The nature of competition in the US and EU market

Bangladesh faces tough competition both in us and EU markets. Mention below some of the relatively strong competitions. We have already know that Mexico has become a stronger competitor of Bangladesh in us markets both in knit wear (category H S 61) and woven wear.

(Category HS62) China is a very close competitor of Bangladesh in category 35. (Cotton pajamas). During 1997-99 its average share in the US market (import) was about 5.6% where in that of Bangladesh was 7.17% China creates competitive pressure for Bangladesh in many category including category 363 (cotton terry towels). Category 237(play shirts) category 334(M/B cotton pants), category 350 (cotton bath robs) cat 634 (M/B coats and jackets MMF)Cat 640(W/G pants MMF)category 369(cotton made ups)category 335(W/G cotton coats and jackets) category 341(W/G cotton woven blouses)category 348(W/G cotton pants)category 359(Overalls and other apparels) and category 647(M/B pants MMF)

Hong Kong’s exports of product category 334(men’s and boy’s coat and jacket) compete

With that Bangladesh at the lower end market. HK also competes with Bangladesh in product category 340 (M/B cotton shirt) category 345 (cotton sweater) and category 347 (M/B cotton pants). It may be mentioned that the average unit prices of apparels from Hong Kong are India; Taiwan developed its RMG industry in the 1950 using imported cotton and other raw materials to serve mainly domestic needs.

The industry was made export oriented by the mid sixties because it does not grow cotton. Taiwan has focused on the establishment of man made fibre and assigned high priority to the establishment of backward linkage industries. Taiwan was one of the leading exporters to the US and EU markets during 1980. But it quickly lost ground.

The South Korean apparel industry went though similar cycle as did Japan’s the industry grew rapidly. By 1970 textile and apparel accounted for 41% of Korea’s total exports Korea was the seventh largest supplier of apparels in the US market in 1999, As their exports encountered difficulties in the global markets, Korean garments produces moved to Indonesia, Philippines, Guatemala, Bangladesh and other countries.