Bangladesh’s readymade garment sector is grappling with declining prices set by global brands, jeopardizing sustainability and compliance with labor standards. Manufacturers warn that continuous price reductions could disrupt factory operations and force them to operate at a loss, undermining competitiveness and stability.
In the US market, prices of Bangladeshi-made apparel have dropped significantly from January to September 2024, with cotton knit sweaters down 9.2%, woven trousers by up to 8.4%, and T-shirts by 4.5%. Similarly, in the EU market, prices fell from January to August, including a 8.36% decline for cotton knit T-shirts and decreases of over 6% for other key products like trousers and sweaters.
With price cuts ranging between 5%-8% in the US and 6%-7% in the EU, manufacturers face growing pressure. These trends threaten the industry’s ability to meet buyers’ demands while maintaining fair labor practices and operational viability.
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