Professional Documents
Culture Documents
: US $ 620 (2008)
There were only 9 export oriented garment manufacturing industry in 1978, earned only 1
million dollar.
Some of them were very small, produced RMG for local market as well.
Four such small and pioneer garments were Reaz garments, Paris garments, Jewel garments
and Boishakhi garments.
Reaz garments established in 1960, as a small tailoring outfit, named Reaz store in Dhaka.
Served only domestic market of its initial 15 years.
In 1973, it changed its name to Reaz Garments Ltd and started to export by selling 10 000
pieces of shirt to franch, valued 13 million franc in 1978.That was the first direct export of
apparel.
Desh Garments Ltd., first joint venture in Bangladesh, Technical and marketing collaboration
with S. korean Daewoo Corporation, established in 1979.
It had trained 120 operators including 3 women in S. Korea Went to the production in 1980.
Till to the end of 1982, there were only 47 garment manufacturing units.
Break through occurred in 1984-85 when numbers of garment factories increased to 587.
Reasons of Growth
External Reasons:
Quota,
GSP
Internal Reasons:
5% cash incentives
No import duty
EPZ facilities
Textile Production
a. Woven:
Horizontally Integrated
223 modern weaving plants, each with an annual capacity of 10 million meters, will be set up
b. Knit:
Vertically Integrated
Value Chain:
Michael Porter in 1985 introduced in his book ‘ The Competitive Advantage: Creating and
sustaining Superior performance’ the concept of the Value Chain.
Michael Porter suggested that the organization is split into ‘primary activities’ and ‘support
activities’.
In FY 2006-07, Export share of knit and woven were 37.39% and 38.25% respectively.
Integrated
Unbeatable in price
So, majority of fabrics has to be imported – higher purchasing cost, dependency on external
supplier, pricing disadvantages.
More than 220 modern weaving mill need to be set up, each with an annual capacity of 10
million yards.
Backward Linkage
Supporting Industry
Share of BB L/C in total export dropped from 68.33% in FY 1995 to 45.1% in the first eight
months of FY 2001.
US$ 2B.
SWOT Analysis
Strength:
Weakness
Opportunities:
May get preferential access in USA and Canadian market in near future.
Threats:
Totally depend on others for raw materials as Bangladesh produce neither natural fiber
nor MMF.
Distribution Structure
Contact Directly to the apparel producers regarding price, samples, delivery schedule etc – more
dependency on manufactures regarding quality.
Production Agencies/Buying house: Take care of product development, purchase of fabrics and
accessories, follow up production, conducting inspection, scheduling shipment date etc.
Satellite office: Has own QC dept. and other staffs to conduct the operations.