COVER STORY
SSK : We are taking every possible step to facilitate higher garment exports to Japan . Recently we have suggested the Bangladesh Government to allow Japanese entities to set up their global distribution centres ( GDC ) in the country . This will help the large Japanese corporates to keep their stock in Bangladesh and re-export all over the world . This will not only help reduce lead time for exporters but would also cut down on the logistic and warehousing costs for both the parties . This way I feel that not only would the Japanese entities be encouraged to increase sourcing from Bangladesh but the RMG exporters can also capitalise on the new opportunities offered by Japan .
Currently countries like Indonesia , Malaysia , Vietnam , etc ., offer such GDC facilities which in turn are helping them to increase their exports to Japan . If we do not give such facilities as offered by the other ASEAN nations , why would Japanese companies come to Bangladesh or increase their order volumes from here ?
AOB : Technological aid from Japan to RMG sector
SSK : Japan can and should play a major role in manpower development and technological upgradation . The concepts of JIT , Kaizen , etc ., are all Japan ’ s gifts to the industrial world . As a matter of fact , we have requested the Japanese Government to help improve our workforce not only in the RMG sector but in other sectors as well . Being a Member of the National Skill Council and Former President of Bangladesh Employers ’ Federation ( BEF ), I made a presentation to the Public Private Dialogue with the Japanese Government last year and sought their help in this regard significantly . Now skills development has been included as a development agenda between the two countries .
At a time when garment manufacturers have started thinking in terms of robotics , automation , etc ., to increase efficiencies , cost cutting and to improve productivity , and as we enter the fourth industrial revolution , knowledge sharing , technical support and manpower development with Japanese assistance will be vital for us to reach MIC status by 2021 and the developed country status by 2041 through a Bangladesh-Japan Strategic Economic Partnership in the Bay of Bengal Growth Triangle .
Japan from a manufacturer ’ s perspective
Director Marketing of AKR Group highlights the pros and cons of Japan as an export destination
Specialising in woven products , AKR Group ( AKR FASHIONS Limited , AKR Design Limited & BANEX APPAREL Limited ) is a Dhaka-based manufacturer that caters to USA , Europe and Japan in a range of woven products ( men , women , and children ) including standup pack , flat pack , formal shirts , casual shirts , ladies blouses , etc .
Focusing on quality and competitive pricing to ensure customer satisfaction , the group has combined production capacity ( assorted products ) of 35,000 dozen pieces per month .
Director of Marketing-AKR Group , Khokon Chandra Kundu , in a brief interaction with Team Apparel Online , shared his perspective on Japan and his experience of working for the Japanese clients .
AOB : Japan market …
Khokon Chandra Kundu ( KCK ): Our main market is basically Europe but we also ship a decent share of our exports to Japan . Currently we are manufacturing around 35,000-40,000 pieces of shirt per month for some Japanese buyers through our buying house .
AOB : Price factor and quality
KCK : The price in general is competitive , but sometimes could be lesser than that offered by the buyers from Europe . On the quality front , Japanese buyers are very particular and go for piece-to-piece inspection .
Initially we had to undergo numerous stages of inspection including by third party as well . But over the years , we have got used to the stringent quality parameters and even the workers have become attuned to the Japanese style of working and know well the quality standards that the buyers expect from us . Now , as a matter of fact , there are only two stages of inspection – one at our end in the production unit itself and the other by the third party , as designated by the buyer .
Initially the rejection rate was higher for products destined for Japan . As we are working for the Japan markets for more than four years now , things have improved significantly … The rejection rate has now come down to almost 10 per cent .
Khokon Chandra Kundu , Director Marketing , AKR Group
AOB : Japan ’ s prospects ...
KCK : Ever since we started working with Japan ( over the last 4 years ), I am hearing that Japan could be a very promising export destination for Bangladesh and saw many news reports on the same in mainstream media . But honestly speaking , till date I have not seen any big volume orders from the Japanese buyers . Despite the presence of many Japanese brands ( through their liaison offices ) in Bangladesh , I have a feeling that they are still not comfortable working with Bangladeshi supplier factories .
The main reason for this , I feel , is the lack of trust … The Japanese buyers are still sceptical about the capability of Bangladeshi manufacturers . The second issue is that of communication ; as most of the Japanese don ’ t understand or speak English , they have to depend on interpreters , which again is a big hassle for both the parties towards facilitating smooth communication .
So overall , I have my reservations as to the prospects of Japan as a potential export destination from Bangladesh ’ s perspective .
22 Apparel Online Bangladesh | APRIL 2018 | www . apparelresources . com