Bangladesh needs investment in denim fabrics manufacturing and its research and development to tap potential in order to enter the high-end market segments, Mostafiz Uddin, managing director of Denim Expert Ltd, told the Dhaka Tribune in an interview.
How can Bangladesh enlarge export volume and value beyond EU and US?
Bangladesh, the second largest RMG exporter in the world, is also an emerging player in international denim market. The EU and the US are two main export destinations of Bangladesh’s denim.
Bangladesh is ahead of China in the EU market with around 25.29% share in 2015 and our position is second in the US market with 11.35% market share.
For expanding the market, Bangladesh has to have enough knowledge to explore non-traditional markets like Brazil, Chile, China, Russia, Australia, South Africa and Japan.
On the other hand, manufacturers have to know about the trends and the demand of those markets to grab market share.
How can Bangladesh explore new market and buyers?
Participation in apparel trade shows is the key to come in contact with the buyers. It also helps to know about the new markets through establishing network.
What are the barriers or challenges to garbing global markets?
High tariff rate in some non-traditional markets is a major bar to increasing denim exports to those countries. The government has to negotiate to reduce tariff and remove non-tariff barriers through diplomacy.
Do you think Bangladesh has already entered into high-end market?
Bangladesh is doing well in basic items. Besides, the country is gearing up to cater to the need of high-end and branded fashion segments. For that, the manufacturers has to put emphasis on research and development and forward linkage industry. Focus needs to be put on skilled workforce, especially on mid- and upper-level management.
What do you think about investment in manufacturing high quality fabrics?
Bangladesh presently has 30 denim producing factories and can meet about 60% domestic demands for fabrics. That is why, there is a huge scope of investment in denim fabrics mills.
However, despite having capacity our local investors cannot make new investment in the sector due to lack of infrastructure, especially gas. There will be a lot of investment in the denim industry if sufficient electricity and gas can be ensured.
What are the achievements of Bangladesh Denim Expo in the last four editions?
Bangladesh Denim Expo has already become a much-awaited event in the international denim calendar. The expo is growing every year with the presence of foreign visitors. It will not be an exaggeration to say that such exposition has a significant contribution towards the growth of country’s denim export to the world.