In a move that promises to reshape the sourcing landscape, Russia’s largest fashion brand, Gloria Jeans, is ramping up its game in Bangladesh. The retail giant, known for its trendy apparel and expansive market presence, plans to boost its sourcing from Bangladesh by 30% in 2025, targeting an impressive annual turnover of $70 million.
This bold move comes as Gloria Jeans pivots away from local garment production in Russia, instead exploring more cost-effective sourcing hubs like Bangladesh, China, and Vietnam.
From Modest Beginnings to Major Milestones: When Moyeen Ahmed joined Gloria Jeans in 2015, its annual sourcing from Bangladesh was a modest $5 million. Fast forward to 2023, and that figure has ballooned to $80 million, a testament to the country’s growing importance to the brand.
“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,” said Moyeen Ahmed, the Regional General Manager for Bangladesh, India, and Pakistan, in an interview with The Business Standard. Currently, 26 garment factories in Bangladesh churn out millions of pieces for Gloria Jeans, including high-demand denim, jersey knitwear, and sweaters. The local office has also developed advanced denim fabrics, giving the brand a competitive edge.
The Duty Dilemma: Despite Bangladesh’s many strengths—innovative R&D, skilled suppliers, and competitive pricing—high export duties are proving to be a thorn in its side. Apparel products face duties ranging from 12% for knitwear to a staggering 35% for jackets, dramatically inflating landed costs.
“High duties on Bangladeshi exports to Russia are a major barrier to growth,” Moyeen noted. “Since 2018, these tariffs have reduced our exports to $30 million annually, down from $80 million before the duties were imposed.”
The disparity is stark. Vietnam, with its duty-free access to Russia, has surged ahead, leaving Bangladesh to play catch-up. Yet Moyeen remains optimistic. “If Bangladesh negotiates a free trade agreement or secures duty exemptions, orders will skyrocket,” he emphasized.
Denim Dreams and Local Talent: Denim is the crown jewel of Gloria Jeans’ sourcing strategy in Bangladesh. The brand relies heavily on local suppliers like ABA Group and Square Group, which together account for about one-third of Russia’s denim imports. Over 90% of the fabric for denim production is now sourced locally, a feat that has elevated Bangladesh’s profile in the fashion world.
“Our suppliers are capable of diverse washes and developments, which keeps us ahead in the market,” Moyeen said, adding that the company is also exploring outerwear production with the Text Town Group.
Confidence Amid Challenges: While high duties remain a challenge, political and labor unrest in Bangladesh doesn’t seem to faze Gloria Jeans. “We trust Bangladesh’s ability to adapt and meet shipping deadlines,” Moyeen affirmed.
The company’s faith in the country has only grown stronger, thanks to the resilience of local suppliers and the innovation-driven efforts of its Bangladesh office.
A Retail Giant on the Rise: Gloria Jeans is a force to be reckoned with in Russia. With over 700 stores in 300 cities, the brand dominates the market, filling the void left by competitors like Zara and H&M. Its vertically integrated model and strategic acquisitions have cemented its position as the go-to name for affordable fashion.
Looking ahead, Gloria Jeans is eyeing expansion into the Middle East, while production capabilities in Vietnam and China continue to evolve. The company’s global sourcing value is pegged at $150 million, and it’s clear that Bangladesh will play a pivotal role in shaping its future.
The Road Ahead: As Gloria Jeans gears up for a 30% sourcing boost, the stakes are high for Bangladesh. The potential for growth is immense, but it hinges on overcoming the duty hurdle. Moyeen Ahmed’s vision is clear: “If the country secures an FTA or removes duties, orders will increase significantly, and Bangladesh could become one of Gloria Jeans’ top sourcing hubs.”
For now, it’s a story of resilience, ambition, and untapped potential. And if Bangladesh can successfully navigate the challenges, the future looks nothing short of fashionable.
