Apparel Orders Streaming Out from US, EU

Sourcing from Bangladesh began to recover last month, after an increase of orders from the European Union and the United States.

According to a survey conducted by QIMA Supply Chain Compliance Solutions provider, the country's inspection and audit requirements rose by 49 percent year-on-year in June.

South Asia may also see more American business, because nearly 95 percent of U.S. survey respondents indicated they had intentions to change suppliers, with 30 percent choosing for Bangladesh and India.

Moreover, the apparel sector is hoping for a rise in sales in clothes and textile products outlets in the US by 105.1 percent over the month of June, according to data from the National Retail Federation (NRF).

Yet the insiders of Bangladesh's apparel industry are not yet optimistic.

"The US retail sector has not returned to normal; 105% growth is unprecedented as shops have been closed for three months," said Shafiul Islam Mohiuddin, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and a lawmaker.

"We have to observe the situation, as Covid-19 is still out of reach in their region," said Mohiuddin, who is also an exporter to the US market.

SM Khaled, managing director of Snowtex Outerwear Ltd– a leading jacket exporter to the US market – also echoed Mohiuddin's view adding that this was not "real growth."

PPE keeps apparel sector propped up

Throughout the first and especially the second quarter of 2020, personal protective equipment (PPE) production has helped mitigate some of the pandemic's impact on the textile and apparel sector

By now, a number of countries, including China, Vietnam, Bangladesh, Cambodia and Myanmar, have repurposed a share of their apparel manufacturing capacities for PPE production, reports Just Style.

Between January and May 2020, QIMA inspection volumes on PPE items increased 30-fold, with over 1.2 billion face masks inspected in the second quarter.

Entrepreneurs in Bangladesh said that making PPE is a seasonal business, but it requires huge investment. In addition, planning, creating and gaining the requisite qualification for PPE is a lengthy process.

That is why large-scale exports of PPE gowns have not yet begun in the country, although a lot of face masks are being exported.

"Producing PPE is a new business for Bangladesh, but some of our entrepreneurs are already exporting," said Shafiul Islam Mohiuddin.

He said that the government should monitor the quality of such goods as they are meant for export to protect the "image of the country."

Snowtex Managing Director Khaled said he received orders from French buyers for 2,6 million masks, 2 million of which were shipped between May and June. The remaining amount will be shipped in the next few weeks, he added.

"We also got orders to supply 1 lakh PPE gowns to the H&M Bangladesh office, which they will donate as part of their CSR activity. JICA has also asked us to supply 3,000 PPE gowns for its Bangladesh office," he added.

However, all these PPE gowns are intended just for the Bangladeshi market.

"At the same time , buyers are asking for millions of pieces of PPE gowns that need FDA clearance. We should find it for the future because we are now in the peak jacket development season," Khaled added.

He also said that the Canadian ambassador to Bangladesh expressed interest in importing EPP gowns from Snowtex Outerwear.

Asif Ashraf, managing director of Urmi Group, said they have already exported about 1 million masks to France and some to the US.

"The PPE testing and certification process is expensive, but ideally we will shortly obtain certification from the FDA [Food and Drug Administration]," he added.

Asif said that they are in negotiations with several US and EU buyers to supply masks and that the company is also designing a PPE gown for the export market.