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)
Total apparel shipments fell by 2.66 per cent year on year to $425.44 million in January 2026, compared with $437.07 million in the corresponding month of 2025. The performance underscored uneven global demand conditions that continue to influence sourcing patterns and order flows for Sri Lankan manufacturers.
Sri Lanka’s apparel exports declined 2.66 per cent YoY to $425.44 million in January 2026 amid weak global demand.
Shipments to the US and EU softened, while the UK remained stable with slight growth.
Other markets saw sharper contraction.
JAFF highlighted DCTS benefits and tariff changes while suggesting diversification and efficiency to sustain competitiveness.
Exports to the United States, the country’s largest market, decreased by 2.73 per cent to $165.11 million, while shipments to the European Union excluding the United Kingdom, declined by 1.93 per cent to $126.99 million. In contrast, exports to the UK remained broadly stable, rising marginally by 0.23 per cent to $61.71 million. Apparel shipments to other markets dropped more sharply by 6.07 per cent to $71.63 million.
JAAF noted that the UK’s steady performance offers a constructive signal for the sector, particularly as the revised Developing Countries Trading Scheme (DCTS), effective January 1, 2026, is expected to enhance sourcing flexibility and strengthen Sri Lanka’s competitive position in the British market.
The industry body also highlighted the introduction of a uniform 10 per cent temporary tariff in the US market as a relatively supportive development, reducing the impact of previously higher country-specific rates and providing greater short-term pricing predictability for exporters.
Commenting on the January outcome, JAAF said the moderate decline reflects ongoing volatility in global demand. The association emphasised that the industry remains committed to reinforcing resilience through market diversification, product innovation and operational efficiency, while collaborating with stakeholders to sustain Sri Lanka’s standing as a reliable apparel sourcing destination.
Fibre2Fashion News Desk (KUL)
Profitability remained robust despite a more challenging trading backdrop. Group EBIT stood at €913.4 million, broadly stable year on year (YoY), translating into a 29.2 per cent margin versus 29.5 per cent in FY24. Net profit reached €626.7 million compared with €639.6 million a year earlier, reflecting higher net financial expenses, while maintaining a 20 per cent margin.
Moncler has reported revenues of €3.13 billion (~$3.69 billion) in FY25, up 3 per cent at constant exchange rates, with net profit of €626.7 million (~$739.5 million).
Asia led regional growth, while DTC channels strengthened across brands.
Q4 revenues rose 7 per cent, driven by robust Moncler and Stone Island performance, as the group prepares for continued investment and leadership transition.
Regionally, the group recorded strong momentum in Asia, where revenues rose 7 per cent at constant exchange rates to €1.42 billion, supported by demand in China and Korea and a recovery in tourist flows. The Americas increased 5 per cent to €391.1 million, whereas Europe, Middle East and Africa (EMEA) declined 3 per cent amid subdued tourism-related traffic, Moncler said in a press release.
Channel performance highlighted the continued shift towards direct engagement. Moncler’s direct-to-consumer (DTC) revenues rose 4 per cent to €2.36 billion, accounting for nearly 87 per cent of brand sales, while wholesale declined 4 per cent as the group continued to enhance distribution quality. Stone Island’s DTC channel expanded 11 per cent to €226.4 million, whereas wholesale decreased 4 per cent.
The group’s financial position strengthened further, with net cash reaching €1.46 billion at year-end after dividend payments of €353.2 million. The board proposed a dividend of €1.4 per share and approved the consolidated sustainability statement.
Remo Ruffini, chairman and CEO of Moncler, said: “Moncler and its board of directors wish to express their most sincere thanks to Gabriele Galateri di Genola for his dedication and the highly valuable contribution he has made throughout his more than ten-year term of office. His significant experience, the vision developed over many years in senior leadership positions at leading industrial and financial organisations, as well as his constant commitment to good governance, have represented a key point of reference for our work. With gratitude, we extend our best wishes to Gabriele Galateri di Genola for the future.”
In the fourth quarter (Q4), the group delivered accelerated momentum, with revenues rising 7 per cent at constant exchange rates to €1.29 billion (~$1.52 billion). Moncler brand revenues reached €1.17 billion, up 6 per cent, while Stone Island posted €123.1 million, surging 16 per cent with double-digit growth across all regions.
Moncler’s DTC channel advanced 7 per cent despite a demanding comparable base in the quarter, supported by Asia and the Americas, while wholesale returned to growth, rising 2 per cent. Stone Island recorded broad-based acceleration, with DTC revenues increasing 16 per cent and wholesale climbing 17 per cent, partly reflecting delivery timing shifts from the previous quarter.
Looking ahead, the group emphasised continued investment in brand development and organisational strengthening, including the appointment of Leo Rongone as group chief executive officer from April 2026, as it seeks to sustain long-term growth and value creation.
Fibre2Fashion News Desk (SG)
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