Internship Report

On
Evaluate the Prospect of Garments Accessories in Bangladesh

A Study on Affan Interlinings Limited.

Supervised By:  Submitted by:

Md. Hassan Tanvirul Islam

Lecturer ID: 111-57-11
Department of Business Administration Major-Marketing
Southern University Bangladesh. Department of Business Administration
Southern University Bangladesh

Southern University Bangladesh

Chapter 01:
Introduction

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Objective of the Report:
The broad objective of the report is to Evaluate the Prospect of Garments
Accessories Industry In Bangladesh.

Specific Objectives:

 To share the Marketing Strategy of Garments accessories of Affan

Interlining LTD.
 To evaluate the prospect of garment accessories of Affan Interlining LTD.
 To share the problems associated with garment accessories of Affan
Interlining LTD.
 To share some Policy, Recommendation and conclusion of Garment
Accessories on Affan Interlining LTD.

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 Scope of the Report
The study is specifically limited to Prospect & marketing of accessories products. It is discussing only a smaller side of organization.
Through knowing the relationship among these two areas it.is possible to take necessary steps to market the potential customers. This study
can facilitate the participants who have the intention to work in the same field and other who are working in this sector. This can also be
used as a reference in any relevant study in future. The report is covered the data of Affan Interlinings Limited’s Product line:

Methodology of the Report

This report is a diligent enquiry and careful search for new knowledge through systematic, scientific and analytical approach in any branch
of knowledge. It is a systematic effort to gain knowledge, truth or broad principles in a verifiable and objective way. The present chapter is
aimed at explaining the research methodology adopted for carrying out the report work.
Population and Sample: All garment accessories industries are selected as population for the report and individually Affan
Interlinings Ltd. is selected as sample.
Data Collection:
Primary Sources of data:
a. Observation: some primary data have been collected through the observation during working practically at the Affan Interlinings Ltd.
b. Interview: interviewing some officials and concerned experts.
c. Discussion: discussion and informal conversation with the clients and the related company officials.
Secondary sources of data:
The secondary data sources are annual report, manuals and journals and different publications based on prospect and marketing mix of
RMG Accessory in Bangladesh. To identify the policies, implementation, supervision, monitoring practices of marketing strategy and
procedures for implications in practically for this research, the following secondary data have been used:

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• Annual report of Affan Interlinings Limited
• Several types of Academic text books.
• Different publications regarding prospect and marketing strategy
• Information about the organization from the company profile.
• Website of Affan Interlinings Ltd.
• Internet
• Newspaper & News Article etc.
Analysis of Data: The collected data were then properly analyzed to derive the findings of the study. This report has been developed based
on such findings.

Limitations of the Report

This report is my first assignment outside of course curriculum in the practical life. Before completing the institutional experience practical performance
in the formal stages become difficult. So, in performing this paper lack of my proper practical knowledge is greatly influenced in this performance.
Besides above have to face some other limitations are:

• Time is a major limitation that would mostly with stands a comprehensive study on the topic selected. • Various confidential matters, forms, report,
were not disclosed to me from marketing department. • Some strategies of business and operation were restricted to handover. • Improper combination
among various departments. • Unwilling to give information more because of extra harassment without their responsibility. • Being busy for completing
their day-to-day work is also another reason of not getting more information

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 Chapter 02:
Overview of AFFAN
Interlinings Limited.

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Overview:
Affan Interlinings Limited is a Private limited company which is a Interlining manufacturer that produces various types of Garments
accessories since 2002. The company ensures strict compliance with international standards and local regulatory norms in every phase of
manufacturing and assuring quality. Ensuring all activity through documented Quality Management System (QMS) complying
international standard according to OEKO- TEX Standard 100 and Trim Qualification Program Requirements by continuous development
of human resource by regular training participation. We ensure customer satisfaction by exceeding their level of expectation.

Affan Interlinings Limited is located in the BSCIC Industrial Estate, Sagarica Road, Port City Chittagong in Bangladesh. It occupies an
area of 20,000 SFT. It has a specialized production facility of different garments accessories like Interlinings, pocketing Fabric and so on.
The company is the result of relentless pursuit of excellence by the founder Mr. Mohammed Nazrul Islam. Since then it is ensuring strict
compliance with international standards in every phase of manufacturing and assuring quality.

The vision of Affan Interlinings Limited is to be the number one choice of garments accessories by providing the finest quality products
and exceptional customer service through the use of latest technology and adherence to social responsibility. They are committed to greater
customer satisfaction by meeting the expectations of our apparel and retail clients. They look forward to being known as the regional
specialist in fulfilling Total Interlining Solutions.

Affan Interlinings Limited committed to maintain discipline, punctuality and quality products at a reasonable price and ensure quality
service. Their focus is on the customer needs and satisfaction. They maintain delivery schedule according to buyers’ requirement.

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 Brief of Product List Business Partners
Spun Bond Interlinings Woven Stretch Polyester 1. Target USA
Interlinings 1. Target Australia
Chemical Bond Interlinings Shoe Interlinings 1. Walmart
Thermo Bond Interlinings Cap Interlinings 1. H&M
Stitch Bond Interlinings Felt Interlinings
1. Bestseller
Woven Cotton Interlinings Thermo Adhesive Tape
1. Garan Inc.
Woven Polyester Cotton T/C Pocketing Fabric
1. C&A
Interlinings
Knit Stretch Polyester   1. Next
Interlinings 1. Pull & Bear
1. Mango
Environmental Policy:
Generate, set and review the well define achievable objectives and targets through the management review process considering the significant
environmental aspects for continual improvement of our environmental performance.

Reduce the existing waste level, minimize the degree of contamination and conserve the resources by recycling materials at every stage of the
process.

Ensure and provide a safe and healthy working environment for all of the employees who are working on behalf of the company.

Engineer and evolve the method of process of product development and production procedures in accordance with the environmental
phenomena.

Necessary legal requirements and practices for industry standard relating to Environment should be considered and complied. 8
Environmental Policy:
Generate, set and review the well define achievable objectives and targets through the management review process considering the
significant environmental aspects for continual improvement of our environmental performance.

Reduce the existing waste level, minimize the degree of contamination and conserve the resources by recycling materials at every stage of
the process.

Ensure and provide a safe and healthy working environment for all of the employees who are working on behalf of the company.

Engineer and evolve the method of process of product development and production procedures in accordance with the environmental
phenomena.

Necessary legal requirements and practices for industry standard relating to Environment should be considered and complied.

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 Chapter 03:
Findings and their Analysis

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Porter’ Five Forces Model and Bangladesh Garments Accessories Industries:
 
Introduction: One of the well-known showcasing examinations including the aggressive and the appeal of the market is the Porter's five constrain demonstrate. In light
of this model Michael Porter has recognized five powers which influence the engaging quality of the market fragment. In view of perceptions and meeting in these
enterprises, the Porter's model can be utilized to give a brief thought regarding the business of Garments Accessories in Bangladesh.
i. Danger of extreme portion contention: Bangladesh garments accessories at one time had a market lead with 22% piece of the overall industry. This now has
tumbled to 18% piece of the pie. This demonstrates since there were moderately less players in the market, it was alluring and still is. As of now China and India
have picked up a promising execution in the market. The high beginning capital necessities required for this industry are being dealt with by the contenders by
shaping joint endeavors with remote speculators. Therefore, leave hindrances are high starting capital necessities required for this industry are being dealt with by
the contenders by shaping joint endeavors with remote financial specialists. Therefore, leave boundaries are high because of altered expenses and consequently this
has prompted to value wars where contenders are always cutting costs. In a value Sensitive market this is exceptionally urgent.
ii. Danger of new contestants: The industry of garments accessories producing in Bangladesh has low section boundaries however high leave obstructions. The
section hindrances were once high, yet because of accessibility of different financing alternatives, for example, joint ventures et cetera, the high introductory
capital speculation is presently not an issue. Then again because of the high capital venture is currently not an issue. Then again because of the high capital
speculation, organizations are not ready to leave the business as effectively as it needs. This implies they think that it’s difficult to leave amid awful times thus it
prompts to overcapacity and discouraged profit for all.
iii. Danger of Substitute items: This industry or section of the materials business has no substitutes. Accordingly, the portion is appealing because of the accessibility
of no clear substitutes.

iv. Danger of purchaser's developing bartering power: This industry has one greatest risk and that is the expanded haggling force of the purchasers. The reason is
that they are composed as they all fall under the umbrella of Bangladesh Garments Manufacturing Exporting Association (BGMEA) and in this manner are
concentrated. Additionally, fabric speaks to a noteworthy bit of purchaser's cost however it has just a 2% estimation of the last item which is any piece of clothing.
Despite the fact that a little separation is available in string in view of the yarn quality and in addition innovation utilized, the low exchanging expense of the
purchasers to another provider and the high value affectability among the purchasers have prompted to this industry being an ugly section. Another approaching
danger has been the upstream combination by a portion of the purchasers. One of the greatest providers to Wal Mart in South Asia is Bangladesh, who is
additionally one of the greatest customers.
v. Risk of provider's developing bartering power: Since Bangladesh providers are determined with auxiliaries of worldwide organization, the providers are
basically outer and therefore the providers dealing force are less for Bangladesh in this section.
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Effective Marketing Strategy:
 
Industrial Tour for Buyers: Garments Accessory and Textile is the only sector, where product comes last and process comes first. In other
businesses the concentration is always on the Product. Even though, a strong brand image doesn’t work to motivate buyers. New Buyers
never place any order unless or until they visited the factory and get satisfied. In this sector, brand image works as an encouraging factor not
the match-wining factor. Almost 36 world top most international buyers including Wal-Mart, Levi’s, Gap. JCP are out sourcing accessories
from Bangladesh. Next Accessories, Fabian Group, Opex Group are renowned Brands not only in Bangladesh but also worldwide. Opex is an
international brand and it is famous for is quality products. Opex has business with world 36 top most buyers. That mean Opex has very good
brand image worldwide. This brand image is not sufficient to get a purchase order from new buyer. Before making any new order, new buyer
usually visit the factory, where it is located and get satisfied. During the time of visit, buyers generally focus on quality of the product and
capacity of the company. Garments Accessories and Textile companies often invite these buyers to visit the factory and get familiar with the
capacity and quality. For other products like cosmetic, FMCG, Luxuries product, this thing doesn’t take place. We all know that Unilever is
famous brand. So, if anyone wants to purchase a bulk amount of product from Unilever, one does not need to visit Unilever’s factory and get
satisfied because we all know that Unilever has a strong commitment for its quality product. That means the name Unilever works as
motivating factor. But in case of garments a strong, superior brand name doesn’t have that much power to motivate buyer.
 
Activities of Buying Houses: Buying house has the capability to manage or contact with different buyers. In fact, buying houses
manufactures garments products and acts like as a subcontractor. In case of FMCG, these middlemen can only trade by simply Buying and
receive some profit. In case of Garment, middlemen acts like a manufacturer and coordinator. If the business is a foreign company, the
company has to contact with different Buying houses to make the negotiation. Buying house works as a middle men and perform all tasks
from manufacturing to export. Buying houses therefore works as a media between buyer and seller. In that case, the work area of the buying
house can be enormous. Buying house contacts with manufacturer of garment products, maintain contacts with textile and manage fabric
(later on fabric is sent to garment manufacturer). The Buying houses also contact accessories Company for collecting accessories and finally
Buying house makes a shipment of the final products. Buying houses usually make profit by getting commission from garments, textile and
accessories businesses. Also, Buying house make profit by selling garments product to the buyers and make profit along with commission
from garments, textile, accessories business. In fact Buying house works as a manufacture of product.
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International Compliance: Often compliance requirements are treated as pre condition of negotiation by the international buyers.
International Compliances issues are the biggest issues regarding Garments accessories and Textile manufacturing. Brand image, quality and
productivity will be less important if company is unable to fulfill the compliances requirements. Even world biggest and famous buyers
(Levi’s, Gap, Nike, and Wal-Mart) consider compliance requirement before they place any order to garment and textile manufacturers. These
buyers first ensure compliances requirements than place order. Sometimes, these buyers post their compliance requirements as a banner or
posters in front of manufacturing units located in Bangladesh and declare as authorized suppliers. Garments and Textile companies group
maintain top most important to compliance of local and international rules and regulation related to child labor, force labor, harassment abuse,
Health and safety issue, benefits, work hour, over time, discrimination and natural environment. Companies also maintain global standard in
factory and work management. Highest priority has always been on work place safety. Most of the cases factories are equipped with
mechanical, Chemical, electrical hazard free.
 
Diversification and Modernization: Diversification and Modernization are also significant issues in this sector. Most of the cases
manufacturer wants to diversify and modernize their business so that they can increase the capabilities to meet the demand. For that Textile
has a tendency to set up state-of-the-art plants and machinery. Although, the production/manufacturing is completed by exiting set up,
garments and textile set up new plant for showing the capabilities.
 
Foreign expert: Almost all Garment and Textile manufacturers rely on foreign expert. Maximum cases expert are recruited from India, Sri-
Lanka and China. These expert works on the top level. These foreign experts work as a Brand promoter of a company. On the other hand,
those people are used to convince the international buyers. As Bangladesh has huge business connection with China, India and Sri Lanka, for
that, most of the experts are from those countries.
 
Vertical Integration: When we see an organization is known as composite organization, it will make the way clear for the vertical
integration. Vertical integration has a great impact over buyers. Buyers feel comfortable to have a business with that composite organization.
In general, vertical integration means a comprehensive plant that can have the capacity to outsource the raw materials of the production
internally. Although companies main focus on ready-made garments but many companies stepped to backward Linkage industry with a view
to maintaining quality and reduce lead time for export. Many companies have separate Textile division which consists of Spinning, Yarn
Dyeing and Weaving, Fabric dyeing, Printing and Finishing, Composite Knitting unit. 13
Managing Relationship: Garment and Textile business are all about making relationship with the respect buyers. Manufacturer wants to make a good
relationship by fulfilling the desire wants of the buyers. As result loyalty program has been developed and repeat purchase take place. On the other hand,
Business has to make very strong relationship with the suppliers. All about making the good flow of supplies from suppliers and finished product for
buyers.
New Product Development (R&D): Besides dealing business with the buyers companies established its own Research and Development Department to
meet the current demand of the customers. This R&D is responsible for developing new fabric construction and meets the buyer’s requirement efficiently
and effectively.
Corporate Social Responsibility (CSR): Companies provide schooling facilities to the local children and worker children, Health care facilities, day
care center for worker children, Canteen and Club facilities in the factory. For that, companies have established School, College, and Hospital. Now,
Bangladesh boasts a large number of well-known accessories companies. Companies are aware that their activities have a major impact on the
environment. To save natural environment in the factory area many companies has undertaken a massive tree plantation program. Beside each factory has
waste management plant and to avoid hazard.
Promotional Strategies:
Garments and Textile business follow business-to-business concept. As result it has to make a good relationship with the buyers and suppliers. The main
promotional campaigns are limited to Magazine advertisements and arranging tradeshow for buyers. In this sector manufacturer need not go to the buyer
rather buyer comes to manufacturer in different ways. Manufacturer needs to formulate strategies to retain the buyers. Manufacturer arranges a formal
presentation about product, machinery in front of buyers. It’s all about manufacturer capacity, whether they can fulfill the requirements of the buyer.
Sometimes manufacturer send Company brochure including Product and machinery setup just to give an impression about company about fulfilling the
requirements. Each and every organization has its own way to do business. Bangladesh has good prospect of Garment accessory and Textile product. We
have couple of advantages over other countries, out of them cheap labor cost is one. Textile and Garment Accessory have a common flow of changes.
Before, Garment Accessory and textile happened to be owned by western part of the world. It takes long time to develop and consistently passing
through Asia. After developing Asian-economy it will again move to another undeveloped area. The main concern is to develop an economy. Right now,
we have couple of composite mills working very efficiently. But those are not enough for a country to be developed. As we have low cost on raw
materials and cheap-labor we can use these opportunities and can compete with our main competitors. Some MNC’s have found the potentiality of
Garment Accessory and Textile In our country. For that, a number of foreign investments are coming towards our country. But if we compare our
Garments Accessory and Textiles with MNC’s, variation will not be in terms of quality but in terms of Marketing. Those MNC’s have huge budget for
marketing activities, but our local companies have very limited budget for formulating marketing activities. All we need to create a competitive
marketing system, in order to attract new customer, develop core strength and retain existing customer. 14
Competitive advantages for positioning Garments Accessories Industries of Bangladesh:
For identifying the best possible competitive advantages for positioning a product, we know that there are some criteria for this. These are
product differentiation, service differentiation, channel differentiation, personal differentiation, image differentiation etc. These criteria can be
discussed follows:
Item Differentiation: Bangladesh gives the best quality item its clients. They generally attempt to hold the prevalent execution and global
standard. So, Bangladesh's parameters for serving the Textile and adornments can be the best as a result of unrivaled quality and global
standard, it can give the affirmation about the item, strength and dependability are another parameter which gives a much more separation
item than of its rivals. Since it is universally said that for modern textile and RMG accessories and extras result of Bangladesh is generally
solid.
Benefit separation: Bangladesh, alongside the best item, gives some one-of-a-kind administration include likewise with the goal that clients
can separate from others of its rivals. Parameters for administration separation for Bangladesh best
Service separation: Service separates from others item includes; Bangladesh, can be depicts by conveyance, client preparing and client
counselling. Conveyance maybe one of the best administrations of Bangladesh articles of clothing adornments ventures since it has a decent
store network office which takes the minimum conceivable time after requesting an item. Bangladeshi Accessory enterprises has a decent
business advancement and specialized administration wing under advertising administration. Primarily specialized administration group gives
an appropriate preparing and introduction of item furthermore gives consultancy about any issue about pieces of clothing frill items.
Individual separation: Bangladesh has one of best RMG accessories of world at present in the event that we consider the capability of
workers of an individual organization. With an accomplished, very much prepared and all-around acted group, Bangladesh is giving the best
worker conduct in pieces of clothing extras industry. With four noteworthy offices - HR, Marketing, Finance and Supply Chain and four
wings of showcasing ward Customer Service, Sales, Business Development and specialized deals, Bangladesh articles of clothing
embellishments ventures has best work force separation.
Picture separation: Bangladesh is the world market pioneer in creating and providing modern Textile and RMG accessories. They have a
superior picture in the worldwide purchasers, for example, Nike, Puma, and Wal-Mart. Now and then clients specifically allude to the
purchasers to purchase fabrics and garments accessories and embellishments. Instead of different contenders, for example, China, India,
Vietnam- Bangladesh gets a gigantic separation.
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 SWOT ANALYSIS
The SWOT analysis of the marketing department can be done, but must also to some extent incorporate the SWOT of the company as a
whole, the reason being that this company is market 5 oriented and the main means of getting and retaining clients is through the use of
relationship marketing. The SWOT analysis of the industries given here:
Strengths: Weakness: Opportunity: Threats:
The qualities of the RMG The weaknesses of the After the internal analysis of the industries is The industry is not without facing any forms of threats. The
done, the external analysis will shed light into main threats faced by the industries are:
accessories enterprises are garments accessories the opportunities of the industries. The Increased rivalry from new multinational, joint venture and
as per the following: industries are as follows: opportunities of this industries are: in addition neighborhood textile and accessories makers to
1. Futuristic design, 1. Very high price because Increase in new open doors for the be specific China, India, has implied that the promoting
2. Good image, of fast changes, showcasing group to investigate new markets group has monstrous weight to keep up their present client
abroad. For the modern part, the opening of base and keep up piece of the overall industry. The
3. Reaction to a 2. Small series with a new markets lies in the expulsion of exchange expansion in rivalry is because of the way that there are no
new fashion trend, large number of models boundaries on Myanmar. This has opened of passage boundaries because of absence of any directions in
4. Quality of textile (three to five articles in the market for offering both as far as this industry by the administration which advances send out.
fabric and production, work order), mechanical and in addition purchaser area. Likewise, the capital speculation is high to the point that
5. The new ergonomic 3. Manufacturing of only Likewise, the purchaser market is taking a once an organization enters this industry it confronts
gander at chances to exploit its ease hindrances to leaving this industry this industry along these
form of a model, three sizes, generation office to investigate at new lines making them stay in this industry. Likewise, as there
6. A short period of 4. The bad covering of markets, for example, Sri Lanka and also are no substitutes for string all in all, the industry is alluring
development of a foreign market, Malaysia which have higher cost of creation. to the new potential participants. Additionally, the way that
model and a short 5. The high price of There is an awesome open door for the there are no current forceful contenders implies that the
businesses in attempting to utilize its abilities business is appealing. These are a portion of the reasons
period of duration, energy,
in attempting to offer the new creation why the opposition is extraordinary. As every one of the
7. Automation of 6. Condition and price rise offerings the organization is presenting in the general populations of this businesses are getting to be
production processes, of raw material because market, to be specific, interlining, zippers and senior and are getting advanced, it is getting to be
8. Industrial training of introducing VAT, modern strings. This has given the office more troublesome for the office to renew its human asset by
conducted by 7. Short time for current chances to making relationship searching for new individuals who have the fundamental
promoting. The extent of marking the items is aptitudes. Regulatory issues issued by the administration
specialist, optimization of giving the promoting a chance to group a hamper the lead time and additionally administration of the
9. Ecological products. chance to practice its skill in showcasing as organization. The regressive linkage which bolsters the
requirements. the marking techniques if fruitful will prompt forward business is hampered by these issues, for example,
to dependability and in addition increment traditions freedom, security issues prompting to enormous
deals. weight on the showcasing directors attempting to keep 16up
To evaluate the prospect of garments accessories of Bangladesh:
In a worldwide commercial center, an undeniably colossal rivalry strengths organizations endeavoring to discover procedures that the upper
hand over the contenders. Bangladesh is perceived as the most trusted and suggested textile and market pioneer of modern garments
accessories and different extras. Its fundamental item is fabric and accessories which is utilized as a part of pieces of clothing industry yet it
has additionally zipper and different accessories businesses. It has advertised in 200 nations around the globe however as of now it is
primarily roundabout sending out to worldwide purchasers. Bangladeshi garments accessory enterprises has the notoriety of best in quality
and claim to fame.
For quality affirmation and administration Bangladeshi garment accessory is best to its clients. Bangladeshi garments accessory businesses
has serious rivalry with some other textile and accessories producer organization around the globe, for example, China, India, Pakistan,
Vietnam and so forth. As like as a worldwide piece of the overall industry where its closest rival has 21% of the Total piece of the overall
industry.
Related Bangladesh RMG accessories, Ayesha Jamal(2013) said in her industry report that "Bangladesh garments accessory is working its
business in light of its notoriety, quality administration and notoriety of direct contacts to its clients. Best arrangement and best steadiness
about any issue with respect to its item is given by Bangladeshi garments accessory producer to its clients. This is precisely saying that the
predominance of garments accessories item instead of its rivals and best administration to clients. Irshad Rahman (2007) said in his industry
report "Streamlining client administrations point of view from Bangladesh Garments Accessories Industries", said that "Bangladesh ought
not to keep running behind everywhere throughout the market of RMG accessory division yet it ought to remain its quality administration so
that the genuine target showcase like the celebrated purchasers Target, Puma or Wal-Mart stay still. Along these lines other widely acclaimed
organizations can likewise be pulled in by its textile and garments accessories" This gives some thought regarding what kind of market
Bangladeshi garments accessory ventures focus to offer its items ought to. In the report ("reasonable improvement for business strategy in
exchange and production network)" Md. Mostafizur Rahman (2007) said that "exchange transaction between deals compel and client is vital
on the grounds that both gathering need a win-win circumstance". This demonstrates the requirement for a very much prepared deals drive
for managing a business gainfully. Initial two reports demonstrate the items prevalence and sort of market over offer. However, in these
reports creators primarily worked with client benefit wing of promoting division as it were. Be that as it may, in flow examine scientist
attempted to discover the general focused components of Bangladeshi garments accessory ventures. 17
Evaluation of Marketing Practices of Affan Interlinings Limited:
Interviewed on the 50 buyer was conducted to acquire more effective a partial knowledge about the Affan Interlinings Limited specially
thank here those people who cooperate with me to complete my survey successfully. Several questions have been arisen through this
survey from which the most analysis with respondent's answer basis.

Personal Interview:
For the collection of more proper and projected information about the Affan Interlinings Limited, interview with 50 customers have been
taken. These assisted me to get profound information to conduct this study successfully and help me to share the suggestion given the
buyer with the company respective person. 

Survey questionnaire:
To collect primary information and feedback from the buyers of Affan Interlinings Limited structured questionnaire was developed and
survey was conducted. Questionnaire survey helped to get ready data from the respondents regarding awareness about the brand.

Target group:
Target group of this survey was mainly the buyers of Affan Interlinings Limited. The reason for selecting them as because they are the
main buyer of Garments Accessories which produced by Affan Interlinings Limited. For my research report, sample size of survey
respondent was 50 buyers of Affan Interlinings Limited.

18
Question : Lack of supply of sufficient natural gas and electricity for manufacturing garments accessories.

Question no. is survey by 5 point scale with 50 samples. The value data where analysis by frequency distribution and presenting of the
responses are done which are stated as follows:

The survey table of question no:

  Strongly Disagre Neutral Agree Strongly Total
Disagre e Agree Weight
e 3%
11%
Scale 1 2 3 4 5   30% Strongly Disagree
Frequen             Disagree
Neutral
cy 0 3 7 28 12 Agree
Weight             Strongly Agree
0 6 21 112 60 199 56%

Percenta            
ge 0 3% 11% 56% 30%

Survey Through Questionnaire

The pie chart represents that 0% sample represent on strongly disagree, 3% represents disagree, 11% represent Neutral, 56% represent
agree & 30% represents Strongly Agree. The study finds that 56% sample agreed with question 1 which is Lack of supply of sufficient
natural gas and electricity for manufacturing garments accessories.

19
Question: Affan Interlinings uses quality raw materials for production.

Question no a is survey by 5 point scale with 50 samples. The value data where analysis by frequency distribution and presenting of the
responses are done which are stated as follows:

The survey table of question no:

  Strongly Disagre Neutral agree Strongly Total
Disagre e Agree Weight
e 6%
6%
Scale 1 2 3 4 5   Strongly Disagree
38%
Frequen             Disagree
Neutral
cy 0 5 3 30 12 Agree
Weight             50% Strongly Agree
0 10 09 120 60 199
Percenta            
ge 0 5% 5% 60% 30%

Survey Through Questionnaire

The pie chart represents that 0% sample represent on strongly disagree, 5% represents disagree, 5% represent Neutral, 50% represent agree
& 38% represents Strongly Agree. The study finds that 78% sample agreed with question 2 which is Affan Interlinings uses quality raw
materials for production.

20
Question: Affan Interlinings offers Competitive price.

Question no a is survey by 5 point scale with 50 samples. The value data where analysis by frequency distribution and presenting of the
responses are done which are stated as follows:

The survey table of question no:

  Strongly Disagre Neutral agree Strongly Total
Disagre e Agree Weight 1%
e 5%
Scale 1 2 3 4 5   25% 11%
Strongly Disagree
Frequen             Disagree
Neutral
cy 2 5 7 29 10 Agree
Weight             Strongly Agree
2 10 21 116 50 199 58%

Percenta            
ge 1% 5% 11% 58% 25%

Survey Through Questionnaire

The pie chart represents that 1% sample represent on strongly disagree, 5% represents disagree, 11% represent
Neutral, 58% represent agree & 25% represents Strongly Agree. The study finds that 83% sample agreed with
question 4 which is competitive price-based offerings.
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Question: Extreme competitive pressure due to unforeseen competitors.

Question no a is survey by 5 point scale with 50 samples. The value data where analysis by frequency distribution and presenting of the
responses are done which are stated as follows:

The survey table of question no:

  Strongly Disagre Neutral agree Strongly Total
Disagre e Agree Weight
e 2%
16%
Scale 1 2 3 4 5   Strongly Disagree
Frequen             Disagree
47% Neutral
cy 0 1 23 18 8 Agree
Weight             35% Strongly Agree
0 2 69 72 40 183
Percenta            
ge 0% 2% 46% 36% 16%

Survey Through Questionnaire

The pie chart represents that 0% sample represent on strongly disagree, 2% represents disagree, 46% represent Neutral, 36% represent
agree & 16% represents Strongly Agree. The study finds that 83% sample agreed with question 6 which is Extreme competitive pressure
due to unforeseen competitors.

22
Question: Affan Interlinings adheres to all the social and environmental - local and international laws in their whole operation.

Question no a is survey by 5 point scale with 50 samples. The value data where analysis by frequency distribution and presenting of the
responses are done which are stated as follows:

The survey table of question no:

  Strongly Disagre Neutral agree Strongly Total
Disagre e Agree Weight 1%
e 5%
2%
22%
Scale 1 2 3 4 5   Strongly Disagree
Frequen             Disagree
Neutral
cy 2 5 1 35 9 Agree
Weight             Strongly Agree
2 10 3 140 45 200 70%

Percenta            
ge 1% 5% 2% 70% 22%

Survey Through Questionnaire

The pie chart represents that 1% sample represent on strongly disagree, 5% represents disagree, 2% represent Neutral,
70% represent agree & 22% represents Strongly Agree. The study finds that 92% sample agreed with question 8 which
is Affan Interlinings adheres to all the social and environmental - local and international laws in their whole operation.
23
Question : Corporate Social Responsibility of Affan Interlinings is up to a satisfactory level.

Question no a is survey by 5 point scale with 50 samples. The value data where analysis by frequency distribution and presenting of the
responses are done which are stated as follows:

The survey table of question no:

  Strongly Disagre Neutral Agree Strongly Total
Disagre e Agree Weight 2%
e 4%

Scale 1 2 3 4 5   Strongly Disagree

Frequen             34%
Disagree
Neutral
cy 0 1 2 17 30 Agree
60%
Weight             Strongly Agree
0 2 6 68 150 226
Percenta            
ge 0% 2% 4% 34% 60%

Survey Through Questionnaire

The pie chart represents that 0% sample represent on strongly disagree, 2% represents disagree, 4% represent Neutral,
34% represent agree & 60% represents Strongly Agree. The study finds that 94% sample agreed with question 9 which
is Corporate Social Responsibility of Affan Interlinings is up to a satisfactory level.
24
Summary of the Survey:

Question No. Highest Percentage of COMMENTS

RESPONSE
01 56% Agree

02 50% Agree

03 45% Agree

04 58% Agree

05 60% Agree

06 35% Agree

07 58% Agree

08 70% Agree

09 54% Strongly Agree

10 60% Strongly Agree

25
Rank of the Survey Question:

Rank Question Question Weight

No.
    Corporate Social Responsibility of Affan Interlinings is up to a  
1 10 satisfactory level. 226
 
2 09 Affan Interlinings customizes its product according to client request to a 223
satisfactory level.
3 07 Raw materials are very expensive due to inefficient skilled manpower. 207

4 05 Lack of complaint branding in garments accessories. 202

    Affan Interlinings adheres to all the social and environmental - local and  
5 08 international laws in their whole operation. 200

6 01 Lack of supply of sufficient natural gas & electricity for manufacturing 199
garments accessories.
7 02 Affan Interlinings uses quality raw materials for production. 199

8 04 Affan Interlinings offer competitive market oriented price. 199

9 06 Extreme competitive pressure due to unforeseen competitors. 183

10 03 Product delivery of Affan Interlinings is satisfactory. 153

 

26
Discussion of the Survey according to Survey Result:

 The study finds that 56% sample agreed with question 1 which is lack of supply of sufficient natural gas and electricity for
manufacturing garments accessories.
 The study finds that 78% sample agreed with question 2 which is Affan Interlinings uses quality raw materials for production.
 The study finds that 51% sample agreed with question 3 which is Product Delivery of Affan Interlinings is satisfactory.
 The study finds that 83% sample agreed with question 4 which is Affan Interlinings offers competitive market-oriented price.
 The study finds that 84% sample agreed with question 5 which is Lack of complaint branding in garments accessories.
 The study finds that 83% sample agreed with question 6 which is Affan has better brand image than other accessory brands.
 The study finds that 83% sample agreed with question 7 which is sales promotion of Affan Interlinings is better than other
competitors in the market.
 The study finds that 92% sample agreed with question 8 which is Affan Interlinings adheres to all the social and environmental - local
and international laws in their whole operation.
 The study finds that 94% sample agreed with question 9 which is Affan Interlinings customizes its product according to client request
to a satisfactory level.
 The study finds that 94% sample agreed with question 9 which is Corporate Social Responsibility of Affan Interlinings is up to a
satisfactory level.

27
Problems associated with garments accessories industry:
Introduction: Accessibility of the workforce at reasonable wages, duty-free market access in major export destinations, and preferential
location at the heart of the Asia-Pacific region have lured foreign investment to the textile, accessory and garments industry. Since the
demand for accessory products is growing at a faster rate, there are also some major associated with this industry. Some of them are stated
below:

 Lack of technical and financial support for technological upgradation of machinery.

 Lack of compliance branding in garments accessories of Bangladesh.
 Lack of backward linkage of raw materials.
 Lack of supply of sufficient Natural gas and electricity.
 Weakness and bottlenecks in import procedures.
 Unnecessary delays caused by bribe taking officials in sea port.
 Inefficient and time-consuming policy for assessing the imported raw materials in the customs.
 Lack of skilled man power.
 Extreme competitive pressure.
 Increased pressure from Environmental regulatory authority and Complaint Alliance Association.

28
 Chapter 04:
Policy, recommendation and
Conclusion

29
Policy recommendation for garments accessories:
The Centre for Policy Dialogue (CPD) in association with the South-Asia Enterprise Development Facility (SEDF) has recently completed
a study titled “Bangladesh Apparel Sector in Post Multifiber Arrangement Period: A Benchmarking Study on Ongoing Restructuring
Process”. The gist of some of the points they raised to develop and strengthening the RMG accessory sector of Bangladesh are discussed
below.
Promoting labor absorption through technology upgradation: According to sample entrepreneurs, expansion of operation in RMG
accessories units through use of new machineries have, through direct and indirect multiplier effects, created new jobs for skilled workers
since new machines required more skilled worker for their operation. In view of the increasing demand for professional and skilled
workforce, especially in such areas as merchandising, marketing, commercial and engineering, there is a need for revamping both higher
and technical education in the country. In this context, partnership between RMG accessory enterprises and public/private institutes could
be an effective way to go forward. These programs should focus on both new entrants and professionals who are already engaged in the
sector. In this connection, entrepreneurs mentioned about two types of courses: 'elementary' and 'advanced' courses in various RMG
accessory related areas. In order to ensure supply of skilled labor force, vocational and diploma institutes should expand their existing
capacities and go for enhanced enrolment of prospective employees of the RMG accessory sector. The BGMEA, BGAPMEA, BTMA and
BKMEA should be brought into the picture in a more effective way. Regrettably, it is not known how in FY2018-19, the Tk.200 million
allocated by the government for skill development of the RMG accessory sector was actually used. Comparable amounts of resources have
been allocated in the national budget 2018 for training and enhancing efficiency of the garment workers. It is important to ensure
appropriate utilization of that resource. A national comprehensive plan for effective utilization of various technical, vocational and diploma
training institutes for the benefit of the export-oriented RMG accessory sector should be put high on the policy agenda of the government.

Support for enhancement of labor productivity: Labor productivity in Bangladesh is very low (US$1563) compared to other competing
countries such as China, Cambodia, India, Indonesia, and Sri Lanka. Labor productivity in the EPZ enterprises is found to be 9% higher, on
average, compared to that of non-EPZ enterprises, while it was 27% higher in FDI-led enterprises compared to non-FDI enterprises.
However, no significant spill-over effect could be found between EPZ/non-EPZ and FDI/non-FDI firms in terms of technology acquisition
and adoption and other modern business practices. The study reveals that labor productivity is highly correlated to wage; one unit rise in
30
wage was expected to increase labor productivity by 1.3 units. This signifies the implementation of the new wage structure. The study
revealed that for increasing labor productivity at the enterprise level, appropriate training, improvement of compliance situation,
diversification of product mix, provision of entertainment facility, performance incentives, and good behavior towards workers are crucial.
Although there is fund allocation for skill development of the RMG Accessory workers (Tk.20 crore has been allocated in FY2008) but the
current scenario to a greater extent does not reflect usage of those funds appropriately and hence an initiative under a public-private
partnership is essential. Business support organizations in support of development partners should also come forward to enhance workers'
productivity and efficiency.
Better labor management in view of changing labor composition in RMG accessory units: Bangladesh's export performance is being
driven mainly by volume. Consequently, there is high degree of pressure on workers to achieve the high target volumes. Under a pressured
working situation to fulfill a high target every day for long period may threaten the relation between workers and mid-level management. The
gender comparison of workers is also changing. In knit and sweater sections the proportion of male workers is on the rise. This is likely to
have important implications for labor relations in the RMG Accessory sector. Some early signals of this are being already seen. In this
context, enterprises at first should not take orders from buyers to that amount which could not be managed in usual working hours; at the
same time buyers should place orders, which is commensurate to the production capacity of factories and their related subcontracting
factories. Secondly, enterprises under such conditions would need to improve labor management practices. There is a need for a continuing
dialogue between workers and management, particularly in view of changing employment composition and their new types of demands.
Bangladesh may take lesson from Sri Lankan experience where the government had allocated a special fund (Sri Lankan Rs 80 million) in the
budget for 2018-2019 to establish an “Academy of Labor Relations” to promote harmonious labor relations in work places.
Ensure implementation of the new wage structure: Evidently, implementation of the proposed wage structure would increase overall cost
of production in the RMG Accessory units which are expected to incur an additional annual expense of Tk 9.41 lakh (equivalent to
US$14,000). This will lead to some reduction in profit in the short term. However, this should not be a reason for not implementing the new
scale immediately and speedily. Our estimates indicate that the incremental burden will be manageable from the perspective of the
overwhelming majority of the RMG Accessory units. In case of small, informal, sub-contracting based units where enforcement of the new
scale could make the enterprise unviable, trade bodies and the government could think together of a package of support following proper
identification. Government is monitoring implementation of new wage structure in the RMG Accessory units and requested firms to
implement it by the end-September, 2019. However, government may set up a committee, in collaboration with entrepreneurs and workers, to
oversee faithful and appropriate implementation of the new wage structure on a sustained basis. 31
Need to improve workers' livelihood: Workers' livelihood can be improved firstly by providing them with higher level of wages since their
wages are found to be only 43 per cent of their productivity level. With effective support from entrepreneurs and garment associations, NGOs
can improve workers' living places by way of providing various services. Government may create a 'Workers' Livelihood Improvement Fund'
to support NGOs who are engaged in providing various kinds of health, nutrition, medical and child care support to garment workers.
Development partners should come forward to provide more financial support to the NGOs working for livelihood improvement of RMG
Accessory workers.
Need to develop 'compliance' brand for the RMG Accessory sector: Compliance standard of RMG accessory units varied widely in
respect of size of operation and type of compliance. Compliance standard is poor in a number of areas including timely payment of wages,
canteen facility, childcare facility, availability of doctors, appointment letter etc. In most RMG accessories unit workers are not allowed to
form organizations at factory level. WWC is present only on a limited scale. In the course of the survey, about 57% sample enterprises were
found to be 'less compliant', while another 31% were 'moderately compliant' and only 11% enterprises were found to be 'highly compliant'.
Survey revealed that maintaining good compliance record with respect to the required standards have positive impact on productivity,
indicating that enforcement of compliance at enterprise is likely to yield positive dividends for the RMG accessory sector. Since a number of
large and medium enterprises are approaching to enter high-end segment of apparel market, maintenance of a high level of compliance
standard at the factory level (such as labor-management, labor-relation, and environmental safety measures in case of disposal of industrial
wastes and effluents) is being considered as the basic requirement to get those orders. A common compliance standard need to be established
which would take care of domestic legislation as well as buyers' requirement (code of conduct) which would be enforced through the
monitoring agency. The government of Bangladesh could set up a 'Compliance Upgradation Fund' in support of developing compliance
standard where buyers also could contribute. Enforcement of standards of their own by individual (major) retailers creates a problem in
absence of any 'clearing house'. In view of this, RMG accessory associations could work with major buyers to ensure a common set of
standards agreed upon by all buyers. This could place Bangladesh in the global market as a 'compliant source'.
Support for relocation: The concentration of RMG accessory industry in the cities of Dhaka and Chittagong is already revealing a number of
disadvantages from the perspective of the need for future expansion of the enterprises and consolidation of the industry. In view of increasing
demand in the area of compliance assurance many of these enterprises are looking for opportunities to shift to alternative locations, away
from residential and commercial areas in Dhaka and Chittagong. The government of Bangladesh has recently announced establishment of a
number of garment villages in Adamjee, Munshiganj and other places to facilitate this process. Creation of a 'Fund for Relocation of Factories'
to provide concessional loan to the enterprises is the most important initiative that need to be taken. 32
In this context development partners along with international financing agencies and business support organizations should come forward to
stimulate the process. Establishment of new RMG accessory units within the limits of the major cities should also be restricted to the extent
possible.
Support for improvement of existing laws and regulations: About one third of sample entrepreneurs are of the opinion that laws and
regulations guiding the operation of RMG accessory industry should be improved. Bangladesh required more flexible working hours, with
provisions for work during the night shift, recruitment of young workers as apprentices etc. Others mentioned about enforcement of more
strict laws for improvement of worker's health and safety standards in the workplace, change in the building codes for improving working
conditions, and for ensuring compliance with factory laws etc. The issues and concerns as regard various acts of the new Labor Law such as
working hours, punishment for failing to provide maternity leave, retirement benefit of workers, timely payment of fired workers etc. need to
be reviewed. Thus, government may consider setting up a committee to review different new labor laws and also review other rules and
regulations relevant to the garment and textile sector with a view to changing these to suit the emerging demands of the industry.
Need to focus on stock market for required capital: The trend of upscaling visible in recent years could in future demand that the RMG
accessory industry has access to larger amount of capital for the sort of restructuring taking place at present. The survey found that most of the
locally-owned enterprises are private limited companies which are in most cases are operated by board of directors, constituted by family
members. In this context, policy support for creating a conducive and enabling environment for the RMG accessory sector to raise funds from
the capital market should be given due consideration. Along with this, the RMG accessory enterprises, particularly the large-scale ones,
should improve their state of corporate governance including standards of auditing, reporting, accounting, management etc. So that they are
adequately prepared to offload shares and raise capital in the country's stock market.
Support for reduced lead time: Lead-time is another crucial factor that puts Bangladesh at a disadvantageous position when compared to
China or India. With the change in the consumer market in recent years, retailers tend to spend more time on research on fashion and design,
and they are putting more responsibilities on manufacturers under 'lean retailing' arrangement. Strengthening both backward and forward
linkage has become crucial, in this context. Ready access to raw materials and inputs and higher capacity at enterprise level to carry out order-
specification related functions are proving to be important. Bonded ware-house facilities for relatively longer period for items for which
inputs are not available locally deserves careful consideration in this context (e.g. man-made synthetic grey fabrics). A consensus-based policy
needs to be developed on an urgent basis in this respect. Recent initiative to extend the period of bonded warehouse facility is a welcome
move.
33
Overhaul port management: Sample entrepreneurs have pointed out a number of bottlenecks and weaknesses in the management and
operation of the Chittagong port, such as bribe-taking by port officials, unnecessary delay caused by port officials in handling export and
import consignments, container jam in the port, and loading and unloading, lack of vessels, and damage of imported and exported goods at
the time of unloading or loading etc. In this backdrop, Caretaker Government's recent initiatives to address management, operation and labor
relations issues are expected to contribute to improving efficiency of Chittagong port. To speed up handling activities, government could
allow loading of containers at factory premise instead of loading goods at the port premise. Further expansion of port facilities will be
required in the future in order to handle large volume of imported and exported items.
Need to develop backward linkage for Raw Materials: In view of the pressure on lead time, a competitive textile sector would play a
critically important role. In national budget 2016, large allocation was made for the development of textile industries, with a view to promote
integration with RMG accessories industry sector- about Tk 10.48 crore has been allocated for 3 different projects. However, appropriate
utilization of these funds should be ensured. Moreover, access to suitable land and capital needs to be facilitated to establish textile units.
Foreign investment particularly for manufacturing woven textile needs to be encouraged. In addition, the proposed “Technology Up-
gradation Fund” could also provide support for modernization and technology acquisition initiatives in the textile and RMG accessories
enterprises, as is evidenced by the Chinese experience.
Ensuring uninterrupted electricity supply for RMG ACCESSROIES sector: The study revealed that shortage of electricity was 15%
higher compared to that of 2014, testifying to an increasingly aggravating situation. Problem of electricity outage was more acute for small
and medium size enterprises (69 hours and 72 hours respectively) as these enterprises could not bridge the gap between demand and supply
from their limited captive power generation facility. Besides, the study indicated a negative correlation between lost hours due to outage of
electricity and enterprise's earning of profit (-0.20). In view of rapid expansion and upgradation taking place in the export-oriented RMG
accessories sector, use of machineries has increased substantially in recent years. Government has taken some measures to address the
electricity supply problem. Some of the small-scale power generation plants getting approval in recent times may not start operation in due
time because of lack of supply of gas in the plant. Government may consider exemption of VAT on electricity bill for operating garment
factories. Government may provide subsidy especially to small and medium firms to set up small scale captive power plants. Power
generation ought to be given highest priority.

34
Vigorously pursue various market access initiatives: The analysis carried out in the study bears testimony to falling profit margins and
increasing competition. Implementation of the Hong Kong Ministerial decision of the WTO in a manner that would include (most of)
apparels items was thus critical to Bangladesh's RMG accessories industry's competitiveness in the global market. Bangladesh should also
lobby for the passing of the TRADE Act by the US Senate. In view of this, with respect to the issue of market access Bangladesh should
focus on several areas:

(a) try to ensure that the 97 per cent list for the US market is designed in such a manner that it includes at least some items of apparels;

(b) enhance and strengthen backward and forward linkage capacities in the RMG Accessory Industry sector to raise compliance with
European Union.

(c) vigorously pursue all market access negotiations in WTO, with EU, USA and in the context of RTAs such as SAFTA and BIMSTEC. In
this context it is important to note here that duty free market access for apparels in India (8.0 million pieces per year) under the SAFTA, on
a limited scale, is going to be operationalized soon. Bangladesh's strategy should be gradual expansion of this tariff rate quota with the
objective of taking RMG accessory items out of India's negative list. Bangladesh should also carefully study the recently proposed NAMA
draft of the WTO and ensure that items of Bangladesh's interest that enjoy preferential treatment are included in the lists of annexes of
NAMA draft and those that do not enjoy such treatment are excluded from the lists.

35
Other Recommendation:
After analyzing the total market of Bangladesh garments accessories industries some of the problems I already have identified. It has also
identified that Bangladesh is losing its market share to some of its competitors.

By completing line adjusting in planning as it is done in high volume frameworks.

Priority standards, for example, FCFS (First Come First Serve), EDD (Earliest Due Date) can be actualized and authorized while booking
client requests to streamline client benefit.

Electronic Data Interchange (EDI) can be executed to build profitability, diminishment of lead time, stock lessening, increment exactness.

Total Quality Management (TQM) is extremely important adversary for RMG Accessory. By having all employees focus on quality
management and continuous improvement, companies can establish and uphold cultural values that create long-term success to both
customers and the organization itself.

Price decrease is impractical. Be that as it may, Bangladeshi RMG Accessories segment is extending step by step. New and widely
acclaimed numerous brands are likewise getting included with Bangladeshi market. So, a superior limited time action is required.

36
Conclusion:
Bangladesh RMG accessories enterprises are working its business on its notoriety, quality administration and relationship of direct contacts
with clients. It has a decent picture of giving the best answer for any seller and accessibility to purchasers at whatever time. With its brilliant
Bangladesh chiefly focus on those clients who are most quality looking for.

As a market pioneer Bangladesh is doing what it ought to do yet it ought to likewise remain the opposition in its psyche since it is losing its
piece of the pie to its rivals. On the off chance that the aggregate promoting process gets to be enhanced from current circumstance than
confident, Bangladesh may recapture its position.

37
Thank You