The Business Strategy of Ready-Made Garments (RMG) in Bangladesh

The Business Strategy of RMG Industry in Bangladesh 

Noor Ahmed Raaz
Specialized in Apparel Manufacturing
Owner and Editor in Chief Textile Merchandising
Asst. Prof., Department of Textile Engineering
Atish Dipankar University of Science & Technology
Email: raju.uttara105@gmail.com

Ready-Made Garments (RMG) Industry:

The ready-made garments (RMG) industry in Bangladesh has experienced unprecedented growth over the last two decades. RMG alone earned about 78% of the yearly foreign exchange earnings of the country. About 4.0 million people are employed in the garment sector. The growth rate of RMG exports was over 20% per over the last two decades. Out of 4.0 million manpower employed in factories, 3.20 million are women, almost 80% of total manpower(Source form BGMEA). This sector also promotes the development of our other major sections of the economy, such as textiles, banking, transportation, insurance, etc. For this reason, they are also lot of changes in women’s social status and their firms, particularly in household decision-making of the contribution of their garment industry. Day by day, the garment industry has become the major source of the powerhouse of our economy.

The RMG Industry Lifeline to Bangladesh Economy

Growth Sequence of  RMG Industry in Bangladesh:

Here, we have tried to discuss steady growth in the field of RMG during the last two decades. The growth of the RMG industry in terms of a number of factories and employment creation is given below.

The Business Strategy of RMG Industry:

To fix the profitable business stage of Ready garments industry is most important to our economy. Our RMG sector is totally export-oriented business. This export-oriented garments manufacturing industry gets export order from a foreign buyer by different ways. The most common ways of getting garments export orders are as below-

1. Buying House:

Most of the garment export order is executed by different garment-buying house in our country. The garment buying house works like as a middleman between foreign buyers and our garments manufacturer. Buying house work as a buyer to the manufacturer and on the other side work as a manufacturer to the buyer.

2. Direct Contact:

There are few large garment manufacturing companies those has many garment factories of their own administration and entrepreneurship. They also have very skill marketing department, travels abroad with sample garments, talk about directly with the buyer and gathers export order from the buyer.

3. Indirect Contact:

Sometimes, a strong brand or corporate image can put the companies in negotiating contracts with the buyer. There are few manufacturers as well as buying houses are communicating with buyer via Internet, e-mail, fax, telephone, visual merchandising, press, TV, radio, cinema, poster, etc., media and confirms an export order in directly.

References:

1. http://textilelearner.blogspot.com/
2. https://en.wikipedia.org/wiki/Bangladesh_textile_industry
3. http://www.bgmea.com.bd/

Noor Ahmed Raaz

Mohammad Noor Nabi, known by his author name Noor Ahmed Raaz, is a PhD Fellow at Bangladesh University of Textiles (BUTEX) and the Founder & Editor of Textile Merchandising. He is also an Assistant Professor and Chairman of the Textile Engineering Department at a renowned university in Dhaka, Bangladesh. His research focuses on textile innovation and sustainability. Awarded the Research & Development Fellowship twice from the Ministry of Science & Technology in Bangladesh, Noor Ahmed Raaz is dedicated to advancing textile engineering through education, research, and industry collaboration. For inquiries or collaborations, contact Noor Ahmed Raaz via email at textilemerchandising1@gmail.com or WhatsApp at +8801673758271.