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

By | October 5, 2017

The Business Strategy of RMG Industry in Bangladesh 

Noor Ahmed Raaz
B.Sc. in Textile Engineering (CU)
Specialized in Apparel Manufacturing
Lecturer, 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 an unprecedented growth over the last two decades. RMG alone earned about 78% of the yearly foreign exchange earning 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, which is 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 lots of change in women’s social status and their firm’s particular in household decision making of the contribution of their garment industry. Day by day, the garment industry has become the major source of power house of our economy.

The RMG Industry Lifeline to Bangladesh 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-

Year
Amount of Garments Factories
Employment in Million Workers
1983-84
134
0.040
1984-85
384
0.115
1985-86
594
0.198
1986-87
629
0.283
1987-88
685
0.306
1988-89
725
0.317
1989-90
759
0.335
1990-91
834
0.402
1991-92
1163
0.582
1992-93
1537
0.804
1993-94
1839
0.827
1994-95
2182
1.200
1995-96
2353
1.290
1996-97
2503
1.300
1997-98
2726
1.500
1998-99
2963
1.500
1999-2000
3200
1.600
2000-2001
3480
1.800
2001-2002
3618
1.800
2002-2003
3760
2.000
2003-2004
3957
2.000
2004-2005
4107
2.000
2005-2006
4220
2.200
2006-2007
4490
2.400
2007-2008
4743
2.800
2008-2009
4925
3.500
2009-2010
5063
3.600
2010-2011
5150
3.600
2011-2012
5700
4.000
2012-2013
5876
4.00
2013-2014
4222
4.00

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/

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