Case study on RMG sectors in Bangladesh: a recent study

Abstract

Exports of knitwear rose 36.88% to $23.2 billion in FY22, boosting Bangladesh's RMG industry. From home-based workshops to multinational conglomerates, the industry makes work wear to haute couture. However, this industry is plagued by overdependence on exports to a few nations and competition from China, Vietnam and India. This case study introduces readers to Bangladesh's RMG industry's history, potential and risks. It will also examine how marketing innovations might benefit Bangladeshi businesses. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says, the industry employs over four million people, 80% of whom are women, and accounts for 11% of GOP and 81% of exports. FY2019-20 exports rose to $34.13 billion from $30.61 billion. Bangladesh expotts 90% to the US and EU, with Japan, Australia, and South Africa growing. Bangladesh has RMG laws to develop the sector, however, worker safety, occupational dangers, and sustainability have been issued. The 2013 Rana Plaza disaster exposed industry safety issues. Due to a lack of backward linking and local value addition, Bangladesh's garment sector relies on imported raw materials and is less competitive globally. Poor working conditions, labor rights, transportation, power outages, a lack of an educated workforce, and supply chain bottlenecks are weaknesses. In expanding markets like China, India, and Southeast Asia, Bangladesh's RMG business may sell eco-friendly, organic. and plus-size clothing. E-commerce and digital marketing allow the RMG business to reach more people and sell through different channels as sustainable sourcing and ethical fashion trends grow. Competition from low-cost countries, poli tical instability, security issues, and shifting rules and trade policies threaten the RMG sector. Bangladesh competes with China, Vietnam, and India in the textile business. China exports 37% of the world's textiles thanks to its extensive supply chain, low labor costs, and new technology. Vietnam is becoming Bangladesh's biggest RMG competitor. Vietnam's low labor costs, good infrastructure, and investor-friendly policies have increased textile exports. Vietnam exports 5% of global textiles. India's low-cost raw materials, skilled labor force, diverse product variety, strong supply chain, and business climate give it a competitive edge.