Bangladesh T-shirts, China’s Prices and UK Imports

Monday 01st of December 2008 03:58:14 PM

Bangladesh T-shirts, China’s Prices and UK Imports

The world garment and clothing industry is vast and this is not just referring to the production of clothes for its own citizens. The export business accounts for trillions of dollars and countries like Bangladesh depend on clothing exports to boost their economy. During these times of extreme economic difficulty, the emerging economies are struggling to compensate for the declines in export orders.

All styles of clothing are made in countries like Bangladesh from t-shirts to trendy jeans. The country’s garment industry manufactures and exports shirts, jeans, sweaters, and t-shirts to name a few of the pieces. Though the global economic conditions have been difficult, the changing currency rates are having a direct impact on the price of exports. China is heavily involved in the garment industry and their prices have been rising steadily due to the financial crisis. As a result, US and European clothing buyers have reduced orders to China and diverted them to countries like Bangladesh.

Bangladesh actually saw a 45% increase in export orders the first quarter ending 9/30/08. Golam Furuq owns one of the Bangladesh companies which produces sweaters and supplies European companies such as UK’s Mark & Spencer Group. He said, “This month I got an unexpected $12 million order to make sweaters for a Swedish manufacturer. They told me in the past they used to give the order to Chinese manufacturers. But this year we offered a far better price.”

The garment industry accounts for up to 80% of Bangladesh exports and sales are growing steadily. Many of the Chinese garment factories have shut down due to rising prices and the appreciation of Chinese currency. What has become a negative economic result for one country has led to an unexpected economic boom in another.

(c )Image by Sanja Gjenero, www.sxc.hu/