Bangladesh is going to be the Largest Apparel Exporter in the world

'Global RMG market – Bangladesh projected as Next China'

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Because of the low profit margins and capability constraints in Communist China, investors are looking to other cheaper countries to make an investment in the garment industry industry (RMG), and manufacture of products and sources clothes. Bangladesh garment exports could treble by 2020 as European and US shoppers plan to strengthen its presence in the country and new players considering entering the market are considered to be "the next China, according to a study .

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Garment exporters and breathe easier now that foreign buyers are starting to come back, with Bangladesh get to work after a wave of political unrest. The government, the International Labor Organisation (ILO) and the buyers worked together to better working considerations in garment factories in the wake of the tragedy of Rana Plaza in April 24, 2013.

Golden Goose: There is a saying: "Do not kill the golden goose" The Bangladesh garment sector is a golden goose The country has become the second biggest exporter of garments trailing behind China.. .

He entered the country in the export clothing market in 1978 with just nine units and the US earned $ 0,069,000. Over the past three decades, the sector has grown considerably thanks to the support of government policy and, above all, a dynamic private sector and the workers work very hard. The number of RMG units now and 6000 exceeded US $ 20 billion in export earnings. And woven garments are exported to 148 lands and woven intersections to 132 countries. Analysts say the issue of garment exports have more than doubled in 2020.

Over 4 million workers in the RMG units, approximately 80 percent of women. RMG and covers nearly 78 percent of total exports. garment workers is around two thirds of the number of workers in the manufacturing sector.

However, China is now facing structural problems. The unit cost of labor in the country is rising. In the labor productivity increased by 7.0 percent to 13 percent in the last two decades, resulting in the high cost of wages and the loss of a foot as the lowest cost manufacturer in the world of consumer goods. The exchange rate policy in China and global imbalances also raised Beijing to focus on the sectors of manufacturing and high-end services, so-called vertical economy.

The economy of the vertical China will create a lot of room for lower manufacturing industries labor class in Bangladesh and extra South Asian countries have faced competition from China until recently. China is expected to buy about $ 20 trillion of goods and avails in this decade.

Bangladesh began, one of the emerging economies, after China, and already compete with China in world exports of clothing. In fact, China is now applying Bangladesh subcontracting clothing products to take advantage of labor costs cheap here.

You will be able to export clothing $ 1.0 billion to China in Bangladesh over the coming years. There will be a demand for $ 650 billion of apparel and clothing global market in 2020, where it is possible for Bangladesh to bring $ 44.56 million. China untapped opportunity as Bangladesh. Meanwhile, Bangladesh and cloth hand lucrative sources of Chinese consumers in the 10 to 15 percent due to lower prices for the installation of the duty-free access.

Clothing for the domestic market in China is about $ 310 billion. Importers of Chinese, valued at $ 100 million clothes in the last nine a long time of 2013 from Bangladesh, and their goal is to reach 1.0 billion in 2014 mark.

The survey base that European and American companies focus on the sector plan clothing market value to expand their sources Bangladesh share 25 to 32 percent by 2020, a average of 20 percent today.

European and US buyers have been identified political instability in the main area of ??risk to Bangladesh: product improvement. Most of them said they will reduce the value of the sources of political stability if disturbed.

Improve the product development process is really important for the garment industry of Bangladesh so to improve their competitiveness. As is the case with China and other suppliers of leading apparel, Bangladesh must address both the qualitative and quantitative expansion of the garment industry in the same time in order to support the business in the long term. The country needs to be able to adjust manufacturing capacity frequent changes in customer demand. In addition to product development, the country should assay to achieve production and commercialize diversification in order to diversify risk, and access to new markets / buyers and increase the volume of exports.

Some important areas that require more attention to maintaining and improving the competitiveness of the deep level of industry is the decrease in the production and distribution of the time, and the expansion of links, and compliance with the Code of behave of buyers and changes in the installation product / market.

The all but urgent and important for the garment industry of Bangladesh and shorten time work lead. Otherwise, international buyers can convert their attention to other suppliers to import clothing products in the current quota rights in the business environment. The finest choice for Bangladesh constitutes to improve its competitiveness by abridging the production and distribution of the total time, leading to improved competitiveness on the surface reducing the time.

Product development and diversification and market diversification are the following priority tasks for Bangladesh to diversify risks and increase market share. Bangladesh must develop its capacity to produce high-quality, high-priced products and clothing. We will make single shirt or T-shirt does not allow the country to remain competitive at the international level in the long term. Thus, diversification of products and processes to accelerate the promotion of needs. Bangladesh also involves to diversify they are markets to include Japanese Islands, Australia and other major international markets.