Apparel sector is the biggest export-oriented industry and earns 65% foreign currency. The apparel industry not only produces garments for export purposes but also here in Bangladesh we have a huge market of a large population. RMG sector is contributing a huge value to our GDP through creating employment, earning foreign currencies, and also creating skilled manpower through training and development. Here in Bangladesh, there are about 4 million people directly engaged with this industry activity directly on the other hand one core person of the total country is engaged with his activities. Being it is the main source of earning foreign currency and labor-oriented industry for which this project development and increasing day by day. Gross Domestic Product (GDP) monetary value increases in Bangladesh with times as well as RGM share is increasing. In RMG Sector 95% of woven & 90% of knit exports are directed to foreign trade markets. In the fiscal year 1984, RMG export was 0.16% over GDP. After 10 years in 1994, it became 4.60%, after 20 years in 2004 it became 10.05% & finally in recent 2018 RMG export % over GDP is 11.16 %. So, last 35 years’ overall average RMG share % in GDP was 8.35 % which is incredible.
Apparel sector passes so many ups & downs, finally reaches present condition. In accordance with global changes, the Bangladesh RMG sector needs to improve technologically, need to modify traditional methods, enhance marketing strategy & business policy, ensure standard safety & compliance policy, Precise costing & planning, use supply chain strategy, business process excellence technology, training & implementation, research & development, Multi-skilled management systems, practicing TQM, LEAN, etc. Directly or indirectly RMG sector is related to so many economical & social sectors, so it is really an important field to focus on for the government. This sector has a vision with objectives to support the sustainable growth of pioneer industry of emerging economy & to create employment opportunities to strengthen the macro-economic position. It is expected that the Bangladesh RMG sector will reach 50 billion $ by 2021 & around 6 million workforces will be employed in this sector. Bangladesh also focused on greening the RMG sector by different strategies & projects. There are about 4,621 factories producing garment products in Bangladesh, employing over 3.6 million people. Products included woven, knit, heavy knit, denim, etc.
Though the economy of Bangladesh is now experiencing about 80% export contribution from textiles & Readymade Garments (RMG), the skills shortage at all levels of the industry from operator to owner tend to lower efficiency, high logistics cost, competitive product pricing, delay in sourcing & shipping, which make it critical to cope up with the global competition. Moreover, about 30 percent of the top label position is held by foreigners (Mostly from India, Sri Lanka & Pakistan). Factory owners hire them due to a lack of knowledge to run the factory effectively & efficiently. Bangladesh loses around 200 billion USD every year. The competitors like India, Vietnam, Sri Lanka, Indonesia, Cambodia, and Ethiopia are getting more facilities US & China trade war in 2019 & lower Lead Time. Vietnam is just waiting to replace Bangladesh’s position.
SWOT Analysis
SWOT stands for Strength, Weakness, Opportunity, and Threat. SWOT analysis is a planning technique for a person or an organization to its capabilities and lacking.
SWOT Analysis of Bangladesh Apparel Industry
Strength:
1. Good image of exporting garments almost 40 years.
2. Comparatively lower Manpower cost than other countries.
3. Good planning and Supply chain team for keeping a good amount of material stock.
4. Exclusive fabrics & sample development capacity.
5. Ability to produce all kinds of knit, woven, denim, and other items.
6. Latest technology of machinery is available in factories in Bangladesh.
7. Strong Quality management team to work for self-inspection.
8. Latest IT system (MIS) involves all our supply chain areas.
Weakness:
1. Short lead time order, sometimes take longer lead time.
2. Infrastructure is not up to the mark level.
3. Some factory storage capacity is not sufficient, that is why housekeeping is not up to the mark.
4. Material sourcing, especially fabrics most of the items need to import from overseas.
5. Lack of substantial development to labor productivity and managerial efficiency through effective training efforts.
Opportunities:
1. Ability to quick Product development.
2. Always prepare any kind of style, execute new development as per buyer standard.
3. Within a short time going to start rotary (AOP) with reactive and others AOP support will be available.
4. Any critical style can do with good quality.
Threat:
1. Low price competition to chase supplier to supplier.
2. Political unrest and worker unrest are big threats.
3. Huge infrastructure deficiency.
1. Low price competition to chase supplier to supplier.
2. Political unrest and worker unrest are big threats.
3. Huge infrastructure deficiency.