1. There is a significant cost difference in various aspects of Manufacturing, especially Labour;
2. The Bangladeshi Government and Industry is laying out the Red Carpet for Indian Brands, Retailers, and Manufacturers to come and tap their skills and resources;
3. The Garment Industry is obviously on the top of their priority list as far as Government Support is concerned, as evident from the fact that no less than the Prime Minister Inaugurated the Garment Fair, and that the Commerce Minister attended the Dinner hosted by the Indian Delegation.
4. However, working with Bangladesh will have its issues and limitations – it is not all smooth sailing:
a) Volume requirements, especially per Style, is high. Unless one has a minimum of 2,000 to 3,000 Pieces per Style, it may not be easy to find willing Partners. Of course, this may change if the EU and US Markets continue to slide.
b) Design inputs are limited. This is a Market of Converters, not of Creators. But don’t underestimate them – they are aggressive, ambitious, and eager to grow. Besides, Apparel is their main Industry, and they are not going to leave gaps for too long.
c) Strict supervision and control systems are recommended, at least in the early phases.
d) With the Dollar shooting up in India – perhaps much more than in Bangladesh, the cost differential has come down drastically.
e) All dealings are likely to be through L/C, so Buyers with limited finance may not find it a useful sourcing base. |
The coming month of January is going to be hectic, with CMAI’s path breaking foray into Hong Kong, and its second Summer Fair in Mumbai, apart from its regular Participation in IIGF. So fasten your seat belts, and get ready to fly! |
