Apparel Online Bangladesh Magazine Magazine April 2018

COVER STORY Japan: Prospects and challenges… MD of buying house Innovative Tex (BD) Limited unravels what it takes to be successful in Japan C atering to host of clients in Canada, USA, Europe, and Japan in various product categories in knit and woven, Innovative Tex (BD) Limited counts Japan as its major market (accounting for more than 50 per cent of total business). Managing Director of the Dhaka-based buying house, Md. Jamilur Rahman Khan speaks to Apparel Online to share his experience about working with Japanese clients (which includes more than 50 brands/ retailers that cater to importers including names such as Takihyo Co. Ltd., Three M Co Ltd., Kurihara Com. Ltd., ADP Co. Ltd., Blue Fox, Toko Shoji Co. Ltd., KOWA Com. Ltd., Noah World, Y'Z International Com., etc.) while also underlining what it takes to be successful in Japan. AOB: Traits of Japanese buyers… Md. Jamilur Rahman Khan (MJRK): Personally I feel dealing with Japanese clients is more comfortable and this is because Japanese are very rational people. If we have a genuine problem and are able to explain them the same logically, they not only understand but also support us in dealing with the issue and once one is able to win their confidence, the Japanese buyers will help one in every respect…They believe in mutual growth and development. However, for most of the Bangladeshi entities, language is a big barrier in communicating with them as Japanese are more comfortable in their native tongue rather than English. Coming to the quality aspect, Japanese buyers are very different from others. They believe in piece-to-piece, 100 per cent checking instead of the regular AQL, opted by other buyers as part of their standard practice. AOB: Advantages of working with Japan MJRK: To be honest, there are many. Firstly we enjoy the GSP benefit catering to Japan while exporters also get monetary benefits from the Bangladesh Government as part of its move to popularise exports in non-traditional markets. For manufacturers, working with Japanese factories with the Japan market and the Japanese style of working. Most of the Japanese buyers we are catering to have demands for regular product categories like shirts, bottoms, etc., mostly woven and some knit items in smaller volumes. Of late though we have started getting orders for padded and down jackets as well… I already have 200,000 pieces order for jackets and there are many more in the pipeline, so much so that I am finding it difficult to search for production units that can take up the orders in June or July too. Md. Jamilur Rahman Khan, Managing Director, Innovative Tex (BD) Limited clients is perhaps the best possible way to improve quality standards and manufacturing practices, which would hold them in good stead while working with any other market and buyers. Another big advantage is as most of the Japanese buyers don’t have stringent certification and compliance requirements compared to those from USA and Europe, many small and medium-sized manufacturers can work for Japan as long as they can fulfil their quality criteria. This in a way ensures regular and steady-order flow and business for the medium and smaller players, who otherwise find it difficult to survive and sustain in absence of regular orders. AOB: Factories and product categories MJRK: I work with more than 20 manufacturing units in Bangladesh for different product categories, out of which 14 are for Japanese clients alone. While selecting a manufacturing unit for Japanese buyers, apart from other aspects, I ensure that it has sufficient space to facilitate piece-to-piece inspection. Besides almost 95% factories are not used to working with the Japan market neither are they aware of their quality parameters, and this has to be taken into consideration as well while placing an order. But slowly and steadily, we are acquainting more and more 18 Apparel Online Bangladesh | APRIL 2018 | www.apparelresources.com Earlier China used to be the one-stop destination for apparels in Japan, but due to increased labour cost, not only have Japanese buyers started placing orders in Bangladesh but also many Chinese manufacturers, who are forced to close down their units, have started outsourcing orders to Bangladesh. Price-wise, Japanese buyers are at par with the Europeans but better than USA, I would say. AOB: Fashionable products still evading Bangladesh? MJRK: Yes most of the Japanese buyers are yet to place orders for fashionable products in Bangladesh. The orders we are getting can be classified as semi- fashionable. The Japanese buyers also have very big orders for basic items for the mass market like 99 Yen and 100 Yen stores. The mass market section is quite huge in Japan. In terms of fabrics, I have observed Japan has a large demand for linen shirts while in denims, high-quality spandex and distressed denims are much sought-after. Section-wise, menswear appears to be more in demand in Japan compared to women’s and kidswear and this is going by the orders that we get. AOB: Prospects in Japan MJRK: There is immense potential in the Japan market and I feel as a buying house if we can popularise this market amongst the manufacturers, they can reap good benefits.

Apparel Online Bangladesh Magazine Magazine April 2018 | Page 18