Research on apparel manufacturing

Industry ( Bangladesh )
Agriculture, as the case in India, has been the backbone of economy and chief source of income for
the people of Bangladesh, the country made of villages. Government wants to decrease poverty by
getting highest productivity from agriculture and achieve self-reliance in food production. Apart from
agriculture, the country is much concerned about the growth of export division. Bangladesh have
accelerated and changed her exports substantially from time to time. After Bangladesh came into
being, jute and tea were the most export-oriented industries. But with the continual perils of flood,
failing jute fibre prices and a considerable decline in world demand, the role of the jute sector to the
country's economy has deteriorated (Spinanger, 1986). After that, focus has been shifted to the
function of production sector, especially in garment industry.

The garment industry of Bangladesh has been the key export division and a main source of foreign
exchange for the last 25 years. At present, the country generates about $5 billion worth of products
each year by exporting garment. The industry provides employment to about 3 million workers of
whom 90% are women. Two non-market elements have performed a vital function in confirming the
garment industry's continual success; these elements are (a) quotas under Multi- Fibre
Arrangement1 (MFA) in the North American market and (b) special market entry to European
markets. The whole procedure is strongly related with the trend of relocation of production.

Strength

. Considerable Qualified/keen to learn workforce available at low labour charges. The recommended
minimum average wages (which include Travelling Allowance, House Rent, Medical Allowance,
Maternity Benefit, Festival Bonus and Overtime Benefit) in the units within the Bangladesh Export
Processing Zones (BEPZ) are given as below; on the other hand, outside the BEPZ the wages are
about 40% lower:

. Energy at low price

. Easily accessible infrastructure like sea road, railroad, river and air communication

. Accessibility of fundamental infrastructure, which is about 3 decade old, mainly established by the
Korean, Taiwanese and Hong Kong Chinese industrialists.

. FDI is legally permitted

. Moderately open Economy, particularly in the Export Promotion Zones

. GSP under EBA (Everything But Arms) for Least Developed Country applicable (Duty free to EU)

. Improved GSP advantages under Regional Cumulative

. Looking forward to Duty Free Excess to US, talks are on, and appear to be on hopeful track

. Investment assured under Foreign Private Investment (Promotion and Protection) Act, 1980 which
secures all foreign investments in Bangladesh

. OPIC's (Overseas Private Investment Corporation, USA) insurance and finance agendas operable

. Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which

protection and safety measures are available

. Adjudication service of the International Centre for the Settlement of Investment Dispute (ICSID)
offered

. Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD & Cellular services

. Weakness of currency against dollar and the condition will persist to help exporters

. Bank interest@ 7% for financing exports

. Convenience of duty free custom bonded w/house

. Readiness of new units to enhance systems and create infrastructure accordant with product
growth and fast reactions to circumstances

Weakness

. Lack of marketing tactics

. The country is deficient in creativity

. Absence of easily on-hand middle management

. A small number of manufacturing methods

. Low acquiescence: there is an international pressure group to compel the local producers and the
government to implement social acquiescence. The US GSP may be cancelled and purchasing from
US & EU may decrease significantly

. M/c advancement is necessary. The machinery required to assess add on a garment or increase
competence are missing in most industries.

. Lack of training organizations for industrial workers, supervisors and managers.

. Autocratic approach of nearly all the investors

. Fewer process units for textiles and garments

. Sluggish backward or forward blending procedure

. Incompetent ports, entry/exit complicated and loading/unloading takes much time

. Speed money culture

. Time-consuming custom clearance

. Unreliable dependability regarding Delivery/QA/Product knowledge

. Communication gap created by incomplete knowledge of English

. Subject to natural calamities

Opportunity

. EU is willing to establish industry in a big way as an option to china particularly for knits, including
sweaters

. Bangladesh is included in the Least Developed Countries with which US is committed to enhance
export trade

. Sweaters are very economical even with china and is the prospect for Bangladesh

. If skilled technicians are available to instruct, prearranged garment is an option because labour and
energy cost are inexpensive.

. Foundation garments for Ladies for the FDI promise is significant because both, the technicians and
highly developed machinery are essential for better competence and output

. Japan to be observed, as conventionally they purchase handloom textiles, home furniture and
garments. This section can be encouraged and expanded with continued progress in quality
BANGLADESH LABOR COST
In September 2018 the Bangladeshi government announced a new minimum wage for garment
workers, which has fixed the minimum monthly wage at 8,000 Tk (95 US Dollars). The new minimum
wage structure which consists of seven wage grades has come into effect on December 1. An entry-
level operator will now receive 4,100 Tk in basic salary, in addition to 2,050 Tk in house rent, 600 Tk
medical allowance, 350 Tk transport allowance and 900 Tk food allowance. The total minimum wage
of 8,000 Tk represents a 51 percent increase compared to the last minimum wage set in December
2013 and will affect close to 4 million workers.

The Bangladeshi government had formed a wage board to review existing wages, as according to
Bangladeshi Labour Law minimum wages shall be fixed every five years. While garment factory
owners proposed a 6,000 TK, workers demanded up to 18,000 Tk as a minimum wage.

The declaration of the new minimum wage was met by protests from workers groups, who feel that
their demands and basic needs are not met. The new outlet Asia Times has written an interesting
article showcasing the different reactions and perspectives on the minimum wage increase with
quotes from trade union leaders, economists and the president of the Bangladesh Garment
Manufacturers and Exporters Association (BGMEA).

“In providing a good salary to workers, the makers have to increase price negotiation skill with the
buyers. Only 12% of earnings from a product is spent for workers,” Roy Romesh Chandra, former
secretary general of IndustriAll Bangladesh Council (IBC).

So, efficient management of earnings is very crucial for increasing the wages of workers. Buyers
should be incorporated in setting the new wage structure.
Owner/Company - Huckings Co

Address - P.O Box Dhaka Bangladesh

Contact NO. - +880789166516

Material- Knits

Color - White and multi -color options

Finishing - Abrasion Resistant and on Demand (add on)

Pattern - Natural Fine Grain

Per meter cost -

CIF Price – 3-12 USD / meter

Minimum Order – 100 meters

Payment mode - DD, Online banking, cheques, cash (small order).

18. Owner/Company - Ezoza Business Group Co., Ltd.

Address – Chirchak bel Dhaka

Material- Knits

Finishing - Abrasion Resistant and on Demand (add on)

Country of Origin: Bangladesh

Color - White, Black and multi -color options

Pattern- Natural Fine Grain

Per piece cost -

CIF Price – 8-12 USD /piece

Minimum Order – 1000 pieces

Payment mode - DD, Online banking, cheques, cash (small order).

RAW MATERIAL – Satin cloth

Most of the satin for manufacturing is supplied from china.

19. Owner/Company - Satin Fabric Supplier

Address - ROOM#607 / 6TH FLOOR HAIZHOU INTERNAITONAL BUILDING Keqiao,

Shaoxing, Zhejiang, China, 312 000.

Finish – Yes

Finishing – Anti-static, softness, Abrasion resistant

Fabric - Satin

Color - All

Prints/Pattern - Plain/Solids

Fabric Content – combination

Fabric Type- Dyed

Fabric Weight- 150-350 GSM

Weave Type- Plain

Export Market – Worldwide

Cost –

11 US$ – 12 US$ / meter

Minimum Order – 100 meters

Payment mode - Payment Mode: L/C, T/T, Wire Transfer.

RAW MATERIAL – Knits

20. Owner/Company - Zhejiang Huaxin Advanced Materials Co. Ltd

Finish – Yes

Finish – Anti- rust

Color: All

Product Type - Knits

7 days sample order lead time -Not Support.

Material - metal, Bronze Alloy

Slider Type - Non lock, non-lock

Technics - Plating

Size- 5#, 5#

Place of Origin - China

Model Number - SE-NY-SL-5-01

Model Name - SE-NY-SL-5-01

Product name - Zipper Sliders

Color - Light golden, Silver, Gunmetal

Quality - High Level

Technology - Plating

Usage - Nylon Zipper

Style - Fashionable

Per piece cost –

1) $0.10 for one piece

2) $0.08 for 1 - 999 Pieces

3) $0.06 for >1000 pieces

Minimum Order – 1 to how much ever piece is ordered by the buyer.

RAW MATERIAL – Jacket Button

Most of the Jacket zipper for manufacturing is supplied from china.

21. Owner/Company - Quanzhou Central Group Co. Ltd

Address – No.9C Henglong Business Center, Zhen Zhong Road Fengli District

City- Quanzhou, Region- China, State/Province- Fujian, Zip/Postal Code- 362700

Finish – No

Color: Multi

Size/Dimension: 42L

Specifications:

Product Code: LN15/2

Color: All

Cost per piece -

US$ 0.94 - 0.95 / Piece

$0.95 - 100 to 4999

$0.945 - 5000 to 9999

$0.94 - 10000 and more

Minimum Order – 100 to how much ever piece is ordered by the buyer.