There is a growing argument that customers (retailers and brands) should pay their factory suppliers a fair FOB price.
The following data from the United States of America Government Office of Textile Apparel, analyses 10 of the Bangladesh’s most important exports for 2020, comparing their FOB prices with those their 10 biggest competitors for each product.
In each case, supplying countries such as Bangladesh, Pakistan, and Cambodia are consistently paid below world average prices. While supplying countries such as Vietnam, Indonesia, Turkey and Mexico are repeatedly paid above world average rates. Perhaps, the problem does not lie with the customers. They are willing to pay higher prices to some countries but rather less to supplying countries that are unable to meet their needs.
FOB Prices by Product: Top 10 Exporting Countries
FOB Prices by Product: Top 10 Exporting Countries
| wdt_ID | HS Code/Country | Item/Price | Difference wrt World |
|---|---|---|---|
| 1 | 6203424516 | Men’s woven cotton trousers | |
| 2 | Bangladesh | $7.01 | -9.20% |
| 3 | Pakistan | $7.10 | -8.10% |
| 4 | World | $7.72 | 0.00% |
| 5 | Sri Lanka | $8.00 | 3.60% |
| 6 | India | $8.41 | 9.00% |
| 7 | Indonesia | $8.74 | 13.30% |
| 8 | Cambodia | $8.81 | 14.20% |
| 9 | Mexico | $8.97 | 16.30% |
| 10 | Vietnam | $10.38 | 34.50% |
