Bangladesh’s ready-made garment (RMG) exports to Japan crossed the $1 billion mark in fiscal 2021-22 (July-June) after a decline in the previous two fiscals. But it still accounts for a very small share in the Japanese apparel retail market, which was pegged at $84.30 billion in 2021. Japanese retail market growth is volatile and slow post-COVID.
Bangladesh’s apparel exports to Japan doubled in the last decade, due to exporters’ relentless efforts to meet Japanese standards and the government’s policy support like cash incentive. The rise in exports is also attributed to Japan’s ‘China plus one’ policy and laxity in its rules of origin. Locally made knit items have been enjoying duty-free facility in the Japanese market since April 2011 and woven items since April 2014, although raw materials are imported.
According to data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the country exported apparel items worth $1.098 billion, registering over 16 per cent growth in FY22. This was in spite of several issues raised by Bangladeshi exporters while shipping goods to Japan. These include zero-tolerance policy on quality adopted by Japanese importers, language barrier, and need for timely shipment.
Japan’s apparel retail market is expected to regain $90 billion in 2025 from $84.30 billion of 2021, according to Fibre2Fashion’s market insight tool TexPro. The segment peaked at $93.81 billion in 2019, but it shrunk to $81.50 billion in 2020 due to the dent of COVID-19. The market was recorded at $90.26 billion in 2017, and $92.06 billion in 2018.
Read more about Bangladesh’s RMG exports to Japan at $1bn, but still small supplier
Explore more Textile Trade News