B'desh to re­main the top RMG sourc­ing des­ti­na­tion for next 5 years: Sur­vey

Apparel Online - - Beyond India -

Bangladesh ap­parel in­dus­try is ex­pected to re­main as the top ap­parel sourc­ing des­ti­na­tion for in­ter­na­tional fash­ion brands and re­tail­ers over the next five years, high­lights Mckin­sey & Com­pany’s latest sur­vey. The com­pet­i­tive prices of­fered by the coun­try and China’s shrink­ing mar­ket share are the fac­tors con­tribut­ing to the sec­tor’s growth.

Mckin­sey & Com­pany, an in­flu­en­tial world­wide man­age­ment con­sult­ing firm, pre­pared the sur­vey ti­tled ‘Dig­i­ti­za­tion: The next step for the ap­parel-sourc­ing car­a­van’. The re­port is based on the in­ter­views of Chief Pur­chas­ing Of­fi­cers (CPOs) of 63 lead­ing global ap­parel re­tail­ers and brands that buy gar­ment items worth US $ 137 bil­lion a year.

Ac­cord­ing to the sur­vey, the CPOs were asked to name three coun­tries which they ex­pect to be the top sourc­ing des­ti­na­tions over the next five years. In re­sponse, 49 per cent of the CPOs men­tioned Bangladesh as their first choice, 43 per cent chose Ethiopia, 37 per cent opted for Myan­mar, 35 per cent for Viet­nam and 22 per cent se­lected In­dia.

“Bangladesh re­tains the top spot, se­lected by nearly half of all re­spon­dents, sim­i­lar to its rat­ing in 2015,” the sur­vey un­der­lined. Bangladesh, the sec­ond-largest ap­parel ex­porter glob­ally af­ter China, ex­ported ap­parel items worth US $ 28.04 bil­lion in the re­cently con­cluded 2016-17 fis­cal year, se­cur­ing 0.20% ex­port growth rate year-on-year.

Al­though the last year’s growth rate was the slow­est in last 15 years, the promis­ing sec­tor of Bangladesh has re­bounded and in­creased by 14.05 per cent on year-on-year ba­sis to US $ 5.52 bil­lion in the first two months (July-Au­gust) of the cur­rent fis­cal year.

“I cer­tainly be­lieve Bangladesh will be the top choice of global re­tail­ers and brands as the gar­ment sec­tor im­proved work­place safety and other com­pli­ance af­ter fix­ing the struc­tural, elec­tri­cal and fire loop­holes,” said Sid­diqur Rahman, Pres­i­dent of Bangladesh Gar­ment Man­u­fac­tur­ers and Ex­porters As­so­ci­a­tion (BGMEA).

Bangladesh, the sec­ond-largest ap­parel ex­porter glob­ally af­ter China, ex­ported ap­parel items worth US $ 28.04 bil­lion in the re­cently con­cluded 2016-17 fis­cal year, se­cur­ing 0.20% ex­port growth rate year-on-year.

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