Russian fashion behemoth Gloria Jeans is set to significantly ramp up its sourcing from Bangladesh, aiming for a 30% surge in orders by 2025 and a $70 million annual turnover, according to Moyeen Ahmed, the brand’s regional general manager for Bangladesh, India, and Pakistan. This strategic move aligns with the company’s broader plan to diversify its supply chain and scale back domestic garment production in Russia.
The announcement comes as Gloria Jeans navigates a dynamic global landscape. Following an exit from Uzbekistan and planned closures of 6-7 Russian production units, the brand is strategically redirecting orders to key suppliers, including Bangladesh, alongside established players like China and Vietnam.
Bangladesh has emerged as a crucial partner, particularly in denim production. Local mills have proven capable of supplying high-quality fabrics, enabling Gloria Jeans to source over 90% of materials domestically for its denim lines. This has facilitated a resurgence for the brand in Bangladesh, which previously focused on shirt and chino exports to Russia. Ahmed stated that in 2025, the company aims to achieve $70 million in business volume, with denim projected to be a significant driver. He emphasized the strong market position of Bangladeshi suppliers, citing their capacity for diverse washes and fabric developments. Currently, six Bangladeshi suppliers contribute approximately one-third of Russia’s denim imports, with ABA Group and Square Group being prominent players. In addition to denim, Gloria Jeans also sources jersey knitwear and sweaters from Bangladesh. The company is currently exploring outerwear production with Text Town Group.
However, the path to expansion isn’t without its challenges. High duties on apparel exports to Russia continue to hinder Bangladesh’s price competitiveness compared to Vietnam, which enjoys duty-free access. These duties, calculated based on product weight, significantly inflate landed costs. For instance, denim faces a 30% duty, while jackets are levied at 35%. This disparity has dramatically impacted trade flows. Before the imposition of these duties, Bangladesh’s exports to Russia outpaced Vietnam’s, reaching $80 million annually. Now, they languish at $30 million, while Vietnam thrives.
Despite these hurdles, Gloria Jeans has witnessed consistent growth in Bangladesh over the past three years, implementing innovative strategies to mitigate the impact of duties. Ahmed emphasized the critical need for government-to-government negotiations to address this issue. “If Bangladesh successfully negotiates the removal of these duties, it could emerge as the largest supplier to Russia,” he asserted, highlighting the immense potential for apparel exports.
Gloria Jeans’ commitment to Bangladesh remains steadfast, even in the face of local challenges such as political or labour unrest. The brand’s confidence in its Bangladeshi suppliers and local operations remains unshaken.
This strategic shift underscores Gloria Jeans’ adaptive approach to sourcing and production in a volatile global market. While the company capitalizes on opportunities arising from the exit of major competitors in Russia, it is also strategically investing in its supply chain, with Bangladesh poised to play a pivotal role in its future growth. The company’s global apparel sourcing (FOB) value is approximately $150 million, with retail values significantly higher. With Russia importing $7.83 billion worth of apparel in 2023, and Bangladesh’s exports to Russia at $322.24 million in FY24, the potential for growth is significant, especially if the duty issue is resolved. The reported closures of Gloria Jeans production facilities in Russia further emphasize the importance of its international sourcing strategy.
