Bangladesh's apparel exports to non-traditional markets surged to $7.68 billion in FY23's first eleven months, a 32.74% YoY increase. Non-traditional markets, including Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico, accounted for 18.04% of the ready-made garment (RMG) sector's earnings during July-May. In FY22, non-traditional markets contributed $6.37 billion, representing 14.96% of Bangladesh's total RMG export revenues.
As major markets face saturation and economic uncertainties, Bangladesh aims to diversify by exploring non-traditional markets and capture a larger global market share. Noteworthy growth was seen in exports to Japan (45.80% YoY increase, $1.46 billion), Australia (41.82% increase, $1.06 billion), India (46.44% surge, $947.86 million), South Korea (28.85% growth, $501.01 million), and Mexico (29.41% rise, $313.94 million).
Bangladesh's potential inclusion in the BRICS economic group (Brazil, Russia, India, China, South Africa) opens doors to significant non-traditional markets. Apparel exports to BRICS countries reached $1.87 billion in July-May, a 16.38% increase from the previous fiscal year. By focusing on non-traditional markets, Bangladesh aims to increase exports, diversify products, and leverage geographical proximity to countries like China, Japan, India, and Australia.
This strategy taps into the purchasing power and growth potential of these markets, while major markets face economic challenges. In the current fiscal year, Bangladesh earned $42.63 billion from global apparel exports, reflecting a 10.67% growth compared to FY22.
