In Bangladesh's next export bet sweater, China is pulling out of the market.

In Bangladesh's next export bet sweater, China is pulling out of the market.

Bangladesh's next bet is on sweaters

Bangladesh's next bet in exports is sweaters, China is moving out of the market Mustafa Golam Quddus set up a sweater factory in 1987 after retiring from police service. Bangladesh entered the global market of sweaters through the production of this factory.

After retiring from police service, Mustafa Golam Quddus set up a sweater factory in 1987. Bangladesh entered the global market of sweaters through the production of this factory. At that time, this market was dominated by China.

Ghulam Quddus brought 43 Chinese experts for his factory. The business community of the country was surprised by the incident. Ghulam Quddus exported products worth 3 million dollars in the first year of its experimental start. Cheung Hing Sweater of Quddus never looked back.

Exports of $300,000 have crossed $400 million over time. The amount of this export is increasing day by day. Bangladesh is gradually increasing its share in the international sweater market.

Now around 400 sweater factories have automated production lines running round the clock. Manual hand flat knitting devices have been replaced by modern and automatic jacquard machines.

Basic knitwear includes pullovers, cardigans, jumpers and mufflers.

According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh's sweater exports have increased by 27 percent over the past six years as China moved away from sweater manufacturing. Exporters say that the growth in this sector is relatively high compared to other products.

With economies reopening after the Covid-19 scare, demand for sweaters has grown enormously. That's why sweater manufacturers are now looking at new investments and factory expansion.

Shahidullah Azim, Vice President of BGMEA, said that five new investments have been made in this sector in 2021. Also several sweater manufacturing units have increased production capacity.

Two entrepreneurs told The Business Standard that they will invest more in sweater manufacturing in the next two years. Shahidullah Azim also expressed hope that investment in sweater production will increase in the coming months.

Mustafa Gholam Quddus had to hire Chinese workers to make sweaters. He said, Bangladesh has won by developing trained local workers.

The former president of BGMEA is now well known for his dragon sweater. She started this knitting and spinning project in 1993 by training local workers.

"Our success has encouraged many to invest in sweater manufacturing and paved the way for bringing modern technology and upgraded machines," he said.

China is moving away from exports, the country's entrepreneurs are expanding business:

The size of the international sweater market is about 10 thousand 4 billion dollars. The largest supplier is China. Besides, other major competitors are Bangladesh, Cambodia, Turkey, Vietnam and Myanmar.

Mohiuddin Alamgir Rommel, managing director of Global Knitwear, said that China is withdrawing from the global sweater market as sweaters are basic knitwear items and production costs are gradually increasing. Bangladeshi entrepreneurs will get huge benefits in the coming years due to this departure of the country.

Designtex Knitwear, which owns three factories, started producing sweaters in the 2000s. Company owner Khandaker Rafiqul Islam is planning to increase investment in sweater production by the end of 2022.

At present more than 8 thousand workers are working in its production units. He told TBS that in recent years, existing factories have increased their capacity rather than building new ones.

Mohiuddin Alamgir Rommel said that his company will also increase investment in the production of sweaters. However, he did not give any details about this investment.

Low cost items dominate the export basket:

Talking to entrepreneurs, it is known that Bangladesh mainly produces low-cost sweater products. Most of the types of sweaters that Bangladesh exports have an export value of US$ 4-6 per unit. However, a handful of factories are exporting small quantities of high value products.

But manufacturing expensive products like "Cashmere Wool Sweater" will increase the export earnings of local producers. A single sweater of this type costs 100-150 dollars. But its raw material is available in China, Mongolia and India. The entrepreneurs said that the product is not produced in Bangladesh.

Mohiuddin Alamgir Rommel said that an entrepreneur tried to make that product in Comilla EPZ but was not successful. However, Bangladesh exports sweaters made of acrylic fiber and some fashionable accessories, so that some additional price can be obtained.

20-25 factories in the country are involved in exporting sweaters on a large scale.

The list includes- Pioneer Knitwear (BD) Limited, Rifat Garments, Square Fashions, Flamingo Fashion, Eurozone Fashion, Pakija Knit Composite Limited, AG Dresses Limited, GMS Composite Ind. Ltd., Nipa Fashion Wear Industry Ltd., AKH Knitting & Dyeing, Aswad Composite Mills, Cotton Club (BD), Matrix Sweaters, Target Sweaters and Rupayan Sweaters.

Shortage of Skilled Sweater Manufacturers:

Even though the domestic sector's sweater exports have been on the rise for more than three decades, the acute shortage of skilled manpower has not left the entrepreneurs behind. Factory owners say that the recent increase in the price of cotton, the main raw material, has also become a big challenge for them.

Besides, they are lagging behind in innovation, setting up design centers and building strong backward linkages.

On top of that, the import of raw materials is being hampered by the complexity of the Harmonized System Code. Entrepreneurs are also facing problems in getting orders from foreign big brands.