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LITERATURE REVIEW-

RMG INDUSTRY
PREPARED FOR: SHEIKH MORSHED JAHAN,
ASSOCIATE PROFESSOR
COURSE INSTRUCTOR: BUSINESS STRATEGY, SPRING-2017

PREPARED BY:
J.M. Aminur Rahim, MBA 53E, Roll 03
Parag Pal, MBA 53E, Roll 04
Mohammad Mushfiqur Rahman Khan, MBA
53E, Roll 10
Asif Islam, MBA 53E, Roll 40
Md. Tanvirul Kader, MBA 53D, Roll 41
Literature Review-RMG Industry
Inner Domain
1. Culture: The $450 billion global fashion industry is one of the most
important sectors of the global economy that creates jobs and clothes
for people all over the world. It employs over 25 million workers in over
100 countries. The reality of this industry is that many individual
producers in the developing countries work long hours under strenuous
conditions for pennies on the dollar, far less than a living wage.
Readymade Garment (RMG) is the leading sector of Bangladesh
interms of employment, production and foreign exchange earnings
(Ali, 2008). Despite the fact that Bangladesh does not produce cotton,
the country is the second largest exporter of garment products. At
present there are 5,400 factories in the country and over four million
workers (BGMEA, Members Directory 2013-2014). However, there
exist many unacceptable working conditions which will be illustrate in
the following. In Bangladesh more than 85 percent of the RMG workers
are women. (Islam and Zahid, 2012). Employers prefer female
workers because they are cheaper and abundantly available, more
vulnerable, docile and manageable than male workers. They accept
the flexible terms of employment, without protesting and are also seen
less likely to be organized and susceptible to anti-management
propaganda from outside. (Khan 2001) Most of workers are aged in
between 22-25 years which is the about 42.22% of the total workforce.
(Farhana, March 2015) Employers do not prefer aged workers as
they can get worker at low cost if the hire new fresh workers. Study
shows the industry remuneration culture enables workers in providing
schooling to their children and basic residential facilities and they can
also provide financial support to their parents as well. Study shows 50
percent of workers working hours is 10 hours although standard
working hour is 8 per day (ILO, 2005). Minimum wage is BDT 5300
(Approx. USD66) (Wage Gazette, 2013). per month. But about
47.78% workers income is 9000-10000 BDT/month. (survey, 2015). In
India the scenario is almost the same with 80 percent of the workers
there are women. Minimum wage in India is around Rs. 5000 per
month. Minimum wage in china is a bit higher compared to other
places. Its RMB 13 per hour (A little more that $2). It is almost 4-5
times the Indian minimum wage. (MANI, 2013) For India it is tough to
increase the minimum wage as the price they get at manufacturers
end is just around 25% of the final retail price. Labor union strength is
weak, high labor turnover restricts union to organize and push for
collective bargaining.i In Cambodia In terms of the salary structure, as
highlighted earlier in the report the minimum wage currently stands at
100 USD per month for unskilled workers. Based on Cambodian Labour
Laws, in addition to the minimum wage, there are a number of
guaranteed earnings (transport/housing allowance, seniority bonus)
and variable earnings (overtime, attendance etc) which in total can
drive the salary of a worker with a minimum wage upwards of 180 USD
per month. (D Amico S. , 2014) In case of China companies
routinely shortchange their employees on wages, withhold health
benefits and expose their workers to dangerous machinery and harmful
chemicals Chinese workers were frequently working a seven-day week
in peak seasons and sometimes they sit working non-stop for 13 to 14
hours a day. In Thailand garment employees sometimes have to work a
day shift and a night shift. Overtime is usually obligatory and if workers
cannot work the additional hours they face penalties, verbal abuse and
dismissal. In an article published by ILO in 2012, the working condition
of workers are discussed. (ILO , 2012)
Textile is Vietnam second largest export industry and it hosts for
around 2 million workers. The working culture that drives this industry
is high productivity. But there are also complains about poor working
condition. But one of the main motivational factor here for the workers
is, the stability of the work (Angie Ngc Trn , 2012). A report
named, Made in Vietnam published by Workers RIghts Consortium
(WRC) in 2013, focused on the working culture in Vietnamese
manufacturing industry with special focus on textile industry. Some of
the important findings from the report is, the industry is reputed for
violation of freedom expression of rights, forced labor with detainees,
gender discrimination, especially pregnancy based discrimination, child
labor by bring minor laborers from rural to urban areas, inadequate
wages and not giving any rest in a week. Bangladesh has done
remarkable well in improving these areas. (WRC , 2013)

2. Capability: According to a report from McKinsey & Company, Inc.,


Infrastructure (transport and utilities supply) is the single largest issue
hampering Bangladeshs RMG industry. More specifically, congested
roads, limited inland transport alternatives, and the lack of a deep-sea
harbor add inefficiencies to garment lead time. Lead time for sea
freight is increased by about ten days due to the lack of a deep-sea
harbor. (McKinsey & Company, Inc, 2011). Productivity at
Chittagong port suffers from inefficient processes (e.g., manual
processing), limited crane capacity, and strikes as well that sometimes
span several days at a time. Study also indicated that the compliance
standard in Bangladesh has somewhat improved (67 percent) or
strongly improved (26 percent) within the last five years. However,
they reported that the spread among suppliers remains high. There are
some other issues that impede our competitive edge in terms of
capability in the RMG industry are the lack of worker education, a
remaining risk of subcontracting, lack of law enforcement, and a
continued need for developing fair practices and compensation.
Besides a lack of investment in new machinery and technologies, the
current insufficient size of skilled workforce also impedes an increase in
productivity and a move toward more sophisticated products. Also,
existing challenges will multiply if suppliers arent able to fill higher-
skill middle management positions and if the number of skilled workers
needed in Bangladeshs RMG industry is not secured. In terms of
backward integration, as there is a high volatility of raw materials
prices seen within the last few years has increased buyers sensitivity
to raw materials prices and ease of access in sourcing countries.
Considering this context, the current lack of any noteworthy own raw
materials supply of natural or man-made fibers in Bangladesh weighs
even stronger, beyond the immediate issue of lead time increase. The
study rightly identified the issue of Bangladeshs dependency on
imports creates sourcing risks and longer lead times. Whereas the
average fabric lead time for woven in Bangladesh is seven days, it
increased to up to 15 days when sourced from India and up to 30 days
when sourced from China. However, many fabrics produced in
Bangladesh typically are at quality levels mainly suited for the value
markets. Improvement in local capabilities and verticalization would
improve lead times. However, integration is likely to be seen more in
knitwear due to the high capital investments needed for woven. (Dr.
Achim Berg, 2011)

3. Capital: Accessibility, availability and affordability of capital is a major


source of competitive advantage for an industry. Production of Ready
Made Garment (RMG) is crucial to the Bangladeshi economy, as the
sector is the largest employer of women, and the largest earner of
foreign currency. International brands appreciate Bangladesh as a
sourcing location because of reliable production quality, fast times and
low costs. (Emerging Market Consulting, 2016)
Industrial loans have always borne high interest rate that inhibited the
industry players to compete well with other players from around the
world. But now after negotiation with government, Banks are providing
industrial loans at a maximum cost of 6.5 percent -- which is almost
half the going interest rates -- from a fund provided by the World Bank,
a development that will put a smile on the faces of businesses.
Scenario in China has been different from the beginning. Chinese
government has always been with the exporters and gave them all
sorts of supports. This leniency helped RMG industry in china to thrive
in the past. But, recently Chinese government has started a drive
against companies which have defaulted in the past. This drive will
surely affect the RMG industry. (Byron, 2016)
Very high Strength of legal rights index (measures the degree to which
collateral and bankruptcy laws protect the rights of borrowers and
lenders and thus facilitate lending) and Depth of credit information
index (measures rules and practices affecting the coverage, scope and
accessibility of credit information available through either a public
credit registry or a private credit bureau) show that the Cambodian
government is very much against default. This makes getting loans
from banks and other institutions difficult for industrial borrowers.
(MASIS, 2014)

Intermediate Domain
4. Competition: Readymade garment (RMG) export from Bangladesh are
now facing stiff competition in the international market and
experiencing slower growth than its competitors. Although
Bangladesh's apparel exports to the US bounced back in the first half
of the year (January-June, 2015), it is still lower than that of the
competing countries. A fear looms large over the country's RMG sector,
which is apparently losing its edge in the US market to Vietnam, India
and Pakistan. According to Bangladesh Garments Manufacturers and
Exporters Association sources, exports from Vietnam to the US have
increased by about 16 per cent, Korea cent, India 11 per cent during
the period. Vietnam, the main competitor of Bangladesh, is gaining
more ground in the market while India is emerging. (BGMEA, 2016)
As per statistics of the Office of Textiles and Apparel under the US
Department of Commerce, shipment of local garment products to its
single largest destination reached at US$ 2.68 billion during January to
June of 2015, marking a 9.47 per cent growth. The earnings stood at $
2.45 billion during the same period of last year. Bangladesh's apparel
export to US fell to $ 4.83 billion in 2014 from $ 4.94 billion in 2013.
(OTEXA, 2015), Although Bangladesh's garment export earnings from
the US market grew by 9.47 per cent over that of last year, it is still
lower than that of its competitors and the price of locally-made apparel
items did not increase in line with the rising production cost, industry
sources said. Apparel exports to the US by Vietnam, India and Sri
Lanka grew by 15.43 per cent, 10.02 per cent and 16.46 per cent
respectively during the period. Vietnam's earnings stood at $ 4.94
billion during the first six months of 2015, which was $ 4.28 billion
during the same period of 2014, the OTEXA data showed. India
exported garment worth $ 2.0 billion against $ 1.82 billion during the
same period of last year, it revealed. Sri Lanka fetched $ 999.83 million
which was $ 858.53 million in the same period of 2014. On the other
hand, Chinese apparel products export grew by 1.69 per cent to $
12.60 billion during the January to June of 2015 from $ 12.39 billion in
the last year. (RMG In Back Seat In World Competition, 2017)
"The US economy has started to recover and Vietnam and India are
doing well in the market but Bangladesh is losing the opportunity as a
negative campaign took place in the international community due to
the industrial incidents," said economists while talking to The Business
Outlook. According to industry sources, Vietnam and Cambodia
targeted to grab the space China is losing in the US and EU markets.
India is also taking advantage of the depreciation of its currency.
Bangladesh would have to increase its productivity and
competitiveness to compete with the Vietnam and India in the US
market. He also said that ensuring compliance and promoting brand
Bangladesh were important for the expert growth. (Rahman, 2017)

5. Customer: European and US customers are looking for new sourcing


hotspot as china is losing attractiveness. They CPO of the major buyers
willing to cut the middle mans to decrease the cost. Garments buyers
are more sensitive to the fact of workplace safety now as a large
portion of the consumers are aware about the working condition in
garments producing countries. This came to attention of end
users/consumers after the incidents happened in Rana plaza, Tazreen
fashion etc. Ready made garments are generally exported to almost
the same buyers from around the world. The buyers who buy from
china , buys from Bangladesh too. The following are the major buyers
of RMG worldwide. Normally its seen that, buyers of Europe, Canada,
USA, Japan and Australia are the main buyers of Bangladeshi
garments and Textile products. Some popular brands who are
buyers/customers in this industry are following: Adidas, H&M, Wal-Mart,
GAP,
Levis (Brand: Dockler, Denizer, Levi-Strauss), Nike, VF Asia (Brand:
Lee, Wrangler), PVH-Phillips Von Heuson (Brand: CK), Li & Fung, Old
Navy, Academy, US Polo, American Eagle. (Dr. Achim Berg, 2011)
Apart from these already established markets in EU, North America,
there are some emerging market that are going to play vital role in
future ready made garments industry. A.T. Kearney's GRDI (Global
Retail Development Index) has listed 10 countries as promising for
apparel retailers. Retail industry in the emerging economies is
experiencing a dramatic growth. While the population of these
countries increased by 11%, their retail growth increased to an
amazingly 225%. Per capita retail income increased 100% and internet
access by 400%. Developing nations are changing the balance of
power. China tops the list trailed by UAE, and Kuwait. India and China
leads the way to global recovery. China, as per AT Kearneys 2011
index, ranks to be the most attractive emerging market for apparel
retailers. The country has a CAGR of more than 20% during the past
years, and the same trend is expected to continue for the next five
years. Apparel retail in China is now gaining a positive momentum.
Growing amount of disposable income of the Chinese population,
developing sense of fashion, and middle income segment which
constitute a vast majority of Chinas total population are the causes
accounting for the drastic growth of China. (Top 10 Emerging
Markets for Apparel Retailers , 2016)
6. Collaboration: Since 1994, BGMEA has established seven Medical
Centers for the garment workers in Dhaka, Narayanganj and
Chittagong, where most of the factories are concentrated. In BGMEA-
UNFPA-GOB Project With the technical assistance from the UNFPA and
the Government of Bangladesh, BGMEA is implementing a project titled
"Family Welfare and Reproductive Health Education Services for
Garment Workers" in Dhaka. BGMEA-MSH-TAI Initiative BGMEA
collaborated with Management Science for Health (MSH) and Technical
Assistance Inc., BGMEA's health centres have been upgraded with the
technical support provided by these organisations from US. BGMEA
partnered with ILO for eliminating child labor and increasing workplace
safety. (Dr. Achim Berg, 2011). Many researches on supply chain
management have focused on strategic supplier partnership, customer
relationship, inventory management, sales forecasting and logistics
management. The need of today is close coordination with suppliers
and customers, as customer demand requires faster, timely and
accurate deliveries. (Mentzer JT, 2000) A single organisation often
may not be able to respond quickly to changing market requirements.
Temporary alliances or partnerships with trading partners help to
improve the flexibility and responsiveness of organisations.
(Gunasekaran A, 2002)Supply chain collaboration is viewed as
working together as a team where supply chain members are able to
share information, make joint decisions, and share benefits.
Researchers developed a supply chain collaboration index to measure
it in terms of strategic alliances, supplier relationship, customer
relationship as well as internal and external integration in
manufacturing and service sectors of the Philippines. The five
dimensions of supply chain collaboration pave the way to efficient
supply chain management. (Ramesh A, 2008) The involvement of
suppliers in a firms activities will influence its performance; customer
and supplier relations are positively related. (Singh RK, 2009) the
indicators of supply chain collaboration: top management
commitment, information sharing, trust, long term relationship, and
risk & reward sharing fit well in the context of textile supply chain
partners. All these are interlinked and related to each other. Every
supply chain partner needs them to improve their competitive
advantage. (R. Vanathi, 2014)

Outer Domain
7. Creative Domain: Innovation in technology plays a great role in the
RMG industries in various aspects. Mainly it contributes in the industry
to achieve the economies of scale, producing in a cost effective way,
and taking consideration of environmental sustainability. Recent
technological developments in clothing production equipment have
centered on machinery for knitting, linking, pleating, decorating and
embroidering. In particular, new computerized flat knitting machines
have enabled knitwear to be created in one piece without the need for
linking or sewing. In linking, an intelligent machine has been developed
which features an easy-to-use screen and an intelligent camera. In
pleating, a Japanese machine has been invented which takes the
physical strain out of the pleating process. In decorating, Barudan has
produced a machine which makes it possible to cross-seam embroidery
on the legs of finished jeans for the first time. TPM Germany has
launched a machine which can perform many printing and finishing
operations, while several companies have developed special systems
for lasering patterns on to jeans. In embroidery, Barudan has
introduced one of the first triple combination machines, Brother has
developed a machine which allows appliqu to be attached at the
same time as mainstream embroidery, and Koma- Tech has invented a
machine to produce three-dimensional fuwari embroidery. (Textile
Outlook International , 2010) In 2015, spinning industry witnessed
a trend of smaller order sizes which is likely to continue in 2016. The
combination of high demand and decreasing raw material costs has
also provided spinners with the opportunity to enhance margins, which
have historically been very thin for this industry. Perhaps the biggest
change in 2015 over past periods of sustained prosperity is the size of
orders. Orders are relatively small, at least for most specialty spinners,
and the variety of yarns spun is on the rise. (Fashionating World, 2016).
In terms of sustainability, continuing with increased environmental
awareness the major trend for the sector would be significant
innovations in sustainability reducing water and energy consumption,
which are vital developments for the benefit of the environment and
saving costs. Environmental and economic considerations go hand in
hand, and have been the driving force for the last few years. Even in
areas such as finishing, where water consumption and pollution was a
particular issue. Another important development is the rise of digital
printing, which doesnt require water. Digital printing is an
environmentally friendly technology. In recent years, technical textile
has become a major segment globally because of several advantages
like functional requirement, health and safety, cost effectiveness,
durability, high strength etc. The global technical textile industry has
witnessed an increase in consumption from 25 per cent in 1998 to 37
per cent 2010. The largest segments are Mobiltex, Indutex and Sportex
which contribute to about 55-57 per cent of the total Technical Textiles
globally. In the US and Western European countries, there is legislation
for mandatory use of such products which has further fueled growth in
demand. China, Brazil and Canada are some other countries to play
important role in shaping the technical textile industry in 2016. A major
area which is promising for technical innovation, in digital printing, is
ink, which has the ability to get better and print on more types of
fabric. With a Silicon Valley-based company such as EFI getting deeply
involved in textiles, the market is going to see a very meaningful
innovation in software applications, helping color to be accurate and
improving efficiency in the printing process to save customers time
and money. There is no doubt that this is an exciting time for
innovation in the textile industry. (Fashionating World, 2016). In
terms of technological innovation, there is another filed of creativity
that is linked to the Defense Dept. of the USA along with universities
including MIT to develop new combat uniforms that might
communicate and change color, signaling friend or foe to help prevent
deaths by friendly fire, or uniforms filled with optical sensors to make a
soldier invisible to an enemys night-vision goggles. There are also
technologies to produce specialized fabrics that weave in ceramics,
metals and fiberglass. These high-value fabrics are used in products
like safety gloves for industrial workers and body armor for the police
and military. (New York Times, 2016)

8. Cross-Country Factors: A number of European companiesamong


them, H&M, Primark, and Tescobegan sourcing some of their
garments from Ethiopia. The rest of the apparel industry took notice:
since 2013, there has been rising interest in not just Ethiopia but also
other East African countries as potential sourcing destinations for
apparel. Also contributing to the buzz is the renewal of the African
Growth and Opportunity Act (AGOA), which gives certain countries in
sub-Saharan Africa duty-free access to the US market. According to
United Nations projections, sub-Saharan Africa will have the highest
growth in working-age population anywhere over the next 20 years. By
2035, the working-age population in the region is expected to be as
large as Chinas todaymore than 900 million people. This massive
labor pool is capturing the attention of several industries, including
apparel. Within sub-Saharan Africa, East African countriesespecially
Ethiopia and Kenya, and to a lesser extent Uganda and Tanzaniaare
of interest to apparel buyers. The governments of both Ethiopia and
Kenya are taking steps to develop their domestic textile and garment
industries. Each of the two countries has strengths and weaknesses.
For example, that Ethiopia has cost advantages whereas Kenya boasts
higher production efficiency. Challenges common to both countries
include poor infrastructure, cumbersome customs processes, a dearth
of technical and managerial talent, and low levels of social and
environmental compliance. Basically three things can happen. The first
scenario is that East Africa will remain a niche market. This scenario
assumes that free-trade agreements with the United States and the
European Union will continue. In part as a result of volatility in
currencies and equity markets, the prospects for the region will remain
rather modest. In the second scenario, East Africa becomes a new
sourcing option for several large players in the basics categories, and
the regions apparel exports more than double. In this scenario, East
Africas garment companies move beyond cut, make, and trim facilities
and embark on the path to vertical integrationbut this process could
take several years. If East Africa is to experience sustainable growth in
garment manufacturing, collaboration among all stakeholders is a
must. A third scenario assumes that major apparel companies from
around the world begin to open sourcing offices in East Africa. The
region attracts enough investment to upgrade facilities and recruit
skilled workers, and its export volumes approach those of countries
such as Mexico or Pakistan. But even in this scenario, it could take
years for vertically integrated, indigenous players to appear in the
regionand that might be achievable only if the countries cooperate to
build regional value chains. (Achim Berg, Saskia Hedrich, and Bill
Russo, 2015)

Globalization has a significant impact on RMG products.


Combined effect on Global RMG industry by TPP agreement, ASEAN
Economic Community, the Regional Comprehensive Economic
Partnership. Three months before the kick-off of the ASEAN
Community, four ASEAN countries (Brunei, Malaysia, Singapore and
Vietnam) signed up to the Trans-Pacific Partnership (TPP). The TPP is a
binding agreement, connecting Asian countries to North American and
Latin American economies. While countries with high export potential,
such as Malaysia and Vietnam, are expected to benefit significantly
from TPP, countries that did not sign the agreement risk losing out.
This could have a disruptive effect on the region due to trade and
investment diversion. Once all agreements are in action, Singapore
and Vietnam would be the only two ASEAN countries with access to
Europe (via a free trade agreement), Canada (through TPP) and Asia
(through the AEC and the Regional Comprehensive Economic
Partnership). On the contrary, ASEAN economies not currently included
in the TPP might appreciate a supply chain that reaches beyond their
own region through the ASEAN TPP signatories. However, the high
standards required by the TPP pose challenges, pressuring members to
enhance practices, the quality of production, rules and regulations.
Adding to the network of economic regions is China, the worlds
second-largest economy and also not part of the TPP, which is in the
process of forming its own economic bloc: the Regional Comprehensive
Economic Partnership (RCEP). This will comprise ASEAN, Australia,
China, India, Japan, South Korea and New Zealand. (Williams, 2013).
Impact of NAFTA treaty in the US RMG market: By implementing NAFTA
treaty more effectively, the US has made a trade deal with Mexico to
import garment products from Mexico and for this, it exports fabric and
yarn to Mexico. Recently, Mexico becomes the second largest RMG
exporting country in US market after China.

BREXIT issue: Britains exit (Brexit) from the EU will hurt Bangladesh
exports especially the RMG sector to UK markets as it will cast shadow
on the exchange rates, fear the countrys economists and RMG
exporters.While UK is the third largest single export destination for
Bangladesh, it is very important for us as the exporters enjoy duty-free
market access for all products under Generalised System of
Preferences (GSP). That is why it has become a big question for the
country as to whether it will be able to enjoy the trade facilities after
the exit of UK. (Rashid, 2016)

9. Country Context: Discussions with government representatives


validated a number of projects addressing the different transport
routes that are being pursued to help ease the situation. For example,
the government plans to expand the Dhaka-Chittagong highway to four
lanes, prepare long-term efforts to establish a deep-sea port in
Chittagong, improve efficiency at Dhaka airport, and double the train
container transport capacity. Improving the countrys energy supply is
a core topic for the current government. Within the last two years,
more than 2,000 megawatts of power have been added to
Bangladeshs network, new contracts for 34 power plants have been
awarded, and negotiations for a joint electricity grid to enable power
trade in the region are under way.
In the opinion of European and US CPOs, economy and political
stability are the fifth area of risk when sourcing in Bangladesh.
Planning security, political unrest and strikes, corruption, and ease of
doing business are the topics mentioned most often. political unrest
and strikes in the supply chain can lead to significant delays. political
unrest and strikes in the supply chain can lead to significant delays.
suppliers mentioned high interest rates as a hurdle to capital
investment in the RMG sector. (Saskia Hedrich ,Sebastian
Kempf ,Dr. Thomas Tochtermann, 2011)

Recently in India Narendra Modi government unveiled a


comprehensive special package for the RMG sector in hope to regain
some of its lost competitiveness. The new measures overhaul labor
laws, allowing workers to do overtime of eight hours per week and
provide additional subsidy for garment manufacturers to upgrade
technology and expand industries. For industries, the government is
providing tax incentives and funds through loans and subsidies to
speed up the process of industrial expansion. Government is providing
additional subsidy under the Amended Technological Upgradation
Funds Scheme. This scheme provides one-time incentive to business
owners looking to scale up their ventures by investing in technology or
generating employment. Under the new norms, the subsidy has been
increased from 10% to 25% and it will only be provided after the
expected jobs are created. (Scroll.in, 2017)

In Cambodia, the infrastructure is a problem. But the industry has


responded well to these problems. To minimize issues with poor
infrastructure industrial areas near the Cambodian and Vietnamese
borders are being constructed by the govt. but especially in the case of
the area near the Vietnamese border, electricity costs can be
significantly lower than in other areas area. SEZs are also being
developed across the country in order to support investment in
manufacturing, with a number of those in the border areas. Strategic
location with existing transportation links to large garment and textile
producers in the region, therefore it is easy to invest in Cambodia as
part of an inter-country production chain. There will be benefits from
bilateral agreements at a regional level. Have potential to Benefit from
EBA and other trade growth facilitation tools as a LDC. Government
initiatives, such as the Technical Training School can ease the problems
faced with regard to Human Resources. A Number of hydropower dams
are being created, which could slowly increase the reliability and lower
the cost of electricity, thus opening the path to further investment in
machine intensive activities such as textile production. Continuing
implementation of BFC will increasingly become a selling point to byers
who are facing mounting pressure from consumers for ethical products.
(Italian Trade Commission, 2014)
In china the apparel value chain is integrated. They have to import
very little amount of things that decreases their lead time. In fact they
have the lowest lead time in the industry. Their infrastructure is very
friendly for all kinds of business including textiles. Government policy
is business friendly. And they possess the long experience of producing
apparel products which ensures the skilled human resource as well. But
the only thing that is causing them a little bother is the minimum
wage. Their minimum wage is highest among the close rivals. For an
industry where the manufacturer gets only about 20-25% of the final
retail price, this is supposed to cause problem. Though china does not
get much advantage when it comes to different treaty and MOUs
because of being a communist country. But their overall business
ecosystem and immense experience and expertise helps them to be in
competition. (Jean Ruffier, 2008)
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2/new-innovations,-technologies-to-drive-industry-in-2016
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EuroCham Cambodia.
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of Globalisation, China Development Press, 6.
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Global South, for the Global North. ROSA LUXEMBURG STIFTUNG, SOUTH ASIA.
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http://www.khmertimeskh.com/news/6963/in-cambodia--you-cannot-get-a-loan-
from-a-bank-without-a-land-title/
Mentzer JT, M. S. (2000). The Nature of Inter firm Partnering in Supply Chain
Management. Journal of Retailing, 549-546.
R. Vanathi, R. S. (2014). Competitive Advantage Through Supply Chain collaboration An
Empirical Study of the Indian Textile Industry. FIBRES & TEXTILES in Eastern
Europe.
Rahman, Z. (2017, April 18). Retrieved from Business World:
http://businessoutlookbd.com/index.php?
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Ramesh A, B. D. (2008). Modelling the enablers of supply chain Collaboration.
International Journal of Logistics Systems and Management, 617-633.
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RMG In Back Seat In World Competition. (2017). RMG In Back Seat In World Competition.
Dhaka: Business Outlook Bangladesh.
Saskia Hedrich ,Sebastian Kempf ,Dr. Thomas Tochtermann. (2011). Bangladesh ready
made garments landscape: The challange of Growth. Mckinsey and Company Inc.
Scroll.in. (2017, April 17). Three charts show how the Indian textile industry lost the race
to Bangladesh and Vietnam. Retrieved from Scroll.in:
https://scroll.in/article/810671/three-charts-show-how-indian-textile-industry-lost-
the-race-to-bangladesh-and-vietnam
Singh RK, G. S. (2009). Strategy development by SMEs for competitiveness:A review. .
Bench. International Journal, 525-547.
Textile Outlook International . (2010, April). Technological Developments in the Clothing
Industry. Retrieved from Textile Intellengce:
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Economic Analysis. Congressional Research Service.
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http://www.Newstoday.com.bd.
Jahid Hasan, British Journal of Economics, Management & Trade 3(3): 296-306, 2013The
Competitiveness of Ready Made Garments Industry of Bangladesh in Post MFA Era:
How Does the Industry Behave to Face the Competitive Challenge?

Akhund A. Shamsul Alam, Organizational Culture: An Empirical Study on Selected


Garment Factories in BangladeshThe garment industry in Bangladesh, Asian
Business Review Volume 6 Number 2/2016 (Issue 14), ISSN 2304-2613 (Print);
ISSN 2305-8730
Gillian Kane, Facts on China's Garment Industry, Clean clothes campaign.
K. M. Faridul Hasan et al. Md. Syduzzaman Kaniz Farhana , Field survey 02 January to 20
January, 2015
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pageid=3&repid=TISTOI&issueid=144&artid=1568
(n.d.). Retrieved from Mckinsey & Company, Inc.:
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sourcing
(2016, 11 29). Retrieved from Emerging Market Consulting:
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garment-sector-remediation-finance/
(2016, 04 01). Retrieved from New York Times:
https://www.nytimes.com/2016/04/01/technology/us-textile-industry-turns-to-tech-
as-gateway-to-revival.html?_r=0
(2016). Retrieved from Top 10 Emerging Markets for Apparel Retailers :
http://www.fibre2fashion.com/industry-article/5679/top-10-emerging-markets-for-
apparel-retailers?page=1
Achim Berg, Saskia Hedrich, and Bill Russo. (2015, August). Retrieved from Mckinsey &
Company: http://www.mckinsey.com/industries/retail/our-insights/east-africa-the-
next-hub-for-apparel-sourcing
BGMEA. (2016). Retrieved from BGMEA:
http://bgmea.com.bd/home/pages/TradeInformation
Byron, R. K. (2016, May 19). Retrieved from They Daily Star:
http://www.thedailystar.net/business/banks-giving-low-cost-loans-manufacturers-
1226173
Dr. Achim Berg, S. H. (2011). Bangladeshs ready made garments landscape: The
challenge of growth. McKinsey and company.
Farhana, K. (March 2015). PRESENT STATUS OF WORKERS IN READYMADE GARMENTS
INDUSTRIES IN BANGLADESH. European Scientific Journal March 2015 edition
vol.11, No.7 ISSN: 1857 7881 (Print) e - ISSN 1857- 7431.
Fashionating World. (2016, 01 06). Retrieved from Opportunities: New Innovations,
Technologies to drive industry in 2016: https://www.fashionatingworld.com/new1-
2/new-innovations,-technologies-to-drive-industry-in-2016
Gunasekaran A, Y. Y. (2002). Agile Manufacturing:Taxonomy of Strategic and Imperatives.
International Journal of Production Research , 1357-1385.
Italian Trade Commission. (2014). Market Study: The Textile Industry in Cambodia.
EuroCham Cambodia.
Jean Ruffier, J.-F. H. (2008). China Textile in Global Value Chain. Chinese Firms in the Era
of Globalisation, China Development Press, 6.
MANI, M. (2013). Ready Made Garments in india: Manufacturing cheap commodities in
Global South, for the Global North. ROSA LUXEMBURG STIFTUNG, SOUTH ASIA.
MASIS, J. (2014, 12 11). Retrieved from KHMER TIMES: 1.
http://www.khmertimeskh.com/news/6963/in-cambodia--you-cannot-get-a-loan-
from-a-bank-without-a-land-title/
Mentzer JT, M. S. (2000). The Nature of Inter firm Partnering in Supply Chain
Management. Journal of Retailing, 549-546.
R. Vanathi, R. S. (2014). Competitive Advantage Through Supply Chain collaboration An
Empirical Study of the Indian Textile Industry. FIBRES & TEXTILES in Eastern
Europe.
Rahman, Z. (2017, April 18). Retrieved from Business World:
http://businessoutlookbd.com/index.php?
option=com_content&view=article&id=1370:rmg-in-back-seat-in-world-
competition&catid=43:magazine-news
Ramesh A, B. D. (2008). Modelling the enablers of supply chain Collaboration.
International Journal of Logistics Systems and Management, 617-633.
Rashid, M. H. (2016, 07 29). Impact of Brexit on Bangladeshs RMG. Retrieved from
http://www.theindependentbd.com/home/printnews/53450
RMG In Back Seat In World Competition. (2017). RMG In Back Seat In World Competition.
Dhaka: Business Outlook Bangladesh.
Saskia Hedrich ,Sebastian Kempf ,Dr. Thomas Tochtermann. (2011). Bangladesh ready
made garments landscape: The challange of Growth. Mckinsey and Company Inc.
Scroll.in. (2017, April 17). Three charts show how the Indian textile industry lost the race
to Bangladesh and Vietnam. Retrieved from Scroll.in:
https://scroll.in/article/810671/three-charts-show-how-indian-textile-industry-lost-
the-race-to-bangladesh-and-vietnam
Singh RK, G. S. (2009). Strategy development by SMEs for competitiveness:A review. .
Bench. International Journal, 525-547.
Textile Outlook International . (2010, April). Technological Developments in the Clothing
Industry. Retrieved from Textile Intellengce:
https://www.textilesintelligence.com/tistoi/index.cfm?
pageid=3&repid=TISTOI&issueid=144&artid=1568
Williams, B. R. (2013). Trans-Pacific Partnership (TPP) Countries: Comparative Trade and
Economic Analysis. Congressional Research Service.

(n.d.). Retrieved from https://www.textilesintelligence.com/tistoi/index.cfm?


pageid=3&repid=TISTOI&issueid=144&artid=1568
(n.d.). Retrieved from Mckinsey & Company, Inc.:
http://www.mckinsey.com/industries/retail/our-insights/whats-next-in-apparel-
sourcing
(2016, 11 29). Retrieved from Emerging Market Consulting:
http://www.emergingmarkets.asia/consulting/news/2016/11/29/bangladesh-
garment-sector-remediation-finance/
(2016, 04 01). Retrieved from New York Times:
https://www.nytimes.com/2016/04/01/technology/us-textile-industry-turns-to-tech-
as-gateway-to-revival.html?_r=0
(2016). Retrieved from Top 10 Emerging Markets for Apparel Retailers :
http://www.fibre2fashion.com/industry-article/5679/top-10-emerging-markets-for-
apparel-retailers?page=1
Achim Berg, Saskia Hedrich, and Bill Russo. (2015, August). Retrieved from Mckinsey &
Company: http://www.mckinsey.com/industries/retail/our-insights/east-africa-the-
next-hub-for-apparel-sourcing
BGMEA. (2016). Retrieved from BGMEA:
http://bgmea.com.bd/home/pages/TradeInformation
Byron, R. K. (2016, May 19). Retrieved from They Daily Star:
http://www.thedailystar.net/business/banks-giving-low-cost-loans-manufacturers-
1226173
Dr. Achim Berg, S. H. (2011). Bangladeshs ready made garments landscape: The
challenge of growth. McKinsey and company.
Farhana, K. (March 2015). PRESENT STATUS OF WORKERS IN READYMADE GARMENTS
INDUSTRIES IN BANGLADESH. European Scientific Journal March 2015 edition
vol.11, No.7 ISSN: 1857 7881 (Print) e - ISSN 1857- 7431.
Fashionating World. (2016, 01 06). Retrieved from Opportunities: New Innovations,
Technologies to drive industry in 2016: https://www.fashionatingworld.com/new1-
2/new-innovations,-technologies-to-drive-industry-in-2016
Gunasekaran A, Y. Y. (2002). Agile Manufacturing:Taxonomy of Strategic and Imperatives.
International Journal of Production Research , 1357-1385.
Italian Trade Commission. (2014). Market Study: The Textile Industry in Cambodia.
EuroCham Cambodia.
Jean Ruffier, J.-F. H. (2008). China Textile in Global Value Chain. Chinese Firms in the Era
of Globalisation, China Development Press, 6.
MANI, M. (2013). Ready Made Garments in india: Manufacturing cheap commodities in
Global South, for the Global North. ROSA LUXEMBURG STIFTUNG, SOUTH ASIA.
MASIS, J. (2014, 12 11). Retrieved from KHMER TIMES: 1.
http://www.khmertimeskh.com/news/6963/in-cambodia--you-cannot-get-a-loan-
from-a-bank-without-a-land-title/
Mentzer JT, M. S. (2000). The Nature of Inter firm Partnering in Supply Chain
Management. Journal of Retailing, 549-546.
R. Vanathi, R. S. (2014). Competitive Advantage Through Supply Chain collaboration An
Empirical Study of the Indian Textile Industry. FIBRES & TEXTILES in Eastern
Europe.
Rahman, Z. (2017, April 18). Retrieved from Business World:
http://businessoutlookbd.com/index.php?
option=com_content&view=article&id=1370:rmg-in-back-seat-in-world-
competition&catid=43:magazine-news
Ramesh A, B. D. (2008). Modelling the enablers of supply chain Collaboration.
International Journal of Logistics Systems and Management, 617-633.
Rashid, M. H. (2016, 07 29). Impact of Brexit on Bangladeshs RMG. Retrieved from
http://www.theindependentbd.com/home/printnews/53450
RMG In Back Seat In World Competition. (2017). RMG In Back Seat In World Competition.
Dhaka: Business Outlook Bangladesh.
Saskia Hedrich ,Sebastian Kempf ,Dr. Thomas Tochtermann. (2011). Bangladesh ready
made garments landscape: The challange of Growth. Mckinsey and Company Inc.
Scroll.in. (2017, April 17). Three charts show how the Indian textile industry lost the race
to Bangladesh and Vietnam. Retrieved from Scroll.in:
https://scroll.in/article/810671/three-charts-show-how-indian-textile-industry-lost-
the-race-to-bangladesh-and-vietnam
Singh RK, G. S. (2009). Strategy development by SMEs for competitiveness:A review. .
Bench. International Journal, 525-547.
Textile Outlook International . (2010, April). Technological Developments in the Clothing
Industry. Retrieved from Textile Intellengce:
https://www.textilesintelligence.com/tistoi/index.cfm?
pageid=3&repid=TISTOI&issueid=144&artid=1568
Williams, B. R. (2013). Trans-Pacific Partnership (TPP) Countries: Comparative Trade and
Economic Analysis. Congressional Research Service.

Jinmin Wang et al.The expansion of textile and clothing firms of China to Asian Least
Developed Countries: The Case of CambodiaWorking Paper Series, No. 60,
December 2008, Asia-Pacific Research and Training Network on Trade
Ms. Alqa Aziz, RMG Trading Scenario in India and Other Major Countries- Comparative
Performance & Issues, International Journal of Business and Management,

Angie Ngc Trn, Vietnamese Textile and Garment Industry in the Global Supply Chain:
State Strategies and Workers Responses Institutions and Economies, Vol. 4, No. 3,
October 2012, pp. 123-150

Shahjahan Ali , Brexit and the Impact on Bangladesh Imperial Journal of Interdisciplinary
Research (IJIR) November 2016