RMG Sector in Bangladesh: A Growing Opportunity for International Buyers

The Ready-Made Garments (RMG) sector in Bangladesh has grown significantly in the past few decades, making it one of the largest apparel manufacturers in the world. The sector has contributed immensely to the economic development of the country, providing employment to millions of people and contributing to the national GDP. In this article, we’ll take a comprehensive look at the RMG sector in Bangladesh, its history, growth, product range, sustainability, export markets, and challenges. We’ll also discuss how international buyers can benefit from working with a clothing sourcing agent in Bangladesh.

History of the RMG Sector in Bangladesh

The RMG sector in Bangladesh has come a long way since its inception in the late 1970s. Initially, the sector was small and produced limited products for the domestic market. However, with the introduction of favorable government policies, including tax breaks, subsidies, and infrastructure development, the sector started to grow rapidly. In the 1980s, the sector received a boost when many textile factories from Hong Kong and South Korea relocated to Bangladesh, attracted by its low labor costs.

The RMG sector continued to grow, and in the 1990s, Bangladesh emerged as a significant player in the global garment industry. The sector’s growth was driven by its low labor costs, favorable government policies, skilled workforce, and easy access to raw materials. Today, the RMG sector is the backbone of the country’s economy, contributing to over 80% of its total exports.

Product Range

The RMG sector in Bangladesh produces a wide range of products, including knitwear, woven garments, and denim. The sector’s product range includes T-shirts, polo shirts, sweatshirts, jackets, trousers, skirts, dresses, and more. The sector has been shifting towards value-added products, such as high-end fashion wear and technical textiles, to increase its competitiveness in the global market.

The sector’s product range is diverse and caters to the needs of different markets and customers. The products are available in various sizes, colors, and designs, and can be customized according to the buyer’s requirements.

Sustainability

The RMG sector in Bangladesh has been making efforts to adopt sustainable practices to reduce its impact on the environment and society. The sector has been implementing measures to reduce water and energy consumption, use eco-friendly materials, and improve waste management. The sector has set targets to become more sustainable by 2030, including reducing its carbon footprint, increasing the use of renewable energy, and improving labor standards.

Some of the sustainable initiatives taken by the RMG sector in Bangladesh include:

• Implementing the Zero Discharge of Hazardous Chemicals (ZDHC) program to reduce the use of hazardous chemicals in the production process.
• Using organic cotton and recycled polyester to reduce the environmental impact of textile production.

• Implementing the Global Organic Textile Standard (GOTS) to promote sustainable textile production.

• Improving labor standards by implementing the Bangladesh Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety.

Export Markets

The RMG sector in Bangladesh exports to over 150 countries, with Europe and the United States being its largest markets. The sector has also been expanding its reach in emerging markets such as China, India, and Brazil. Bangladesh’s export competitiveness is driven by its low labor costs and the duty-free access provided by various trade agreements, such as the Generalized System of Preferences (GSP) and the Everything But Arms (EBA) initiative.

The RMG sector in Bangladesh has a significant advantage over other garment manufacturers in terms of cost competitiveness. The sector’s low labor costs enable it to produce high-quality garments at lower prices than its competitors. The sector’s growing focus on sustainability and value-added products has also helped it to differentiate itself in the global market.

Challenges

The RMG sector in Bangladesh faces several challenges, including poor working conditions, lack of infrastructure, dependence on a few markets, and competition from other countries. The sector has been making efforts to address these challenges, but there is still a long way to go.

One of the significant challenges faced by the sector is poor working conditions. Many garment factories in Bangladesh have been criticized for low wages, long working hours, and unsafe working environments. The government and industry stakeholders have taken steps to improve labor standards, including raising the minimum wage and introducing labor laws that protect worker’s rights.

Another challenge faced by the RMG sector in Bangladesh is the lack of adequate infrastructure. The sector requires sufficient power supply, efficient transportation, and modern ports to operate efficiently. The government has been working to address this issue by investing in infrastructure development, but more needs to be done to improve the sector’s competitiveness.

 Working with a Clothing Sourcing Agent in Bangladesh

As an international clothing brand, working with a clothing sourcing agent in Bangladesh can offer several benefits, including cost savings, access to a diverse product range, and efficient supply chain management. A clothing sourcing agent in Bangladesh can help international buyers to:

• Find the Right Suppliers: A clothing sourcing agent in Bangladesh can help international buyers to find reliable and experienced suppliers that can produce high-quality garments at competitive prices. The agent can leverage its local knowledge and network to connect buyers with the right suppliers.
• Negotiate Prices and Terms: A clothing sourcing agent in Bangladesh can negotiate prices and terms on behalf of international buyers to get the best deal. The agent can use its industry expertise and bargaining power to secure favorable prices and terms for its clients.
• Manage the Supply Chain: A clothing sourcing agent in Bangladesh can manage the entire supply chain, from product development to delivery, ensuring that the process is efficient and cost-effective. The agent can coordinate with suppliers, manage production schedules, and monitor quality control to ensure that the products meet the buyer’s specifications.
• Ensure Compliance: A clothing sourcing agent in Bangladesh can ensure that the products are produced in compliance with international standards and regulations. The agent can conduct factory audits, monitor labor standards, and ensure that the products are free from hazardous chemicals and substances.

Conclusion

The RMG sector in Bangladesh has come a long way since its inception and has become a significant player in the global garment industry. The sector’s low labor costs, favorable government policies, skilled workforce, and easy access to raw materials have driven its growth. The sector’s product range is diverse, catering to the needs of different markets and customers. The sector has been making efforts to adopt sustainable practices to reduce its impact on the environment and society. The sector faces challenges, including poor working conditions, lack of infrastructure, and competition from other countries, but is taking steps to address these issues. As an international clothing brand, working with a clothing sourcing agent in Bangladesh can offer several benefits, including cost savings, access to a diverse product range, and efficient supply chain management.

If you are on behalf of an international clothing brand and want to work with Bangladeshi Clothing Sourcing agent then feel free to contact us through milton@texchallengersasia.com or write your message on our contact page.