According to the United States Fashion Industry Association (USFIA) 2022 benchmarking study, roughly 55% of US apparel executives expressed their interest in increasing sourcing from Bangladesh in 2024.
Approximately 30 leading fashion brands, retailers, importers, and wholesalers participated in the USFIA Fashion Industry Benchmarking Study, including some of the nation’s largest brands and retailers.
A majority of the top ten destinations for apparel sourcing in 2021 were based in Asia. China dominated with 91%, followed by Vietnam (88%), Bangladesh (84%), and India (72%). But this time, buyers are willing to escalate the sourcing value in the upcoming two years. The largest increase was led by India, followed by CAFTA-DR and Bangladesh. Mexico secured fourth place, while Indonesia and Vietnam collaboratively secured fifth place.
CAFTA-DR or Dominican Republic-Central America FTA is the first free trade agreement between the U.S. and a group of developing countries such as Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.
As Bangladesh has developed the capacity in the last few years to produce garment products other than the basic items. Currently, they are placing a lot of orders for knitwear items from Bangladesh. As a result, the export growth of Bangladesh RMG products in the US market in the last few months was more than 50%.
Fazlul Hoque, managing director at Plummy Fashions Limited and former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), validated the report.