Country wise ‘RMG export’ has less diversity as the ‘total export’ of the country shows resemblance product wise. RMG Export to ‘European Countries and US’ compared to total RMG export is as much as the percentage of RMG export compared to country’s total export. Government of Bangladesh is offering an incentive for RMG export to the nontraditional countries like Russia, Brazil, Australia, New Zealand etc. BGMEA is requesting government to maintain the same incentives for the next financial also. For the sustainability of the country product wise diversity is important and for the sustainability of the sector country wise export diversity is equally essential. All are talking about focusing RMG export to countries like India, China. There are two more countries namely UAE (Dubai) & Malaysia who are very potential for Bangladeshi RMG as well. Both the market has duty free access for Bangladeshi RMG though it is available for other competitive countries as well. But the key competence lies on the increasing consumption in both target countries and increasing cost of production at our competing countries.
To grab a potential part of these two prospective markets we need to understand the market pattern initially. These markets are truly nontraditional for our manufacturers. There are significant differences in Product design, size pattern, quality requirements, material content, and fashion trend to sourcing stream. These are being termed as nontraditional as we need a different approach for these markets unlike how we do business with US and EU countries. Business pattern to manufacturing process and steps it would have different way for these markets. The market is mostly covered by Indian and Chinese products.
As a trade hub Dubai has multipurpose requirements and as a land of cultural variety Malaysia has multi cultural requirements. Proper product development and integrated marketing & sourcing plan will be keys to grab these markets. As our manufacturing base here has developed for quantity based orders, it may require creating some brands for the wholes sale market in Dubai & Malaysia to create requirements of a sum of good volume of garments. Currently stock lots are being sold to those countries and that is degrading the image of Bangladeshi products as most of those stock lot products are rejected items or not suitable for that market as those were not made for that specific market. A bit of marketing and promotion will be needed as well. Moreover a part of the manufacturing base in Bangladesh can target these markets and reshape them. As a whole quick response system, capability of frequent style changes, cutting room automation, use of software for designing and ERP will increase competitiveness of enterprises here to grab these potential markets. Small segregated mode of production can work in place of composite vertical practice here only when good integration can be done by better communication within the industry. A good blend of sourcing partner and production partner will be needed to grab a potential part of the markets like Dubai and Malaysia. Similar approach can be useful for other nontraditional countries as well.
After Hillary’s Bangladesh visit and her strong voice against labor right issues and mishaps, it seems US government is not likely to give duty free access for Bangladeshi garments. The US Bangladesh relation can become complicated after ministers supercilious comments on Hillary’s tour plan and negative US Human Right Report on Bangladesh. This issue of Bangladesh Textile Today focuses on its impact on our garment sector.
This year’s Textile Institute World Conference has held in the place I was talking about, Malaysia. Malaysia as host (in fact UiTM) has opened their capabilities at the global stage and reminded all that they are at the right track of becoming a high income nation by 2020. A small photo review report is attached here and more topic wise review article may come in future issues. Keep in touch and take care at this rough summer and get prepared for nontraditional rough markets as we have nothing to do but look for new growth opportunities.