The US-based apparel buyers are expected to increase their sourcing volume from Bangladesh in the next two years, maintained a survey report.
Nearly half of respondents in the ‘2018 Fashion Industry Benchmark Study’ are reportedly expected to increase sourcing from Bangladesh through 2020, which is up from the 32 per cent of respondents of 2017. The survey was conducted by Sheng Lu, Associate Professor of the Department of Fashion and Apparel Studies of the University of Delware, in collaboration with the United States Fashion Industries Association (USFIA).
“The ‘Made in Bangladesh’ label enjoys a prominent price advantage over many other Asian suppliers,” maintained the study, underlining Bangladesh’s position as the most cost-competitive apparel souring destination, followed by Vietnam.
Despite the positive outlook in terms of sourcing, respondents reportedly maintained ‘risk of compliance’ as a notable drawback for Bangladesh. The issue of compliance being very important for the US retailers and brands, could hold back many from placing more orders with the country, maintained the study conducted during the April-May period this year.
It may be mentioned here that USA’s import of ‘Made in Bangladesh’ apparels was US $ 4.39 billion in the first 10 months of FY ’18. While woven garments’ exports in the USA were US $ 3.25 billion, the earnings from knitted garments were US $ 1.14 billion during the said period.