|Known popularly as the garment manufacturing stronghold for all major retailers and brands, Asia’s dynamics have changed after the rapid emergence of retail. Be it India, China or for that matter even Bangladesh and Vietnam, retail sector is coming up strongly in these areas lately.
|As per Statista, rural and urban households in China have witnessed a steady growth of disposable incomes, resulting in increased spending power of the Chinese population. With expected market maturity, China is now one of the largest and still growing consumer markets worldwide where foreign and domestic retailers vie strongly for the attention of the Chinese consumers.
|From Bangladesh’s perspective, China is strongly emerging as a potent export destination (being the second largest non-traditional market, which imported apparel products worth US $ 506.51 million in the just concluded fiscal year, up by 29.33 per cent from the previous year) even as other countries are actively looking at making inroads into China.
|Despite the ongoing trade war with USA, China still remains a major player in apparel exports, and has exported apparels worth US $ 700 million to India, recently.
|The emergence of Indian retail sector on the other, especially fashion retail, is nothing short of exceptional!
|As per Technopak Research, the Indian retail market was estimated to be worth US $ 792 billion in 2018, which is expected to reach US $ 2,249 billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 11 per cent. It is also envisaged that the current fashion retail market in India (which is the second largest contributor in the retail industry after food and grocery) is worth US $ 54 billion, which would grow at a promising CAGR of 8.1 per cent for next 10 years to reach US $ 118 billion by 2028.
|The entry of international brands, a large and young consuming population in the country, deeper penetration of the internet, mass media and social media, changes in the population’s preferences from non-branded to branded apparel and a fast-growing economy leading to increased disposable income have converted India into a highly lucrative market.
|Being the neighbouring country, India again holds a lot of importance for Bangladesh. The country’s apparel exports to India (which has emerged as a strong export hub owing to multiple reasons) rose by 79.09 per cent to US $ 499.09 million, the highest growth of apparel registered in the recently completed fiscal year. Knitwear exports to India earned US $ 369.43 million while woven items fetched US $ 129.66 million.
|Even though at nascent stages yet, retail sector in Vietnam is also showing a lot of promise and vibrancy. The country witnessed an influx of major foreign players from countries and territories around the world starting early 2000s, with the trend gaining pace from 2015.
|If South Korea’s Lotte Group (which came in 2008) is expected to have 60 supermarkets by 2020, Japan’s Aeon Mall (which entered in 2009 with its first supermarket in HCM City’s Tan Phu district) hopes to expand similarly over the coming years.
|Analysts say that though Vietnam has put up technical barriers to protect domestic retailers, including the imposition of ENT (economic needs test) permitted by the WTO before allowing foreign retailers to open their second and subsequent outlets in Vietnam, these restrictions are not effective when foreign investors acquire local players or set up joint ventures with them.
|The second biggest apparel exporter globally after China, Bangladesh is also no pushover in retail, at least in light of the recent developments, after a host of global biggies are opening their own-label stores to cash in on the opportunities emerging from Bangladesh.
|Uniqlo, Puma, Decathlon, have their stores in Bangladesh now!
|Decathlon, the French sporting goods and manufacturer and retailer, as a matter of fact, is the latest to join the bandwagon after it opened its store at Uttara in Bangladesh’s capital, Dhaka, recently.
|Expected to become a middle-income country by 2021, the growing economic prowess of Bangladesh and increasing spending power of its citizens, seem to have turned it into an exciting proposition for many big names.
|As of FY ’18, the per capita income (income per person) in Bangladesh increased by 149.07 per cent in last 10 years, showing remarkable success in all socio-economic indicators from 2008 to 2017. The country’s per capita income has reportedly increased to US $ 1,751 per annum in 2017-18 (FY ’18) financial year from US $ 703 per annum in financial year 2008-09 (FY ’09).
|If Decathlon is the latest to make its entry in Bangladesh, Uniqlo sensed the opportunities long back. The world’s third-largest Japanese ‘Fast Retailing Co.’ launched its brand ‘Grameen Uniqlo’ through a joint venture with Grameen Bank Group in 2013. The company currently has 16 Grameen Uniqlo stores in the country. Meanwhile, German sportswear giant Puma has also opened its store in Bangladesh in April this year.
|Add to these are the number of domestic players including names like Yellow (from Beximco), Rookies (Armana Group), Fit Elegance (East West Industrial Park), Amber Lifestyle (Amber Group), O’Code (Energypac), Red Origin (Partex Group) and many more.
|The existing market dynamics thus necessitate regional synergy and evaluation of each other’s strengths and weaknesses to aptly support and cater to the retail sector of this region, which as per many experts, holds key to a brighter future.
|Apparel Sourcing Week 2020 gives you the unique opportunity to meet and explore business possibilities with all the stakeholders from Asia, be it buying houses/brands/retailers or manufacturers and suppliers, while also gaining rare business insights from industry experts and business pundits.
Apparel Sourcing Week 2023, a two-days Sourcing Show not only provides the Asian manufacturers a platform to showcase their products & manufacturing capabilities to the Brands & Retailers from all over the world including India, but also extends them a chance to attend the multiple seminars (headed by industry experts), workshops, open-house discussions and networking opportunities organised during these three days, which would help the manufacturers get a better understanding of Indian and International Retail and evolving dynamics of sourcing in various markets and retail formats.
Apparel Resources is well known for its benchmark publications – Apparel Online, StitchWorld and Resource Guide published from India, Bangladesh & Vietnam. These publications have been around in the industry for over 35 years, supporting, guiding and standing by garment exporters and the retail industry globally, providing them a platform to source better.