This is part of the company’s strategy to explore new sourcing destinations while scaling down local garment production in Russia
This is part of the company’s strategy to explore new sourcing destinations while scaling down local garment production in Russia.
In an interview with The Business Standard, Moyeen Ahmed, Gloria Jeans’ regional general manager for Bangladesh, India, and Pakistan, said, “Last year, we experienced significant growth in sourcing from Bangladesh. In 2025, we plan to expand our business by up to 30% compared to the outgoing year.”
He noted the company’s decision to exit Uzbekistan a year ago and hinted at plans to shut down 6-7 production units in Russia, with some of those orders expected to be redirected to Bangladesh, alongside major suppliers China and Vietnam.
Bangladesh’s local office has developed a substantial volume of denim fabric, boosting its competitiveness. However, high duties on apparel exports to Russia remain a significant challenge, making Bangladeshi products less price-competitive compared to Vietnam.
Moyeen highlighted the brand’s consistent growth in Bangladesh over the past three years, despite the duty-related obstacles.
“We have implemented innovative approaches to navigate these challenges, which have proved effective. However, government support in addressing high duties is crucial to unlocking further potential,” he said.
Efforts to initiate government-to-government negotiations to reduce duties have seen little progress.
“If Bangladesh successfully negotiates the removal of these duties, it could emerge as the largest supplier to Russia, which has immense potential for apparel exports,” he added.
Strengths of sourcing from Bangladesh
Moyeen credited strategic shifts in research and development (R&D) for the brand’s success in Bangladesh.
Local millers have supported these efforts by providing high-quality fabric, enabling Gloria Jeans to use over 90% locally sourced materials for denim production.
This has allowed the company to rebound in Bangladesh, which once exported significant volumes of shirts and chinos to Russia.
“In 2025, we aim to reach $70 million in business, with denim as a major contributor. Bangladeshi suppliers have the capacity for diverse washes and developments, positioning them strongly in the market,” he said.
Six Bangladeshi suppliers currently provide about one-third of Russia’s denim imports, with ABA Group and Square Group leading as top exporters.
Besides denim, Gloria Jeans sources jersey knitwear and sweaters from Bangladesh. The company is also developing outerwear with Text Town Group, aiming to bring in new orders next season.
“High duties on Bangladeshi exports to Russia are a major barrier to growth. Despite offering prices 30 to 40 cents lower, Bangladesh cannot compete with Vietnam due to high landed costs.”
Moyeen Ahmed, Gloria Jeans’ Regional General Manager for Bangladesh
Currently, 26 garment factories in Bangladesh produce apparel for Gloria Jeans. When Moyeen joined the company in 2015, its annual sourcing from Bangladesh was valued at $5 million. By 2018, it grew to $80 million.
In 2023, the company sourced 13 million pieces from Bangladesh, with a 15% increase projected for this year – a figure that could rise further with a duty waiver.
How do high duties affect Bangladesh’s exports?
Moyeen Ahmed said Bangladesh has the potential to become one of the top sourcing hubs for this billion-dollar company, alongside China and Vietnam.
“High duties on Bangladeshi exports to Russia are a major barrier to growth. Duties are calculated based on the weight of apparel products, significantly increasing landed costs.
“Since 2018, knitwear exports from Bangladesh have faced a 12–13% duty, denim products a 30% duty, and jackets a 35% duty. In contrast, Vietnam enjoys duty-free market access to Russia, giving it a competitive edge,” he added.
Before the imposition of duties, Bangladesh’s exports to Russia reached $80 million annually, surpassing Vietnam’s. However, exports have since dropped to $30 million, while Vietnam thrives due to its duty-free status.
“Despite offering prices 30 to 40 cents lower, Bangladesh cannot compete with Vietnam due to high landed costs,” said Moyeen.
He emphasised the need for Bangladesh to leverage its diplomatic relationship with Russia to negotiate a free trade agreement (FTA) or duty exemptions.
“If the country secures an FTA or removes duties, orders will increase significantly,” he said.
Moyeen also pointed out that Gloria Jeans is not deterred by local challenges in Bangladesh, such as political or labour unrest, as the company trusts the country’s ability to adapt and meet shipping deadlines.
“Our confidence in Bangladeshi suppliers and the local office remains strong,” he added.
Gloria Jeans’ strong presence across Russia
Gloria Jeans, Russia’s largest vertically integrated fashion retailer, operates over 700 stores in more than 300 cities, offering apparel, footwear and accessories for adults and children.
The company’s design and production centres are located in the Asia-Pacific region.
Plans to expand into the Middle East are underway, while earlier ambitions to open stores in the EU were shelved due to the COVID-19 pandemic.
Despite the ongoing Russia-Ukraine war, Gloria Jeans has capitalised on opportunities created by the exit of competitors such as Gap, Zara and H&M, which primarily produced fast fashion apparel.
The brand acquired its signage and retail spaces, boosting its market presence.
Gloria Jeans’ global apparel sourcing Free On Board (FOB) value stands at approximately $150 million, with retail values significantly higher.
According to WTO data, Russia imported $7.83 billion worth of apparel in 2023, while Bangladesh’s exports to Russia amounted to $322.24 million in FY24, as per Bangladesh Bank data.
The Ukrainian news outlet Ukrainska Pravda, citing the Russian media source Kommersant, reported closures of Gloria Jeans production facilities in Russia’s Rostov region.
A sewing factory in Salsk has already been shut, with employees offered positions at other sites.
The company operates 18 factories in Russia and is exploring production options in Vietnam and China. tbsnews.net
