Business

Apparel Exporters Expect Turnaround By June Next

Apparel exporters expect a turnaround in demand for their products in western markets by mid-2023 and till then they want to book every order – even if it offers a break-even price – in order to survive amid the present slowdown in business, according to industry insiders. Entrepreneurs in the RMG sector have expressed the hope that the global geopolitical situation will improve by the second quarter of the next year, which will lead to a robust recovery in consumer spending in the key export destinations due to pent-up demand. Besides, new markets may bring good news for them as rising political tensions between the US and China may help them grab more orders shifting from China, Vietnam, and Myanmar, they said. According to the Export Promotion Bureau (EPB), Bangladesh's apparel exports fell 7.52% year-on-year this September, after 13 months of much-needed recovery from the pandemic shock and promising growth. During the first quarter of the fiscal 2022-23, apparel shipments reached US$ 10.27 billion, which is 13.41% higher compared to the corresponding period of the previous year. Apparel predicts a slowdown in shipments by August this year as most factories were getting fewer work orders, which is being reflected in export earnings. They fear that this untoward trend might continue till April-May next year. Sparrow Group Managing Director Shovon Islam said the industry is experiencing a slowdown as retailers are stuck with too much inventory at their stores as demand has fallen due to a mild recession in the USA, Europe and the UK. It is learnt that a number of Korean brands and retailers are coming to Bangladesh to open a sourcing office in Dhaka alongside sourcing through buying houses to strengthen their sourcing capacity. Exporters expect that with stable freight and cotton prices, the will ease.