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Country lures major brands to set up sourcing offices
Mar '10
Bangladesh is turning out to be a happy hunting ground for top global clothing brands. The number of these brands, opening sourcing offices in the country is increasing with each passing year.

With the cost-competitiveness of Chinese and Indian garment manufacturers on the decline, Bangladesh has sprung up as a very good reasonably priced destination for the international retailers.

Bangladesh is now the second largest supplier of apparels in the world after China and has now been able to lure brands like Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, H&M to open sourcing offices.

Other than cost-competitiveness, the country is also reputed for quality along with the ability to moving up the value-chain by being able to churn out even high-end clothing for these global retailers.

The RMG sector also benefits from having zero-duty access to major regions in the world, which reduces the cost for the buyer, since they do not have to pay high import duties.

The apparel sector has in recent times has also upgraded itself by adhering to strict compliance measures of the retailers, like eliminating child labour and set up Effluent Treatment Plants (ETPs) to ensure environmental accountability.

Previously, these brands use to source from their offices in India, but as their sourcing activities increased, they started setting up sourcing offices to monitor compliance issues, product quality and efficiency of the suppliers very closely.

Fibre2fashion News Desk - India

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