The industry that has been making crucial contribution to rebuilding the country and its economy is none other than the Ready Made Garments (RMG) industry which is now the single biggest export earner for Bangladesh. The sector accounts for 81% of total export earnings of the country.
2. Ready Made Garments (RMG)
Ready Made Garments are mass-produced finished textile products of the
clothing industry. They are not custom tailored according to measurements,
rather generalized according to anthropometric studies. They are made from
many different fabrics and yarns. Their characteristics depend on the fibers used
in their manufacture.
Ready-made garments are divided into the following types: Outer clothing: work
wear and uniform, leisure wear, sportswear (e.g. suits, pants, dresses, ladies' suits,
blouse, blazers, jackets, cardigans, pullovers, coats, sports jackets, skirts, shirts
(short- or long-sleeved), ties, jeans, shorts, T-shirts, polo shirts, sports shirts,
tracksuits, bathing shorts, bathing suits, bikinis etc.) Underclothing (underwear):
jersey goods, lingerie (e.g. underpants, undershirts, briefs, socks, stockings,
pantyhose etc.
4. History Of Ready Made Garments:
The first Ready Made Garment factory was established in New York in 1831. During
the American Civil War the need for ready made uniforms helped the garment
sector grow in the United States. Near the end of the nineteenth century there
were changes in societal views towards Ready made garments. They were no
longer seen as only for the lower classes but also for the middle classes. This trend
started in the United States. In the beginning they were more popular with men
than women. In the late 1860s 25% percent of Garments produced in the US was
Read Made but by 1890 the portion had risen to 60%. By 1951 90% percent of
Garments sold in the United States was ready made. During the same time two-
thirds of garments sold in France was ready made.
5.
6. Bangladeshi RMG Sector:
The economy of Bangladesh is largely dependent on agriculture. However the
Ready Made Garments (RMG) sector has emerged as the biggest earner of
foreign currency. In 1972, the World Bank approximated the gross domestic
product (GDP) of Bangladesh at USD 6.29 billion, in 2014, the GDP stood at USD
173.82 billion, growing by almost 27 times in a matter of four decades.
Bangladesh's exports industry alone comprised USD 31.2 billion in FY 2014-15,
81.69% of which was made up by ready-made garments. On its own, the
knitwear sector encompasses 39.83% of total exports—a staggering USD 12.43
billion. The RMG sector has experienced an exponential growth since the
1980s. The sector contributes significantly to the GDP. It also provides
employment to around 4.2 million Bangladeshis, mainly women from low
income families..
7.
8. Present Situation:
Ready-made garments manufactured in Bangladesh are divided
mainly into two broad categories: woven and knit products.
Shirts, T-shirts and trousers are the main woven products and
undergarments, socks, stockings, T-shirts, sweaters and other casual
and soft garments are the main knit products.
Woven garment products still dominate the garment export earnings
of the country.
The share of knit garment products has been increasing since the
early 1990s; such products currently account for more than 40
percent of the country’s total RMG export earnings (BGMEA
website).
9.
10. The challenges of International Marketers in the 21st Century:
The Case of Ready-made Garment (RMG) Industry of Bangladesh:
By the year 2005 according to the policy of WTO (World Trade Organization) - the
facilities like GSP and Quota in Readymade Garment sector will be phased out.
The restrictions under the Multi-Fiber Agreement (MFA) will be phased out in four
stages. As an impact of the withdrawal of these facilities, Less Developed Countries,
which are enjoying the benefits, have to face fair competition.
Bangladesh will not be an exception in this regard as RMG export is the highest
foreign currency-earning source of Bangladesh. To abate poverty in Bangladesh,
unemployment rate has to be reduced by creating more employment opportunities
in the non agricultural sector.
For economic development integration of women into formal economic activities
must not be overlooked, as they constitute almost 50% of total population.
12. The Future:
The RMG sector is expected to grow despite the global financial
crisis of 2009. As China is finding it challenging to make textile and
foot wear items at cheap price, due to rising labor costs, many
foreign investors, are coming to Bangladesh to take advantage of
the low labor cost. Even now for the readymade garments most of
the manufacture need to bring all the accessories from abroad,
which is very costly. Now they are start using locally accessories
minting the required quality. Zippers, buttons, labels, hooks, hangers,
elastic bands, thread, backboards, butterfly pins, clips, collar stays,
collarbones and cartons are the major garment accessories
produced in Bangladesh.
