Post on 19-Aug-2020
Dragon SourcingYour Tailored Approach to Emerging Markets
www.dragonsourcing.com
Study on Sourcing Opportunities inBangladesh
Dec, 2019
22
Table of Contents
− Executive Summary
− Bangladesh – Macro Economics
− Textile & Garments
− Jute & Allied Products
− Fish, Crustaceans & Allied Products
− Footwear
− Raw Hide & Leather Products
© 2019 Dragon Sourcing. All rights reserved.
3© 2019 Dragon Sourcing. All rights reserved.
Executive Summary- Top Export Categories
Legend More than 100 suppliers Between 50-100 suppliers Less than 50 suppliers
Category Top ProductsExport Value
(2018) in USD
CAGR of exports value
(5 years)
% of total export (2011)
Top Export Destinations
Import Duty into EU
Import Duty into US
No of Suppliers
Textile & Garments
Knit Apparel
238 Bil 18% 87%Germany, UK, France,
USA & Spain0%
0% (textile & synthetic
fibers) -28.2% (for products containing
animal hair)
Non Woven
Beddings & Curtains
Vegetable Fiber & Allied Products
Vegetable textile fibers, paper yarn, woven fabric
721.5 Mil 10% 2.7%Turkey, India, China, Pakistan & Belgium
0%
0% (jute products) -
14.5%(wool/fine animal hair)
Yarn of jute or of other textile bast fibres
Woven fabrics of jute
Fish, Crustaceans & Allied Products
Shrimp, Shark fin, Crab 460 Mil 4% 2.5%USA, Belgium, UK,Germany& Russia
0% 0-7.5%
Footwear Footwear 1 Bil 33% 1.5%Japan, France,
Germany, Spain & Italy0%
0%(footwear made on the
base of wood)-37.5%(waterproof footwear of
rubber or plastics)
Raw Bovine Hide & LeatherProducts
Leather Products 88 Mil 1.7% 1.2%Hong Kong, S. Korea, Italy, China & Japan
0% 0-5%
4© 2019 Dragon Sourcing. All rights reserved.
Executive Summary- Emerging Export Products
Legend More than 100 suppliers Between 50- 100suppliers Less than 50 suppliers
Emerging ProductsExport Value
(2018) in Thousand USD
% of total export (2018)
Top Export Destinations Growth RateImport Duty
into EUImport Duty into US
Export Duty
No of Suppliers
Shrimp, Dry Fish 377,226 0.2% USA, Belgium, UK, Germany & Russia 99% 0% 0% 0%
Leather Footwear 695,746 0.4% Japan, France, Germany, Spain & Italy 99% 0%0-37.5%
(depending on specific product)
0%
Textile Footwear 207,836 0.08% Hong Kong, S. Korea, Italy, China & Japan 100% 0%0-37.5%(depending on specific product)
0%
Goat Skin 43,756 0.17% Hong Kong, S. Korea, Italy, China & Japan 100% 0% 3.7% 0%
Iron Waste, Scrap 40,741 0.150% China, USA, India, Belgium & Germany 99.5% 0% 0 -6.5% 0%
Cements 19,944 0.08% India, Nigeria, Italy, UK & S. Africa 53% 0% 0% 0%
Basket work 3,977 0.02% USA, Germany, Austria, UK & Italy 78% 0% 6% 0%
Cigars, cheroots & cigarette 2,578 <0.01%Netherland, USA, Germany, Belgium & S.
Africa98% 0% 23.9¢/kg 0%
Bricks 1281 <0.01% USA, Italy, Turkey, UK & Norway 71% 0% 0% 0%
Leather Sheet & Strips 1215 <0.01% Hong Kong, S. Korea, Italy, China & Japan 100% 0% 4.2% 0%
Mats 291 <0.01% USA, Germany, Austria, UK & Italy 83% 0% 5% 0%
Tiles 284 <0.01% USA, Italy, Turkey, UK & Norway 92% 0% 0-10% 0%
Clay 202 <0.01% India, Nigeria, Italy, UK & S. Africa 79% 0% 0% 0%
Hats 19 <0.01% USA, Canada, Australia, Germany & Brazil 89% 0% 1.4% 0%
Bangladesh- MACRO ECONOMICSSourcing Opportunities in Bangladesh
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– Bangladesh is situated in South East Asia:
+ a population of: ~161 million (2011 statistics) ; 28% population is concentrated in urban areas
+ a surface area equivalent to: ~140,000 Sq Km
+ 92%of total area is land
+ Economy in Bangladesh extremely centralized in Dhaka & Chittagong
+ Major cities are Dhaka & Chittagong
+ 2 main cities:
6© 2019 Dragon Sourcing. All rights reserved.
Population
Dhaka 10.35 million
Chittagong 3.92 million
Growth (2018) Value (2018)
Gross Domestic Product
7.9% USD 274.03 billion
Bangladesh Overview
Source: Bangladesh Bureau Of Statistics
Textile & Garments
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8© 2019 Dragon Sourcing. All rights reserved.
Source: International Trade Centre
Textile & Garments - Market Trends
– The garment industry has become the mainstay of the Bangladesh economy, accounting for more than 80 percent of the country's exports
– Bangladesh's exports in 2018 was close to $40 billion, both and knitted and unknitted apparel
– Export of Garments is increasing at 25 %CAGR .– Cotton consumption has accelerated from 488 thousand
metric tons in 2011 to 700 thousand metric tons in 2017.– The EU imported a 61% share of Bangladeshi knitwear with
USD 3.36 billion exports. – The sector is now capable of supplying 90 per cent of
fabrics for the knitwear sub-sector and 40 per cent of fabrics for the woven sub-sector
– Narayanganj, Dhaka & Chittagong are major locations of this sector.
$90,489,695
$21,164,739
$13,859,283
$11,079,502
$9,522,758
$9,043,113
$8,834,167
$7,561,110
$5,757,457
$63,606,519
- 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000
China
Bangladesh
Viet Nam
Germany
Italy
Turkey
Cambodia
India
Belgium
Rest of the World
HS 61 Series- Knitted Apparel and Accessories in
USD 1000s in 2018
$77,611,859
$18,818,701
$14,324,005
$13,701,102
$12,248,305
$8,752,941
$8,126,006
$6,726,168
$6,262,454
$71,778,651
- 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000
China
Bangladesh
Viet Nam
Italy
Germany
Spain
India
France
Turkey
Rest of the World
HS 62 Series- Apparel and Accessories NOT Knit
in USD 1000s in 2018 Title
Source: Dragon Sourcing Supplier Survey
Supplier Locations
Source: International Trade Centre
9© 2019 Dragon Sourcing. All rights reserved.
Textile & Garments - Suppliers in Bangladesh
– Bangladesh Garment Manufacturers and Exporters Association is major trading body encouraging garment industry.– Germany, UK, France, USA & Spain are the major trading partner of Bangladesh for this sector.– There were about 5 million people employed in this industry in Bangladesh in 2017.– Most companies in this sector have ISO & Other certificates– The strength of the country’s apparel sector is well understood through its ability to supply high-end items to famous global brands such as
Hugo Boss, Adidas, Puma, Tommy Hilfiger, G-Star, Diesel, Ralph Lauren, Calvin Klein, DKNY, Nike, Benetton, IKEA and Mango. Currently, more than 30 per cent of the total RMG export is high-end products. Global retailers like Target and Walmart now operate sourcing offices in Dhaka.
– Import duty is 0% to 15% for most garments & textiles and up to 28.2% for animal hair products in the US while in EU, it enjoys nil import duty
31%
13%
12%6%
5%
4%
3%
3%
2%
2%
19%
Top Importing Countries of HS 62 Series from Bangladesh in 2017
United States of America Germany
United Kingdom Spain
France Canada
Italy Japan
Turkey Belgium
Rest of the World
Jute & Allied Products
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11© 2019 Dragon Sourcing. All rights reserved.
Source: International Trade Centre
Jute & Allied Products - Market Trends
– Bangladesh vegetable fiber market is ranked second in terms of production. It accounts for almost 30% of global production. Jute, also known as the golden fiber is the primary product.
– Bangladesh is the largest exporter of Jute Products and accounts for 80% of world exports.
– Bangladesh benefits from policies such as zero MFN (Most Favored Nation) & EBA( Everything but Arms) tariffs on raw jute, yarn, woven fabric, ropes, carpets, and sacks and bags.
– Jute bags are considered the best replacement to plastic bags as it is environt friendly and this has attributed to an increased demand for jute bags around the world
1,398,649
721,534
522,427
419,620
408,743
269,082
105,961
74,070
69,709
904,757
- 400,000 800,000 1,200,000 1,600,000
China
Bangladesh
France
India
Belgium
Italy
Sri Lanka
Netherlands
Belarus
Rest of the World
HS 53 Series- Vegetable Textile Fibers in USD
1000s in 2018
136,749
123,473
203,570
152,206
130,680
-
50,000
100,000
150,000
200,000
250,000
2014 2015 2016 2017 2018
Bangladesh- Export of Jute in USD 1000s
Source: Dragon Sourcing Supplier Survey
Supplier Locations
Source: International Trade Centre
12© 2019 Dragon Sourcing. All rights reserved.
Jute & Allied Products- Suppliers in Bangladesh
– Bangladesh Jute Association, Bangladesh Jute Goods Association, Bangladesh Jute Mills Association, Bangladesh Jute Mills corporation, and Bangladesh Jute Spinners Association are the major trading bodies encouraging jute industry. Dhaka, Khulna & Chittagong are major hubs of this sector.
– DSL initial research on the supplier listed in trade database indicate presence of around 200 suppliers.– Some companies in sector have ISO certificates.– Major players in the Industry:
1) Dhaka Zone: Pride Mills, Golden Jute, Bangladesh Jute mills, Karim Jute Mills, U.M.C Jute mills.2) Khulna Zone: Aleem Jute Mills, Carpeting Jute Mills, Crescent Jute Mills, Eastern Jute Mills, Jessore Jute, Star Jute3) Chittagong Zone: Amin Jute, Amin Old Field, Gul Ahmed, Hafiz Jute Mills
– Import duty is 0% for Jute products in USA & EU
28%
23%18%
7%
7%
5%
4%4%
4%
Top Importers of HS 53 Series from Bangladesh in 2018 in USD 1000s
United States of America
Germany
United Kingdom
Spain
France
Italy
Canada
Japan
Belgium
Fish, Crustaceans & Allied Products
13© 2019 Dragon Sourcing. All rights reserved.
14© 2019 Dragon Sourcing. All rights reserved.
Source: International Trade Centre
Fish, Crustaceans & Allied Products - Market Trends
– Bangladesh Fishing Industry is largely dominated by crustaceans and shrimps.– The major types of shrimps are Black Tiger shrimp or Giant Tiger Prawn, Giant River Prawn,
Speckled shrimp and Indian White shrimp. – Top exported fishes are Hilsha Shad, Pangasius and Tilapia.– Bangladesh shrimp exports in 2017 accounted for more than 50%, of total fish & shrimp
exports with a value of USD 435 Million The EU was the most important market, accounting for 75% of the total export value.
– The most important markets for frozen fish are the UK, Saudi Arabia, the US and to some extent Italy and China.
4,469,781
3,246,149
2,782,320
2,135,123
1,574,130
1,314,702
1,266,261
1,185,418
1,081,620
1,052,731
650,248
597,377
519,010
494,694
477,894
459,696
453,226
341,748
302,161
268,018
- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000
India
Ecuador
Canada
Viet Nam
Indonesia
Argentina
China
Russian Federation
United States of America
Thailand
Australia
Netherlands
Denmark
Mexico
Spain
Bangladesh
United Kingdom
Belgium
Honduras
Saudi Arabia
Top 20 Exporers of HS 0306- Crustaceans in 2018 in USD
1000s
Source: Dragon Sourcing Supplier Survey
Supplier Locations
377226, 82%
64668, 14%
8496,
2% 4708, 1% 3204, 1% 1389, 0%
Top Export Products Under HS 03 from Bangladesh in 2018 in
USD 1000s & in % Frozen Crustaceans- shrimps and
prawns
Crabs
Other Frozen crustaceans
Frozen crabs
Frozen cold-water shrimps and
prawns "Pandalus spp., Crangon
crangon"Others
Source: International Trade Centre
15© 2019 Dragon Sourcing. All rights reserved.
Fish & Allied Products- Suppliers in Bangladesh
– Bangladesh Department of Fisheries looks after major fishing operation in the country. Production and exports is looked after by 3 organizations viz. Bangladesh Shrimp and Fish Foundation (BSFF), Bangladesh Frozen Food Exporters association (BFFEA) and Bangladesh Aquaculture Alliance (BAA).
– The fisheries sector is a major source of employment; about 10% of the total population (14.50m) is directly or indirectly engaged in the fisheries sector for their livelihood.
– Shrimp production is largely concentrated in the city of Khulna which accounts for 80% of total production.– The production of cultured fish is concentrated around Dhaka, Chittagong, Rajshahi and Khulna. These four divisions represent 83% of
total fish production.– There are 75 EU-approved seafood export establishments in Bangladesh. – Bangladesh falls under the General System of Preferences (GSP) in the EU . Import duty is 0% on most fish products to in USA except for
some between 3%-7.5%.
20%
18%
14%12%
8%
4%
4%
3%
2%
15%
Top Importers of HS 03- Fish and Crustaceans in all forms from Bangladesh in 2017 in USD 1000s
United Kingdom
Netherlands
Belgium
Germany
United States of America
France
China
Japan
Saudi Arabia
Rest of the World
Footwear
16© 2019 Dragon Sourcing. All rights reserved.
17© 2019 Dragon Sourcing. All rights reserved.
Source: International Trade Centre
Footwear - Market Trends
– Bangladesh is major exporter of footwear and textile footwear is increasing its importance due to already developed garment industry
– Leather, resin are the major raw material for footwear– The US is the major market for footwear industry
followed by Belgium, UK, Germany & Russia– The government is encouraging foreign companies to
gain land in Export Trade Zone for footwear industry– More than 90 % of footwear players are concentrated in
Dhaka City region– The Export Processing Zones at present have more
than 23 shoe and leather goods factories
47,135,169
16,806,015
12,250,384
8,573,153
7,115,825
5,113,294
4,272,793
3,900,450
3,326,736
2,846,333
2,823,722
2,534,941
2,333,709
2,212,296
2,093,114
1,562,104
1,555,922
1,248,584
1,132,651
1,040,380
- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000
China
Viet Nam
Italy
Germany
Belgium
Indonesia
France
Netherlands
Spain
India
Hong Kong, China
Portugal
United Kingdom
Cambodia
Poland
United States of America
Romania
Slovakia
Brazil
Bangladesh
Top 20 Exporers of HS 64- Footwear in 2018 in USD
1000s
Supplier Locations
Source: Dragon Sourcing Supplier Survey
18© 2019 Dragon Sourcing. All rights reserved.
Footwear- Suppliers in Bangladesh
– Bangladesh Paduka Prostutkarak Samity (BPPS) and the BangladeshPaduka Byabashayee Samiti (BPBS). BPPS is an association of footwear manufacturing concerns
– The number of production units in the industry now exceeds 2,000. Most units are, however, small and medium in size and only 23 are relatively large and have mechanized and semi-mechanized production technology.
– Major International footwear & retail brand have their sourcing offices in Bangladesh .– Australian manufacturer Bonbon Shoe, a supplier to Hugo Boss, and Xen Chen and Genford of Taiwan, are also
building footwear factories in Bangladesh.– Apex-Adelchi, the largest exporter from Bangladesh also has a new factory that will soon start production.– Import duty is 0 to 37.5% in USA and 0% in EU for Bangladesh footwear products
17%
14%
14%
9%
9%
5%
5%
3%
3%
21%
Top Importers of HS 64 Series from Bangladesh in 2017 in USD 1000s
Germany
Japan
United States of America
Netherlands
Spain
Italy
France
China
United Kingdom
Rest of the World
Raw Hide & Leather Products
19© 2019 Dragon Sourcing. All rights reserved.
20© 2019 Dragon Sourcing. All rights reserved.
Source: International Trade Centre
Raw Hide & Leather Products - Market Trends
– Bangladesh has a long established tanning industry which produces around 2-3% of the world’s leather from a abundant supply of raw materials
– The leather industry is anticipated to cross the $1-billion mark in export earnings by end 2015.
– Italy, New Zealand, Poland, the UK, Belgium, France, Germany, the US, Canada and Spain are the major importers of leather products from Bangladesh
– Local tanners produce four types of leather - rawhide, wet blue, crushed and finished leather. The main exports are crushed and finished leather.
689,282
579,062
474,638
356,988
164,894
146,206
129,759
121,713
121,518
118,716
113,805
104,148
93,779
88,012
79,167
- 200,000 400,000 600,000 800,000
United States of America
Brazil
Argentina
Italy
Thailand
Germany
Uruguay
Taipei, Chinese
Hong Kong, China
Slovakia
Mexico
New Zealand
Spain
Bangladesh
Australia
Top 15 Exporters of HS 4104 Series- Tanned Hides and Skins of
Bovines in 2018 in USD 1000s
Supplier Locations
Source: Dragon Sourcing Supplier Survey
88,012 , 50%70,171 , 40%
7,915 , 5%
5,216 , 3% 1,809 , 1%1,192 , 1%
Top Export Products from Bangladesh under HS 41 Series in 2017 in USD
1000s and in %
Tanned or crust hides and skins of
bovine
Leather further prepared after tanning
or crusting of bovine
Tanned or crust hides and skins of goats
or kids, pigs
Leather further prepared after tanning
"incl. parchment-dressed leather", of
goats Leather further prepared after tanning
or crusting "incl. parchment-dressed
leather", of sheep Other hide under 41 series
Source: International Trade Centre
21© 2019 Dragon Sourcing. All rights reserved.
Raw Hide & Leather Products - Suppliers in Bangladesh
– Leather and Footwear Manufacturers and Exporters Association of Bangladesh. (LFMEAB) and Bangladesh Finished Leather, Leathergoods & Footwear Exporters’ Association (BFLLFEA) are recognized trade bodies that represent most of the major exporters.
– This sector is expected to become the second highest export industry in the next five to seven years.– The labor-intensive leather industry is well suited to Bangladesh which has cheap and abundant labor force– Bangladesh has a domestic supply of good quality raw materials, such as hides and skins are a by-product of large livestock industry.– Adequate government support in the form of tax holidays, duty free imports of raw materials and machinery for export-oriented leather market– There are currently more than 200 tanneries in the country.– Import duty is 0 to 5% for leather products and 12% for garment products in the US
126,850 , 42%
52,185 , 17%
35,480 , 12%
15,729 , 5%
14,453 , 5%
13,730 , 5%
13,301 , 4%
11,674 , 4%
4,358 , 2% 11,233 , 4%
Top Importing Countries of HS 41 Series from Bangladesh in 2017 in USD 1000s and in %
China
Korea, Republic of
Italy
Japan
Viet Nam
Taipei, Chinese
Spain
India
UK
Rest of the World
Dragon Sourcing Contact Information
22
EUROPEAN OfficesDragon Sourcing Paris
50 rue Marcel Dassault92100 Boulogne-Billancourt, FranceTel::+33 (0)1 46 10 36 70Fax: +33 (0)1 46 10 41 14Email: contact.europe@dragonsourcing.com
Dragon Sourcing LondonCommunications House,26 York Street,London, W1U 6PZ, UKTel:+44 (0)844 736 1432Fax: +44 (0)844 736 1430Email: contact.uk@dragonsourcing.com
Dragon Sourcing MunichGeorgenstrasse 81,80798 Munich, GermanyTel:+49 (0)89 23 515 721Email: contact.germany@dragonsourcing.com
Dragon Sourcing TurkeyDeluxia Palace, Barbaros Mh. Sümbül Sk.No: 5 A-Blok Ataşehir – Istanbul, TurkeyTel: +91 0554 754 51 07Email: contact.turkey@dragonsourcing.com
NORTH AMERICAN OfficesDragon Sourcing Houston
4532 Plantation Colony DrMissouri City, TX 77459Phone: 832- 406-0281Email: contact.us@dragonsourcing.com
LATIN AMERICAN OfficesDragon Sourcing Brazil
Vinte e Nove de Janeiro, 17 Vila Jequitibás13026-300 Campinas, Sao Paulo BrazilMobile:+ 55 (19)8246-2655Email: contact.brazil@dragonsourcing.com
Dragon Sourcing MexicoGuadalajara, MexicoPhone:+1 (520) 463-5426
Email: contact.mexico@dragonsourcing.com
ASIAN OfficesDragon Sourcing Shanghai
Suite 1502-1503, Jin Tian Di International Mansion998, Renmin Road – Shanghai, 200021, P.R.ChinaTel: +86 21 61 41 39 55
Fax: +86 21 61 41 39 66Email: contact.asia@dragonsourcing.com
Dragon Sourcing Hong Kong7/F Hong Kong Trade Centre161-7 Des Voeux Rd Central, Hong Kong SARTel:+852 91 80 40 57Fax: +852 25 80 24 26Email: contact.asia@dragonsourcing.com
Dragon Sourcing VietnamC1A Cu Xa Tan Cang, Dien Bien Phu Street,Ward 25, Binh Thanh District, HCM City, VietnamTel:+84 8 35129390Fax: +84 8 35129391Email: contact.asia@dragonsourcing.com
Dragon Sourcing IsraelC 101 Regency Gardens, 1 Ramat Yam Street
Herzlia Pituach 46851, IsraelMobile:+972 54 420 34 80Fax: +972 9 955 71 60Email: contact.israel@dragonsourcing.com
Dragon Sourcing India601 – A – Mota MahalLokhandwalla Complex, Andheri (West)Mumbai 400053 – IndiaMobile:+ 91 9867602535Email: contact.india@dragonsourcing.com
AUSTRALIAN OfficesDragon Sourcing Australia
Level 4, 51 Queen St, Melbourne, Victoria 3000, AustraliaTel: 1300 293 816Mobile:+61 407 585 185Email: contact.australia@dragonsourcing.com
© 2019 Dragon Sourcing. All rights reserved.
The Analysis and Statements in this Report represent the considered views of Dragon Sourcing Ltd (DSL). TheReport includes ‘forward looking statements’ and opinions based on the analyst’s current analysis and judgmentof the Industry. Although DSL believes the outcomes expressed in such ‘forward looking’ statements are basedon reasonable assumptions, such statements are not a guarantee of future performance and actual results ordevelopments may differ materially from those in forward- looking statements. Factors that could cause actualresults to differ materially from those in forward- looking statements include the general economic,environmental, market, business or government conditions. While DSL has made every reasonable effort toensure the veracity of the information presented, it cannot expressly guarantee the accuracy and reliability of theestimates, forecasts and conclusions.
No part of this report may be distributed, copied or reused without prior written permission from DragonSourcing Ltd. Please contact the author should you have any questions.
Bharath Sugumar
Email: bharath.sugumar@dragonsourcing.com
Phone: +1 832 406 0281
23
Disclaimer
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