Alternative market means to reach one market among two or more available possible markets. If we analyze the data of Bangladesh Bank (BB) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA), we will see for the last four decades we have been exporting ready-made garments only 41+ destinations. There are 200+ countries in this world, so there are huge opportunities for us to expand our market.
Necessity of alternative market
Last Fiscal Year 2018-19, the Bangladesh RMG industry exported $34.13 billion, which is 84.21% of the total country’s export. 4000+ factories and 4 million manpower are working hard to continue the export growth, but recently the Bangladesh apparel industry experienced negative growth, whereas we are perusing an ambitious goal of $50 billion by 2021.
It’s well-defined for the stockholders of the RMG industry which strategical decision they have made in 2014 to export target 50 billion dollars that will be impossible to achieve in 2021.
On the other hand, now we are facing the situation of the most historical pandemic. It is really hard to say how much levies, death and financial loss will be bear by the world and our country. Global buyers have so far canceled or suspended orders of readymade garment products worth US$2.25 billion from Bangladesh (updated on 24 March).
Many fashion brands have shut their stores in Europe and North America due to the coronavirus outbreak which leads to this order cancellation and suspension.
From the buyer’s insider and different analytical bodies are highlighting the gradual problem like major retailers’ loss of their sales target due to Brexit, pandemics Coronavirus, America-China trade war, etc.
But some of the other reasons also leading the negative growth of the last two years like higher price competition in retail markets, changes of consumers buying habits, increasing customized product demand, fast fashion and demand for more value-added products. So, in this situation, we have to change our strategical marketing plan, create a new alternative market and focus on more alternative value-added products.
Potentiality of the alternative market
According to the World Trade Statistical Review 2019, which released recently by the World Trade Organization (WTO), of the global apparel export market of $421 billion, Bangladesh grabbed $34 billion in 2019, which was $32 billion in 2018. And our market share is only 8.07%. Bangladesh currently accounts for 8.07% of the global garment market and Vietnam has 6.2%.
1.2% reduction in global clothing usage was largely attributed to the slowdown in Bangladesh, due to weak product diversity, growing online businesses, closure of retail sales centers in the western world and global forecasts.
Bangladesh still 2nd largest exporter around the world, it is not impossible to contribute double (16%) in global share, if we make a strong alternative marketing strategical plan and use advance technology to catch the biggest market share.
How we can catch the alternative market?
Our competitors are using lots of advanced technologies for marketing like B2B platform, artificial intelligence technologies (AIT), social media, trade shows, decentralization of marketing cells, join innovation hubs and thirty party sourcing, etc.
B2B Platform: Since technology has dominated all the aspects of the industry, the B2B world has also evolved for apparel and fashion industries. There are a plethora of B2B e-commerce portals available today, and it has become imperative to get connected with the right one to have the maximum benefits.
You can easily register yourself on a B2B website by filling up the mandatory form and enjoy their massive buyers’ and supplier’s data. China, USA, Canada and Europe are known as the primary hub for online e-commerce markets with the US and Hong Kong trailing behind. But recently the B2B platform demand is significantly increasing the traditional and the nontraditional market place.
Here are 5 lists of the top B2B websites that are leading the global B2B industry in 2019.
- Global source
Here I will describe only on Alibaba as an example of a B2B platform:
Alibaba: Alibaba Group Holding Limited (also known as Alibaba Group/Alibaba) is a Chinese multinational technology company specializing in e-commerce, retail, internet, and technology. Founded on 4 April 1999 in Hangzhou, Zhejiang, the company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales cloud computing services. It owns and operates a diverse array of businesses around the world in numerous sectors, and is named as one of the world’s most admired companies by Fortune.
At closing time on the date of its initial public offering (IPO) – US$25 billion, the world’s highest in history – 19 September 2014, Alibaba’s market value was US$231 billion. It is one of the top 10 most valuable and is the 59th biggest public companies in the world by the Global 2000 list. In January 2018, Alibaba became the second Asian company to break the US$500 billion valuation mark, after its competitor Tencent. As of 2018, Alibaba has the 9th highest global brand valuation.
Alibaba B2B platform is accommodating huge data for apparel manufacturers like 160+ million registered members which help to build up a business community. 10+ million active buyers who always use to make an order through Alibaba.com.
The order size could be thousand pcs to million pcs. Especially the medium and small entrepreneurs usually use this type of platform to generate the order. 170+ million products where you can source your desire products with very competitive prices from any country.
300,000+ active inquiries per day mean that every day different buyers created 300000+ orders for suppliers. 200+ countries exposer means 200+ suppliers can display their facilities for the buyers so that the buyer can be motivated to work with the factories.
16 real-time chat translation languages mean that when you communicate with any buyers whose language is not the same to you this translator helps you to translate the language to your language so that you can understand the message properly. Also, 40+ industries and 5900+ product categories are in the same place.
Alibaba is offering the most exciting 8 benefits of the manufacturers for which will help to grow the business model and it will reach the targeted buyers. Professional web design where a manufacturer can illustrate the company’s all facilities. Location, product range, production capacity, certifications and so on.
A company can post unlimited products which one the manufacturers want to display to the customers. Alibaba offered a product showcases where you can exhibit the most prominent products of your company or best-selling products.
Buying requests will be listed on top and tagged as urgent top suppliers will quote you much quicker than other buyers’ suppliers will quotes suppliers will your buying request more seriously.
The trade manager ensures your 100% payment guarantee. Biz Trends is a real-time statistical analysis tool developed by Alibaba.com to help you analyze your online performance, better understand buyers’ behavior and maximize your return-on-investment.
The mobile app is a leading wholesale mobile marketplace for global trade. Buy products from suppliers around the world, all from the convenience of your mobile device. Buyers on the Alibaba.com app can follow their favorite suppliers to stay up to date on new products and promotions.
A Verified Supplier is a supplier for whom certain aspects of its company profile, management system, production capabilities, and product and process controls have been assessed, certified and/or inspected by independent third-party institutions via online and offline means.
In the next part, I will depict other advanced technologies for alternative marketing.
(To be continued…)