Bangladesh denim makers are losing market share in the United States as their competitors, such as Vietnam, are reaping the benefits of the ongoing US-China trade war. The sector is also witnessing negative growth in the European market, due to the economic slowdown and a looming uncertainty centring the Brexit issue.
The ongoing US-China trade war has brought an advantage for the economies in countries such as Vietnam, Cambodia, Pakistan and Mexico. Those countries are getting more export orders from US buyers due to their preparedness in welcoming the trade redirection, while Bangladesh is not getting the benefits of being the second-largest apparel exporter in the world.
The reasons for losing competitiveness include: bulk investments concentrated on only five items, Bangladesh taka being stronger than the US dollar, and a lack of efficiency in product development and marketing.
As a result, apparel makers are getting fewer orders and are pressured to lower product prices. Small and medium enterprises which produce basic items are facing a tough time under the new wage structure while big companies are fighting for survival.