Despite the global financial recession, many international buyers are heading to Bangladesh, thanks to China, Bangladesh’s main rival, as Chinese clothing is no longer attractive due to higher prices.
China is no longer interested in labor-intensive industries such as the textile and apparel sectors due to the current appreciation of the yuan against the dollar and high wages, a local buyer in Bangladesh said in Dhaka.
Recently, almost all well-known international retail giants, including Wal-Mart, JC Penny, Marks & Spencer, H&M, Tesco, GAP, Li&Fung, Puma, and G-Star, have increased their purchases from Bangladesh.
The recent change in procurement situation is due to the fact that Chinese clothing is not cost competitive, and Bangladesh has become a crucial destination for international clothing buyers.
The strong presence of international apparel buyers in Bangladesh dwarfs the growth of local sourcing agencies as international buyers focus on direct sourcing from manufacturers.
As of May, at least more than 200 new purchasing agencies have opened in Bangladesh. In 2007, the number of such purchasing agencies was only 150, said the vice president of the Bangladesh Garment Purchasing Agency Association.
Some international procurement giants, such as the Swedish IKEA company, have established liaison offices in Dhaka to realize any direct business transactions with manufacturers.
