Bangladesh: The Next Hot Spot in Apparel Sourcing?

Lower costs are an advantage for the country’s ready-made-garment industry, but challenges remain.

In 2010, China dominated European and US markets for ready-made garments, accounting for about 40 percent of the import volume in each region. A recent McKinsey survey, however, found that 86 percent of the chief purchasing officers in leading apparel companies in Europe and the United States planned to decrease levels of sourcing in China over the next five years because of declining profit margins and capacity constraints.

Although Western buyers are evaluating a considerable number of sourcing options in the Far East and Southeast Asia, many chief purchasing officers said in the survey that they view Bangladesh as the next hot spot (exhibit). Indeed, our study of the country’s ready-made-garment industry identified solid apparel-sourcing opportunities there—but also some hurdles.

With about $15 billion in exports in 2010, ready-made garments are the country’s most important industrial sector; they represent 13 percent and more than 75 percent of GDP and total exports, respectively. McKinsey forecasts export-value growth of 7 to 9 percent annually within the next ten years, so the market will double by 2015 and nearly triple by 2020.

Our survey of chief purchasing officers found that European and US companies that focus on the apparel market’s value segment plan to expand the share of their sourcing from Bangladesh to 25 to 30 percent by 2020, from an average of 20 percent now. Midmarket brands, which generate about 13 percent of their sourcing value in Bangladesh, plan to increase that share to 20 to 25 percent over the same period. While growth in current product categories will drive some of the increase, 63 percent of the chief purchasing officers said that they want to expand into more fashionable or sophisticated items, such as formal wear and outerwear.

In our study, all the respondents identified attractive prices as the most important reason for purchasing in Bangladesh. They also said that price levels there will remain highly competitive in the future, since they expect significant efficiency increases to offset rising wage costs. Half of the respondents mentioned capacity as the second-biggest advantage of Bangladesh’s ready-made-garment industry. With 5,000 factories employing about 3.6 million workers (of a total workforce of 74.0 million), Bangladesh is clearly ahead of other Southeast Asian suppliers in this respect. It also offers satisfactory levels of quality, especially in value and entry-level midmarket products.

Five challenges

While Bangladesh presents some distinct advantages for sourcing, our study identified five challenges for apparel companies seeking to do more business there.

Infrastructure

Transportation bottlenecks create inefficient lead times for garments and delay deliveries to customers. This issue will become even more important in the future, since buyers want to source more fashionable products with shorter lead times.
Energy supply is a concern, too—90 percent of the more than 100 local suppliers we interviewed rate it as poor or very poor. The government has prioritized improvement in this area and started to upgrade power systems over the last two years, however.

Compliance

Nongovernmental and other organizations monitor Bangladesh for labor and social-compliance issues. While most European and US chief purchasing officers said in the survey that standards have somewhat or strongly improved over the past five years, they noted that suppliers vary greatly in their degree of compliance. Environmental compliance is just beginning to get attention.

Suppliers’ performance and the skilled workforce

Our study found that the suppliers’ productivity must improve not only to mitigate the impact of rising wages but also to close gaps with other sourcing countries and to satisfy new customer requirements for more sophisticated products. Two other concerns are a lack of investment in new machinery and technologies and the insufficient size of the skilled workforce, particularly in middle management.

Raw materials

Bangladesh lacks a noteworthy supply of natural or artificial fibers, and its dependence on imports creates sourcing risks and lengthens lead times. Compounding the problem is the volatility of raw-material prices over the past few years. The development of a local sector would improve lead times.

Economic and political stability

About half of the chief purchasing officers interviewed stated that they would reduce levels of sourcing in Bangladesh if its political stability decreased. The survey found that political unrest, strikes, and the ease of doing business are top of mind for respondents.

Realizing the potential

The three main stakeholders—the government, suppliers, and buyers—must work together to realize the potential of Bangladesh’s ready-made-garment market. The government’s top three priorities for investment are infrastructure, education, and trade support.

What can European and US buyers do to secure Bangladesh as a sourcing powerhouse? At the highest level, they should review their approach from a full value chain perspective; for example, to increase the supply chain’s efficiency and transparency, they ought to expand their support for lean operations and electronic data exchange. Buyers should also build closer and long-term relationships with suppliers and, if necessary, rethink pricing negotiations with them. The most developed suppliers are choosing their customers more carefully and even breaking off ties with long-established ones.

Buyers must also improve their own operational execution. Their long response times, the complexity of internal procedures involving the merchandising and sourcing functions, and a high number of last-minute changes slow down the overall process. In addition, buyers must actively pursue compliance efforts.

The full report, Bangladesh’s ready-made garments landscape: The challenge of growth (PDF), is available on the McKinsey & Company Web site.

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Sleeping Bag Exports Hit a Snag

Image (C): http://www.northpoleltd.com 

The growth of the nascent sleeping bags sub-sector is set to face difficulties as the item was taken off the list of duty-free exports to the US in December last year, said industry insiders.

Bangladesh is now paying an average 12 percent duty to export sleeping bags to the US where the country enjoyed a duty-free benefit previously, they added.

The sleeping bag manufacturing industry in Bangladesh is still new. Only three companies make the item and employ more than 12,000 workers, mainly inside the export processing zones in Chittagong.

The sleeping bag makers have shifted to Bangladesh from China, mainly for higher costs of production and a shortage of workers in 2008 and 2009 in the world's second largest economy.

Investors from the US, Korea and China have shifted their production units to Bangladesh to produce the item at competitive prices.

Shahnewaz Karim, manager (shipping) of Chittagong-based Northpole BD Ltd, said the latest US decision would hamper normal growth of the sector.

“We used to receive a lot of orders from the US previously, but not now. This year we received fewer orders from the country than last year,” he said, adding that they are now exporting the item to Canada at zero duty.

Bangladesh has already informed these concerns to the US authorities through the Bangladesh embassy in Washington, Commerce Secretary Ghulam Hussain said.

“But I am not hopeful of regaining the duty facility for sleeping bags export as any renewal depends on reviews by the US government. Nothing can be said until the next review," he said.

Sleeping bags made in Bangladesh were removed from the generalised system of preferences on December 29 in response to a petition by US-based Exxel Outdoors, a sleeping bag-maker.

The US government included sleeping bags under the tariff benefit in September last year, only to be excluded from the list in late December.

The issue first came to the spotlight when Senator Jeff Sessions of Alabama lodged an objection in December 2010, demanding a ban on the duty-free import of sleeping bags.

Sessions argued that sleeping bags should be a subject to tariff, like other textiles, because the item competes with American manufacturers. The US trade programme allows about 4,800 products from 131 countries to be imported duty-free.

News: 

The Daily Star, Sun, 05/02/2012

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RMG growth needs fair politics: Amir Khasru

Former commerce minister and president of Chittagong City BNP Amir Khasru Mahmud Chowdhury said that the country will have to come out of traditional conflicting politics for sustainable growth in readymade garments (RMG) sector. As the country’s economy has almost become dependent on the RMG sector, any turmoil in the sector will lead to an economic disaster, he feared.

BNP has always been committed to supporting the development of the sector and hence the party has exempted RMG sector from political programme like hartal, he said, adding that his party would continue support to the sector in future.

He was addressing as chief guest at the closing ceremony of three-day CAFAXPO-2012 on the Gymnasium premises of MA Aziz stadium here on Saturday evening.

Kharu said if BNP comes to power in future, it would extend all out co-operation to solve all the existing problems in the sector and take initiatives to construct permanent exhibition centres both in Dhaka and Chittagong so that the BGMEA and other trade bodies do not need to hold fairs in open fields.

Reminding the contribution of BNP to the development of RMG sector, he said Bonded Warehouse facility was the base of RMG sector and it was introduced by the founder of the party late president Ziaur Rahman.

Chaired by Shafiul Islam Mohiuddin, president of BGMEA, the closing session was also addressed by former state minister for environment and forest Jafrul Islam Chowdhury MP, first vice-president of BGMEA Nasir Uddin Chowdhury and the chairman of BGMEA standing committee for CAFAXPO-2012 SM Abu Tayub.

Nasiruddin Chowdhury said the fair is not for selling and buying products. “It is mainly for displaying our capability, potential and latest development in the RMG sector.” He said more than 5,000 guests visited the fair till Saturday evening.

Mohammad Shahidul Alam Chowdhury, assistant manager of Chittagong Denim Limited, who had a stall in the fair, told The Independent that a good number of local and foreign buyers visited the fair and their response was very positive. “We are looking forward to having good quantity of order following the fair.”

 

Source: The Independent, Sun, 22/01/2012

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Bangladesh Apparel Makers Eye Big Pie in Indian Textile Market

 

India's decision to extend duty-free access to 46 Bangladeshi products can be a "game-changer" in Indo-Bangla trade ties, with local manufacturers saying the move can boost apparel export to India by $5.0 billion in five years.

Apparel makers said India's unilateral tariff removal was "the best thing to have happened to Bangladeshi exports" as the country enjoys competitive advantages in majority of the 46 garment items that are expected to be positively impacted by the Indian decision.

They, however, cautioned that a backlash from the powerful Indian textile lobby could be round the corner, as textile makers are major employers in India and they can force New Delhi to slap trade-restrictive safeguard measures on the Bangladeshi garments.

CITI, the Indian textile association, has already petitioned the government, warning the move could impact the fate of 35 million Indian textile workers and a large number of small and medium garment factories.

Shafiul Islam Mohiuddin, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said the government should now "stay vigilant" against any move to set the decision about the duty-free access at naught.

"This can be game-changer in Bangladesh-India trade-ties. Previously, India would give duty-free access to those items which we don't produce or where we don't enjoy any competitive advantages," he told the FE on Wednesday.

"But these 46 items are all garment products. We are highly competitive in these items. I am confident we can even raise our exports to $5.0 billion to India if New Delhi sticks to its duty-free decision," he said.

It means garments alone can neutralise Bangladesh's $4.0 billion trade deficit with India. In fiscal year (FY) 2010-11, the country imported Indian merchandise worth $4.5 billion and exported around half a billion dollars.

Presently, Bangladesh can export 10 million annually pieces of garments, free of duty to India. The amount is the annual production of a mid-sized local garment factory.

According to the BGMEA, Bangladesh apparel shipment to India stood at $35 million in FY 2010-11, out of the total overseas sale of $19 billion. The amount is 0.0013 per cent of India's $28 billion clothing market.

"Our products have a large demand in India but we could not export in volume due to the quota system," said Siddiqur Rahman, second vice president of BGMEA.

"India could be the third largest destination of our garments after the European Union and the United States following last Tuesday's decision. Our garment manufacturers have been making these products for years," he said.

Selim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said knitted items such as t-shirt, sweater, pullover account for 25 of the 46 items, while woven products constitute the rest.

"There are many clothing products we can not export to the EU and the US. But they have good demand in India. If we can enter the Indian market with a population of 1.2 billion, the size of our sector will be doubled," he added.

"It opens a big door," he said adding the Bangladeshi small and medium garment makers will be the main beneficiaries of the Indian decision.

According to The Hindu Business Line, an Indian financial daily, the apparel items that have been allowed duty-free access include pants, shirts, blouses, skirts, kidswear, cotton nightwear, jeans, swimwear and tracksuits.

There will be "severe adverse impact" on the garment clusters in Tirupur, Ludhiana and West Bengal, CITI claimed, adding that all 46 products cover most of Bangladesh's total garment production in terms of quantity.

BGMEA president Mohiuddin warned that once Bangladeshi exports started making headway in the Indian market, New Delhi could opt for Turkish-style safeguard taxes on Dhaka's clothing items.

"In Turkey, we raised our exports to $650 million in just two years. But that created panic among the Turkish garment makers, who this year forced their government to slap 27 per cent anti-dumping taxes on our products," he said.

"The government should be prepared for such an upshot and stay vigilant against any move by any quarters to jeopardise the duty-free access," he said.

According to the World Trade Organisation (WTO), India has slapped the highest number of trade-restrictive safeguard taxes on foreign goods, which included Bangladeshi batteries and jute items for sometimes.

New Delhi lifted the anti-dumping duty on Rahimafrooz's batteries only after Bangladesh took up the case to the dispute resolution committee of the WTO.


Monira Munni, The Financial Express, Fri, 9 Sep, 2011

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Knitwear exporters to explore Japanese market

Knitwear makers are exploring new markets, including Japan, owing to a sharp decline in export orders in recent months, especially due to debt crisis in some of the EU countries.

During July-October of the current fiscal year, knitwear export growth slowed down to 17 per cent from about 38 per cent during the corresponding period a year ago. In fiscal year 2010-11, Bangladesh earned $18 billion from garment exports, registering a significant 42 per cent year-on-year growth.

However, 85 per cent of these shipments were only to two markets – the EU and the US. Thus, the domestic exporters are highly dependent on these two nations and any economic downturn in these nations is bound to have a negative impact in terms of decrease in orders.

In order to decrease their dependence on the EU and the US markets, Bangladesh knitwear manufacturers have already visited Russia, and are planning to visit Japan in January.

The country exported knitwear items worth $ 53 million to Japan during July-October, compared to $ 94 million of exports in fiscal 2010-11.

Confirming about their visit to Japan, Md Hatem, vice-president, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “We are going to Japan on January 23 to participate in a three-day fair scheduled to be held there on January 25-27.

We will be participating in the exhibition under the Bangladesh pavilion. Probably, our commerce minister will also be accompanying us along with the 100-member delegation from the knitwear sector.”

Informing about the purpose of the visit, he said, “We are going there to explore the Japanese market in a broader way. Japan is going to become a ‘China Plus One’ country. So, the knitwear sector is planning to expand its business to that region.”
Providing statistics, he went on, “Since 15 years, Japan has been importing $ 24 billion worth of textile and garment products from the world market. Out of this, 87 per cent imports are from China while from Bangladesh it is only 0.6 per cent. This year, our exports are going up and we wish to increase our share in the Japanese market.”

Revealing about BKMEA’s efforts towards diversification of its export market, he stated, “In October this year, a BKMEA delegation had visited Russia to explore the market and to increase our exports there from 3.7 per cent.

Apart from these, we are looking forward to explore the markets in South Africa and Latin America. In future, we are planning to target India and China also, as we think these will be big markets for us.”

Source: The Independent

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Opposition Leader Khaled Zia to Chair BATEXPO’s Closing Ceremony

Opposition Leader Begum Khaled Zia

The 22nd Bangladesh Apparel and Textile Exposition (BATEXPO 2011), the country's largest apparel show, begins in the city on Saturday with high hopes to draw a larger number of foreign buyers despite global economic crisis with estimated $70m spot orders. 

Prime Minister Sheikh Hasina inaugurated the event at Bangabandhu International Conference Centre on Saturday morning.

Opposition leader and BNP chairperson Begum Khaleda Zia will attend the closing session of the three-day event as the chief guest on Monday, Dec 12, 2011.

Former Industries and Commerce Minister MK Anwar, BNP acting secretary general Mirza Fakhrul Islam Alamgir, former minister and BNP chairperson's adviser Dr. M Osman Faruk and former commerce minister Amir Khasru Mahmud Chowdhury will attend the closing session as special guests.

The organizers say this year's Batexpo will be different and attract larger number of foreign buyers with an increased volume in spot orders, which was US$ 65 million in 2010.

According to them, it will be a reunion for both foreign buyers and local manufacturers, and the fair would help expand global market for Bangladesh's readymade garments.

A total of 146 stalls of garment accessories (local and foreign), garment fabrics, garment technology and stock lot have been set up at the fair venue.

MGH, SAASCO Group, GIZ, IFC Bank, Exim Bank, Southeast Bank, Airtel, NCC Bank, Shahjalal Islami Bank and Well Park Residence are among the sponsors of the event.

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BGMEA expects larger number of buyers in Batexpo-2011

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is expecting a greater number of global buyers in the Batexpo-2011 that will begin in the city on December 10.

“The number of buyers will definitely be more than that of the previous year despite global economic crisis,” acting BGMEA president M Siddiqur Rahman told reporters at the BGMEA conference room on Monday.

Replying to a question, Rahman said, “We’ll let you know the exact figure on Thursday. Since we produce relatively cheaper but quality products, the buyers will go for our products.”

He was talking to the journalists at a meeting of sponsor companies and participants.

Chief coordinator of the Batexpo-2011 Syed Nurul Islam, chairman of BGMEA standing committee on trade fair M Nasir and representatives from different sponsor companies were present.

Nurul Islam, also the chief executive officer of the Well Group, said they would uphold Bangladesh’s potentials and strength through the event.

He said this time the cultural part of the event will be divided into two parts - Bangladesh Chapter and Global Chapter. Country’s legendary singers will perform at the functions.

He said they have received huge response from the buyers and sponsors, and hoped that the event will be a grand success.

Bangladesh Apparel and Textile Exposition (Batexpo) is the country’s largest and most glamorous apparel fair, the organizers said.

Prime Minister Sheikh Hasina will formally inaugurate the mega event on December 10 at the Bangabandhu International Conference Centre in the city.

Opposition leader and BNP chairperson Begum Khaleda Zia will attend the closing session.

MGH, SAASCO Group, GIZ, IFC Bank, Exim Bank, Southeas

Source: UNB

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Batexpo Begins Tomorrow Eyeing More Spot Orders

Shafiul Islam Mohiuddin, president of Bangladesh Garment Manufacturers and Exporters Association, announces the 22nd annual Bangladesh Apparel and Textile Exposition (Batexpo) at a press meet in the capital yesterday. BGMEA

“Bangladesh Apparel and Textile Exposition-2011” (Batexpo-2011), the biggest three-day annual event to showcase readymade garments, will begin tomorrow (Saturday) at Bangabandhu International Conference Centre (BICC) in the city.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is organising the lone international standard apparel and textile show in the country eyeing at drawing a large number of foreign buyers despite global economic crisis.

The organisers think this year’s Batexpo will be different and attract more foreign buyers with an increased volume in spot orders, which was US$ 65 million in 2010.

Prime Minister Sheikh Hasina is expected to inaugurate the exposition at BICC while Leader of the Opposition Begum Khaleda Zia is expected to attend the closing session on December 12.

BGMEA president Shafiul Islam Mohiuddin disclosed this at a press briefing at his office yesterday.

BGMEA first vice president Nasir Uddin Chowdhury, second vice president M Siddiqur Rahman, vice president Faruque Hossain and chief coordinator of the Batexpo-2011 Syed Nurul Islam were, among others, present at the briefing.

Addressing the press conference, the BGMEA president said the apparel makers this year will display diversified products of high quality and also highlight the availability of backward linkage infrastructure especially for the textile and accessories at the local level.

He said around 146 stalls including 16 for foreign companies from India, Pakistan, China and Thailand will participate at the exposition.

Shafiul informed Batexpo last year fetched spot orders of apparel worth US$ 65 million. “We hope, we will get more spot orders this year,” he said.

Three important seminars titled ‘Skill development and employment in Bangladesh RMG sector’, ‘Challenges of meeting compliance issues while exporting RMG’ and ‘Resource efficiency and environment compliance initiatives to sustain export growth’ will be held on the sidelines of the event each day.

Apart from cultural programmes, fashion shows will also be organised on Sunday and Monday. Country’s prominent singers will perform at the cultural events.

Organisers said the event will be a reunion for both foreign buyers and local manufacturers and the fair would help expand global market for Bangladesh’s readymade garments.

Finance Minister AMA Muhith, Textiles and Jute Minister Abdul Latif Siddiqui, LGRD Minister Syed Ashraful Islam, Commerce Minister GM Quader, Industries Minister Dilip Barua, Civil Aviation and Tourism Minister Faruk Khan and Shipping Minister Shajahan Khan are expected to address the inaugural session as special guests.

Opposition leader and BNP chairperson Begum Khaleda Zia will attend the closing session of the three-day event as the chief guest on Monday.

Former industries and commerce minister MK Anwar, BNP’s acting secretary general Mirza Fakhrul Islam Alamgir, former minister and BNP chairperson’s adviser Dr M Osman Faruk and former commerce minister Amir Khasru Mahmud Chowdhury will attend the closing session as special guests.

Source: Daily Sun

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Apparel makers start receiving hefty orders from India

Indian apparel companies and retailers are placing orders in Dhaka to buy Bangladeshi garments in a large volume taking advantage of the duty-free access and low prices, exporters said on Friday.

Many apparel companies of India’s famous brands including Arvind, Aditya Birla, Madura Garments, Provogue Zodiac Clothing, Raymonds, Vimal, Lews Philips, Van Heusen, Arrow, Lee, Levis, Wrangler and Dockers and others are intensely communicating with the Bangladeshi apparel manufacturers.

During the historic trip to Dhaka in September, Indian Prime Minister Manmohan Singh announced the duty-free access of Bangladeshi apparels to Indian market in an effort to address the long-standing multi-billion-dollar trade imbalance that goes in India’s favour.

Talking to BSS, Abdus Salam Murshedy, president of the Exporters Association of Bangladesh (EAB), said his company received export orders of two lakh pieces of shirts worth two million US dollars from a reputed Indian brand ‘Pantaloons.’

“We have already sent the consignments to India,” said Murshedy, also former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He said Indian top apparel brands and retailers are even ready to shift their manufacturing units to Bangladesh to route garments back to India encouraged by the Delhi’s zero tariff facilities to Dhaka.

Bangladeshi apparel entrepreneurs could give competitive price and ensure timely supply to Indian retailers, he said and favoured organising single country fair in India to give fillip to Bangladesh and Indian apparel makers.

M Shafiul Islam Mohiuddin, president of BGMEA, said Bangladesh can easily penetrate the US$30b Indian apparel market.

Mohiuddin, who led a business delegation of apparel exporters to India last week, said the BGMEA leaders discussed with Indian apparel associations, manufacturers, entrepreneurs and leaders of the Confederation of Indian Industry.

On providing zero tariff facilities to the Bangladeshi apparels in the Indian market he said, “Some Indian businessmen consider the tariff treatment as risky and others as opportunities. But Indian government stance on the market access is firm.”

Dhaka’s exports are valued just one-ninth of the $4.5 billion worth of goods India shipped to Bangladesh in the 2010-11 fiscal.

The garment deal is the best Dhaka secured for the sector from India since the 1990s, when similar duty-free access to the EU transformed Bangladesh’s apparel trade into a multi-billion dollar industry, say insiders.

Bangladesh is the world’s third largest garment manufacturer, exporting apparels worth 19 billion US dollars last fiscal.

The garment industry, which accounts for 80 per cent of the country’s total exports, relies heavily on orders from European and North America retailers such as Sweden’s H&M, America’s Gap and British supermarket Tesco, industry insiders say.

Source: BSS, Sat, 03/12/2011

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Apparel makers plan to set up production base in Bangladesh

After failing to convince the government against allowing duty-free imports from Bangladesh, textile manufacturers are looking to set up a base in that country. The government recently allowed duty-free imports of 48 textile items.

“Currently, many manufacturers and retailers are exploring the opportunity and are now studying the market there,” said Rahul Mehta, president of The Clothing Manufacturers Association of India. Labour in Bangladesh is also cheaper, compared to India. This will help manufacturers cut their cost of production.

Retailers like Creative Group are looking at setting up a base in Bangladesh, Mehta said. Globus, Reliance, Arvind Mills and Madura Fashions & Lifestyles are also looking at doing the same, according to sources familiar with the matter.

Textile manufacturers had initially pleaded with the government to refrain from allowing duty-free imports, as it would result in imports of $2.5 billion a year, in addition to a loss of 1.25 million jobs.

The apparel industry is the largest employment generator with six million people employed. Bangladesh is a cheaper destination to manufacture apparel and other textile products as the cost of production is around 20 per cent lower compared to India.

Exports from Bangladesh are higher compared to India. India has been losing out to Bangladesh since 2009. Bangladesh exports grew at 16 per cent in 2010-11, while India's exports grew at four per cent.

“Manufacturers will not cut their production in India, but, will set up a base to manufacture basic textile items in Bangladesh. India is good at producing value added textile products,” said the director of the Apparel Export Promotion Council.

Source: Business Standard, September 27, 2011

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Germany now Bangladesh’s largest RMG market in Europe

Among the European Union (EU) countries, Germany alone has become a rising market for Bangladesh’s readymade garments (RMG) in recent years, next to the largest market in USA, according to apparel exporters.

BGMEA data show more than US$3.1 billion apparel exports to the largest economy of Europe last fiscal year, a sharp rise with 56 percent growth over $2 billion exports a year earlier (FY 2009-10). Meantime, RMG exports to the USA reached $4.6 billion in FY 2010-11, about 27 percent growth over the total RMG exports worth $3.6 billion in FY 2009-10.

“Germany ranked top among 26 European countries by importing record quantity of RMG goods from us last year,” said Abdus Salam Murshedy, owner of the Envoy Group, a large RMG exporter of Bangladesh.
He said total value of RMG exports to European countries rose to $10.5 billion in 2010-11 from $7.1 billion in 2009-10.

Murshedy, also the former president of Bangladesh Garments Manufacturers and Exporters Association, said the country’s RMG exporters now look forward to fostering RMG market in Germany simultaneously with some emerging markets in Europe and elsewhere in the world. He said the BGMEA is closely working with the Center for Promotion of Imports from Developing Countries, an agency of the Netherlands’ Ministry of Foreign Affairs, to create better understanding between Bangladeshi apparel makers and European buyers to have ideas about EU markets, finding commercial partners for exporters and getting closer on all products and market related issues through direct business contacts with potential buyers.

Murshedy said as a result, Turkey in Europe is becoming a growing market for Bangladesh’s RMG products while export to other EU countries is getting bigger gradually. RMG export to Turkey grew by 69 percent last year, totaling the value $518 million, he said.

RMG exports to the UK rose by 39 percent to $1.7 billion in FY 2010-11 from $1.2 billion a year ago. At the same time, import of RMG products by France grew by 47 percent to $1.4 billion.

Data from the sector’s trade body also show that among the new and emerging markets, value of the country’s RMG exports stood at $247 million in Japan, $192 million in Australia, $94 million in Brazil, $81 million in Mexico, $52 million in China, $51.86 million in Russia, $48 million in South Africa, $47 million in Korea Republic, $35.94 million in India and $12.93 million in Chile.

In Canada, Bangladesh’s RMG export rose to $894 in  FY 2010-11 from $595 million in FY 2009-10.

source :theindependentbd.com

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 বাজার বাড়ানোর দিকে ঝুঁকেছে টেরি টাওয়েল

ছয় বছর আগে রপ্তানি বাণিজ্যে ১০ কোটি ডলারের মাইলফলক অতিক্রম করার পর ভালোভাবেই অগ্রসর হচ্ছিল খাতটি। বিদেশে রপ্তানির প্রবৃদ্ধিও ছিল সন্তোষজনক। কিন্তু গত ২০১০-১১ অর্থবছরে এসে বড় ধরনের ধাক্কা খায় অগ্রযাত্রা। ২০০৯-১০ অর্থবছরের তুলনায় রপ্তানি কমে যায় সাড়ে ২৩ শতাংশ।

মূলত গত বছরের মাঝামাঝিতে আন্তর্জাতিক বাজারে সুতার দাম অস্বাভাবিক বেড়ে যাওয়ার নেতিবাচক প্রভাবে এমনটি ঘটেছে বলে জানান উ ৎপাদক ও রপ্তানিকারকেরা। তাঁদের অভিযোগ, অনেক স্পিনিং মিলের মালিক তখন সুতা ভারতে পাচার করে দেন। এতে চাহিদামতো সুতা না পাওয়ায় টাওয়েল ব্যবসায়ীদের লোকসান গুনতে হয়। এ সময় প্রায় দেশের ৫০ শতাংশ প্রতিষ্ঠান উ ৎপাদন বন্ধ করে দিতে বাধ্য হয়। ফলে স্বাভাবিকভাবেই গত অর্থবছরে খাতটি রপ্তানি আয়ের লক্ষ্যমাত্রা অর্জনে ব্যর্থ হয়।

তবে এই ধারা থেকে বেরিয়ে আসার চেষ্টা করছেন টেরিটাওয়েল প্রস্তুতকারক ও রপ্তানিকারকেরা। এ জন্য তাঁরা সুতার নিয়মিত জোগান নিশ্চিত করার ওপর জোর দিচ্ছেন। আর শুধু বিদেশের বাজার নয়, দেশীয় বাজারেও উ ৎপাদকদের মনোযোগ বাড়ছে। কার্যত দেশের টাওয়েলের চাহিদার অধিকাংশই স্থানীয় উ ৎপাদকেরা মেটান। সম্পূর্ণ দেশীয় কাঁচামাল নির্ভর হওয়ায় এর স্থানীয় মূল্য সংযোজনের হারও অনেক বেশি।

বাংলাদেশ রপ্তানি উন্নয়ন ব্যুরোর (ইপিবি) তথ্যানুযায়ী, ২০০৩-০৪ অর্থবছর থেকে ২০০৯-১০ অর্থবছর পর্যন্ত এই খাতের রপ্তানি আয়ে সর্বনিম্ন ছয় থেকে সর্বোচ্চ ৮৮ শতাংশ প্রবৃদ্ধি হয়েছে। গত নয়টি অর্থবছরের মধ্যে ২০০৯-১০ অর্থবছরেই টেরি টাওয়েল রপ্তানি করে সর্বোচ্চ ১৫ কোটি ৭০ লাখ ডলার আয় হয়েছে। যা আগের বছরের ১৩ কোটি ২৫ লাখ ডলারের চেয়ে ১৮ দশমিক ৪৮ শতাংশ বেশি।

ইপিবির তথ্যমতে, ২০০৭-০৮ অর্থবছরের এই খাতের রপ্তানি আয় ছিল ১১ কোটি ২৮ লাখ ডলার। যা আগের অর্থবছরের ১০ কোটি ৯৫ লাখ ডলারের চেয়ে ৩২ দশমিক ২৩ শতাংশ বেশি। তবে রপ্তানি আয়ে সবচেয়ে বেশি ৮৮ দশমিক ৩০ শতাংশ প্রবৃদ্ধি হয় ২০০৩-০৪ অর্থবছরে। ওই অর্থবছরের পাঁচ কোটি ৭৫ লাখ ডলার রপ্তানি আয় হয়। ২০০২-০৩ অর্থবছরে যেখানে এই আয় ছিল মাত্র দুই কোটি ৯৬ লাখ ডলার।

ব্যবসায়ীরা জানান, দেশে বর্তমানে শপ, বাথ, গলফ, বিচ, গ্লাস, টি টাওয়েল, ফ্লোর ম্যাট, হজ এহরাম, ন্যাপকিনসহ ৩০ থেকে ৩৫ ধরনের টেরি টাওয়েল পণ্য তৈরি হচ্ছে। এসব পণ্যের বড় বাজার আমেরিকা। এ ছাড়া ইউরোপিয়ান ইউনিয়নভুক্ত সব দেশ, কানাডা, অস্ট্রেলিয়া ও জাপানে রপ্তানি হচ্ছে। দেশের সেনাবাহিনী, নৌবাহিনী ও বিমানবাহিনী নিজেদের ব্যবহারের জন্য বিপুল পরিমাণ টেরি টাওয়েল দেশীয় উ ৎপাদকদের কাছ থেকে কার্যাদেশ দিয়ে ক্রয় করে থাকে।

খোঁজ নিয়ে জানা যায়, ১৯৮৮ সালে চট্টগ্রামের ইপিজেডে সর্বপ্রথম গ্লোবাল ফেব্রিকস প্রাইভেট লিমিটেড নামের একটি প্রতিষ্ঠান টেরি টাওয়েল তৈরি শুরু করে। পরে ১৯৯০ সাল থেকে রপ্তানিতে যায় প্রতিষ্ঠানটি। বিশ্ব বাজারে ব্যাপক চাহিদা থাকায় ও সম্পূর্ণ দেশীয় কাঁচামালের কারণে কালের বিবর্তনে খাতটিতে বিনিয়োগ করেন অনেক উদ্যোক্তা।

বর্তমানে চট্টগ্রাম ছাড়াও ঢাকা, নারায়ণগঞ্জ, রূপগঞ্জ, টঙ্গী, গাজীপুর, সাভার, কালিয়াকৈর, শ্রীপুরসহ বিভিন্ন এলাকায় টেরি টাওয়েল তৈরির কারখানা গড়ে উঠেছে। এগুলোর অধিকাংশ পুরোপুরি রপ্তানিমুখী হলেও দেশীয় বাজারে সরবরাহ করছেন কেউ কেউ।

বাংলাদেশ টেরি টাওয়েল অ্যান্ড লিনেন ম্যানুফ্যাকচারার্স অ্যান্ড এক্সপোর্টার্স অ্যাসোসিয়েশনের (বিটিটিএলএমইএ) তথ্য অনুযায়ী, সারা দেশে শতাধিক প্রতিষ্ঠান টেরি টাওয়েল উ ৎপাদন করছে। এর মধ্যে অ্যাসোসিয়েশনের নিবন্ধিত প্রতিষ্ঠানের সংখ্যা ৭৬।

বিটিটিএলএমইএ এর সচিব মো. মুজিবুর রহমান প্রথম আলোকে বলেন, সারা দেশে প্রতিদিন সম্মিলিতভাবে প্রায় আড়াই শ টন টেরি টাওয়েল উ ৎপাদন হচ্ছে। খাতটির সঙ্গে বিভিন্ন পর্যায়ে প্রায় অর্ধ লাখ মানুষ জড়িত আছেন।

মুজিবুর রহমান আরও জানান, দেশেই টেরি টাওয়েল তৈরি হওয়ায় বিদেশ থেকে আমদানি বন্ধ হয়েছে। কারণ টেরি টাওয়েল আমদানি করলে ৩৫ শতাংশ ভ্যাট দিতে হয়। অবশ্য গুটিকয়েক অসাধু ব্যবসায়ী দেশে তৈরি টাওয়েলে বিভিন্ন দেশের সিল-ছাপ্পর মেরে বিক্রি করে।
বিশ্বের সবচেয়ে বড় টাওয়েল আমদানিকারক আমেরিকার চাহিদার প্রায় ৬৫ শতাংশ জোগান দেয় ভারত, চীন ও পাকিস্তান। তবে বাংলাদেশও বাজার পাচ্ছে। পণ্যের মান ভালো হওয়ায় সম্প্রতি মালয়েশিয়া থেকে বিপুল পরিমাণ কার্যাদেশ পাওয়া যাচ্ছে। জাপান থেকেও অনেক ক্রেতা দেশে এসে খোঁজখবর নিচ্ছেন বলে জানান ব্যবসায়ীরা।

তবে একাধিক উ ৎপাদক বলেন, টেরি টাওয়েলের প্রধান কাঁচামাল ওয়েস্ট কটন (ঝুট সুতা) চাহিদা অনুযায়ী সরবরাহ পাওয়াই খাতটির বড় সমস্যা। বর্তমানে দেশের স্পিনিং মিলগুলোই এই সুতার জোগান দেয়। তবে অনেক সময় চাহিদা অনুযায়ী সুতা সরবরাহ করেন না স্থানীয় ব্যবসায়ীরা। আবার আন্তর্জাতিক বাজারে দাম বাড়ার সঙ্গে সঙ্গে দেশের ব্যবসায়ীরা সুতার দাম বাড়িয়ে দেন।

ইপিবির তথ্যানুযায়ী, ২০১০-১১ অর্থবছরে টেরি টাওয়েল রপ্তানি আয় হয় ১২ কোটি ডলার, যা আগের অর্থবছরের ১৫ কোটি ৭০ লাখ ডলারের চেয়ে ২৩ দশমিক ৫২ শতাংশ কম। চলতি অর্থবছরের প্রথম চার মাসে (জুলাই-অক্টোবর) এই খাতের রপ্তানি আয়ের লক্ষ্যমাত্রা ছিল তিন কোটি ৮৮ লাখ ডলার। তবে আয় হয়েছে তিন কোটি ২৯ লাখ মার্কিন ডলার। যা গত অর্থবছরের একই সময়ের চার কোটি ৭৫ লাখ ডলারের চেয়ে তা প্রায় ৩০ দশমিক ৮০ শতাংশ কম।

খোঁজ নিয়ে জানা যায়, সংকটকালীন সময়ে ব্যবসায়ীদের দেনদরবারে শেষ পর্যন্ত সরকার প্রতি পাউন্ড ওয়েস্ট কটন চার ডলার ৬০ সেন্ট মূল্য নির্ধারণ করে দেয়। আগে এই দাম ছিল দুই ডলার ২০ সেন্ট। একই সঙ্গে সরকার সুতা রপ্তানিতে ২৫ শতাংশ শুল্ক আরোপ করে। আবার গত সেপ্টেম্বর থেকে আন্তর্জাতিক বাজারেও সুতার দাম কমতে শুরু করে।

বিটিটিএলএমইএর চেয়ারম্যান মোহাম্মদ আনিসুজ্জামান প্রথম আলোকে বলেন, সরকারি সিদ্ধান্তের কারণে সুতা পাচার বন্ধ হয়েছে। ফলে বাজারে এখন মোটামুটি স্থিতিশীলতা এসেছে। সুতার দাম এখনকার মতো স্থিতিশীল থাকলে বছর শেষে রপ্তানি আয়ের লক্ষ্যমাত্রা এবার আর ব্যর্থ হবে না।

মোহাম্মদ আনিসুজ্জামান আরও বলেন, সুতার দাম বাড়লেও ব্যবসায়ীরা সেই অনুপাতে টাওয়েলের দাম বাড়াতে পারেন না। আমেরিকার ক্রেতারা নিজেরাই হিসাব কষে একটা উ ৎপাদন খরচ বেঁধে দেন। এ ছাড়া আন্তর্জাতিক বাজারে পার্শ্ববর্তী দেশগুলোর সঙ্গে প্রতিযোগিতা তো আছেই। সুতার সরবরাহ স্বাভাবিক রাখার জন্য সাত থেকে ২০ কাউন্টের সুতা টেরি টাওয়েল ব্যবসায়ীদের সরাসরি আমদানির সুযোগ দেওয়া প্রয়োজন বলে মনে করেন তিনি।

অ্যাসোসিয়েশনের সিনিয়র ভাইস চেয়ারম্যান জে এ আনসারী প্রথম আলোকে বলেন, সরকার তৈরি পোশাক খাতের মতো টেরি টাওয়েলেও পাঁচ শতাংশ নগদ সহায়তা দেয়। কিন্তু সম্পূর্ণ দেশীয় কাঁচামালনির্ভর শিল্পটিতে যদি ১০ থেকে ১৫ শতাংশ হারে নগদ সহায়তা দেওয়া প্রয়োজন। একই সঙ্গে টেরি টাওয়ালকে আলাদা খাত হিসেবে বিবেচনা করার দাবি জানান তিনি।

জে এ আনসারি আরও বলেন, বিগত কয়েক বছরে বড় বড় উদ্যোক্তা খাতটিতে বিনিয়োগ করেছেন। এখন চাহিদামতো বিদ্যু ৎ, গ্যাস ও সুতার সরবরাহ নিশ্চিত করা গেলে প্রতিষ্ঠানগুলো কয়েক গুণ উ ৎপাদন বাড়াতে পারবে। এতে টেরি টাওয়াল খাতে শতভাগ প্রবৃদ্ধি সম্ভব।

শুভংকর কর্মকার, প্রথম আলো | তারিখ: ০৩-১২-২০১

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Retailers Cut Corners -- and Fabrics -- to Avoid Apparel Price Hikes

We, the Apparel Makers' Blog is bringing this article to our readers as we thought that manufacturer here in Bangladesh need to aware about the changing trend in USA and other potential export market, how retailers are thinking to survive in the market. They are cutting the expenses to continue their business. Read the full story by - MERCEDES CARDONA. 

Expect your T-shirts to get a little bit thinner next year - and maybe even a little more expensive as well. As apparel retailers try to cope with rising costs, "cutting corners" could take on a new meaning in the clothing department.

Merchants are facing higher cotton prices, labor costs and other rising expenses to produce apparel, but they know shoppers are still cash-strapped and won't stand for moves to pass on wholesale price increases. This time last year, retailers were warning that clothing prices would go up, but with unemployment still high and incomes stuck in neutral, merchants have found little room to maneuver.

So, retailers are asking their vendors to perform some manufacturing sleight-of-hand to keep unit prices down. You may see more of the same fabrics interpreted in different pieces -- which lets manufacturers buy fabric in bulk -- as well as designs that use less fabric per piece and more cotton blends in some pieces.

Cotton prices are up about 80% and synthetic fabrics by about 50%, says Cathy Tesija, executive vice president of merchandising at Target (TGT). And while there are options for mitigating the increases - by shifting manufacturing to countries with lower labor costs and making more efficient use of fabric -- some of those costs will have to be passed on, she says.

"We don't want to get to the point where we redesign the garments to the point where they're not appealing," Tesija says.


See full article from DailyFinance: http://srph.it/hUtq3E


About the Write: Mercedes M. Cardona is a New York-based freelance writer. In 25 years as a journalist she has written about business, travel, lifestyle, health, decor, and career issues. She has worked for media organizations including the Gannett Co., Fairchild Publications, Crain Communications and the Associated Press. Her writing has appeared in newspapers, websites and magazines worldwide, including USA Today, Advertising Age and the websites of The Miami Herald and Newsday.

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Apparel Sourcing Rapidly Changing in Post-Crisis World

Apparel Sourcing Rapidly Changing in Post-Crisis World

The way clothing is being sourced by EU and US buyers is rapidly changing in a post-quota and post-crisis world, according to a just released study by the World Bank. Apparel producers will have to swiftly offer a large number of services or to accept depending on increasingly growing intermediaries in the global supply chain. How clothing suppliers in low-cost countries can adapt to the change in buyers' demand in a post-crisis and post-quota world?

A just published study from the World Bank offers a comprehensive description of the global rules in the apparel chain with a specific focus on Bangladesh, Cambodia and Southern Africa.

New Sourcing Requirements

The most interesting part of the 200-page study lies with the new requirement by global clothing buyers in the United States and the European Union.

After interviewing a series of buyers and compiling related literature, World Bank's Cornelia Staritz gives a detailed picture of the new trends in the way apparel are now being sourced and how suppliers in low-cost countries have a chance to fill the new requirements.

The most important trend consists in the supply chain consolidation.Being no more forced by the now expired quota system to source from a large number of countries; western buyers have drastically reduced the number of their suppliers.

Long Term Relationship

Obsessed with the need to simplify the whole process, largest buyers also tend to develop more direct relations with producers, although still relying on intermediaries for a large part of their orders.

Long-term relationship with a small number of core suppliers is being privileged by buyers. In addition to the traditional low production costs, US and EU buyers are increasingly looking for lower lead times and production flexibility. A wider array of services is also expected from the same suppliers, including textile sourcing, design and product development, inventory management and stock holding, logistics and financing, communication and merchandising.

They are also more insisting on labor and environment compliance.

This trend in sourcing requirements actually favors largest intermediaries which were developed in the last decade. These former producers in China, Hong Kong or Taiwan shifted to trading and coordination of apparel sourcing in different countries, playing an increasing role in the market.

From CMT to OEM and ODM

Global trading house Li & Fung obviously offers the best example for this new type of participants. The new trends in the global apparel supply chain are also forcing apparel producers in more rapidly shifting from cut-and-trim (CMT) model where inputs are supplied by the buyer or the trading house, to original equipment manufacturers (OEM), themselves sourcing textile materials and even to the full-package model or ODM (original design manufacturer).

All low-cost countries are however not equals in front of these new challenges. Reducing lead times for instance requires developing a domestic textile industry.

A Need for Government Textile Policies

This was partly done in Bangladesh where spinning capacities were largely expanded in the past years by contrast with a lack of textile inputs in Cambodia and Southern Africa.

Suppliers trying to upgrade will need the support of strong government policies, says World Bank's study, for financing textile buying, developing infrastructure or reducing red tape. Comprehensive policies in low-cost countries could therefore be a key to further development to higher-paid products and services, in order to finally exit the textile business and shift to other stages of economic development.

Source: www.emergingtextiles.com  

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