Why the world’s second-largest apparel exporter still struggles for fair value in global trade
Introduction
From the child labor debates of the 1990s to the Tazreen and Rana Plaza tragedies, and even through the Russia–Ukraine crisis and U.S. tariff challenges after August 5, Bangladesh’s ready-made garment (RMG) industry has faced every test imaginable.
Yet, through decades of political instability, financial pressure, and relentless buyer demands, our entrepreneurs, employees, and workers have stood together — keeping the country’s largest export engine alive and sustaining its reputation as the world’s second-largest apparel exporter.
‘Made in Bangladesh’ — Pride or Price Tag?
For over 36 years in this trade, I have witnessed a painful paradox.
We produce for the world’s biggest brands, maintaining quality and meeting impossible deadlines, yet “Made in Bangladesh” often becomes a symbol of low price rather than high craftsmanship.
• Global brands fill their stores with our garments but insist on paying less every year.
• We compete against ourselves — cutting prices, not improving value.
• Factories survive, but profit margins shrink, and worker stress rises.
• The benefit goes abroad; the burden stays at home.
This is not just an economic imbalance — it’s a moral imbalance.
Also Read: When Will apparel Prices Really Start Rising?
Why Fair Price Is Still A Dream
Buyer Power vs. Producer Survival
International buyers demand quality, compliance, and sustainability — all essential but they refuse to share the cost.
Fair trade without fair pay is hypocrisy.
Unhealthy Internal Competition
Many factories undercut each other just to secure orders, pushing prices below survival levels. A minimum base price policy is urgently needed.
Rising Local Costs
Wages, utilities, and logistics costs have all increased sharply, yet product prices remain static. Profit is shrinking faster than production grows.
Policy Gaps and Weak Protections
No official Cost of Making (CM) guideline exists, and back-to-back LC systems lack PRC clauses, leaving entrepreneurs vulnerable.
Loan Burden & Political Uncertainty
For decades, unplanned loans and high interest rates have crippled entrepreneurs’ negotiation power. Political unrest adds another layer of uncertainty, eroding confidence and competitiveness.
Insights From Industry Leaders
Robert Antoshak , Vice President of Global Strategic Sourcing & Development at Grey Matter Concepts predicts that by 2026, apparel prices will finally start to rise as production and supply costs catch up with inflation. He explains that the long-standing gap between clothing prices and overall inflation will begin to close, reflecting the real costs in the market.
By 2027, the direction of this price change will largely depend on trade policies and tariffs — whether they help stabilize prices with steady 2–3% annual growth, or create a more unstable and unpredictable market.
In short, clothing prices are going up — maybe slowly, maybe sharply — but the trend is clear. Retailers can’t keep absorbing higher costs, and suppliers can’t keep selling at a loss. When the increases finally reach store shelves, both consumers and company profits will feel the impact.
As part of my ongoing initiative to promote knowledge-sharing under Bunon, I recently discussed this issue with several industry owners, senior executives, and HR professionals. Their thoughts reflect the real challenges behind every export order Bangladesh delivers.
Mohiuddin Rubel, Director, Denim Expert Ltd & Former Director, BGMEA
Rubel highlights the harsh reality that while global buyers demand fair wages, safe workplaces, and compliance, they are unwilling to pay fair prices. Rising labor, utility, and compliance costs must be reflected in product prices; otherwise, sustainability in the RMG sector is impossible.
Nasir Hossain, Senior General Manager, Fortis Group
Nasir stresses that inflation, rising costs, and high energy prices directly impact the garment sector. He calls for fair, transparent, and realistic price negotiations with buyers. Only through mutual understanding and strategic vendor partnerships can timely delivery, quality, and long-term sustainability be ensured.
Md. Rezaul Alam Miru, Managing Director, Galpex Ltd & Former Director, BGMEA
Miru observes that many owners rely too heavily on mid-level managers and lack real knowledge of costing or production. Some factories even take orders just to survive, ignoring profitability. Such unprofessional practices and underpricing harm the overall market and weaken healthy industry competition.
Aleya Aktar, HR Professional (RMG Sector)
Aleya points out that while buyers demand fair wages and compliance, they often reduce prices. She believes worker wages should match inflation, and owners must earn enough to ensure employee well-being. Without fair pricing and a win-win approach, sustainable growth in the RMG sector is impossible.
Also Read: Process for Partial Exporters to Import Duty-Free Raw Materials
The Global Reality — And A Glimpse of Hope
The global apparel market is transforming. Buyers now demand ethical sourcing, environmental compliance, and transparency, yet continue to offer the lowest possible prices.
Recent trade data reveal this growing imbalance
According to the Office of Textiles and Apparel (OTEXA), the average price per garment exported from Bangladesh to the United States fell by 2.20 percent in January, even though total exports to that market rose 45.93 percent year-on-year to $799.65 million.
Likewise, the European Union’s statistical agency Eurostat reports that Bangladesh’s apparel exports to the EU increased 4.86 percent to $19.77 billion in 2024, but the average unit price dropped by 4.84 percent.
The trend extends beyond Bangladesh. The overall unit price of EU-imported garments declined by 6.83 percent, with Chinese garment prices down 8.43 percent, while Vietnamese and Cambodian prices also recorded notable reductions.
Exporters attribute this global price fall to lower cotton, yarn, and fabric costs, as well as reduced shipping rates. However, Bangladeshi manufacturers typically receive lower prices than competitor countries, as they primarily produce low- to mid-value garments and face longer lead times.
Adding to the pressure is unhealthy local competition, with some factories quoting unrealistically low prices merely to secure orders — a practice that weakens Bangladesh’s collective bargaining position.
Between July and February of FY2024–25, Bangladesh’s apparel exports totaled $26.79 billion, of which 50.10 percent went to the EU ($13.42 billion) and 18.91 percent to the U.S. ($5.06 billion) — proof that while export volumes continue to rise, price fairness remains elusive.
Thus, ‘Fair Price’ remains the missing link in ‘Fair Trade.’ It may take another decade before global consumers truly understand the real cost of fashion — the human effort, skill, and resilience behind every single garment made in Bangladesh.
Conclusion
Bangladesh’s RMG industry has already proven its strength — now it deserves its respect. A sustainable global supply chain cannot exist if the producer remains underpaid. It’s time for international buyers, policymakers, and consumers to recognize one simple truth- ‘Sustainability begins with Fair Price.’
About the Author
Md. Salauddin is Director of Reaz Garments Ltd, while also serving as Head of Operations to the Textiles and Garments Merchandise Blog and Bunon, he actively contributes insights on sustainability, sourcing, and industry transformation.
He carries forward a remarkable legacy: his father, Mohammad Reazuddin, founder of Reaz Garments, is widely recognized as one of Bangladesh’s first ready-made garment exporters. In 1978, Reaz Garments shipped 10,000 shirts to France, a milestone that helped lay the foundation of Bangladesh’s RMG industry.
Building on this pioneering heritage, Salauddin combines deep industry knowledge with a commitment to innovation, knowledge sharing, and global competitiveness for Bangladesh’s apparel
very informative article sir
Loved this article! You really captured the reality of how unfair pricing still limits our garment industry. Fair price isn’t just about profit — it’s about respect for the people behind the work. Thanks for speaking up on such an important issue.