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

1. The
Apocalyptic

2. Synopsis
It started from the Mughal age in the
Indian subcontinent through Dhakai
Musline.
Ready made garment industry started to
contribute in our economy from late
eighties (1977).
The employment generated by the
sector is estimated to be around 1.5
million workers.
The industry has grown during the 1990s
roughly at the rate of 22%.

3. Background
In the 1950s, labors in the Western World became highly organized; forming trade
unions.
In the early 1980s, some Bangladeshis received free training from Korean Daewoo
Company and started their own factories.
By 1985, Bangladesh emerged as a strong apparel supplier and became a powerful
competitor for traditional suppliers in the US, Canadian and European markets.

4. Clients of local market

5. Workforce
The expansion of the RMG
industry has caused noticeable
social changes by bringing more
than 1.12 million women into
labor force.
The economic empowerment
of these working girls/women
has changed their status in the
family.

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. 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. Growth of Bangladesh in RMG Sector
13% share of GDP and around USD 15
billion has been consumed in the
year 2010.
Price and capacity are the two major
reasons of booming the RMG.
Bangladesh possesses favorable trade
agreement.
Markets are expanding in Bangladesh
according to the value segment plan
expansion.

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. Raw Materials
The dependency on imports are
considered as major risks.
High price in raw materials and rapid
fluctuation in the price level.
The lack of efficiencies and risk takers
may hinder this approach.

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. Recommendations
Current infrastructures should be
modified from the government side.
Investment in education requires
broad initiatives.
A long term strategy should be
developed to secure the raw materials
supply as well.

13. Recommendations-contd.
Achieving ethical labor standards and
sourcing practices are main requisites
in apparel industry.
Provide structured in-house training
for workers and managers.
Ensure fair wages and incentive
schemes.

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. Thanking from The Apocalyptic…