Bangladesh’s denim manufacturers and retailers’ representatives have said that to retain the global denim market share, and remain competitive in export destinations, they should focus on reducing lead time—to compete with the fast-growing fashion trends in the world.
They remarked this at a two-day Bangladesh Denim Expo – an international exposition on denim products – held at the International Convention City, Bashundhara, Dhaka, on Wednesday.
Square Denim GM Sayeed Ahmad Chowdhury, while speaking to the Dhaka Tribune, said: “Fashion trends change very fast. As a result, when a brand develops a product or design, it wants to get it ready within 30 to 40 days for the market. It is a big matter for the buyers.
“Previously, the lead time was 90 days, and it is now 45 days. For this reason the buyers are increasing pressure to source fabric suppliers within 15 days, which is very tough. The timely delivery of goods is crucial for us.”
“Currently, the growth of the denim industry is better and experiencing an upward trend. There is no lack of work orders in Bangladesh. We are trying to reduce the lead time and the buyers are also inspiring us by giving us forecasted fashion trends of the market, said Sayeed of Square Denim.
“We have increased our production capacity to $3 million per yard, a month, which was 1.5 million per yard last year.”
The company displayed the latest line of denim fabrics at the expo.
The global buyers and stakeholders who participated in the expo have also called upon companies to reduce the lead time and go through the transformation process, to meet the fast-growing demands of e-commerce based selling.
Asia Division Director Jordi Juani, of Spanish Company Jeanologia – which supplies denim fabrics to Bangladesh’s markets – said: “Sales in malls and shopping centres are declining, while e-commerce sales are on the rise. In previous years, the growth of e-commerce sales was 5%— which is now around 15%. Even we do not know what will be the growth of e-commerce sales in the coming days.”
Juani furthered: “A retailer has to supply what a consumer wants— and it should, fast. If Bangladesh cannot maintain strict lead-times, then buyers will move to alternative destinations like Vietnam. So, Bangladesh has to maintain a mixture of lead-time and competitive prices of garments .
“Western retailers and brands are also under tremendous pressure due to fast fashion changing. Every year nearly 15% of retail shops are closing down in the European markets, as customers prefer buying online.”
Jeanologia supplies $20million-worth of denim fabric to Bangladesh every year.
He also said: “If Bangladesh wants to do better in the garment business, especially in the denim sector, the local fabric-makers and exporters will have to adopt new technologies, increase productivity. and bring changes to designs—as well.
“On top of that, Bangladeshi manufacturers are confident they can cope with changing trends. To be able to meet buyers’ demands, manufacturers have to get themselves aligned with brands and the latest fashion trends of the market.
Bangladesh is the largest exporter of denim products to the EU, with 27% of the market share— third largest to US market with a 14% market share .
According to Office of Textiles and Apparel (Otexa) of the US, from January to September, 2018, Bangladesh earned $419.21 million from denim exports, up by 14.20%, which was $367.10 million in the same period last year.
According to Eurostat, statistics directorate of the European Commission, the latest data, for January to August, 2018, Bangladesh earned €917.14 million exporting denim goods to European Union Countries—which is 4.23% higher, compared to €879.84 million in the same period a year ago.
