Bangladesh eyes Korean RMG market

Bangladesh's bid to expand into new destinations with its potential export items continues with an eye on a bigger slice of the $10.5 billion South Korean apparel market.

As apparel manufacturing increasingly moving out of China because of rising costs_ Bangladeshi entrepreneurs now have the opportunity to grab the Korean market that currently sources 34 per cent of their clothing items from Beijing.

The apparel sector expects to hit the $1 billion mark export to Korea in the current fiscal year with a diverse basket of items like lingerie_ denim_ shirt_ jacket and pullover_ said the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Korean buyers and brands are showing interest in increasing their sourcing from Bangladesh because of the very competitive prices the country can offer.

Since 2017_ Bangladesh's stake in the Korean clothing market has kept on growing but at a slow pace and reached a little over 4 per cent with export earnings at $440 million in the last fiscal year_ according to the Export Promotion Bureau (EPB).

Apparel shipments to the Korean market experienced a positive growth in the last five consecutive years despite the pandemic-led slowdown. Industry owners think that to increase the share of the South Korean market this year_ a big push is needed which will be coming from the shifting orders from China_ Vietnam and Myanmar.

According to EPB data_ apparel shipments to the South Korean market saw about 70% growth to $98.86 million in the first two months (July-August) of the current fiscal year_ while it was $58.28million in the same period of the last fiscal.

Shinsung Tongsan_ a Korean retailer that owns three brands  Topten_ Pulham and Ziozia_ is going to open a sourcing office in Dhaka by October this year_ said the head of business development of a buying house in Dhaka with knowledge of the development.

The retailer_ with an annual sales amounting to $430 million of its Topten brand_ has recently started sourcing knitwear items alongside its main imports_ such as underwear_ denim and shirts. He noted.

Moreover_ Coupang_ the largest e-commerce company based in Seoul_ also dubbed as Korean Amazon_ has started importing garment items from Bangladesh.

To find new buyers and draw in investments_ representatives of RMG owners_ the commerce ministry_ the EPB_ the Bangladesh Bank and Bangladesh Investment Development Authority will go on a seven-day visit to Korea on 22 October.