Apparel exports to Japan on rise


Monira Munni | Published: July 03, 2018 10:39:06 | Updated: July 04, 2018 20:26:15


FE file photo

Bangladeshi apparel exports to Japan have been increasing over the years, thanks to entrepreneurs' relentless efforts to meet the buyers' quality requirements and the government's policy support, industry people said.

They also attributed the rise in exports to Japan's 'China-plus policy' and relaxation of its rules of origin.

Locally-made knitted items have been enjoying duty-free facility in the Japanese market since April 01, 2015 and woven items since April 2011, even though raw materials are imported, they added.

The country exported apparel items worth $787.13 million during July-May of fiscal year (FY) 2017-18, registering a 13.04 per cent growth over the corresponding period of previous fiscal, according to the Export Promotion Bureau (EPB) data.

Apparel exports fetched $ 744.48 million in FY 2016-17, up from $572.27 million in FY 2013-14. RMG export was only $74.33 million in FY 2008-09.

Overall exports reached a billion-dollar mark in FY 2015-16 for the first time and maintained the same trend during the last two fiscal years, according to official data.

Local exporters, however, listed a number of issues as obstacles to exporting apparel to Japan. These included Japanese buyers' zero tolerance policy on quality, timely shipment and language.

Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the growth showed that local exporters are meeting the Japanese buyers' requirements for quality.

"There is no denying that Japan is one of the most important and potential markets beyond traditional ones," he added.

It is also most promising export destination in Asia, he noted.

The size of apparel market in Japan is expected to reach over $ 90 billion by 2021, according to industry insiders.

Japan is the world's third largest apparel importer and the fourth largest apparel market in the world after China, the USA and Germany, they added.

"Japanese buyers are very strict about products' quality. They show no tolerance in this regard as they check products piece by piece," said SM Khaled, managing director of Snowtex.

His company has been exporting mainly sportswear worth $10 million to Japan a year for the last two years.

"It takes time to develop business relations with the Japanese buyers as they wanted to know whether we can meet their quality requirements and make timely shipments," he told the FE.

His group is expecting to get orders worth $30-$40 million from Japanese buyer Alpen.

Language is another barrier to making direct relationship with Japanese buyers, he noted.

As a result, local entrepreneurs get orders through their nominated agents, Mr Khaled said.

Garment makers are getting cash incentives at the rate of 3.0 per cent for exporting apparel to non-traditional markets except the EU, the USA and Canada, experts and officials said.

munni_fe@yahoo.com

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