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RMG of Bangladesh

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Growth of RMG sector in Bangladesh as well as the trend in this industry

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RMG of Bangladesh

  1. 1. TheApocalyptic
  2. 2. SynopsisIt started from the Mughal age in theIndian subcontinent through DhakaiMusline.Ready made garment industry started tocontribute in our economy from lateeighties (1977).The employment generated by thesector is estimated to be around 1.5million workers.The industry has grown during the 1990sroughly at the rate of 22%.
  3. 3. Background In the 1950s, labors in the Western World became highly organized; forming tradeunions. In the early 1980s, some Bangladeshis received free training from Korean DaewooCompany and started their own factories. By 1985, Bangladesh emerged as a strong apparel supplier and became a powerfulcompetitor for traditional suppliers in the US, Canadian and European markets.
  4. 4. Clients of local market
  5. 5. Workforce The expansion of the RMGindustry has caused noticeablesocial changes by bringing morethan 1.12 million women intolabor force. The economic empowermentof these working girls/womenhas changed their status in thefamily.
  6. 6. Environment A safe work environment ensures the pleasure for work. The health and physical security enhances the motive to work in garments. The friendly work environment intensifies the capacity of the huge productivity.
  7. 7. Scope for Bangladesh in RMG Current trends on the buying side. China is losing its attractiveness for new and established buyers. Foreign buyers are keen to invest because of the cheap labor. Bangladeshi RMGs’ are maintaining good quality for years.
  8. 8. Growth of Bangladesh in RMG Sector13% share of GDP and around USD 15billion has been consumed in theyear 2010.Price and capacity are the two majorreasons of booming the RMG.Bangladesh possesses favorable tradeagreement.Markets are expanding in Bangladeshaccording to the value segment planexpansion.
  9. 9. Infrastructure Infrastructure is the largest issue that obstacles Bangladesh’s RMG industry. The transportation problem, road congestion, gas scarcity, sea-port inefficiencies create hurdle for RMG industry. Government has planned to expand the Dhaka-Chittagong Highway and doubled the train container capacity.
  10. 10. Raw MaterialsThe dependency on imports areconsidered as major risks.High price in raw materials and rapidfluctuation in the price level.The lack of efficiencies and risk takersmay hinder this approach.
  11. 11. Economy and Political instability Corruption is the main hurdle in BD. High interest rates is an obstacle to invest in RMG sector. Political unrest and strikes are the highest risks in sourcing from Bangladesh. Governmental intervention may cause political instability.
  12. 12. RecommendationsCurrent infrastructures should bemodified from the government side.Investment in education requiresbroad initiatives.A long term strategy should bedeveloped to secure the raw materialssupply as well.
  13. 13. Recommendations-contd.Achieving ethical labor standards andsourcing practices are main requisitesin apparel industry.Provide structured in-house trainingfor workers and managers.Ensure fair wages and incentiveschemes.
  14. 14. Recommendations-contd. The long term partnership should be established between the suppliers and buyers. Improve the management skills of top and middle management. The positive branding should be intensified said the prominent author Philip Kotler when he visited in Bangladesh.
  15. 15. Thanking from The Apocalyptic…

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