Introduction

1.1 Enquiry overview

Aim of this part is to discuss about research topic and objectives of the study. In 1 st chapter,
history of the research has been included in order to create a understandable concept about
research. The background of Bangladesh Ready- made garments industry has been introduced.
Finally, objectives of this study along with research findings and question has been discussed
briefly. In the end, the researcher tried to specifies total structure of this study.

1.2 Background of the study

Bangladesh is an emerging economy in the world, a small country in Southeast Asia with high
population density. The readymade garments industry of Bangladesh commonly known as the
RMG sector is the top ambassador of Bangladesh as a country in the global market. Bangladesh
positioned itself in number right after china in terms of total apparel production and export.
RMG export earning undoubtedly holds the significant position in the countries total export
after the 90s (Faruque, 2014) and one of the major contributor in GDP of Bangladesh. It seems
like that the export performance of RMG can easily be argued as the total Export performance of
Bangladesh and strength of the economy. The journey of the RMG industry started in the late
70’s and since then it has played a key player role in the economy (Haider, 2007). Within a very
short period of time it has become the largest export earner of the country through a major
positive forward thrust in the early 90s (Shahriar et al., 2014).Today Bangladesh RMG products
is the biggest export business sector in the country. Readymade Garments product has a huge
Influence in the economy of Bangladesh. From the last 35 years, Bangladesh emerged as one of
the most successful country worldwide in this sector. Low cost labor, global agreement,
contribution of private sector and quota free market helped Bangladesh for being a giant in this
industry by achieving large share of international market .However, there is now more
competition than before due to the end of MFA (multi-fibre agreement). It is very much
predictable that, in future Bangladesh is going to face even more competition in Global market.
Since late 1970, after Ready-made garments industry started its journey in Bangladesh with a
narrow investment and facilities, it has mange to continue progress every year .From the early
90,s Bangladesh experiencing significant development in this sector with large amount of profit.
Very soon it has managed to earn notice from government when this sector was contributing
highly on countries total GDP. Last year, Bangladesh has earned more than $33 billion by
exporting clothing product worldwide which is equal to 82 % of total exports done by the
country. Nearly 18 billion people have been involved with this sector either directly or indirectly
which is 40 % of total industrial employment. (Source-World Bank). Nearly 4.2 million people
directly working in 6000 garments & textile factory of Bangladesh and among them
approximately 80 % are woman .Now; Bangladesh is worlds 2 nd biggest producer of clothing
products.
1.3 Research aim, objectives and questions

1.3.1 Research aim and Objectives:

• Competitive performance of marketing challenge Bangladeshi garments product in global market and
what kinds of problem this sector facing now?
• Recommendation to overcome from this situation.

1.3.2 Research questions:

 How Bangladesh could perform surface and deep level strategies in ready-made garments
Industry and the garments products?

 What are major problems of Bangladesh for sustain in Global market?

 Which policies will the best for Bangladesh to improve in future?

 In this year (2021) increase order in RMG Sector at global market? If Increase the order quantity
than why?

1.4 Performance of Bangladesh in RMG industry

So far, Bangladesh has managed to create a strong image in world market in this industry.
Bangladesh is doing well in this industry because of cheap labour cost. Bangladesh mainly
exports woven and knit garments worldwide Readymade garment (RMG) exports from
Bangladesh increased by 12.55 per cent to $31.456 billion in fiscal 2020-21 ending June 30
compared to exports of $27.949 billion in the previous fiscal, according to the provisional data
released by the Export Promotion Bureau. However, the country missed the export target of
$33.785 billion by 6.89 per cent. Category-wise, knitwear exports jumped by 21.94 per cent to
$16.960 billion in July-June 2020-21, as against exports of $13.908 billion during the previous
fiscal, as per the data. Exports of woven apparel too rose by 3.24 per cent to $14.496 billion
during the period under review, compared to exports of $14.041 billion during the comparable
period of 2019-20.Woven and knitted apparel and clothing accessories’ exports together
accounted for 81.16 per cent of $38.758 billion worth of total exports made by Bangladesh
during the last fiscal. Meanwhile, home textile exports (Chapter 63, excluding 630510) shot up
by 49.17 per cent to $1.132 billion during the twelve-month period under review, compared to
exports of $758.91 million during July-June 2019-20.In the fiscal ending June 30, 2020,
readymade garment exports from Bangladesh declined 18.12 per cent to $27.949 billion
compared to exports of $34.133 billion in the previous fiscal, mainly on account of COVID-19
pandemic and lockdowns.

1.4.1 Product and Market concentration

Bangladesh mainly exports product in 2 specific markets, America and Canada and other side in
Europe. Around 95 % total exports go there with the advantage of quota free restriction. But,
after the MFA took place, Bangladesh facing some difficulties in US market now. Compare to
other major rivals, Bangladesh failed to perform aggressively to market diversification and
concentration process. Beside good performance in foreign market, Bangladesh has got some
negative point too. So far, Bangladesh managed to perform well in only 5 major categories in US
and EU market. Trousers, Shirts, Jackets, Sweaters and T-shirts these are the item which covered
85 % of total exports Bangladesh doing. Bangladesh just needs to be a bit careful in this
competitive market to maintain all this good record and to develop this sector in this competitive
world market. Also, to keep moving with over 6% economic growth, Bangladesh must
implement proper innovative theory in order to help the biggest private sector of the country.

1.5 Summary
The exports growth of Bangladeshis outstanding in competitive international market from long
time. But Bangladesh must enforce product diversification to keep strong position in world
market. Bangladesh need to build up a strong market concentration like other competitive
country did. Also need to concentrate on product up gradation to achieve strong brand image
globally. Government is working hard to reducing lead time so that Bangladesh can compare his
industry with any other nation. Furthermore, all this factory needs to make sure they are
maintaining a good standard of quality by maintain a high value addition of product.