Why Apparel Sourcing Companies in Bangladesh are Popular
Bangladesh is known as the “Garment Capital of the World” and is a popular destination for apparel sourcing companies. The country has become a major player in the global apparel industry, with a rapidly growing export market and a competitive manufacturing sector. In this article, we will explore the reasons why Bangladesh is such a popular destination for apparel sourcing, and why it is likely to continue to be so in the future.
The Growth of Bangladesh’s Apparel Industry
The apparel industry is the largest export-oriented sector in Bangladesh, and it has grown rapidly over the past few decades. The industry has been a major contributor to the country’s economic growth, accounting for around 80% of Bangladesh’s export earnings. Bangladesh’s apparel exports were worth $34 billion in 2019, making it the second-largest apparel exporter in the world after China.
The growth of Bangladesh’s apparel industry can be attributed to a number of factors. Firstly, the country has a large and low-cost labor force, which makes it an attractive location for manufacturing. Secondly, Bangladesh has preferential trade agreements with a number of countries, including the European Union and Canada, which make it easier for Bangladeshi apparel manufacturers to export their products to these markets. Thirdly, the government of Bangladesh has implemented a number of policies to support the growth of the apparel industry, including tax breaks and subsidies for apparel manufacturers.
The Competitive Advantage of Bangladesh’s Apparel Industry
Bangladesh’s apparel industry has a number of competitive advantages that make it an attractive destination for apparel sourcing companies. Firstly, as mentioned above, the country has a large and low-cost labor force. This means that labor costs in Bangladesh are significantly lower than in many other countries, including China and Vietnam. Secondly, Bangladesh has a well-developed textile industry, which provides a reliable supply of raw materials for apparel manufacturers. Thirdly, the country has a large number of small and medium-sized enterprises (SMEs) that specialize in apparel manufacturing, which makes it easier for apparel sourcing companies to find suppliers that can meet their specific needs.
The Ethical Concerns around Bangladesh’s Apparel Industry
Despite the growth and success of Bangladesh’s apparel industry, there have been some ethical concerns raised about working conditions in the sector. In particular, there have been concerns about low wages, long working hours, and poor safety standards in some factories. These concerns came to a head in 2013 when the Rana Plaza building in Dhaka, which housed several garment factories, collapsed, killing more than 1,100 people and injuring thousands more.
Following the disaster, there was a significant international outcry, and many apparel sourcing companies that had previously done business in Bangladesh faced pressure from consumers and activists to improve working conditions in the country’s factories. In response, the government of Bangladesh, along with international organizations and industry groups, has taken steps to address these concerns. For example, the government has introduced new labor laws, established a minimum wage for workers in the apparel sector, and set up an inspection system to monitor safety standards in factories. Many apparel sourcing companies have also implemented their own programs to ensure that their suppliers in Bangladesh are meeting ethical standards.
The Future of Apparel Sourcing in Bangladesh
Despite the ethical concerns around Bangladesh’s apparel industry, it is likely that the country will continue to be a popular destination for apparel sourcing companies in the future. The growth of the industry shows no signs of slowing down, and the competitive advantages that Bangladesh offers, such as low labor costs and a well-developed textile industry, are likely to remain in place for the foreseeable future. In addition, the government and industry groups are continuing to work to address the ethical concerns around working conditions in the apparel sector, which should help to improve the industry’s reputation and attract more business.
Another factor that is likely to drive continued growth in Bangladesh’s apparel industry is the increasing focus on sustainability and environmentally friendly manufacturing practices. As consumers become more conscious of the environmental impact of the products they buy, apparel sourcing companies are looking for suppliers that can offer sustainable and eco-friendly manufacturing solutions. Bangladesh’s apparel industry is well-placed to meet this demand, with many factories already implementing sustainable practices such as water recycling and energy-efficient production methods.
In conclusion, Bangladesh is a popular destination for apparel sourcing companies for a number of reasons, including its large and low-cost labor force, well-developed textile industry, and competitive manufacturing sector. While there have been concerns raised about working conditions in the industry, the government and industry groups are working to address these issues, and the country’s apparel industry is likely to continue to grow and thrive in the future. By adopting sustainable and environmentally friendly manufacturing practices, Bangladesh’s apparel industry can also position itself as a leader in the global fashion industry and attract even more business in the years to come.