Bangladesh is strengthening its position as a key player in the global fashion supply chain as the retail sector recovers. Major international brands are increasingly sourcing from the nation, attracted by its stability, commitment to sustainability, and cost-effectiveness. In FY 2023-24, Bangladesh's RMG exports exceeded $45 billion, fueled by consistent repeat orders and long-term agreements with giants like H&M, Zara, Uniqlo, Primark, and Walmart.
A recent McKinsey report highlights, buyers are shifting more orders to Bangladesh due to its reliability, competitive pricing, and improved ethical and environmental compliance. Unlike some competitors facing economic or political instability, Bangladesh has maintained a steady flow of orders through a combination of cost-efficiency, large-scale production, and a growing focus on sustainability.
The pressure on fashion retailers to source ethically and reduce their environmental impact is driving this trend. Bangladesh offers a compelling solution with over 200 LEED-certified green factories and adherence to international labor standards. Facilities like Viyellatex and DBL Group are exceeding compliance expectations, providing transparency, traceability, and strong Environmental, Social, and Governance (ESG) alignment, crucial for brands meeting regulations like the EU’s Green Deal.
Bangladesh's manufacturing capabilities are also expanding beyond basic garments to include higher-value items such as outerwear, activewear, lingerie, and technical apparel. The development of design support and sampling centers facilitates co-creation with brands, reducing lead times and boosting buyer confidence.
With a skilled workforce, competitive wages, and integrated supply chains, Bangladesh ensures timely and budget-friendly delivery. Ongoing improvements in logistics, including efforts to ease congestion at the Chittagong port, further enhance its appeal. Retailers also benefit from the ability to place low minimum order quantities (MOQs), supporting fast fashion cycles.
The Bangladesh RMG sector is actively investing in innovation, sustainability, and worker welfare, incorporating digital production tools, AI for quality control, and 3D design systems. Buyers are increasingly involved in factory-level training and audits to strengthen partnerships.
Organizations like the BGMEA have launched initiatives like ‘Brand Bangladesh’ to enhance global visibility and trust. The growing alignment between fashion retail demands and Bangladesh's RMG capabilities signifies a new era defined by quality, ethics, and agility.
