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B'desh aims at greater share in high-end apparel market
Apr '12
As orders for high-value clothing items shift away from China, the largest apparel exporting nation, owing to rise in wages and other factors, Bangladesh is getting ready to grab as much share as possible.

The readymade garment (RMG) industry in Bangladesh produces more of low to middle-end apparel products and only a small number of factories are currently engaged in the manufacturing of high-value products for some of the world's premium apparel retailers.

Speaking to fibre2fashion, Md. Shafiul Islam Mohiuddin, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, “Bangladesh is trying hard to grab as much share as possible as China reduces its market share in supply of high-end apparels.”

“High-end products are suits, fancy dresses and casuals that carry a high value. Orders for these products are slowly coming shifting from China and coming to Bangladesh. However, it does not mean that all orders will shift to Bangladesh from China,” he adds.

Elaborating further, he says, “Nowadays, buyers are a little concerned regarding their inventories and they are placing lesser orders than usual. It is because retailers do not want to keep inventories in their stores anymore. They monitor different styles and how they sell and if they find that some styles are doing well, then they go for replenishment of those styles,” he explains.

“For replenishment, buyers look for sources which are geographically nearer like Turkey, and countries in Latin America or North America. This means buyers are willing to pay little higher for receiving goods on time. For example, a European buyer would prefer to pay 10 percent more in Mexico, instead of placing a replenishment order in Bangladesh, owing to geographical proximity that cuts down the delivery time,” he explains.

Manufacturing of high-end apparels require latest technology and skilled workforce. While it is easy to acquire latest technology from overseas, skill-based training needs to be imparted to workers to get efficient workforce.

“We have a huge enterprise on skill development. We are running some institutions and training centres. Recently, we have joined with H&M to start a new a training centre. The Government has also launched some training programmes,” Mr. Islam informs.

Briefing about Bangladesh RMG sector's growth during the current financial year, the BGMEA President reveals, “During the first three quarters of our financial year 2011-12, the RMG sector has grown at 16 percent year-on-year in terms of value, and only 8.7 percent y-o-y in terms of volume. The less than estimated growth is due to financial crisis in European countries.”

Fibre2fashion News Desk - India

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