The local knitwear sub-sector's contribution to the country's readymade garment (RMG) export earnings is gradually increasing over the years, making it the top foreign currency earner in FY22, industry insiders said.
They attributed the growth to the strong backward linkage industry, its capacity to make quick delivery of products and government's policy support, among others.
An analysis of data from the Bangladesh Bank, Export Promotion Bureau and apparel trade bodies showed that the country fetched $21.51 billion from RMG exports in FY12.
Of the amount, 38.76% came from knit items.
The share in FY22, when the overall RMG exports reached $ 42.61 billion, stood at 44.57%.
On the other hand, the share of woven items in the export earnings gradually declined to 37.25% now from about 41% during the last one decade.
The exporters of woven items blamed absence of required backward linkage in the segment as the demand for woven fabric is mostly met through imports resulting in a long lead time.
Knitwear exporters said the government policy supports like the cash incentive and utility have helped the entrepreneurs to invest in the sub-sector including the backward linkage yarn, fabric and dying segments.
Besides, changing patterns in fashion and buyers' preference to quick delivery of products due to long lead time caused by Covid-induced lengthy transportation also pushed buyers to source knit items from the country, they added.
T-shirt, jersey, pullover, men, women and boy's trousers, men or boys' shirts are the major knit items mainly shipped to the European Union (EU), according to the industry people.
The composite units having their own knitting, dying, sewing and finishing facilities are other strengths of the country's knitwear sub-sector, according to industry people.
After the tragic industrial accidents like Tazreen and Rana Plaza building collapse, the buyers became more cautious about safety, they said.
Renowned brands and retailers now prefer their sourcing units to have more integrated facilities like washing, printing and embroidery on either same premise or under single ownership mainly to ensure compliance in their whole supply chain, they said.
They added that entrepreneurs had re-invested their profit that also helped flourish the sub-sector and become self-sufficient.
According to BKMEA and Bangladesh Garment Manufacturers and Exporters Association (BGMEA), there are more than 400 composite units across the country.