A new study predicts Bangladesh’s garment industry could capture a lucrative slice of the online clothing market in the US, EU, and Africa by 2027. This is worth $489 million in additional business.
But to claim this windfall, the study says Bangladesh needs to establish a framework for international e-commerce platforms. This virtual marketplace would streamline international trade, cutting costs and lead times while eliminating middlemen.
By 2026, the combined value of online garment markets in these regions is expected to reach a staggering $308 billion. The study estimates that Bangladesh could snag 0.2% of the US market, 0.1% of the EU’s, and a healthy 0.75% of Africa’s online garment trade.
Virtual marketplaces will make Bangladeshi garment suppliers more competitive by simplifying procedures, reducing costs, and connecting them directly with wholesalers, retailers, brands, and even consumers.
BGMEA President Faruque Hassan emphasizes the need for government support in building these virtual platforms. Simplifying regulations would empower local businesses to establish virtual marketplaces and capture a significant share of the booming online garment trade.
Numerous virtual marketplaces in Bangladesh haven’t yet opened their doors to international customers. Additionally, Bangladeshi suppliers face challenges shipping goods to Western nations due to the ongoing Red Sea impasse. In the fiscal year 2022-23, Bangladesh exported garment items worth $46.99 billion, according to data from the Export Promotion Bureau. This boost can contribute to the govt’s target of $100 billion in exports.