Ready to wear orders are shifting from Bangladesh to China
The latest report from QIMA shows that since 2019, the inspection and audit demand of Western clothing buyers in Bangladesh has experienced a year-on-year decrease of 10% for the first time between January and September this year, while in China it has increased by 14%.
The report points out that global clothing brands and retailers are pushing to increase purchases from China and reduce purchases from Bangladesh. The report states that American buyers, in particular, seem to be reducing their purchases of textiles and clothing from Bangladesh.
In addition, due to concerns about economic recession, Western consumer spending is slowing down, and brands and retailers may once again prioritize China as a supplier to leverage its well-established manufacturing system advantages.
The report suggests that Meng actively promote the diversification of export commodities, including synthetic fiber textiles, footwear, leather, household textiles, and electronic products, to protect its exports from future shocks.
In October, ready to wear exports decreased by nearly 14%
It is worth noting that Bangladesh's ready to wear exports experienced a double-digit decline in October this year.
According to the latest data released by the Bangladesh Export Promotion Agency, Bangladesh's ready to wear exports decreased by 13.93% in October, from $3.68 billion in the same period last year to $3.17 billion, according to the Daily Sun newspaper.
In October 2023, Bangladesh's overall exports decreased by 13.64% compared to the same period last year.
Faruk Hassan, Chairman of the Meng Garment Manufacturers and Exporters Association, stated that on the one hand, the historic high inflation caused by the war between Russia and Ukraine has led to sluggish sales and demand. In order to curb inflation, developed economies have raised bank interest rates, further limiting the purchasing power and demand of consumers; The war between Israel and Hamas has further exacerbated the crisis. On the other hand, the ongoing labor unrest surrounding the issue of minimum wage has seriously disrupted the industry in the past week.
Supply exceeds demand, Bohui Textile produces 100000 pieces per month
"Da da da..." Walking into the clothing production workshop of Shi Bohui Textile Co., Ltd. located in Liubei District Industrial Park, Liuzhou City, Guangxi, the sound of the sewing machine rotating has been ringing in my ears. Cutting fabrics, opening buttonholes, sewing edges... The workers are working tirelessly in their respective positions. "We are rushing to produce winter clothing orders, and in recent months, workers have been producing an average of 100000 pieces of clothing per month," said Yang Wenzhen, the general manager of the company. The colder the temperature, the more motivated the company is. Currently, the company's winter clothing orders have entered the scheduling stage, and there is no chance to "cut in line". "At present, our workshop still needs to expand recruitment by about 80 people to meet production needs."
"In the past two months, the company's revenue has increased by 30%, with autumn and winter clothing accounting for 25%." Yang Wenzhen said that both online and offline approaches have been taken, and the supply of autumn and winter clothing sold within the company, such as assault jackets and home clothing, has exceeded demand. The factory also needs to work overtime to rush customer orders.
Export growth to Russia exceeds 50%
According to today's Russian television website on November 7th, the trade volume between Russia and China increased by over 25% year-on-year from January to October this year, reaching $196.5 billion for the first time.
According to the prediction of the Russian Federal Customs Administration, the total trade volume between Russia and China for the whole year of this year may significantly exceed the $200 billion level originally planned by the two countries in 2024.
Container xChange, a container trading and leasing platform company based in Hamburg, Germany, released a research report on September 28th stating that China's exports of goods to Russia are increasing at an astonishing rate, with an additional 150000 containers waiting to be returned to China at Russian ports.
According to customs data, China's exports to Russia in the first 10 months were $90.1 billion, a year-on-year increase of 52%. By country, the volume of China's exports to Russia in the first 10 months has surpassed Germany and Australia, slightly less than exports to India. Russia has raised its ranking among China's trading partners from 10th to 6th in less than a year.
