Buyers Increase Their Orders
In spite of uncertain state of the global economy, EU crisis-Positive news for Bangladeshi RMG sector that buyers have noticeably increased their orders in 2012.
According local news papers articles (i.e. www.thedailystar.net) in this year many clothing retailers have increased their order volumes 15%-25% from Bangladesh.
Competitive price, improvement in labour laws/skills+ upgraded production facilities are the main reasons behind that.
Chairman and managing director of Viyellatex Group, gave an statement on local news paper as “The orders from the European buyers are increasing and it will be higher once the Eurozone financial crisis looks to be under control” He also mentioned that mainly cited a recent jump in sportswear orders from Euro Zone, thanks to the European Football Championships and the Olympic Games. This comes as a bonus chance for the garment sector of Bangladesh. EU comprises 55% annual export volumes of this sector’s.
This RMG sector has been unable to achieve the export targets for the past few fiscal years. Climate change has been also responsible by shortened the winter period. Shorter winters or longer summers, increase the volume of woven items decrease the knitwear volume.
By raking in $9.60 billion in fiscal 2011-12 woven items just about met its target the previous fiscal year, exceeding it by 0.45%. But knitwear missed 12.16 % its export target, fetching $9.49 billion - According Export Promotion Bureau.
Owing to major upgrades in production facilities, Bangladesh can now compete in the higher segment of the garment market.
Beside major upgrades in production facilities, eroding price has played into Bangladesh's advantage competitive of China-the world's largest apparel supplying country.
A Spanish buyer who preferred to remain unnamed told “The Daily Star” (A local News Paper)-“As the country has become a decent, competitive sourcing option-almost all international giant retailers are increasing their purchase volumes from Bangladesh,”
Political stability, sufficient gas and power supply to the industrial units, strong political relationship with major economies, exploiting the new destinations seriously to attract new buyers can continue higher export growth.
Reference:
ii) Export Promotion Bureau of Bangladesh
iii) Other’s Local Daily news Papers
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