To get better price Bangladesh apparel manufacturers need to make value-added apparel items, improve negotiation skills and confiscate image crisis. At the same time, the government should ensure ease of doing business.
Bangladeshi garment items were paid $2.79 per unit or per square meter equivalent (SME) in the US market in 2018, which is one of the lowest prices among the other garment trading nations in the world. The Office of the Textiles and Apparel (OTEXA) in the US data is showing this.
The Chinese and Ethiopian exporters were paid lesser $2.35 and $2.45 per SME respectively where the Turkish exporters were paid the highest: $7.38 per SME.
Per SME from Malaysia fetched $5.37, Laos $4.98, Indonesia $3.81, Myanmar $3.08, Vietnam $3.28, and Thailand $2.88.
Bangladesh has not been receiving high prices because the local exporters are mainly competing in some particular items like woven shirts and bottoms that have many competitors, said industry leaders.
As the buyers have alternatives, so they do want to pay low prices. However, a few new competitors like Myanmar and Ethiopia are managing better prices than Bangladesh although they are far beyond in compliance.
|Price value in US$ (2018)|
|Country||Value/square meter equivalent||Value/100kg|
“After the Rana Plaza building collapse, Bangladesh apparel sector has been improved a lot. But the positive image is not explored properly in the west,” said Robin Razon Sakhawat, Director of Robintext Group.
“We are working to brighten the image of the country as we have been following compliance strictly and strengthening workplace safety,” said Sharif Zahir, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“After the Rana Plaza building collapse, Bangladesh apparel sector has been improved a lot. But the positive image is not explored properly in the west.”
Bangladesh needs improving its rankings in the World Bank’s ease of doing business index and manufacturing value-added garment items.
“Bangladesh government will have to substantially improve the ease of doing business. At the moment Bangladesh is one of the lowest performers on ease of doing business, it is 176 out of 190 countries,” said Peter Fahrenholtz, German Ambassador to Bangladesh.
Only 20 percent of the exports now are value-added garment items. Bangladesh will get more prices if it manufactures outwear, lingerie, jackets, suits, etc.
Human capital transformation is must as the efficiency level of workers is enhanced. It is nearly 50 percent whereas in other countries it is 80 percent, said Robin Razon Sakhawat.