Apparel Online Bangladesh Magazine Magazine April 2018 | Page 15

COVER STORY apparel, men’s apparel, sportswear and swimwear, underwear and hosiery, leather clothes, baby clothes, gloves, etc., in the in-scope product categories while bracketing work clothes, handbags, ski suits, etc., in the out of-scope segment. FA C T S Tax structure & must-have traits Japan is open to imported apparel and doesn’t have significant tariff or non-tariff barriers to imported clothing. As far as Bangladesh is concerned, apparel shipments to Japan began after the adoption of ‘China Plus One’ policy by the Japanese government in 2008 to reduce overdependence on China. The ‘China Plus One’ policy was supplemented by the relaxation of the Rules of Origin by Japan for Least Developed Countries (LDCs), as part of which garment manufacturers from Bangladesh have been enjoying zero-duty benefit (even if the raw materials are imported). However, to taste success in Japan, suppliers need to ensure that best practices in terms of communication, shipping and quality parameters are followed to the T. As per industry experts, foreign companies supplying to Japanese brands and retailers need to respond quickly with timely shipments and deliver products that are not only of high-quality but those which also maintain strict accuracy in terms of sizes and styles. On- time delivery, in particular, is a very important aspect while supplying to Japan as most Japanese retailers reportedly start selling Spring items in early February and start bargain sales in early July for the Summer season. They sell Fall/Winter items Mohammed Nasir, Vice President (Finance), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) from late July and start bargain sales in early January. Delayed delivery as such amounts to significant loss for the importers/ retailers who cannot sell the products at expected/regular prices. In terms of quality, experts underlined that Japanese end-users, being some of the most demanding customers globally, are not ready to compromise even on minor defects that can very well pass off with customers in other parts of the world. What’s more worrying is that if a Japanese consumer discovers defects after purchase, he/she would not only demand refund on the purchase made but the chances are also very high that he/she may not buy that brand ever again in future. Apart from these, business success in Japan also depends to a great degree on how well-conversant one is with the Japanese culture and business etiquettes and to what extent one The second biggest apparel exporter globally, Bangladesh is yet to mark its dominance in Japan. In 2017, Bangladesh exported 196.8 million kg of apparels to Japan valued at 96.2 billion Yen (US $ 908 million) as compared to 213.1 million kg in 2016, valued at 98.2 billion Yen (US $ 927 million). follows the same. Hinging primarily on two vital aspects of politeness and good manners, one needs to understand that cultural elements can have a profound impact on decision-making and effectiveness of a business relationship while dealing with a Japanese client. Any brash or abrasive behaviour is not taken very well by the Japanese people, resulting in a lack of trust–a vital aspect for any business deal. ASEAN at the forefront As per a report by the Japan Textiles’ Importers Association (based on Ministry of Finance trade statistics), the country’s imports from ASEAN countries grew by over 3 per cent in 2017 as compared to the previous y