Fashion
Bangladesh apparel faces its toughest stress test amid war disruption
The sector has navigated shocks before, including price wars, factory compliance reforms, political instability and swings in global demand. What makes the current moment different is the simultaneity of pressures. Financial strain, weakening export momentum, rising competition and geopolitical disruptions are emerging at the same time, just as Bangladesh approaches a major transition in its global trade status.
According to export performance data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), compiled from Export Promotion Bureau (EPB) statistics, Bangladesh’s ready-made garment (RMG) exports reached $**.** billion between July **** and January ****, accounting for about ** per cent of the country’s $**.** billion merchandise exports. The International Labour Organization estimates that the export-oriented garment sector employs around * million workers, highlighting the scale of an industry central to Bangladesh’s economy.
On a year-on-year (YoY) basis, final demand prices climbed 3.4 per cent in the 12 months ended February, matching the largest annual increase recorded in February 2025. Margins for apparel, footwear, and accessories retailing declined by 4.5 per cent, BLS said in a press release.
US producer prices rose 0.7 per cent MoM in February 2026, with annual inflation at 3.4 per cent.
The increase was driven mainly by services, up 0.5 per cent, while goods prices climbed 1.1 per cent, led by energy.
Apparel retail margins fell 4.5 per cent.
The data signals broad-based wholesale inflation, with sustained pressure despite weakness in select consumer-facing segments.
The February rise was driven largely by services, which accounted for more than half of the overall increase. Prices for final demand services advanced 0.5 per cent, marking the third consecutive monthly gain. Within this category, prices for services excluding trade, transportation, and warehousing rose 0.6 per cent, contributing nearly three-fourths of the increase. Trade services and transportation and warehousing services also posted gains of 0.4 per cent and 0.5 per cent, respectively.
Meanwhile, prices for final demand goods rose 1.1 per cent in February, the steepest increase since August 2023. Energy prices also increased by 2.3 per cent, while prices for goods excluding food and energy registered a more modest rise of 0.3 per cent.
Fibre2Fashion News Desk (SG)
During the period, apparel imports declined by *.** per cent to **,***.*** million SME from **,***.*** million SME in ****. Imports of textiles (non-apparel) reached **,***.*** million SME in ****, marking a decline of *.** per cent compared with **,***.*** million SME in ****.
The import volume of cotton products fell by *.** per cent to **,***.*** million SME during the review period, compared with **,***.*** million SME a year earlier. Meanwhile, imports of man-made fibre (MMF) products decreased to **,***.*** million SME in ****, down from **,***.*** million SME in ****.
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