Bangladesh denim carves a niche

Denim is showing positive growth in the sprawling readymade garments sector. Going by what has been published in this paper foreign retailers are specially price sensitive when it comes to procuring denim products. Denim producers in the country are confident that this particular garment will gain a more predominant position in the years to come. With some 25 factories engaged solely in the production of denim and a further five coming online shortly, industry observers estimate that prospects for the Bangladeshi denim is bright as prices are low. The fundamental shift in international orders headed this way has much to do with the rise in labour costs in China coupled with a shortage of skilled workers in that country.

The market for denim is diversified across various international markets including the European Union and the US. The interesting part is that some local companies are selling the bulk of their products in their own name and following the onset of the global recession, consumers in the West tended to shift to more robust yet less expensive products like denim. It is estimated the world market for denim will cross US$65billion per annum in the next five years. That would explain why some of the larger Bangladeshi conglomerates are investing in denim factories in the country.

Presently, Bangladesh has a $1billion stake in the international market for finished denim products. Should the Bangladeshi denim producers be able to keep prices competitive and quality up to the mark as demanded by international retailers, there is no reason why the denim sub-sector cannot flourish.