First of all, I would like to congratulate the Bangladesh Women Under 16 football team for winning the SAFF U-16 Women’s Championship beating India by 3-2 in penalties. The under-19 women’s football teams of both countries competed in a dramatic final match, the SAFF
Under 19 trophy, last month and shared the Championship trophy. And Bangladesh made an unbeaten triumph at the SAFF Women’s Championship 2022. So our female football players have proved their capability in all age groups in this region. These victories are a testament to women’s participation and excellence in every sphere of our society with pride and glory.
When the present Board took over the responsibility of BGMEA in 2021, we took 3 research initiatives focused on our future vision and growth. As part of this endeavor, we have already launched a report on “Establishing a Virtual Marketplace Platform for the Apparel Sector” by LightCastle Partners, which I have already shared with you earlier. Today, I am writing to share with you the report of another important study titled “Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh Apparel Industry”, which was unveiled on 3 March 2024. We are currently working to finalize another study report by PWC on preparing a roadmap for the industry for the next 15 years, which will be launched soon. All the 3 studies are supported by the International Finance Corporation (IFC).
The “Beyond Cotton” was commissioned to Wazir Advisors Pvt. Ltd., a leading research organization on textile and apparel based in India. The BGMEA team was actively involved in facilitating the research. With this mail, I am sending a digital copy of the report in the attachment, and sharing a few important findings and my observations on the overall diversification agenda.
Over the past 45 years, our industry has grown into a $47 billion export sector. At present our share in the world market is 7.87%, we want to increase this share to 12% by 2030, pursuing an export target of 100 billion dollars from this sector. Achieving this target will not be easy if we follow the conventional business model.
Until now our industry is mainly based on cotton, but the fashion market of the world is now shifting towards non-cotton. Global fashion trends are shifting from cotton to manmade fibers because of better functionality, price, competitiveness, and sustainability. We see a growing demand for a wider range of fibers including synthetics like polyester and nylon, regenerated fibers like viscose rayon, animal fibers like wool and silk, and even other vegetable fibers like linen, etc.
At the consumer level, 75% of global apparel consumption is non-cotton and 57.5% of global textile trade is non-cotton. On the contrary, the share of non-cotton apparel in our export was only 25%, and, encouragingly, in the last 3 years this share has increased to 30%. In recent years our industry has seen significant investment in the non-cotton sector. Our import of non-cotton fibers and textiles is also following an increasing trend, indicating a further increase in exports in the coming days.
While we have all the potential, we have challenges too. We do have certain challenges and limitations too, like dependence on imported raw materials, lack of technology, skills, and innovation, and requirement for capital investment and energy. The purpose of this study was to identify the challenges and weaknesses and set forth a roadmap to strategically explore the non-cotton space for our industry – the roadmap for manufacturers, investors, policymakers, development partners, and other influencers, detailing approaches and ways to establish a strong presence in the non-cotton textile and apparel market. The study also encompasses learnings from global leaders, the evolution of industry in other countries, key enablers-investments, ecosystems, policies, partnerships, etc. Additionally, the report benchmarks our industry against leading non-cotton apparel producers like China, India, and Taiwan. It outlines actionable recommendations and concrete steps for all stakeholders to enhance our collective competitiveness on the global stage.
While cotton remains a major capability of our industry, diversifying into non-cotton products presents an exciting opportunity. The “Beyond Cotton” report delves into the changing global fiber mix, explores emerging trends impacting our industry’s future, and provides an in-depth analysis of Bangladesh’s current and future value chain structure. I hope you find the report worth reading and planning your future investment.
