Fashion
Bangladesh plans to boost apparel exports to Japan
For apparel-producing countries, Japan’s expanding market presents an attractive opportunity, and Bangladesh, one of the world’s leading garment exporters, is increasingly seeking to strengthen its foothold in this market.
With Japan reportedly reducing its reliance on China, Bangladesh apparel exporters see an opportunity to boost RMG exports to Japan.
The ongoing Bangladesh–Japan Economic Partnership Agreement (EPA), expected to conclude by the end of 2025, which aims to lower tariffs and ease trade processes, is expected to give a further boost to Bangladesh’s exports to the lucrative Japanese market.
Bangladesh apparel makers are turning their focus towards Japan at a strategic time. With negotiations for a Bangladesh–Japan Economic Partnership Agreement (EPA) already underway and expected to conclude by the end of 2025, both nations are seeking to deepen their trade and investment ties. The EPA aims to create a framework that would lower tariffs, simplify trade procedures, and facilitate greater market access for Bangladeshi products.
For Bangladesh, the economy of which relies heavily on readymade garments, the EPA represents an opportunity to expand exports and diversify beyond its traditional export strongholds of the United States and the European Union.
Industry leaders believe that with the EPA, rising Japanese interest in the China Plus One sourcing strategy, and Bangladesh’s increasing focus on quality and sustainability, the country now stands at a pivotal moment to increase its apparel exports to Japan.
Even though China remains Japan’s largest supplier of apparel, its dominance has been gradually eroding. Estimates suggest that China’s share in Japan’s apparel imports dropped from over 55 per cent in 2022 to about 46.88 per cent in early 2025.
Interestingly, this decline has not been accompanied by a fall in Japan’s total apparel imports, indicating that Japanese retailers are not cutting back on demand but are instead diversifying their sourcing networks.
The growing interest in the ‘China Plus One’ strategy—under which Japanese companies seek to reduce dependence on China by sourcing from alternative locations—has positioned Bangladesh as a viable and competitive option for sure even if Bangladesh’s apparel exports to Japan have also shown consistent growth over the past few years, reflecting both the shifting dynamics in Japanese sourcing and Bangladesh’s increasing competitiveness.
As per some estimates, Bangladesh’s exports rose from $944.82 million in the fiscal 2020–21 to $1.41 billion in 2024–25, while industry observers noted that this upward trajectory highlights a strong foundation for further expansion, particularly as Bangladeshi manufacturers invest in quality and value-added production to meet Japanese standards.
The Japanese fashion market is often described as one of the most challenging in the world, with consumers who value craftsmanship, attention to detail, and durability over mass-produced, low-cost alternatives.
This presents both a challenge and an opportunity for Bangladeshi exporters. “Japan’s fashion market is unique in the sense that gaining Japanese buyers’ trust is not that easy,” said one apparel manufacturer, adding, “The market is driven by a sophisticated consumer base that values craftsmanship, and the emphasis on quality is extremely high. Long-term communication and consistent efforts are essential to building trust and successfully entering the Japanese market.”
To cater to such expectations, many Bangladeshi garment factories are enhancing compliance, upgrading technology, and focusing on sustainability—factors that align well with Japan’s growing preference for ethical and environmentally responsible production.
Japanese buyers, known for long-term partnerships once trust is established, often prioritise reliability and transparency across the supply chain and recognising this, Bangladeshi entities are working to strengthen their reputation through improved product standards, timely delivery, and investments in eco-friendly production processes.
Industry insiders believe that the combination of Japan’s sourcing diversification, the upcoming Economic Partnership Agreement, and Bangladesh’s improving manufacturing capabilities will open new growth opportunities in the lucrative Japanese market.
While challenges remain in meeting Japan’s stringent quality benchmarks and cultural expectations, the potential rewards are significant, and by demonstrating reliability, consistency, and commitment to sustainability, Bangladesh can position itself as a key partner in Japan’s apparel supply chain, claimed the industry insiders, to wind up on a positive note.
Fibre2Fashion News Desk (DR)
The company said the agreement marks a key milestone in its transformation journey, reflecting continued support from capital partners.
Saks Global has secured $500 million in exit financing under a restructuring support agreement as it progresses through Chapter 11, targeting emergence by summer.
The company is advancing its reorganisation plan, strengthening brand partnerships and inventory flows, with over 650 brands resuming shipments.
Improved inventory has boosted customer engagement, while it aims for double-digit EBITDA margins.
“Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners’ confidence in our go-forward vision,” said Geoffroy van Raemdonck, CEO at Saks Global.
Saks Global is currently engaging with stakeholders on a formal Plan of Reorganisation, expected to be filed in the coming weeks. The retailer aims to emerge from Chapter 11 by summer with a strengthened financial structure, targeting double-digit adjusted EBITDA margins and long-term sustainable growth, the company said in a press release.
The company plans to leverage an integrated retail model, combining optimised physical stores in key luxury markets with distinct e-commerce platforms and remote selling capabilities. It also intends to enhance its curated product offering through stronger brand partnerships and deeper customer insights.
Operationally, Saks Global reported progress since filing for bankruptcy protection. Over 650 brand partners have resumed shipments, unlocking $1.5 billion in retail receipts and covering more than 90 per cent of expected inventory for the first quarter of fiscal 2026. March inventory receipts rose 18 per cent year on year (YoY).
Improved inventory flow has translated into stronger customer engagement, with spend per store visit increasing 6 per cent and online conversion rising 11 per cent. The company also noted gains in full-price selling across its banners, including Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
“As we advance the restructuring process, our focus remains on strengthening brand relationships and delivering personalised luxury experiences,” added van Raemdonck, highlighting confidence in completing the restructuring with sufficient liquidity and positioning the business for future growth.
Fibre2Fashion News Desk (SG)
Following talks between his CDU party and its coalition partners, Chancellor Friedrich Merz said his government has decided to cut the tax on petrol and diesel by around 17 euro cents ($0.19) for two months.
Germany yesterday announced a €1.6-billion ($1.9-billion) fuel price relief package for households and businesses struggling with the energy shock triggered by the Middle East conflict.
Chancellor Friedrich Merz said his government has decided to cut the tax on petrol and diesel by around $0.19 for two months.
The funds for the relief measures would be financed by higher taxes on tobacco.
The announcement followed another surge in oil prices after the US-Iran peace talks collapsed and US President Donald Trump’s decision to blockade the Strait of Hormuz.
The war “is the root cause of the problems we face in our own country”, said Merz, stressing that Berlin is doing all it could to try to end the conflict.
“This will very quickly improve the situation for drivers and businesses in the country, and above all for those who, mainly for professional reasons, spend a great deal of time on the road,” he told a news conference in Berlin.
The funds for the relief measures would be financed by higher taxes on tobacco, a finance ministry spokesman was cited as saying by global newswires.
Employers can also pay staff tax-free bonuses of up to €1,000 ($1,170) to mitigate the impacts of inflation, which has already started rising in Germany, the government announced.
“At the same time, we cannot offset every single outcome on the market with government funds… The state cannot absorb all uncertainties, not all risks, not all disruptions in global politics,” Merz cautioned.
He said the war’s effects are likely to last long. “The German economy will face a significant burden over an extended period,” he added.
Fibre2Fashion News Desk (DS)
At the same time, growing demands on fiscal policy require governments not only to respond to immediate shocks, but also to support growth, facilitate structural transformation and reduce poverty and inequality over the medium to long term, it noted.
With fiscal positions weakened and policy space narrowed, ASEAN+3 policymakers must safeguard fiscal sustainability and rebuild buffers, the ASEAN+3 Fiscal Policy Report 2026 said.
Governments should also support growth, facilitate structural transformation and reduce poverty and inequality over the medium to long term, it noted.
Particular attention should be given to liabilities outside the budget.
ASEAN+3 comprises members of the Association of Southeast Asian Nations, along with China, South Korea and Japan.
These competing demands are compounded by sluggish revenue growth and rigid budget structures. Addressing these challenges will require stronger fiscal management frameworks, including improvements in risk management, fiscal aggregate management, strategic resource allocation, spending efficiency and revenue mobilisation.
The report also highlights the importance of comprehensive fiscal risk management, urging policymakers to strengthen the identification, assessment and disclosure of fiscal risks.
Particular attention should be given to liabilities outside the budget, including borrowing by off-budget public entities and government arrears.
Systematic monitoring and proactive management of contingent liabilities are essential, especially those related to government guarantees, public-private partnerships, state-owned enterprises and social security obligations, the report remarked.
Enhancing fiscal aggregate management, alongside improving strategic resource allocation and spending efficiency, will be critical to meeting rising expenditure demands in line with national priorities, while safeguarding fiscal sustainability and rebuilding buffers, it added.
The report further encourages policymakers to implement comprehensive and durable revenue-enhancing measures, including strengthening tax administration—particularly through digitalisation—rationalising tax expenditures and advancing structural reforms to major taxes.
Fibre2Fashion News Desk (DS)
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