Local clothing exporters in Bangladesh anticipate a limited upswing in shipments to Western countries for the upcoming Christmas sales season, primarily due to elevated inflation and a surplus of unsold inventory in American and European retail outlets.
Approximately 60 percent of the garments exported from Bangladesh throughout the year are destined for the Christmas season. However, this year, factories have reported a decrease in the number of work orders received from international clothing retailers and brands.
Leading exporters attributed this outlook to inflation affecting consumers in Western countries.
Furthermore, retailers and brands possess surplus unsold stock of garments from previous Christmas sales, resulting in reduced demand for new apparel items.
A complete recovery from the pandemic-induced slowdown in garment shipments, coupled with the impact of the Russia-Ukraine conflict, might extend beyond the upcoming spring season.
The offered prices from international retailers and brands are exceedingly low, prompting local suppliers to consider rejecting such orders.This situation indicates that local suppliers are prepared to decline work orders with unviable pricing.
While there is a notable influx of inquiries from international retailers and brands, actual work orders have been limited. Therefore, it may take additional time for a substantial increase in work orders to materialize.
Exporters underscored that the challenge of reduced work orders is not unique to Bangladesh. Many garment-exporting nations are grappling with a similar predicament due to inflationary pressures resulting from the pandemic and geopolitical conflicts.
