The export sector might face difficulties in the next year considering the second wave of Covid-19 which hit western countries badly.
Some of the EU countries isolated themselves from the rest of the world to protect their people. Those people have not even celebrated Christmas. That must affect their sales, which will hinder our export earnings.
Major markets reduced their orders placement ratio while prices of apparel items dropped significantly, sometimes going below the average cost of production.
Some apparel entrepreneurs are running their units at 60% to 70% production capacity. Many others have orders below that level.
Those entrepreneurs now need to adapt new strategies for their survival. Otherwise, they will be out of the race.
They must increase their efficiency and productivity, and be more careful while taking orders considering production cost.
Entrepreneurs may talk with their banks for another period of moratorium on interest payments to prevent unwanted cuts in jobs and wages.
As a need-based low-value apparel manufacturer, Bangladesh enjoys an advantage. During pandemic we saw some brands like Walmart having huge sales and they also placed more orders in Bangladesh.
Covid vaccines have come more quickly than previously thought, raising hopes of global recovery.
If it can be made available for senior citizens, frontline fighters and essential service providers in western countries, their businesses will return to normal gradually.
We are heavily dependent on business normalisation in western countries, which depends on the availability of Covid vaccines.