Non-Cotton Fabric | Bangladeshi RMG Manufacturers looking to diversify the apparel basket

The focus is shifting towards man-made fibres in the apparel manufacturing sector of Bangladesh as it looks to diversify the apparel basket.
N2N Man Made

Non-Cotton Fabric is getting the much needed attention from the RMG manufacturers in Bangladesh. The fast-changing global fashion industry is seeing a trend where consumers are opting for blended fabrics instead of cotton and this is having an impact on the strategy of the RMG manufacturers in Bangladesh.

About 70% of apparel export from Bangladesh is through cotton apparel and the rest are from synthetic fibres. Man-made fibre apparels occupies about 78% of the global fashion market. Due to this the focus of Bangladeshi manufacturers have now requested the government to extend policy support to the local spinners so that they can invest in non-cotton fabrics as their supplies of woven and manmade fabrics to the apparel manufacturers are still very low compared to demand. This will enable Bangladesh to have more diversity in the apparel sector and making it more competitive.

Non-Cotton Fabric

Non-Cotton Fabrics is the new norm

Due to changes in lifestyle, consumers are looking for products, which can be taken care of easily. The durability and the longevity of artificial fibres are higher than cotton-made yarn and fabrics. That’s why the demand for man-made items is going up. If garments made from man-made fibres are not washed for many days their quality will not deteriorate or over-wash will not compromise the quality.

To grab more market share in the global garment business for the sustainability of the apparel sector, Bangladesh will have to diversify its apparel basket. The local spinners understands that the demand for man-made fibres has been increasing worldwide and that they have to invest in the same so that the country’s $8billion worth primary textile sector would face issues soon. But very few investors are interested in setting up those mills as the investments requirements are quiet high. Joint-ventures between local and technology advanced foreign companies can provide a solution as it offers a scope to learn about new technology.

Non-Cotton Fabric

According to Bangladesh Textile Mills Association (BTMA), 80% of the demand for export-oriented knitted fabrics are supplied by local spinners whereas they supply only 40% of woven fabric supplies. As Bangladesh is still focused on cotton fabrics, the woven apparel manufacturers depend on imports to meet around 60% demand for non-cotton fabrics. Sometimes, the RMG exporters are unable to use available fabrics in the local market as the buyers’ nominate an overseas supplier. They do this specially when sourcing from multiple countries and want to use a single source for all fabrics.

Fabric Imports – Bangladesh

KNIT20%
WOVEN60%
Imported Fabrics Usage by RMG Manufacturers
Knit229K tonnes
Woven421K tonnes
2020 Fabric Imports – Bangladesh

The product basket of Bangladesh is narrow compared to China or Vietnam as the country is limited to cotton-based products. So, there is a huge scope of diversification in man-made fibre. Bangladesh do not produce cotton but heavily depends on it, the same as, it can expand its market horizon by start producing man-made fibre. Technology is not a barrier as it is possible to bring out the right product, technology, and raw materials.

China, India, Vietnam, and Pakistan have an edge over Bangladesh as they have machinery, fibres, dyes, and chemicals available to them locally. With over-concentration on cotton fibre and garment items like t-shirt, trousers, jackets, sweaters, and formal shirts (73% of total garments items exported), Bangladesh is now shifting its concentration to man-made fabrics as the look to increase spinning capacity to produce cotton and synthetic blended expanded yarn as a substitute for imported yarns.

The BGMEA president believes that if the government provides a 10% cash incentive on new non-cotton apparel exports, its market share will be higher within a year with an additional $2billion. The government’s cash incentive has made it possible for the exporters explore about $7 billion new markets.

In FY21, Bangladesh exported $32.59 billion worth of apparel products and home textile items, which was 84% of the total export made by the country.

N2N Sourcing continues to work with customers and manufacturers in finding ways to contribute in this entire process and diversify the product base.

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