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2020 USFIA Fashion lndustry Benchmarking Study reveals that Bangladesh is the potential sourcing market for the USA

Release time:

2023-01-11

2020 USFA Fashion ndustry Benchmarking Study reveals that Bangladesh is the potentia sourcing market for USA. This vear, Bancladesh isthe 3rd top sourcina destination, with an 85.7 percent usace rate among respondents a notable increase from 60 percent in the 2019henchmarkina stuoy. As resnondents overa maintain a reraivel hgh eve of interest in sourcing fom bancladesh in the next iwo vearsaround 55 percent plan to expand their sourcing value or volume was 60 percent in 2019), and another 30 percent expect no change. Theofficial trade data supports the trend-measured in value, Bangladesh accounted for 9.4 percent of U.s. apparel imports in the first five monthsof 2020, which was a record high and up from 7.1 percent in 2019.
Overall, respondents say apparel "Made in Bangladesh" enjoys a prominent price advantage over many other Asian suppliers. "Made inBancladesh" demonstrated a notable price advantace for cotton apparel items. which accounted for neary 77 percent of the countrvs totaapparel exports to the U.s. in 2019.59 0ther than the factor of labor cost, the strong capacity in cotton yar and fabric production locally (mainlyfor knit apparel) rather than relving on imports, has contributed to the cost advantage of "Made in Bangladesh."
However, Bangladesh does not appear to enjoy much price advantage for man-made fiber (MMF) apparel items, due to its dependence onimported textile inputs. That being said, as an interesting new trend, trade statistics show that the value of Bangladesh's MMF apparel exportso the U.S. enioyed a 5.5 percent growth in the five months of 2020. In contrast, the exports from China and Vietnam sufered a sicanificantdecine (drop 44.5 percent and 8.8 percent, respectively) over the same period.61 MMF apparel could be a potental new growth engine foBangladesh's exports, as U.s. fashion companies are eager to diversify sourcing from China, and the sourcing capacity in Vietnam is not available.