EXPORTER PROFILE
THE LATEST NEWS
For the latest news on apparel and textile , make sure that you visit https :// apparelresources . com / top-news /
HAVE YOUR SAY
Write to Apparel Resources , B-32 , South Extension-1 , New Delhi ( 110049 ), India or email : editor @ apparelresources . com
Hossain suggests the Government should facilitate special exchange rate for the exporters – is also a big concern for the industry . The President of BMCCI , however , is not ready to shift the blame on the Government , but rather maintains that it is the poor leadership of the trade bodies which has failed to present the correct image of the current scenario to the Government . Hossain even suggests remedial measures ( roadmap ) accordingly to counter these challenges .
“ Unfortunately , BGMEA and BKMEA have failed in this direction . Leave alone impressing upon the Government for strong industry policies , they do not even have complete statistical data of Bangladesh ’ s competitors , based on which a feasible roadmap for sustainable growth could be created … They should have a research centre and data mining facilities ,” explains Hossain . He goes on to add that the present Government has almost 30 MPs from RMG & Textile industry and around 70 per cent parliamentarians who are entrepreneurs , but it is the lack of effort on the part of the trade bodies and their absence of foresight , because of which the Government is yet to get a clear picture of the industry and come up with necessary policies to give the much-needed boost that the industry is in urgent need of to survive and prosper . Hossain cites the declining membership of BGMEA – from around 6,300 at one point of time to around 3,300 currently – to the sinking sentiments of the garment manufacturers in the country . “ Almost 2,000 factories have already shut shop due to these challenges and many more are on the verge of closure ; things are no different in the knit sector either …,” he says .
Buyers ’ changing procurement policies , based on the criteria of faster lead time and PD ( to be carried out by the manufacturers ) is further adding to the woes of the garment manufacturers . Lack of expertise to ensure product development , dependency on overseas destinations for raw materials and poor infrastructure ( road , railways
“ As per my understanding , the global apparel market today would be around US $ 450-500 billion , of which China alone counts for US $ 120 billion plus and India US $ 20-25 billion , and both these markets are only going to grow in the coming years .”
– Syed Moazzam Hossain
and port ) eating into valuable time , have handicapped the entrepreneurs from grabbing the opportunities with the existing buyers as well as from capitalizing on prospects that are emerging in the non-traditional markets like India and China .
“ As per my understanding , the global apparel market today would be around US $ 450-500 billion , of which China alone counts for US $ 120 billion plus and India counts for US $ 20-25 billion , and both these markets are only going to grow in the coming years ,” Hossain maintains . If China is increasingly getting dependent on imports to meet the domestic requirement due to increased labour cost ( according to China ’ s National Bureau of Statistics , there has been a near double digit increase in the national average annual wage for urban employees since 2004 ), India on the other hand does not have the capacities yet to entirely fulfil the domestic demands .
“ We should not depend only on the traditional markets and regular product categories . Bangladesh can ’ t sustain in the market with low-end products only . We need to go for highend and fashionable produts while also exploring opportunities in newer markets . To do so , we need to have research & innovation , Government support and sufficient design and data centres ,” winds up Hossain , who has recently entered the Indian market to explore and exploit the new opportunities while also planning to foray into Russia , that has round the year demand for woollens .
Apparel makers blame ‘ vested quarters ' for drop in exports to the US
Bangladesh ’ s apparel manufacturers are blaming ‘ vested quarters ’ for tarnishing the image of the industry which is responsible for the slide in exports to the US , the country ’ s single biggest garment export destination .
According to the latest data released by US Department of Commerce ’ s Office of Textiles and Apparel ( OTEXA ), the total export from Bangladesh to the US was US $ 5.27 billion in 2017 , down by 3.98 per cent from 2016 . Of this , only US $ 204 million was from non-apparel products .
In terms of market share too , Bangladesh dropped to 6.31 per cent from what was 6.58 per cent in the prior year . Vietnam , on the other hand , a close competitor to Bangladesh , registered over 7 per cent growth .
Industry insiders say that costly remediation work for compliance , infrastructural limitations and other factors which have driven up production cost are some of the major problems .
Mohammed Nasir , Vice President ( Finance ) of Bangladesh Garment Manufacturers and Exporters Association ( BGMEA ), told Apparel Online that a major part of the blame should go to a ‘ vested quarter ’ working to hamper the reputation of the apparel industry .
“ Buyers , mostly in the US , are being confused with the negative publicity and propaganda by some vested quarters in our country . I personally have seen some cases like this . We view it as the nature of the economy . Our earnings from the US are falling , but on the other hand , from Europe , they are rising ,” he said .
Bangladesh ’ s apparel manufacturers and exporters have identified the image crisis as a major hindrance to the growth of the apparel industry and they are trying to wipe it off with expensive factory remediation works and are offering fresh wage boards for the workers .
34 Apparel Online Bangladesh | MARCH 2018 | www . apparelresources . com