Home / Knowledge / News / Apparel/Garments / Competitiveness at stake for Bangladesh garment sector
Competitiveness at stake for Bangladesh garment sector
03
Sep '10
Bangladesh textiles and garment sector has had a very successful run past several years boosting its economy. But today, domestic labour unrest is seriously ballooning in to a major crisis that may stunt the garment industry's progress. It is feared that the country may lose its hard earned reputation and position as a major sourcing destination for foreign apparel and textiles buyers.

Several factors have been attributed to its apparent success mainly on account the country's 'competitiveness' due to abundantly available low cost labour and faster deliveries.

However, global crisis - the sub-prime cooling of the US and European markets and of course, the current domestic labour unrest for higher wages will seriously challenge Bangladesh garment industry's 'competitiveness' and skewer its successful run.

Under this scenario, Dr. Sanchita Banerjee Saxena, Associate Director, Center for South Asia Studies, University of California and Berkeley Véronique Salze-Lozac'h, Regional Director for Economic Programs, The Asia Foundation have recently published a study on Bangladesh titled: Competitiveness in the Garment and Textiles Industry: Creating a supportive environment.

The study explores the idea of 'competitiveness' in the Bangladesh garment sector to understand the definition of competitiveness; industry perceptions about competitiveness; factors important to productivity and specific improvements to be made to maintain Bangladesh's share in the international garment and textiles market.

Dr Saxena was on hand to reply to our queries through email as follows:

Fibre2fashion: What is the current state of Bangladesh Apparel industry?

Dr Saxena: Since the MFA phase out, contrary to much of the negative speculation, Bangladesh has performed extremely well in the garments industry post-2005, as evidenced by increased exports to the U.S. and the EU. Currently, there has been a small dip due to overall economic conditions and some of the recent labor agitations, but the industry is certainly doing very well overall. Garment industry leaders in Bangladesh are confident that the country is poised to be the number two sourcing destination, right after China.

Fibre2fashion: Please elucidate the competitive advantage Bangladesh has over other Asian neighbours?

Dr Saxena: Initially, it appears that low cost is Bangladesh's key advantage. However, going forward, low costs simply won't be enough. First, buyers themselves are looking for more than low costs. For example, many buyers requested that the Bangladeshi government raise the minimum wage of workers and they played a positive role in the recent wage hike. Second, many analysts point out that in this competitive global market, countries must have other appealing factors besides low cost; factors like quick time to market, innovation, and full package production. Finally, a country like Vietnam thathas higher wages on average is one of Bangladesh's key competitors, so clearly low cost is not the only important factor.


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search