In 2024, Bangladesh's apparel industry faced a series of significant challenges, including energy crises, dollar shortages, supply chain disruptions, and labor unrest. Despite these hurdles, apparel shipments grew by 16.25% year-over-year, reaching $16.11 billion from July to November [15f70b8e]. This growth comes amidst a backdrop of political instability, particularly during violent protests in July and August, which led to calls for political stability to ensure the industry's recovery [15f70b8e].
In November 2024, Bangladesh's apparel exports to the US surged by 41.6% year-on-year, reaching $614 million, up from $433 million in November 2023 [2c8e79f8]. However, cumulative exports from January to November 2024 recorded a 0.44% decline compared to the same period in 2023, totaling $6.76 billion [2c8e79f8]. Notably, January 2024 saw a dramatic 36.7% drop in exports, while March recorded a 14.2% decrease. A recovery began in September with an 18.4% increase, followed by a 26.7% rise in October [2c8e79f8].
The latest data reveals that while import volumes increased by 3.95%, the unit prices fell by 4.24%, attributed to competitive market pressures and fluctuations in raw material prices [1d66977d]. In contrast, US apparel imports rose overall by 0.63% to $72.94 billion, indicating the competitive landscape Bangladesh faces against countries like India and Vietnam, which both achieved growth rates of 4.49% and 4.48%, respectively [2c8e79f8]. Meanwhile, China's export value declined by 0.30% [2c8e79f8].
The industry saw a resolution in September that resulted in a 9% wage increment for garment workers, reflecting an effort to address labor concerns and improve working conditions [15f70b8e]. However, not all companies fared well; Beximco Group laid off over 40,000 workers, highlighting the tough decisions some firms had to make in response to economic pressures [15f70b8e].
MA Jabbar of DBL Group expressed optimism for garment exports, noting a rebound in work orders from international retailers, which could signal a recovery phase for the sector [15f70b8e]. Additionally, the central bank corrected garment sector earnings for the fiscal year 2023-2024 to $36 billion, indicating a more realistic outlook on the industry's performance [15f70b8e].
As Bangladesh's share of the U.S. apparel market has fallen by 3.33% year-on-year during the January-October period, competitors like India and Vietnam have gained ground, with India increasing by 2.68% and Vietnam by 3.93% [cbb73b4f]. Despite the overall export growth of 11.76% from July to November 2024, the apparel sector must navigate these competitive pressures while focusing on enhancing its market share and exploring new opportunities [cbb73b4f].