As per the data from the Export Promotion Bureau (EPB), in FY ’23, Bangladesh earned US $ 5.94 billion through sweater exports, up from US $ 5.64 billion in FY ’22. This represents a growth of 5.33 per cent. This growth in the sweater category is slightly less than the overall growth of the RMG business but the industry is gearing up to scale its market share in the coming months with specific strengths and strategies.
One of these players is the reputed company Aurum Sweater. The company, part of the New Asia Group, currently operates with almost 402 machines and plans to add 400 more in the next few years. Amer Salim, Director of Aurum Sweater, shared that the company’s focus on value-added sweaters, a strong emphasis on automation and accommodating lower MOQs are key to their growth.
Shifting orders from China is an opportunity
Aurum Sweater is well aware of the evolving business landscape and is prepared to adapt to changes. According to Amer, countries like Turkey, Myanmar and even Bulgaria are growing in sweater manufacturing. However, there are favourable conditions for Bangladesh too, with orders increasing recently, likely due to restrictions on China by some international buyers.
“To overcome all kinds of challenges, we are banking on automation, product development and being ready well in advance for opportunities by further increasing capacity. We don’t compete with Bangladeshi manufacturers but with Chinese manufacturers, so we focus on all aspects, including product development, quality raw materials and state-of-the-art infrastructure,” he told Team Apparel Online Bangladesh.
The company’s existing customers are pushing it to expand capacity and the expansion will include a mix of top-branded and high-quality Japanese and Chinese machines.
High-end, innovative products make Aurum stand out
Working with top brands like Decathlon and Guess, Aurum Sweater is the largest sweater supplier for Guess globally. It stands out by focusing on high-end, stylish sweaters rather than competing with manufacturers that produce large quantities of cheaper products. The advanced knitting set-up allows the company to create intricate patterns and lightweight fabrics without compromising on warmth or quality. By staying attuned to market trends and adapting its product lines accordingly, Amer ensures they can meet the evolving needs of their customers, maintaining their position as a leader in the high-end sweater market.
The company’s specialisation has earned it a push from buyers, even as other factories in Bangladesh approached its clients. These clients returned to Aurum Sweater, recognising that the expertise in attachments, embellishments and handwork sets it apart from competitors.
“Our product development, value addition and overall product offering are backed by strong market research and trend analysis. Our approach to specialising in creating detailed and high-quality designs allows us to use our strengths in design and craftsmanship to offer something unique in the market. It also gives a competitive edge to the company,” averred Amer.
He further mentioned a notable trend: the shift towards ‘lighter gauge’ sweaters. Changing consumer lifestyles and fashion trends have led to a preference for lighter, more versatile sweaters. These lighter garments are not only more comfortable but also suitable for a broader range of climates and occasions, aligning with the increasing demand for multifunctional clothing.
Foraying into woollen sweaters
Various reports suggest that globally around US $ 20 billion worth of woollen garments are sold annually, with this figure predicted to grow by 5.5 per cent each year. Consequently, Bangladesh has the potential to export US $ 1 billion worth of woollen sweaters by 2030, up from the current US $ 100 million, as the global market for such items is expanding rapidly due to product diversity.
This trend also benefits Aurum Sweater, as wool continues to be a cornerstone of the company’s product offerings. Despite its higher costs compared to synthetic fibres, wool is valued for its natural properties such as breathability, insulation and durability. These qualities make wool an ideal material for high-quality sweaters, crucial for Aurum Sweater’s positioning.
The company works with a very simple and practical approach, collaborating with some boutique brands in Italy that use very expensive wool yarn. For such orders, the MOQ is 1,200 pieces per style per colour. If the brands can’t meet this order quantity, the price is typically 1.5 times higher than the routine order price. “It’s a perfect strategy as brands get what they want and we get the price as well,” he says.
However, the use of wool also presents challenges, particularly in balancing cost and quality while meeting the MOQs required by buyers. To manage these challenges, the company maintains strong relationships with wool suppliers to negotiate better prices and ensure a consistent supply of high-quality wool. Additionally, it implements efficient production techniques to minimise waste and maximise the yield from each batch of wool. For large orders, this approach is particularly beneficial as it helps spread the costs and maintain competitive pricing without sacrificing quality.
Looking ahead, the company is exploring sustainable sourcing options with a focus on alternative fibres that can complement its wool products. This includes blends of wool with other natural or recycled fibres, which can offer similar benefits at a lower cost.
“Wool is definitely one of our core products. We do 100 per cent wool sweaters for our prestigious buyers. These product offerings are priced at FOB US $ 40 and producing such expensive products is highly critical. If there is damage, it can significantly dent profitability,” commented Amer, adding, “This is one of the main reasons many sweater manufacturers avoid this category, making it a niche product for us.”
| The company’s specialisation has earned it a push from buyers, even as other factories in Bangladesh approached its clients. These clients returned to Aurum Sweater, recognising that the expertise in attachments, embellishments and handwork sets it apart from competitors. |
Targeting India as a market
There are endless opportunities in India, especially with the design and price strengths of Bangladesh. Amer is also strongly looking towards the Indian market so that the company can cater to its offseason needs. Europe and America have their peak seasons from March to October, while the other four months are different and difficult. During this period, the company targets South America, Brazil, Australia, and sometimes Japan. India’s large population and significant winter season also favour Bangladesh.
However, there are some challenges that Aurum Sweater is trying to overcome. According to Amer, apart from a few top brands and retailers, Indian brands offering sweaters still prefer to source from domestic hubs like Ludhiana rather than sourcing internationally. This hesitation persists despite Bangladesh’s competitive pricing and high-quality products. Changing this mindset could open significant opportunities in the largely untapped Indian market for the sweater category.
