase in export value (US$18.15 billion) to the EU, coupled with strong 8.22% volume growth. However, a 4.83% decline in unit price offset these gains, highlighting the challenges of maintaining profitability in a falling-price environment. Although Bangladesh outpaced the EU’s overall growth, key competitors like Cambodia (with exceptional 20.66% value and 29.63% volume growth), Pakistan (11.69% value and 17.8% volume growth), and Vietnam (3.46% value and 14.97% volume growth) demonstrated stronger performance. Turkey and Indonesia, conversely, experienced export value declines, emphasizing the intense competition in the sector. The sharp price drops experienced by Vietnam and China further underscore this intense price pressure.
In conclusion, while Bangladesh showed resilience in maintaining export volume, the data reveals a critical need for strategic shifts. Value addition and market diversification are essential for Bangladesh to secure its competitiveness and safeguard profit margins in the face of persistent global price deflation.
Author: Mohiuddin Rubel, Former Director, BGMEA, Additional Managing Director, Denim Expert Ltd
