The Apocalyptic

Synopsis

It started from the Mughal age in the Indian subcontinent through Dhakai Musline.

Ready made garment industry started to contribute in our economy from late eighties (1977).

The employment generated by the sector is estimated to be around 1.5 million workers.

The industry has grown during the 1990s roughly at the rate of 22%.

Background

In the 1950s, labors in the Western World became highly organized; forming trade unions.

In the early 1980s, some Bangladeshis received free training from Korean Daewoo Company and started their own factories.

By 1985, Bangladesh emerged as a strong apparel supplier and became a powerful competitor for traditional suppliers in the US, Canadian and European markets.

Clients of local market

Workforce

The expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million women into labor force.

The economic empowerment of these working girls/women has changed their status in the family.

Environment

A safe work environment ensures the pleasure for work.

The health and physical security enhances the motive to work in garments.

The friendly work environment intensifies the capacity of the huge productivity.

Scope for Bangladesh in RMG

Current trends on the buying side.

China is losing its attractiveness for new and established buyers.

Foreign buyers are keen to invest because of the cheap labor.

Bangladeshi RMGs’ are maintaining good quality for years.

Growth of Bangladesh in RMG Sector

13% share of GDP and around USD 15 billion has been consumed in the year 2010.

Price and capacity are the two major reasons of booming the RMG.

Bangladesh possesses favorable trade agreement.

Markets are expanding in Bangladesh according to the value segment plan expansion.

Infrastructure

Infrastructure is the largest issue that obstacles Bangladesh’s RMG industry.

The transportation problem, road congestion, gas scarcity, sea-port inefficiencies create hurdle for RMG industry.

Government has planned to expand the Dhaka-Chittagong Highway and doubled the train container capacity.

Raw Materials

The dependency on imports are considered as major risks.

High price in raw materials and rapid fluctuation in the price level.

The lack of efficiencies and risk takers may hinder this approach.

Economy and Political instability

Corruption is the main hurdle in BD.

High interest rates is an obstacle to invest in RMG sector.

Political unrest and strikes are the highest risks in sourcing from Bangladesh.

Governmental intervention may cause political instability.

Recommendations

Current infrastructures should be modified from the government side.

Investment in education requires broad initiatives.

A long term strategy should be developed to secure the raw materials supply as well.

Recommendations-contd.

Achieving ethical labor standards and sourcing practices are main requisites in apparel industry.

Provide structured in-house training for workers and managers.

Ensure fair wages and incentive schemes.

Recommendations-contd.

¨ The long term partnership should be established between the suppliers and buyers.

¨ Improve the management skills of top and middle management.

¨ The positive branding should be intensified said the prominent author Philip Kotler when he visited in Bangladesh.

Thanking from The Apocalyptic…