Among the new textile items, denim fabrics and its diversified products is gradually becoming the flagship product for the local exporter. The ability to supply denim fabrics at a competitive price has helped the country to gain great global market access. The growth of denim in terms of production, export and investment marked a 30-35% rise in the local market over the last three years as almost all major textile producers have been producing denim especially since 2005 after withdrawing the quota system. Presently, the local denim factories can supply 20 million meters per month against the domestic demand of 50 million meters per month. The demand for the remaining 30 million meters of fabric is met through its import from China, India, Pakistan and Indonesia. It is expected that an additional five million meters of denim fabric will come locally as a good number of denim manufacturing factories are supposed to start production very shortly.
Position of Bangladesh in International Denim Market
Globally denim products have a $70 billion worth annual export market. The global buyers were rushing to Bangladesh after the expiry of the quota regime, finding most competitive prices. Global market reports reveal that Bangladeshi trouser makers are beating fast their competitors in the US and EU markets and grabbing significant market shares. According to the US commerce department, exports of cotton denim trousers increased 126 per cent in terms of volume
Exports of Mens/Boys jeans from Bangladesh to USA in 2006 and 2007
Bangladesh 2006(doz pcs) 2007(doz pcs) Change(%)
1st quarter 205000 312000 52
2nd quarter 390000 454000 16
3rd quarter 599000 739000 23
4th quarter 570000 –
Source : US customs
Export performance in the European market is also impressive. The latest report from the European Commission shows Bangladesh had consolidated its leading position in EU’s jeans market during the first half of 2006. Bangladesh, however, ranked third in the EU market because of the exporters’ concentration in low cost dresses. During the January-June 2006 period, Bangladeshi apparel manufacturers shipped about 24 million pairs of denim jeans in men’s & boys category to Europe. In women & girls’ denim category, Bangladesh exporters saw the volume increased by more than 91 per cent to about 17 million pairs during January-June 2006. Industries insiders said the local entrepreneurs are interested in denim production due to mainly higher demand and duty-free access opportunities to the European market, the main market of Bangladeshi denim.
Present Domestic Denim Manufacturing Plant:
Denim garments are very important export items among the exportable textiles from the rising of textile sector in Bangladesh. At beginning of the last decade, there was no such export oriented denim manufacturing plant to mention. Almost 100% fabric was imported from China, India, Pakistan & Indonesia. The first modern denim manufacturing plant is Shasha Denim Ltd. It has a great contribution in raising the denim market in Bangladesh. Its success encourages others to invest in modern denim manufacturing plant. Another great contribution of it is to create skill work force of all level like operation, quality control, management, marketing etc related to denim manufacturing process. It has reduced the dependence on foreign expert. In this consequence, most of the recently running denim projects are running by our local experts. This encourages the investor to run the new denim plant and expand the existing plant. Presently Bangladesh has 20 denim fabric manufacturing plants. Most of them equipped with modern machineries have been set up with in two years. They are now giving quality production with their maximum capacity. Moreover, some new plants are going to start their production within few months. Some established factories are extending their capacity with new machines. At least one dozen of investors of both local & Join venture financiers invested more than Tk 100 billions during last one year in this sector.