Levi's now in Dhaka
Renowned American clothing company Levi Strauss & Co has opened a store in Dhaka offering its range of products under the third franchise deal secured by local conglomerate DBL Group following similar contracts with Nike and Puma.
Levi's is one of the world's biggest fashion retailers. Its products are sold in more than 110 countries through approximately 3,000 stores.
The 2,270 square feet store on Banani Road 11 opened on April 1, aiming to draw the rising middle-income population with an assortment of imported denim jeans, t-shirts, polo shirts, and formal and casual woven shirts for men and women.
Levi's will continue its expansion across key markets in Asia, with plans to open another store in Chattogram, said PR Newswire in a statement on April 17.
The company's focus are dynamic markets undergoing swift urbanisation, said Amisha Jain, senior vice president and managing director of South Asia-Middle East and Africa at Levi Strauss & Co.
"With a population exceeding 160 million, Bangladesh presents significant opportunities for retail expansion," she said.
The DBL plans to open Levi's stores in other parts of Dhaka, such as Dhanmondi, soon and eventually in Chattogram, said a senior official of the group asking not to be named.
"The response from consumers is good," said the official, adding that the country's economy has been growing and the purchasing power of consumers was also improving, enabling them to afford branded products.
Annual sales of clothes in Bangladesh are estimated to amount to over $15 billion.
Per capita consumption of apparels has been rising with a rise in income, for which the presence of international brands is also increasing gradually.
Three growth drivers, including farmers, remitters and garment workers, pushed the country's GDP to more than $460 billion in 2022. The nation is also set to graduate from least developed country (LDC) status in 2026.
Bangladesh's real GDP growth is projected to remain relatively subdued at 5.6 percent in FY24, compared to the average annual growth rate of 6.6 percent over the decade preceding the COVID-19 pandemic, according to World Bank (WB).
Persistent inflation is expected to weigh on private consumption growth, and shortages of energy and imported inputs combined with rising interest rates and financial sector vulnerabilities are expected to dampen investor sentiment.
Growth is expected to increase gradually over the medium-term as monetary, exchange rate, and financial sector policy adjustments are implemented, the WB said.