Bangladesh’s garment exports to the EU are slipping, and it’s not just about rising European demand. While the EU’s appetite for apparel grew by nearly 7% between January and November, Bangladesh’s share of this market shrank by nearly 4% in the first seven months of the current financial year. But here’s where it gets controversial: despite Europe’s growing demand, Bangladesh is losing ground to competitors like China and India. Why? Let’s dive in.
According to data from Bangladesh’s Export Promotion Bureau (EPB), exports to the EU’s 27 member states dropped by 3.98% between July and January, compared to the same period the previous year. During this time, Bangladesh shipped garments worth $11.34 billion to the EU, down from $11.81 billion in the same period of the previous financial year. Meanwhile, Eurostat data reveals that the EU’s overall apparel imports were on the rise, making Bangladesh’s decline even more puzzling.
So, what’s going on? Shehab Udduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), points to two key factors. First, global apparel consumption is sluggish, creating a tougher environment for all players. Second, and this is the part most people miss, China and India have leveraged lower tariffs in the EU compared to the US, allowing them to undercut Bangladesh’s prices. “Buyers are straightforward—they go where the price is lowest,” Chowdhury explains. “That’s why we’ve lost some ground in that market.”
But here’s a thought-provoking question: Is Bangladesh’s focus on price competitiveness enough in a rapidly changing global market? With sustainability and ethical sourcing becoming increasingly important to European consumers, could Bangladesh’s reliance on cost-cutting be a missed opportunity to differentiate itself? And this is the part most people miss—while price wars dominate the conversation, the EU’s growing emphasis on transparency and fair labor practices could be a game-changer for Bangladesh if approached strategically.
Here’s the bottom line: Bangladesh’s garment industry is at a crossroads. While external factors like global demand and tariff disparities play a role, the real challenge may lie in adapting to the evolving priorities of European buyers. As Chowdhury puts it, “We’ve fallen slightly behind in competition.” But the question remains: Can Bangladesh reclaim its position, or will it continue to cede ground to more agile competitors? What do you think? Let us know in the comments—we’d love to hear your take on this complex issue.
