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Bangladesh’s ready-made garment manufacturers have long emphasised expansion into non-traditional markets, but export earnings from those destinations have barely budged over the past five years.

According to the Export Promotion Bureau data, RMG export earnings to non-traditional markets stood at $5.08 billion in the financial year 2020-21 and reached $6.44 billion in FY25.

According to the EPB data, RMG export earnings from non-traditional markets were $6.37 billion in FY22, $8.37 billion in FY23, and $6.09 billion in FY24.

The earnings from the non-traditional market represented approximately 14 per cent–16 per cent of the total RMG exports.

Industry insiders said that purchasing orders for small quantities, a lack of proper market analyses, research, and exporters’ West-centric mentality are responsible for this stagnation.

They also said that although efforts continue, they face myriad challenges in those markets, including changing trade trends and tariff regimes, as well as regulatory hurdles in dozens of destination countries.

In the context of Bangladesh›s RMG exports, non-traditional markets include Japan, Australia, India, China, South Korea, the United Arab Emirates, Malaysia, Brazil, Mexico, and several other countries.

The United States, countries of the European Union, the United Kingdom, and Canada are regarded as traditional markets.

Exporters stated that focusing on the non-traditional markets is all the more crucial now, in light of evolving global trade dynamics, the imposition of reciprocal tariffs by the United States on Bangladesh’s exports, and the impending graduation from the status of a least developed country.

Under the US reciprocal tariff regime, Bangladesh initially faced a 37 per cent duty rate on its exports. Later, a 35 per cent rate was announced, though further negotiations reduced it to 20 per cent.  

Moreover, Bangladesh is slated to graduate from the LDC category in November 2026, making formalisation of trade relations and diversification of markets ever more pressing.

Speaking to ¶¶Òõ¾«Æ·, Kutubuddin Ahmed, founder and chairman of Envoy Textiles Ltd., said that they are primarily focused on two major markets—the EU and the US—due to the high order volumes.

He also said that small-quantity orders are not viable unless buyers are willing to pay higher prices, as the cost of producing smaller orders is higher than that of bulk production.

‘Most factories are not prepared to handle small-quantity orders, while new markets usually begin with smaller volumes,’ he added.

He also said that the sector also lacks adequate research on new markets—particularly regarding customer culture, fashion trends, and weather conditions.

Currently, most business is done by following buyer-provided samples, which he described as ‘copying their designs.’

On the other hand, Bangladesh lacks state-level market research initiatives, whereas China undertakes such efforts at the national level.

Ahmed also warned that without proper market research and diversification, Bangladeshi enterprises would face significant challenges after the country’s graduation from LDC status.

According to the EPB data, earnings from the non-traditional market stood at $6.44 billion in FY25, which accounted for 16.36 percent of Bangladesh’s total RMG exports.

Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association, stated that Bangladesh’s exports to non-traditional markets are stagnant primarily due to a lack of proper research and analysis.

‘We also have a West-centric mentality, for which a number of exporters are reluctant to research the trends and demands of the nontraditional market destinations,’ he added.

He also said that the major portion of the exporters heavily rely on third-party buying houses, and the buying houses couldn’t conduct any proper research on market diversification.

‘The association and the government must step up in this regard. The government should enact all missions and embassies in nontraditional markets to keep contributing,’ he added.

There are many challenges, including different tariff regimes and varying trends and choices, he added, noting that the government and the sector must identify the major barriers.

‘The barriers might be financial, tariff-related, design-related, or even lead time-related. We have to work on these specifically,’ he added.

Earlier, BGMEA president Mahmud Hasan Khan Babu told ¶¶Òõ¾«Æ· that they have been working to increase their exports for over a decade.

‘However, as a single market, each destination is comparatively small and there are also tariff-related and other challenges in those markets,’ he added.

Many insiders believe that if exporters can export RMG items worth $10 billion to non-traditional markets in the coming years, it could alleviate their overreliance on the US market, which has already become saturated.

The manufacturers stated that there are also some challenges in non-traditional markets, including payment issues with Russia, land port issues with India, and design issues in the Middle East.

Moreover, there are also challenges, such as a complex tariff regime.

‘Although Bangladesh imports cotton from Brazil with zero duty, the RMG products face a 30 per cent-35 per cent tariff in the Brazilian market,’ said Mahmud Hasan Khan Babu.

He also stated that if they urged a duty waiver, Brazil would seek to export meat to Bangladesh, which is almost impossible given the current agricultural situation in Bangladesh.

He also mentioned that there are some design and branding-related issues associated with exporting to the Middle East.

To address the challenges, they urged the exporters to focus on design studios, negotiations, research, and development.

They also said that the country must focus on signing free trade agreements or preferential trading agreements with nontraditional destinations to smooth export lines.