There have been many questions raised on the future growth potential of Bangladesh with reports claiming that the exponential growth seen by the garment export industry in the last decade is over. Moreover many article published by international media raising concerns on the issues of social ‘compliance’ at Bangladeshi factories have casted a shadow on this vibrant industry. In a freewheeling interaction with Team Apparel Online, Bangladesh, Md. Siddiqur Rahman, Second Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), disagrees with most of the perceptions citing many reasons…
Many experts opine that Bangladesh is similar to China in its product offerings, which is why the recent turmoil in China with respect to labour unrest and increasing cost of production has contributed significantly to the growth of the garment industry in Bangladesh over the past three years in particular. However, Siddiqur Rahman emphatically stresses that in terms of quality, Bangladeshi factories are far superior to their counterparts in China. He highlights that Bangladesh has been very conscious of ‘quality’ of its products, striving to give products of the highest level, which has also contributed to the growth of exports from the country.
He also emphasizes that Bangladesh has strategically placed itself in such a way that their manufacturers are now making value-added garments instead of concentrating solely on volume production.
Product Diversification…
Moving beyond basics and traditional categories, Rahman informs that more and more exporters are now increasingly taking on newer categories of clothing. “Sportswear is in huge demand and Bangladesh is now producing three types of sportswear – performance wear, wellness wear and activity based clothing with brands such as Kappahl, Nike, and Adidas buying extensively from the country,” says Rahman. Another segment of clothing which is fast picking up in Bangladesh is kid’s wear, which is high in demand.
Market Diversification…
Bangladesh has also expanded its exporting horizons by catering to countries other than the European Union for which it enjoys duty free access. The country has been recently getting good work from India, China and Turkey, according to Rahman. Over the years Bangladesh has developed markets in Brazil and other South America countries. In fact, the country has registered over 200 per cent growth in some markets like Japan, Australia and South Africa. “Market diversification has helped Bangladesh hit the $ 18 million mark in the last economic quarter,” says Rahman.
Overcoming Road Blocks
While Bangladesh is evolving as a key player, Rahman admits that there are some issues which are of concern such as infrastructure, power shortage and limited logistics, which have been acting as road blocks to Bangladesh’s success. However, Rahman claims that even though the manufacturers have been struggling with the three basic issues – of electricity, gas and infrastructure – entrepreneurs in Bangladesh are extremely determined, focused, aggressive and hard working individuals who with so many concerns and issues, still try to overcome the obstacles by working around these short comings to meet the buyers’ demands.
