In the first half of this fiscal year (July to December), apparel exports to the two major destinations, the United States and the European Union, performed poorly as the economies of these countrieshave not yet fully recovered from the epidemic.

 

As the economy rebounds from high inflation, Bangladesh's apparel shipments are also showing some positive trends.

 

Reasons for poor export performance

 

Consumers in Europe, the US and the UK have been suffering the severe impacts of Covid-19 and Russia’s war in Ukraine for more than four years. Western consumers had a tough time following these effects, which triggered historic inflationary pressures.

 

Western consumers have also reduced spending on discretionary and luxury goods such as clothing, which has also affected global supply chains, including in Bangladesh. Bangladesh's apparel shipments have also declined due to high inflation in the Western world.

 

Retail stores in Europe, the United States and the United Kingdom are filled with old inventory due to a lack of customers in stores. As a result, international apparel retailers and brands are importing less during this difficult period.

 

However, during the last holiday periods in November and December, such as Black Friday and Christmas, sales were higher than before as consumers began spending as high inflationary pressures eased.

 

As a result, the inventory of unsold used clothing has decreased significantly and now international retailers and brands are sending out large inquiries to local clothing manufacturers to source new clothing for the next season (such as spring and summer).