Scenario of Bangladesh Woven Garments Sector

The Scenario of Bangladesh Woven Garments Sector and SWOT Analysis

Once upon a time, the woven sector was the most leading RMG sector in Bangladesh. With growing trend knit & denim also reaches the top floor that all of them are competing with each other. In this article, we will share with you the current scenario of Bangladesh Woven Garments Sector and SWOT Analysis. In the fiscal year 2017 to 2018, the export value of the woven product was 50.39% which was 15426.25 million $ of the total worth. But in recent dependency on imported fabrics & lack of proper policy on energy supply have a negative impact on the competitiveness of Bangladesh’s woven garment in the global market. The woven sector had seen negative growth in major export destinations including Germany and the US. There needs new investment & backward linkage, technological improvements, availability of modern types of machinery, a wide variety of products, etc.

The scenario of Bangladesh Woven Garments Sector and SWOT Analysis

During an interview with the Dhaka Tribune, BGMEA senior vice president, Faruque Hassan told that “woven product manufacturers are highly dependent on import for fabrics, which costs more. That’s why woven garments export is experiencing slower growth and it is also losing its strength in the world export market. We do not have manmade fiber, polyester, and petrochemical, which we must import. We will be competitive if we can meet the demand from our local sources,” he quoted. “Stakeholders are investing to upgrade machinery for value addition, this will increase the confidence of the buyer and they will also place the orders for higher-end woven products in Bangladesh “he also added to his view. It takes about 35 days to ship goods to the US from Bangladesh, indeed a long time. On the contrary, China takes 20 days, and Turkey takes15 days. This is another big reason for losing the global market. There is a demand of approximately three billion meters of woven fabric in a year. a local mill can produce around 45 million meters of fabric which is around 14-15%, a less portion of the demand. Every year the country is investing almost 4 billion % to import fabric for making a woven product. There are huge demands and supply conflicts. The woven sector is fighting to overcome all the obstacles & making its garments on the global field.

Top Foreign Buyer of Bangladesh Woven Garments  Industry

Brand name Country
H & M Sweden
Puma Germany
Nike USA
WalMart USA
Levi’s USA
New Yorker Germany
Sainsbury UK
Quick silver Australia
Haggar USA
C&A Belgium
Timberland USA
Colince UK
M & S UK
Linmark Japan
Salomon France
Red Cap Sweden
Diesel UAE
Lindex Japan
Granville Australia
Decathlon France

SWOT Analysis of Bangladesh Woven Garments Sector

SWOT Analysis of Bangladesh Woven Garments Sector

Strength of Woven Garments Sector of Bangladesh

  1. Positive image as top leading global brands expanded business
  2. Local trims & accessories availability
  3. Inhouse washing, wrinkle-free units
  4. Adequate machines & spare parts maintenance facility
  5. Easier to use new methods & technologies than knit
  6. Presence of local & global experts
  7. The demand for woven products locally & globally
  8. Own handloom & home tex section
  9. Eco-friendly & green factories
  10. Establishment of multinational companies attracts foreign buyers

Weakness of Woven Garments Sector of Bangladesh

  1. Lack of local fabric supplier& import dependency
  2. Lack of investment in backward linkage
  3. Absence of value addition and modern technology
  4. Can’t compete in regards to short lead time
  5. Lack of innovation as per fashion & trend
  6. Cost of utility & natural gas increases
  7. Recent salary increments of garments worker
  8. Lack of international standard local experts& business professionals
  9. Local designers are not trained & can’t make optimized cost product design
  10. Giving less attention in the woven sector than knit or denim

Opportunities of Woven Garments Sector of Bangladesh

  1. Open costing facility among competitors based on cost & quality
  2. Ease of communication with foreign buyers
  3. The easier quality approval policy
  4. Larger demand for woven clothing, bags, fashion accessories, etc.
  5. Foreign buyer-specific design or trendy products
  6. Government recent tax reduction for the apparel sector
  7. Presence of trade analysis & research institution
  8. Comparatively less product variety than knit to make fusion
  9. Availability of local trims & accessories factories
  10. Kneeling of neighbor countries RMG sector

Threats of Woven Garments Sector of Bangladesh

  1. China & Turkey attracting buyer by their short lead time shipment
  2. E-buy shop & retail store with custom made products
  3. Global retailer lower price offer because of grading product systems
  4. Corruption & other anti-social activities lead foreigner to source any others
  5. Product variety & demand for fancy items fulfilled by competitors
  6. Neighbor countries established attractive infrastructural facilities
  7. The dependency of mother buyers of a specific region
  8. Competitors producing a variety of fabric & fabric mixed products
  9. India & Myanmar focusing on expanding their global market
  10. Increase of rich people number may have a negative impact

Fishbone Analysis of Woven Garments Export Falling Behind

Fishbone Analysis of Woven Garments Export Falling Behind

Fishbone analysis is a cause and effect diagram, a diagram with a list of causes behind specific reasons. Here I made a fishbone analysis of Woven Garments export falling behind of Bangladesh; Hope this fishbone diagram will clear your concept and would help you to work on reducing the problem of the woven sector.

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

Linkedin: Sharmin Akther Diba

Scenario of Bangladesh Woven Garments Sector

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