Introducing Delta ETP

Breaking The Ice

WHO?

Muzibur Rahman

Lecturer

Shanto-Mariam University of Creative Technology

INTRODUCTION TO FASHION & APPAREL INDUSTRIES

Contents Total Textile Process at a GlanceHistory of Apparel Industry in BangladeshExport-oriented readymade garmentHistory of BGMEASWOT AnalysisTrade Union & WeaknessDiagrams Conclusion

Total Textile Process at a Glance

History of Apparel Industry in Bangladesh1960- REZA GARMENTS1973 changed to M/S. Reaz GarmentsExport 10,000pcs shirtRevenue 13m FrancExported in 1978 1977- Boishakhi Lady Enterprenuer

Desh & Dawoo Joint Venture 1979- Desh & Dawoo joint VentureNature- 100% export orientedFeature- 120 men and 3 women trained in SK

Youngones & Trexim1980- Youngones & Trexim Joint VentureShared 49 & 51 RespectivelyExported padded and non-padded Jacket in 1980 to Sweden

Export Oriented GarmentsTill 1978, there were only 9 export oriented garments in Bangladesh ; such as Reaz gmts, Paris gmts, Jewel gmts and Boishaki gmts

In 1982, 47 gmts; then.. Year No. of Gmts No. of employees in million

1983-84 134 0.0401988-89 759 0.3171993-94 1839 0.8271998-99 2963 1.5002003-04 3957 2.0002008-09 4825 3.100

[Source: BGMEA]

BGMEA

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA)Founded in 1983 Founder members only 12 Currently 4300 members Around 40% of BGMEA member factories are knitwear and 60% are woven garment manufactures BGMEA is being run by a 35-member elected Board of Director for two years

SWOT Analysis

Strength : Competitive price advantage due to cheap labor and Governmental Assistance . Skilled Human Resource , Duty and Quota free access and GSP in EU. Integrated Supply Chain, Specially in Knitwear International Image of a reliable supplier of basic Products.

Opportunities :

Potential for higher value addition by developing backward linkage. Reduce lead time by developing infra structure of transportation, faster custom clearance, strong backward linkage . Improved image by adapting environmental and social standards . Diversifying apparel product switching from basic product to fashionable product. May get preferential access in USA and Canadian market in near future.

Weakness : Weak Structure, in particular production efficiency, product development, marketing skill, customer service, controlling, planning, management skill, technical know how Producing mainly basic products. Heavily depend on importing woven fabrics, low value addition Poor image of adapting international and Corporate social standards Political, Social and worker unrest.

Main Reason of the Weakness of trade union movement of garment sector in Bangladesh are: 1. Disunity and division of organizations. 2. Unlimited and long working hours.3. Absence of Job security. 4. Migration from factory to factory. 5. Majority of women. 6. Elite class ownership. 7. Unemployment of the country.8. No unity in Worker.

Reasons Of The Weakness Of Trade Union Movement In Bangladesh :

Top Sourcing Countries

Major Export Destination

RMG Growth rate

Major Buyers

Apparel Export Trend

EPZ in Bangladesh

Conclusion GATT, WTO, GSPPottential$USD 3.5 million in 1981 to $USD 10.7 billion in 2007USD 31.2 billion in FY 2014-15, 81.69% of which was made up by ready-made garmentsThanks