Underlining that diversifying export product structure and improving production agility and flexibility will be critical for Bangladesh towards playing a more significant role as a sourcing destination for US fashion companies for apparels in the post-pandemic period, a recent study has maintained that more US-based companies would be lured to source apparels from Bangladesh in the next two years thanks to the price competitiveness.
Titled ‘2021 Fashion Industry Benchmarking Study’, it termed Bangladesh’s much concentration on basic items ‘competitive disadvantage’ even as it went on to maintain that US companies plan to work with fewer vendors in Bangladesh, which it stated would lead to increased competition amongst thousands of local suppliers that would make the smaller and less-competitive ones vulnerable.
The report further added that in 2021, surging sourcing costs are a significant concern to US fashion companies even as it added that the US-China tariff war further adds to the financial challenges and sourcing cost pressures facing fashion companies in USA during the coronavirus pandemic.
