An Overview of Woven Garments Factory in Bangladesh

garment factories in Bangladesh.

The woven garments industries are providing the primary source of growth in the rapidly growing economy of Bangladesh. Also, it has been the primary source of foreign exchange earnings for the last 25 years.

Currently, Bangladesh is one of the leading garment exporters in the world. The woven garments factory is considered the backbone of the Bangladesh economy. There was a time when the woven sector was the top RMG sector in Bangladesh.

As a quickest developing country, Bangladesh produces woven products of about $34.13 billion worth each year by exporting. The government has set the target of meeting 50 billion USD export by 2021.

The woven garments industry employs more than 3 million workers. In this article, we’ll put some light on the woven garment factories in Bangladesh. The article looks at the current situation in the woven sector, challenges, and the area of opportunity when this sector can grow. Let’s get started!

Woven Garments: Definition

The raw material used in the garments industry is fabric, which is divided into two categories; woven and knit. Woven garments are prepared from a specific type of fabric. These are made through weaving.

Weaving is defined as the art of interlinking of threads or fibers. The threads are placed on a loom at the right angles to generate the length of the garment. 

Background of Woven Garments

The journey of woven garments started many years ago. It is reported that Reaz Garments were first established in 1960 that serves the only local market. After that, there were only nine export-oriented garments in 1978, and overall earning was only 1 million USD.

The export of Bangladesh stood at about 0.9 billion USD at the beginning of the 1980s. It increased to 1.8 billion USD in 1990, and a decade later, the counting goes to 6.5 billion USD.

According to the Bangladesh Bureau of Statistics, 2002, the growth of export in the 1980s was higher than the real GDP rate. After then, the growth rate of Bangladesh’s actual export went at a rapid pace.

The woven export of Bangladesh reveals that the woven garments industries subsector established the lion’s share. The development started in 1985. In the early 90s, this share was about 80%. This development has begun to decline after that, from 80% to 70% and then to 62% in 2004. A year later, it was recorded as only 38.80%. 

Current Scenario of Woven Garments Factory in Bangladesh

Presently, Bangladesh stands at the second position in the world as the garment manufacturer and exporter. The reason for this development is the hardworking workforce.

At present, in over 5000 garment factories, there are about 3.6 million garment workers. These workers put in more working hours to complete the goal set by the leader. Perhaps, that is why Bangladesh is ahead of other Southeast Asian woven garment suppliers.

Even after that, Bangladesh is currently experiencing slower growth. As said by Faruque Hassan (Senior Vice President, BGMEA), in a recent interview, “Bangladesh woven garment manufacturers are dependent on the fabric. The import cost of fabric is too much”. This could be the reason for slower growth and losing its place in the world export market.

Potency of Woven Garments Factory in Bangladesh

  • Easy availability of accessories
  • A positive image in the world market as the top global brands
  • Availability of machines
  • Maintenance facility of spare parts
  • The facility of in-house washing
  • Presence of worldwide and also local experts
  • The vast demand for woven garment globally and even locally
  • Availability of own handloom and home-tex section
  • Easy use of new technologies and methods
  • Presence of green and eco-friendly factories
  • Multinational companies with global standards

What Are The Challenges Woven Garment Sector Facing?

  • Lack of backward linkage investment
  • Import dependency because of the deficiency of local fabric suppliers
  • Less implementation of modern technology
  • Cannot compete in the global market in short lead time
  • Less innovation in fashion and tend
  • The high price of utility and natural gas
  • No presence of value addition
  • Recent increment in the salary of workers
  • No local experts or business professionals with international standards
  • Inexpert local designers who cannot make product design of the improved price
  • Giving less importance in the woven sector

Opportunities in Woven Garment Sector of Bangladesh

Along with too many challenges, there is a range of possibilities for the woven garments factory. In the following area, the woven sector can grow vastly.

·        Demand and Supply of the Fabric

As we mentioned, there is a massive gap in the demand and supply of woven fabric in Bangladesh. Each year approximately 3 billion meters woven fabric is required. Local suppliers can provide only 45 million meters of fabric.

The country spends about 4 billion USD in importing to meet the rest demand for fabric. So, there is a massive chance for the country to fill the gap.

·        Work On Shorter Lead Time

Shorter lead time is essential to remain the competitive world market. Bangladesh is struggling to maintain the lead time. The country has to develop its backward linkage to meet the local demands with shorter lead time. A retailer wants to get the product on time, so there is no alternative than a shorter lead time.

Where china takes 20-days, and Turkey takes only 15-days to ship goods to the US, Bangladesh takes 35-days. That’s why Bangladesh failed to take urgent orders most of the time. So, the woven garments factory in Bangladesh can work in reducing lead time.

There are more areas where woven garments sector of Bangladesh can improve, such as;

  • Ensuring accessible communication with foreign buyers
  • Providing more accessible quality approval policy
  • Manufacturing more trendy products that may attract international buyers
  • Meeting the higher demands for woven clothes, bags, etc.
  • Launching E-buy and retail store along with attractive custom-made products
  • Availability of research institution and trade analysis
  • Including fabric with more sustainability

Top Foreign Purchaser of Woven Garments Factory

Brand Name Country
Nike USA
H & M Sweden
Walmart USA
Puma Germany
Levi’s USA
PVH USA
Sainsbury UK
New Yorker Germany
C&A Belgium
Timberland USA

Conclusion

In brief, we can say, the woven garments sector is a massive field in Bangladesh. Quality and organizes the woven garments factory plays a vital role in the improvement in this sector. By working on the opportunities, Bangladesh can achieve its 50 billion targets.

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