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 export 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’re 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 a steady growth in the field of RMG during last two decades. The growth of the RMG industry in conditions 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 Made 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 the different garments buying house in our country. The garment buying house works like as middlemen 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:

Some time a strong brand or corporate image can put the companies in negotiating contract with the buyer. There are few manufactures 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

Founder & Editor of Textile Merchandising. He is an Assistant Professor and Chairman of the Textile Engineering Department of a Reputed University in Bangladesh. He has performed numerous Research Regarding Textile Engineering. He has also received two times “Research & Development Fellowship” from the Ministry of Science & Technology in Bangladesh. For any further queries, please contact email at raju.uttara105@gmail.com or WhatsApp at +8801673758271.