Knitwear RMG Sector Contribution, Export and SWOT Analysis of Bangladesh

Knitwear Readymade Garments Sector of Bangladesh, Woven & Knit sector contribution, Export trade information, top buyers, manufacturing items, vision and SWOT analysis. 

Over the years the apparel industry of Bangladesh is growing faster than any other industry. Bangladesh is a developing country, the economy of this country is expanding year to year. Earlier the economy was dependent on the agriculture and manufacturing industry, but now the scenario has changed, new manufacturing industries emerging and our economy is booming. The growth of the textile and garments industry is more obvious because of the easy adaptability of technology and the lower cost of human resources which is the key success factor of this industry. Apparel industry creating employment opportunities both for skilled and semiskilled workers, especially for women workers. Export earnings from RMG products are increasing and by this, we are getting lots of foreign currencies. During the initial period of RMG sector woven garments dominated the export share. After that with an increasing variety of in house knit fabric, gradually knit garments started being the leading garments sector.

Woven and Knit Sector Contribution

Main Apparel Items Exported from Bangladesh

RMG is the biggest export-oriented industry and earns 65% foreign currency. The local market of readymade garments is increasing because of an increase in per capita income and a change in consumer behavior. The RMG industry is getting more important because of creating employment, bringing foreign currency, socio-economic development which creating a positive force to the GDP of our country. Engaged about 4 million people directly with this industry activities directly on the other hand one core people of the total country are engaged with his activities. Being it is the main source of earning foreign currency and labor-oriented industry for which this project development and increasing day by day.

Although the Bangladeshi RMG sector is leading by many industrialists every year new entrepreneurs are coming forward with their innovative ideas and knowledge. This actually works as an innovating driving force to move forward successfully. Not only men but also female entrepreneurs also joined in this industry.  A woman entrepreneur established one of the oldest export-oriented garment factories, the Baisakhi Garment in 1977. You may find women are working as a managing director of many garments industry. If you see the scenario of the last 10 to 15 years record of the apparel industry then you must identify that there is a clear indication of positive growth. In 1978, there were only 9 export-oriented garment manufacturing factories, which generated export earnings of hardly one million dollars. Many garments factory started their operation in small scale both for local and export purpose, later on, they expand their business if they successfully find the market and buyers positive feedback. Four such small and old units were Reaz Garments, Paris Garments, Jewel Garments, and Baisakhi Garments. Total export value history along with knit & woven sector is given below as per the Export Promotion Bureau & BGMEA report:

Different Types of Knit Items Export Share Percentage

Top Foreign Buyers of Bangladesh Knitwear Industry

SWOT Analysis of Knitwear Sector of Bangladesh

Strength of Bangladesh Knit Garments Sector

1. Worldwide demand for good quality & cheaper knitwear products
2. The flexible labor market for continuous improvement& growth
3. Local yarn supplier & own knitting(Textile) sector
4. Separate dyeing, finishing, printing, embroidery industries increases
5. Have export relation of about 153 countries
6. More than 200 composite factories with sufficient ETP facilities
7. There exist strong backward linkage facilities
8. Socially & environmentally compliant factories
9. Adopting of clean & green production mechanism
10. Duty-free & quota-free access to EU, Canada, Australia, Japan, etc.

Weakness of Bangladesh Knit Garments Sector

1. Lack of technology-oriented types of machinery & production system
2. Can’t go with the flow of product diversification & short lead time
3. Lack of forecasting & hypothetical analysis of order taking
4. Dependency on some specific buyer order leads to the low FOB price
5. Higher bank interest & insurance policy
6. Lack of variety of knit fabric producing capability
7. In-house design & development team are not strong enough
8. Recent salary increments of garments worker
9. Cost of utility & natural gas increases
10. Not go with the flow of market & product diversity

Opportunities of Bangladesh Knit Garments Sector

1. Buyer attention on the Asian subcontinent market
2. Open costing facility of many international buyers
3. Research & education on these helps to flourish knowledge
4. Government & non-government skill improvement programs
5. Buyer own initiatives to productivity improvements projects
6. Competitors are moving in other business trends
7. Green revolution attracts buyers to expand business
8. Presence of economic zone & infrastructure facility attracts a buyer
9. Business expansion in the African subcontinent
10. International Expo, textile fairs attracts global markets

Threats of Bangladesh Knit Garments Sector

1. E-shop & variety of on-demand shops worldwide
2. Internal competition of knit factories to grab an order
3. Shorter lead time & product diversity accepted cordially by China
4. High making cost & freight on board cost
5. Gendered diversion of the workforce makes shields for improvements
6. Political & environmental crisis
7. Competitors producing trendier & fancy items
8. Global retailer lower price offer because of grading product systems
9. Safety issue, longer working hour, subcontracting leads buyer wrath
10. Competitions producing more complex fabric as well as products

Vision of Bangladesh Knitwear Industry

Followed by BKMEA forecasting, there is a bright vision for Bangladesh knitwear Industry. Though at first it was not leading sector but with times it has almost equal impact over economy, social and so on. Below forecasting show the vision for our knitwear sector:

Related articles you may love to read

• List of machinery used in Knit composite industry
• Costing of Knit Garments
• Flow chart of Knitting.

Written by
Sharmin Akther Diba
Industrial & Production Engineer
Email: [email protected]

Linkedin: Sharmin Akther Diba