an overview of Bangladesh garments industry with special reference of human resources practices.
Executive Summary;
The report covers the three months thesis program as the BBA requirements. I have worked with the“An overview of Bangladesh Garments Industry with special reference of HR practices”. The objective of the thesis report is to analyze the Overall HR Practices of the employee Garments industry. Garments industry in Bangladesh has been enriched significantly in the recent past years. In the field of Industrialization, garment industry has been proved a promising step. It has also provided opportunities of employment to millions of unemployed, especially innumerable uneducated women nationwide. As a result it is providing significant contribution in the field of our export income. The prime reason behind rapid growth of garments industry is the cheap labor. Labor is not as cheap anywhere in the world as it is in Bangladesh. Women contribute to the working force in these garment factories are comparatively paid lower than men. A worker works here long hour’s free or cheap meals. But this has not prevented thousands of women from work. It has given them a steady income, economic independence, self-reliance and dignity, because they are earning their own livelihood and supporting their families.
Over the last decades, garments industries have emerged as the largest source of earning foreign currency. Almost half of the total foreign currency is coming from exporting ready-made garments to European Union and the U.S.A. Besides, Canada, Japan, Australia, New Zealand; Russia etc. At present about 20 countries of the world are importers of our garments. Its market is being expanded in the Middle East, Russia, Japan, Australia and many other countries. During this thesis presentation it is also observed that the promising industry has some problems impeding its development. Bangladesh imports raw materials for garments like cotton, thread color etc. This production of raw materials hampers the development of garments industry. Moreover, foreign manufacturers often supply low quality materials, which results in low quality and quantity of production. On the other hand, most of the illiterate women workers employed in garments are unskilled and so their products often become lower in quality. Some other problems includes insufficiency at loan provision, uncertainly of electricity, delay in getting materials, lack of communication, problem in paying taxes etc. In the world market 115 to 120 items of dress are in demand where as Bangladesh supplies only ten to twelve items of garments. India, South Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable progress in garments industries. Bangladesh is going to challenge the garments of those countries in the world market.
The strategic Goals and Objectives of the Company are to strive hard to optimize profit though conduction and transparent business operations and to create more competitive in the internal and external market.
Objectives Of The Report
Broad objectives:
Broad objective of this report is to meet the partial requirements for the fulfillment of BBA program.
Specific objectives:
In specific objective I have to prepare a sound report that must be reliable and dependable for the Garment’s officials.
The specific objectives to help in explaining the broad objectives are as follows:
· To find out how Employment of personnel practices system works.
· To suggest remedial measure how they can increase deposit for the development Garments.
· Discuss all HRM practice
Methodology
The nature of this report is descriptive, so instead of doing any survey or using sampling method, observation method is used to complete this qualitative research. Most of the necessary information has been collected by face-to-face interview with the people, personal investigation with garments employees.
Primary Source:
Major source of information were collected from HR divisions of all garments as well as from other Employees. In addition, in some cases information also collected from face to face question answer from the garments HR division.
Secondary Source:
The organization part of the report is mainly based on secondary data. These data were gathered from different published materials, report, service rules, annual reports, prospectus, and other garment’s and from their websites and other publications.
Scope Of Study
The report is concerned with the HR Divisions of selected garments and concerned with the comparison of HR Divisions and their Employment of Personnel practices in garments industry with selected garments. Different garments are considered for the comparison of HR Divisions.
Limitation
o Major part of the report is based on the face-to-face interviews, which consists of view and opinions of those people. In some cases some of them were not able to provide concrete facts or figures. In this case as well some assumptions had to be made.
o In some garments they do not have as much employees as they needed to serve their needs for HR Divisions.
o Some important duties are done by the entry level employees that are not be considered their job because it can occur a lot of error.
o The officers were very busy with their daily work, they could hardly provide little time to discuss with them.
o Finally, the nature of information of the project part is somewhat confidential and critical to analyze. It was quite difficult to have the sufficient knowledge and understanding in that particular field, in a short period of Internship program.
garments industry in Bangladesh
Introduction of Garments:
A feature of most human’s societies is the wearing of clothing, a category encompassing a wide variety of materials that cover the body. The primary purpose of clothing is functional, as a protection from the elements. Clothes also enhance safety during hazardous activities such as hiking and cooking, by providing a barrier between the skin and the environment. Further, clothes provide a hygienic barrier, keeping toxins away from the body and limiting the transmission of germs.
Clothing performs a range of social and cultural functions, such as individual, occupational and sexual differentiation, and social status. A uniform, for example, may identify civil authority figures, such as police and military personnel, or it may identify team, group or political affiliations. In many societies, norms about clothing reflect standards of modesty, religion, gender, and social status. Clothing may also function as a form of adornment and an expression of personal taste or style.
Throughout history, many materials have been used for clothes. Materials have ranged from leather and furs, to woven materials, to elaborate and exotic natural and synthetic fabrics. Recent scientific research estimates that humans have been wearing clothing for as long as 650,000 years. Others claim that clothing probably did not originate until the Neolithic Age (the “New Stone Age”).
Articles carried rather than worn (such as purses), worn on a single part of the body and easily removed (scarves), worn purely for adornment (jewelry), or those that serve a function other than protection (eyeglasses), are normally considered accessories rather than clothing.
Humans often wear articles of clothing (also known as dress, garments or attire) on the body (for the alternative, see nudity). In its broadest sense, clothing includes coverings for the trunk and limbs as well as coverings for hands (gloves), feet (shoes, sandals, boots), and head (hats, caps). Articles carried rather than worn (like purses and umbrellas) normally count as accessories rather than as clothing. Humans also decorate their bodies with makeup or cosmetics, perfume, jewelry and other ornament; cut, dye, and arrange their head, face and body hair (hairstyle), and sometimes their skin (tattoo, scarifications, piercing). All these decorations contribute to the overall effect and message of clothing, but do not constitute clothing per se.
People wear clothing for functional and/or social reasons. Clothing protects the body; it also delivers social messages to other humans.
Function includes protection of the body against strong sunlight, extreme heat or cold, and precipitation; protection against insects, noxious chemicals, weapons, contact with abrasive substances — in sum, against anything that might injure an unprotected human body. Humans have shown extreme inventiveness in devising clothing solutions to practical problems. See: armor, diving suit, bee-keeper’s costume, motorcycle leathers, high-visibility clothing.
Social messages sent by clothing, accessories, and decorations can involve social status, occupation, ethnic and religious affiliation, marital status and sexual availability, etc. Humans must know the code in order to recognize the message transmitted. If different groups read the same item of clothing or decoration with different meanings, the wearer may provoke unanticipated responses.
- Social status: in many societies, people of high rank reserve special items of clothing or decoration for themselves. Only Roman senators could wear garments dyed with Tyrian purple; only high-ranking Hawaiian chiefs could wear feather cloaks and palaoa or carved whale teeth. In many cases, there were elaborate systems of sumptuary laws regulating who could wear what. In other societies, no laws prohibit lower-status people wearing high status garments, but the high cost of status garments effectively limits purchase and display. In current Western society, only the rich can afford haute couture. The threat of social ostracism may also limit garment choice.
- Occupation: military, police, firefighters usually wear uniforms, as do workers in many industries. School-children often wear school uniforms, college and university students wear academic dress. Members of religious orders may wear uniforms known as “habits”. Sometimes a single item of clothing or a single accessory can declare one’s occupation and/or status — for example, the high toque or chef’s hat worn by a chief cook.
- Ethnic, political, and religious affiliation: In many regions of the world, national costumes and styles in clothing and ornament declare membership in a certain village, caste, religion, etc. A Scotsman declares his clan with his tartan; an Orthodox Jew his religion with his (non-clothing) side locks; a French peasant woman her village with her cap or coif.
- Clothes can also proclaim dissent from cultural norms and mainstream beliefs, as well as personal independence. In 19th century Europe, artists and writers lived la vie de Bohème and dressed to shock: George Sand in men’s clothing, female emancipationists in bloomers, male artists in velvet waistcoats and gaudy neck cloths. Bohemians, beatniks, hippies, Goths, punks and Skinheads continued the (counter-cultural) tradition in the 20th century west. Now that haute couture plagiarizes street fashion within a year or so, street fashion may have lost some of its power to shock, but it still motivates millions trying to look hip and cool.
- Marital status: Hindu women, once married, “wear” sindoor, a red powder, in the parting of their hair; if widowed, they abandon sindoor and jewelry and wear simple white clothing. Men and women of the Western world may wear wedding rings to indicate their marital status. See also Visual markers of marital status.
- Sexual availability: Some clothing indicates the modesty of the wearer. For example, many Muslim women wear a head or body covering (hijab, bourqa or burka, chador, abaya) that proclaims their status as respectable women. Other clothing may indicate flirtatious intent. For example, a Western woman might wear extreme stiletto heels, close-fitting and body-revealing black or red clothing, exaggerated make-up, flashy jewelry and perfume to show sexual availability. What constitutes modesty and allurement varies radically from culture to culture, within different contexts in the same culture, and over time as different fashions rise and fall. Moreover, a person may choose to display a mixed message. For example, a Saudi Arabian woman may wear an abaya to proclaim her respectability, but choose an abaya of luxurious material cut close to the body and then accessorize with high heels and a fashionable purse. All the details proclaim sexual desirability, despite the ostensible message of respectability.
Because clothing and adornment have such frequent links with sexual display, humans may develop clothing fetishes. They may strongly prefer to have sexual relations with other humans wearing clothing and accessories they consider arousing or sexy. In Western culture, such fetishes may include extremely high heels, lace, leather, or military clothing. Other cultures have different fetishes. For many centuries, Chinese men desired women with bound feet. The men of Heian Japan lusted after women with floor-sweeping hair and layers of silk robes. Fetishes vary as much as fashion.
History of the “GARMENT INDUSTRY”:
GARMENT INDUSTRY. As early as 1860 the manufacture of ready-to-wear clothing became one of Cleveland’s leading industries. The garment industry probably reached its peak during the 1920s, when Cleveland ranked close to New York as one of the country’s leading centers for garment production. During the Depression and continuing after World War II, the garment industry in Cleveland declined. Scores of plants moved out of the area, were sold, or closed their doors. Local factors certainly played their part, but the rise of the ready-to-wear industry in Cleveland, as well as its decline, paralleled the growth and decline of the industry nationwide. Thus the story of the garment industry in Cleveland is a local or regional variant of a much broader phenomenon.
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The Ironing Department of L.N. Gross Co., ca. 1930. WRHS. |
In the early 19th century clothing was still handmade, produced for the family by women in the household or custom-made for the more well-to-do by tailors and seamstresses. The first production of ready-to-wear garments was stimulated by the needs of sailors, slaves, and miners. Although still hand-produced, this early ready-to-wear industry laid the foundations for the vast expansion and mechanization of the industry. The ready-to-wear industry grew enormously from the 1860s to the 1880s for a variety of reasons. Increasing mechanization was one factor. In addition, systems for sizing men’s and boys’ clothing were highly developed, based on millions of measurements obtained by the U.S. Army during the Civil War. Eventually, accurate sizing for women’s clothing was also developed. The Depression of 1873 contributed to the growth and growing acceptance of men’s ready-to-wear, because men found in off-the-rack garments a satisfactory and less costly alternative to custom-made clothing. The production of ready-made men’s trousers or “pants,” separate from suits, stimulated during the depression of the 1870s, allowed men to supplement their outfit without having to purchase a complete suit. In general, however, the great expansion of the ready-to-wear industry coincided with and was partly the result of the tremendous urbanization and the great wave of immigrants that came to the U.S. in the last decades of the 19th century and early decades of the 20th. Industrial cities such as Cleveland also experienced rapid growth, and it was during this period that Cleveland’s ready-to-wear clothing industry blossomed.
The early entrepreneurs of the clothing industry in Cleveland were often JEWS &JUDAISM of German or Austro-Hungarian extraction. Their previous experience in retailing prepared them for the transition to manufacturing and wholesaling ready-to-wear clothing. One example was Kaufman Koch, a clothing retailer whose firm eventually evolved into the JOSEPH & FEISS CO., a leading manufacturer of men’s clothing. The company still exists in the early 1990s, although it is no longer locally owned. The entry-level manufacturer needed relatively little capital to launch a garment factory. H. Black & Co., which would become a major Cleveland manufacturer of women’s suits and cloaks, started out as a notions house. The Black family, Jews of Hungarian origin, decided to produce ready-to-wear clothing based on European patterns in their own home. Later, fabric was contracted out to home sewers and then returned to the factory for final assembly. This system of contracting was widely practiced at this stage of the garment industry’s development, but by the close of the 19th century home work had been generally superseded by factory production. Garment manufacturing started in the FLATS, but in the early 20th century, it was concentrated in what is now called the WAREHOUSE DISTRICT, an area bounded by W. 6th and W. 9th streets and Lakeside and Superior avenues. L. N. Gross Co., founded in 1900, was one such firm in the growing garment district, specializing in the production of women’s shirtwaists. Many women wore suits, and the separate shirtwaist provided a relatively inexpensive way to modify and vary their wardrobe. L. N. Gross also pioneered in the specialization and division of labor in the manufacturing process. Instead of having one person produce an entire garment, each garment worker specialized in one procedure, and then the entire garment was assembled. As the garment industry spread to other areas of the city, the CLEVELAND WORSTED MILL CO. dominated the skyline on Broadway near E. 55th St. First organized in the 1870s and controlled after 1893 by KAUFMAN HAYS†, the Worsted Mills produced fabric for Cleveland manufacturers, as well as for garment manufacturers in other parts of the country. The company owned and operated a total of 11 mills in Ohio and on the East Coast. During the first 3 decades of the 20th century, the garment industry spread from downtown to the east side along Superior Ave. between E. 22nd and E. 26th streets. The RICHMAN BROTHERS CO. built a large plant on E. 55th. Near St. Clair. Founded in Portsmouth, OH, the company moved to Cleveland in the late 1890s, specializing in the production of men’s suits and coats–an activity in which Cleveland was a close runner-up to New York. In order to reduce the risk of large cancellations by wholesalers, Richman distributed its product directly to the customer in its own retail outlets. The plants of other garment manufacturers dotted the east side well into the 1960s, including BOBBIE BROOKS, INC. on Perkins Ave. and the Dalton Co. at E 66th and Euclid. The PRINTZ-BIEDERMAN CO. was founded in 1893 by Moritz Printz, for many years the chief designer for H. Black & Co. Printz-Biederman specialized in the production of women’s suits and coats, a branch of the garment industry in which Cleveland ranked second to New York. In 1934 the company left the St. Clair area to build a modern factory on E. 61st between Euclid and Chester avenues. The large knitwear firm of Bamberger-Reinthal built a plant on Kinsman at E. 61st St.; Joseph & Feiss was located on the west side on W. 53rd St.; Federal Knitting had a plant on W. 28th and Detroit,; and the Phoenix Dye Works was still located on W. 150th St. in 1993.
For approximately 50 years after the 1890s, about 7% of Cleveland’s workforce toiled in the garment factories. The ethnic origins of those who worked in the industry were as varied as the immigrants who flowed to the U.S. in the early decades of the 20th century. Although Jewish workers played a prominent role, other immigrant groups such as CZECHS, POLES, GERMANS, and ITALIANS were also employed in large numbers, and many of the garment factories were located in the ethnic neighborhoods from which they drew their workforce. Small workshops also proliferated in the ethnic neighborhoods, and many garment workers labored in sweatshop conditions. Unlike in New York, however, where the majority of shops employed 5 or fewer workers, 80% of Cleveland’s approximately 10,000 apparel workers were employed in large and well-equipped factories by 1910. Although working conditions were somewhat better in Cleveland than in New York, Cleveland garment workers generally received low wages and worked long hours with few, if any, benefits. Like garment workers elsewhere, they sought to improve their wages and working conditions by organizing. In 1900 a number of small craft and trade unions joined together in New York City to form the INTERNATIONAL LADIES GARMENT WORKERS UNION, and in 1911 Cleveland garment workers staged a massive strike. On 6 June the employees of H. Black & Co. walked out, and up to 6,000 of Cleveland’s garment workers followed them. The ILGWU sent officials from New York to encourage the strikers, but in spite of considerable support for the workers in the community at large, the owners resisted. Attempts to negotiate a settlement failed, and by October those who could return to work. The strike had been lost
During World War I, the garment industry produced a variety of apparel for the armed forces, and in 1918 wartime inflation and prosperity prompted the ILGWU to organize another strike in Cleveland, involving approximately 5,000 workers. To avoid the disruption of local production of military uniforms, secretary of war and former Cleveland mayor NEWTON D. BAKER† intervened, prevailing on both sides to accept a board of referees, which gave the workers a substantial increase in wages. This event marked a watershed in relations between management and labor in Cleveland’s garment industry. The threat of unionization and the influence of “Taylorism” or “Scientific Management” persuaded the large Cleveland garment factories to provide increased amenities for their workers, which reached a peak in the 1920s. PAUL FEISS†, of Joseph & Feiss, was a convinced exponent of scientific management, and time and motion studies were implemented in order to make production more efficient and cost-effective. Working conditions also were improved in order to reduce employee turnover and to provide the best possible environment for maximum productivity. The local garment factories began to provide clean and well-run cafeterias, clinics, libraries, and nurseries for children. Employees of both sexes were urged to participate in sports, theatricals, and other activities, and the factory was also a place where immigrants learned English and a variety of homemaking skills. One consequence of paternalism was a brake on the growth of unionism.
The Depression and the New Deal had a major impact on the garment industry. Those manufacturers who survived the Depression were faced with a powerful new labor movement bent on organizing the unorganized garment industry. Bolstered by the provisions of the NRA and the National Labor Relations Act, both the ILGWU and the Amalgamated Clothing Workers, which represented workers in the men’s garment factories, successfully waged organizing campaigns. Some owners acquiesced; others resisted or simply closed their doors. The process of decline in Cleveland’s garment industry began during the 1930s. During World War II, the industry was once again geared for war production. Factories produced uniforms, knit scarves, and parachutes. LION KNITTING MILLS was famous for its production of the knitted Navy watch cap. Following the war, a number of garment manufacturers were unable to adjust to new market conditions and to new price levels. But while some companies fell by the way, new and vigorous garment factories grew, especially in the 1950s. Among them was Bobbie Brooks, founded by MAURICE SALTZMAN†, and the Dalton Co., organized by Arthur Dery. In fact, the Cleveland garment industry was still so large and influential in the 1950s that Cleveland manufacturers were able to convince the Phoenix Dye Works of Chicago to relocate in Cleveland, where many of its customers were located. Throughout the years other businesses ancillary to garment manufacturing also flourished in Cleveland.
Since World War II, the once-vigorous Cleveland garment industry has dwindled considerably, especially since the 1960s and 1970s when the decline accelerated. In some instances, management has transferred manufacturing operations elsewhere while retaining offices in Cleveland. In some cases an entire operation moved from the Cleveland area, usually to the South. Many companies sold off all or part of their businesses or simply closed. The reasons for this shift are complex and varied, some deriving from local conditions and some from conditions that are national or even global in nature, affecting the industry as a whole throughout the U.S.
The garment industry is traditionally a low-paying industry, and rising labor costs aggravated the industry’s problems. Although most of the large Cleveland manufacturers were unionized, unionization itself did not necessarily mean that one company had an unfair advantage over another. The city’s garment unions, however, generally sought and received wage settlements above the national minimum. Labor costs were considerably less in the South, and Cleveland manufacturers as well as garment and textile workers throughout the U.S. faced growing competition from lower-paid workers in other parts of the world. For example, knitwear and other textile products produced in South Korea, Taiwan, Hong Kong, or Singapore could be sold in the U.S. at substantially less than the same products manufactured in this country. Another factor that may have discouraged some Cleveland manufacturers was the changing workforce. Until the 1950s and 1960s, many women workers had a limited number of employment opportunities, particularly the European immigrant women who dominated the workforce of the garment industry. During the postwar period, there was a new generation of women working who had many more employment opportunities at wages much higher than could be earned in the garment industry. However, while labor costs in Cleveland were relatively high in comparison with some regions, there were some industry authorities who contended that additional factors contributed to the industry’s decline. For example, some family-owned concerns were sold or simply dissolved when family shareholders could no longer agree on management decisions. In other cases, the heirs preferred some profession or occupation outside the garment industry.
The apparel industry was also subject to changes in technology and to the rapidly changing conditions of the marketplace. Cleveland firms often did not or could not respond with sufficient alacrity or astuteness to such changing conditions. Cleveland was perhaps too divorced from the center of the market in New York. It lacked a regional market of importance, and thus many manufacturers lost touch with what consumers wanted, and when the competitive price structure changed after World War II, some companies could not adapt to a shifting and rapidly changing marketplace. In the 1980s New York came to dominate the industry as both a marketplace and a manufacturing center, and substantial Cleveland manufacturers must constantly study and test the marketplace trends in New York City. In addition, there are other important regional markets, such as Dallas and Los Angeles, which served to move the focus of the industry away from Cleveland. Perhaps that is part of a larger underlying transformation of the American economy resulting in the loss of preeminence of the older industrial centers of the Great Lakes region and Middle West. On the other hand, Cleveland garment manufacturers who take advantage of new technologies, who learn to cut costs, and who learn to respond effectively to the marketplace may still survive and even flourish.
The history of the Readymade Garments Sector in Bangladesh is a fairly recent one. Nonetheless it is a rich and varied tale. The recent struggle to realize Workers’ Rights adds an important episode to the story. Below, we present a detailed narration of the evaluation of the RMG sector from its humble origins to the present day.
The shift from a rural, agrarian economy to an urban, industrial economy is integral to the process of economic development (Kaldor, 1966, 1967). Although policymakers in the least developed countries (LDCs) have, at various times, attempted to make agriculture the primary engine of economic growth and employment generation, this approach has not worked, not least because of the contributions of the Green Revolution, which has had the dual effect of increasing agricultural productivity in the LDCs and displacing the rural labor force at the same time. Led by the example of the East Asian economies, most LDCs now accept the need for greater industrialization as the fastest path to economic growth. In particular, countries such as Japan, Taiwan and South Korea have demonstrated that an export-oriented industrial strategy can not only raise per capita income and living standards in a relatively short time; it can also play a vital role in modernizing the economy and integrating it with the global economic system.
Bangladesh, one of the archetypal LDCs, has also been following the same route for the last 25 years. Once derided as a “basket-case” by Henry Kissinger (The Economist, 1996), the country stumbled across an economic opportunity in the late 1970s. New rules had come to govern the international trade in textiles and apparel, allowing low-cost suppliers to gain a foothold in American and European markets. Assisted by foreign partners, and largely unaided by the government, entrepreneurs seized the opportunity and exploited it to the fullest. Over a period of 25 years, the garments export sector has grown into a $6 billion industry that employs over a million people. In the process, it has boosted the overall economic growth of the country and raised the viability of other export-oriented sectors.
This essay analyzes the processes by which global trading rules came to help out a poor country like Bangladesh. It demonstrates the impact of the rule changes on the garments sector, and the response of the sector to multiple challenges and obstacles. It also discusses what steps Bangladesh should take in order to deal with the full liberalization of the international garments trade, which occurred in January 2005 and which could potentially threaten the country’s growth prospects. Finally, it details some of the recent developments that have occurred since liberalization took effect.
Although Bangladesh is not developed in industry, it has been enriched in Garment industries in the recent past years. In the field of Industrialization garment industry is a promising step. It has given the opportunity of employment to millions of unemployed, specially innumerable uneducated women of the country. It is making significant contribution in the field of our export income.
History of our cloth Industry: Once the cloth of Bangladesh achieved worldwide fame. Muslim and Jamdani cloth or our country was used as the luxurious garments of the royal figures in Europe and other countries. The British rulers in India didn’t develop our cloth industries at all. Rather they destroyed them and imported cloths from England.
Garment industries at present Bangladesh: After the emergence of Bangladesh radical change has come to our garment sector. Garment industries started working from the 10’s of the late century. At present there are about 3000 garment industries in the country and 75 percent of them are in Dhaka. The rest are in Chittagong and Khulna. These Industries have employed fifty lacks of people and 85 percent of them are illiterate rural women. About 76 percent of our export earning comes from this sector.
Reason of Development: The prime reason why garment industries have come out to be the champion in the field of export is obviously the cheap labor. Labor is not as cheap anywhere in the world as it is in Bangladesh. Women contribute to the working force in these garment factories, as they are relatively cheaper than men. A worker works here long hour’s free or cheap meals. But this has not prevented thousands of women from work. It has given them a steady income, economic independence, self-reliance and dignity, because they are earning their own living and managing their family expenses.
Garments of Bangladesh in the world-market: Over the last twelve years or so the garments industries have emerged as the largest source of earning foreign currency. About half of the foreign currency from the ready-made garments is earned from European Union and the U.S.A. Besides, Canada, Japan, Australia, New Zealand; Russia etc. also are other garments importing countries. At present about 20 countries of the world are importers of our garments. Its market is being expanded in the Middle East, Russia, Japan, Australia and many other countries.
Problem behind garments: This promising industry has some problems impeding its development. Bangladesh imports raw materials for garments like cotton, thread color etc. This dependence on raw materials hampers the development of garments industry. Moreover, foreign suppliers often supply low quality materials, which result in low quality products. Most of the illiterate women workers employed in garments are unskilled and so their products often become lower in quality. Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, lack of communication, problem in taxes etc. Often obstruct the industry. In the world market 115 to 120 items of dress are in demand where as Bangladesh supplies only ten to twelve items of garments. India, South Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable progress in garments industries. Bangladesh is going to challenge the garments of those countries in the world market.
Garments industries often pay dearly for political unrest, hartal and terrorism etc. The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005.
Bangladesh has to advance cautiously for getting better position of her garments in the world market. Finally destruction of twin tower in 11 September 2001. invasion on Afghanistan and Iraq and depression in world Economy have seriously affected the export trade of Bangladesh.
major types of garments exported to other countries;
Garments are a number one export sector of Bangladesh. Bangladeshi garments product is export of Europe & American market. All kinds of Knitwear, Woven & labels product of Bangladeshi garments sector.
| Men’s Clothing | Women’s Clothing | Boy’s Clothing | Girl’s
Clothing |
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| ? T-shirts
? Sweaters ? Pants ? Shirts ? Shorts ? Jackets |
? T-shirts
? Sweaters ? Jackets ? Pants ? Shirts ? Night Wears |
? T-shirts
? Sweaters ? Pants ? Shorts ? Night Wears |
? T-shirts
? Sweaters ? Under-garments |
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Exports of Bangladesh’s readymade garment (RMG) products are gradually expanding to China, Japan and Latin American countries in recent days. So far, the US and the EU were the main buyers of local apparel items. RMG manufacturers tried hard to explore more export destinations with diversification of their products and were able to find some prospective markets in Asia and Latin America.
China, the world’s largest apparel supplier, has become a major export destination for Bangladesh as Chinese manufacturers are now reluctant to produce basic RMG items. The Chinese manufacturers have recently shifted from basic readymade garment (RMG) items to high-end apparels. A significant number of garment factories that made basic RMG products earlier faced closure in China recently. As such, Bangladesh and other competing countries are now exporting RMG products to China.
According to Export Promotion Bureau (EPB), Bangladesh exported knitwear products to China worth $3.071 million in fiscal 2007-08 against $0.76 million in the previous fiscal year, posting a staggering 400 percent growth. In fiscal 2007-08 the country exported woven garments to China worth $6.691 million against $6.323 million in fiscal 2006-07. The total export to China from Bangladesh amounted to $106.946 million against the import of around $3.0 billion in fiscal 2007-08.
In 2007, Bangladesh exported cotton T-shirts, singles and other vests worth $0.79 million against $0.57 million in 2006. China imported such kind of apparel items worth $976.890 million in 2007 and $926.330 million in 2006 from the rest of the world. It clearly shows that China itself imports apparel items of a significant amount. Aggressive marketing drive by Bangladesh can grab a chunk of such import of China, experts say.
Currently Bangladesh enjoys duty concession on exports of 757 products to Chinese market under Asia Pacific Trade Agreement. Of the 757 products, 22 knitwear items and almost the same amount of woven items are included in the concession category. As a result, the export of knitwear and woven products is getting a steady rise to China.
Bangladeshi exporters are also looking to the Japanese market as the hottest new export destination. Apparel exports to Japan started to pick up after the Japanese government announced the China+1 strategy in 2008. Japan is eager to reduce its dependence on China, the largest supplier of apparel items globally. The China+1 policy promote shifting production from China to other nations, such as Bangladesh. Being a member of the least developed countries’ group, Bangladesh has duty-free access to Japan for woven product (under the generalized system of preferences, or GSP). Knitwear faces a duty of 17 percent, as Japan clings to its aging knitwear industry.
The Japanese government has recently invited the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leaders to discuss about duty-free access for knitwear. Earlier, the association leaders had asked Japan to relax rules-of-origin for knitwear items. If Japan allows duty-free knitwear, it will be a great opportunity for Bangladesh. In fact, Dhaka’s decision last year inspired exporters with a cash incentive of 5.0 percent of each apparel shipped to Japan. Manufacturers need separate production lines for the Japanese customers, as they never compromise on quality. On the other hand, Japanese buyers can afford to pay for high quality.
Garment exports to Japan maintained roughly a 175 percent growth rate in between 2008-10, according to the EPB. Even with the duty, Bangladesh registered a 231 percent rise in knitwear exports to $60 million in the first 10 months of the past fiscal year; and earned $90 million from woven garment exports — 121 percent growth over the same period a year earlier.
The Japanese textile and clothing investors are also coming to Bangladesh. Big entrepreneurs like Maruhisa, Yokohama Tape TM Textiles etc. have decided to invest a significant amount of money here. Three related companies — NI Teijin, CHORI and FVG — have opened liaison offices in Dhaka, and two companies opened quality-control inspection centre (PQC and K2) to meet Japanese national standards.
Meanwhile, a Bangladesh Garment Manufacturers and Exporters Association (BGMEA) delegation visited some Latin American countries to assess explore and prepare for current and future potential of Bangladesh’s garment exports. During the visit, tremendous responses were received from importers and buyers of those countries. Rough reckoning says Bangladesh can fetch US$400 million from apparel exports to three Latin American countries in the next three years. These countries are Brazil, Mexico and Chile.
The main obstacle to raising garment exports to Latin America is the absence of Bangladesh missions in those countries. If government missions are opened in the countries, then it would be convenient for Bangladesh exporters to catch market there, textile experts say.
Brazil’s readymade garment import amounted to $ 767.072 million last year, of which $303.631 million knitwear and $463.441 million woven, while Bangladesh’s export to that country was $50.287 million ($ 33.599 million knitwear and $16.688 million woven). Mexico’s import totaled to $1,947.85 million last year, ($982.58 million knitwear and $965.27 million woven), of which Bangladesh shared $114.01 million ($61.76 million knitwear and $52.25 million). Out of Chile’s total RMG import to the tune of $ 1,074.83 million last year ($517.39 million knitwear and $557.44 million woven) Bangladesh took a part of $7.47 million ($ 5.26 million knitwear and $2.21 million). The Mexican government has agreed to allow any Bangladesh businessman holding a US visa to visit that country. Besides these countries, Bangladesh is eyeing opening new market for RMG export to Russia, Turkey and Colombia.
RMG buying houses, both local and foreign, are now growing rapidly in Bangladesh, as the country has become a lucrative place for RMG outsourcing on the appreciation of Chinese currency against the greenback. As part of their business expansion, foreign buying houses are eying to set up more liaison offices here. The buying houses including M&S, Adidas and Tesco have already published advertisements in newspapers to recruit experienced merchandisers for such liaison offices to collect RMG products at a competitive price from local garment units.
There is no denying that the country’s export witnessed a significant growth during the last two decades due to growing competitive strength of the local exporters, mainly the RMG exporters, against their rivals from countries like India, China, Vietnam and Pakistan. Among other factors, efforts of the private entrepreneurs and the provision of cash incentive played a significant role in export growth. Cash incentives offered by the government also helped to build up many backward linkage industries and generated employment.
The garment industry has now emerged as a prime industrial sector in the country. More than five million people are directly and indirectly employed in the sector. Also, the local apparel industry is facing stiff competition in the world market. There is a need for developing forward linkage industries for sustaining in the competitive markets. Overall situation in the garment sector is much better now. But still, there should be more improvements in the social sector where workers’ living conditions are conspicuously tagged.
some selected garments manufactures company
Square Textiles Ltd
Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group .The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997.It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives Oeko-Tex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk. 1000 million. It’s paid- up capital is tk. 251.90 million. 1,223 employees are working in this organization. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located at Uttara in Dhaka
Mission Statement:
The mission statement of Square Textiles Limited is “Our mission is realization of vision through maximum production of goods and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the shareholders and other stakeholders.” This mission is envisioned by the concept of business which ensures well being of the investors, stakeholders, employees and members of the society which will create new wealth in the form of goods and services.
Key Product/ Services:
As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures:
• 100%Cotton Ring Span Yarn for Hosiery
• 100% Cotton OE Rotor Yarn for Hosiery
• Knit Fabrics for 100% export oriented readymade Garments Industry.
It also performs the following services:-
• Dying & Post Mercerization.
• Fabric Dying
The final output is marketwise by Square Fashion Ltd.
In Square Textile Limited two types of products are produced in two different units. These are as follows:
Unit 1: Combed and Carded Yarn from a count range of
Ne.10 to Ne.80.
Unit 2: Combed Ring Yarn from a count range of Ne.20 to
Ne.40. In Square Spinning Ltd. 100% Cotton Carded and Combed Yarn in the count range of Ne.16 to Ne.30 are produces. Finally in Square Fashion’s Ltd. Readymade Knit Apparels like T-shirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Men’s & Ladies fashion wear , Kids wear etc
STRATEGIC GOALS & OBJECTIVES:
The company sets the following objectives for it to achieve:
• To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all.
• To create more jobs with minimum investments
• To be competitive in the internal as well as external markets
• To maximize export earning with minimum imported in-puts
• To reduce the income gap between top and bottom categories of employees.
Thus the company focuses to pole-star its mission that fulfill the objective with emphasis on the quality of the product , process and services blended with good – governance that help build the image of the most enable corporate – citizenship at home and abroad . The company wants to produce such society friendly goods and services that go to satisfy the wants of all the relevant party without disturbing or damaging the socio- economic and ecological, balance of the mother earth and the process of human civilization leading to peaceful co-existence of all the leaving beings. The company always strives for top quality products at the least cost reaching the lowest rungs of the economic class of people in the country. The company values its obligation to the greater society as well as it strives to protect the interests of its shareholders and to ensure highest return and growth of their assets.
Potential Customer:
The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products produced in Square Fashion Ltd. is Europe and U.S.A. Square Textiles does not direct sales in overseas market but sometimes India, Pakistan & other countries take their yarn.
Management:
The entire management process comprises the following units:
The Managing Director, the CEO is the head of the Executive Management Team which comprises senior members of the Management Apparatus. Within the limits of delegated authority and responsibility by the Board of Directors, Executive Management operates through further delegation of authority at every echelon of the line management. The executive Management operates within the framework of Policy & Planning strategies set by the Top Management with periodic performance reporting for guidance. The Executive Management is responsible for preparation of segment plans / sub – segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies, with appreciation for outstanding and exceptional performances. These operations are continuously carried out by the Executive Management through series of Committees sub – Committees, Committees & standing Committees assisting the line management
Management Committee: Comprising top executives, deal with entire organizational matters.
Standing Committee
Standing Committee comprises the following committee
Audit Committee;
Internal Audit Committee
ISO Audit Committee
Social / Environment Committee
Performance Evaluation Audit Committee
Employment Relations Committee:
• Remuneration Committee
• Work Environment Committee
• Performance Evaluation Audit Committee
Management Committee:
• Product Planning & Development Committee
• Quality Control & Research Committee
• Production & Inventory Management Committee
• Export Promotion Committee
Products:
In two units of Square Textiles Ltd. The following products are produced :
In Square Knit Fabrics Ltd. Product range Engineering stripe and semi jacquard, plain , pique , Four Neddle structure , Crepe rib , Interlock , Drop needle , Cross miss , Milano rib , etc.
In Square Fashions Ltd. Following types of products are produced T-shirts & Polo- shirts, Tank tops , Pajamas, Sport wear , Under garments , Mens & Ladies fashion wear , Kidswear etc.
Price:
The unit selling prices over the years varied substantially as shown below:
| 2006 | 2005 | 2004 | |
| Local sales | 94.75 | 61.71 | 87.12 |
| Export Sales | 143.84 | 127.12 | 154.62 |
| Total sales (average) | 143.49 | 124.71 | 151.94 |
The above indicate that the local and export selling prices increased by 53.54% and 13.14% respectively during the year 2006 over the year 2005after gradual decline during the years 2004 and 2003 over the year 2001. the increase is primarily ascribable to the international situation.
Place:
Export oriented readymade garments industry operating in Bangladesh are the main purchaser of products of Square Textiles Ltd. The size of export oriented RMG industry is fairly large in Bangladesh. So there is a huge market for Square Textiles Ltd. In Bangladesh. Moreover products of Square Fashions Ltd. Are exported to Europe and USA.
Promotion:
Square Textiles Ltd. Does not pursue any rigorous promotional activity. As most of the purchaser is export oriented garments, they don’t need to be promoted. In fact, the buyers themselves are aware enough from where they will get quality products. So there is not much room to pursue. For the UK and USA based market this fact is true as well.
Finally, the flourishment of any industry requires combined efforts and co-operation from several parties. Social, political and macro economic environment play pivotal role in this regard. Though Square Textile is a newly Ventured Company in the respective sector, its growth and expansion is praiseworthy. It’s contributing the country and serving the nation in different ways. If it can up hold it’s much toward advancement, it will be able to set a role model in our country.
Trendz Group:
Trendz Group is a group of companies in trendy garments business. The group consists of apparel buying agent, manufacturing and exporting companies located in Dhaka, Bangladesh. Bangladesh is a hotbed of garments manufacturing; now ranking fifth highest in the list of garments exporting nations and after over taking India. Please read the news here. Bangladesh is the only country in the world that can produce textile items at least 20% to 30% cheaper than China. Please also see comparison of Bangladesh and India in recent news.
The range of our product line, higher quality, and competitive prices have made us one of the fastest growing companies of its kind in Bangladesh. We have strategically taken orders that enhanced and enriched both its employees’ technical skills as well as its level of quality. Our staffs have been directly recruited from the top most garment houses of the country. We have also a marketing office in Canada for convenience of North American buyers. We currently represent a number of major importers from USA, Canada, European countries (Italy, Spain, UK) and Australia.
Trendz started business in Bangladesh for some reason:
· Cheapest labor cost and cheap living cost allows the lowest manufacturing cost in the world.
· No quota barrier for exporting to USA.
· Major Cotton growing country with one of the best cotton qualities in the world.
· Fully developed textile industry, which is truly fiber to fashion production center.
· Fully developed auxiliary industry to cater to the apparel and textile industry.
· Trendz is one of the rare companies in Bangladesh who owns and follow a quality manual compliant to international code and standards.
· In-house expertise in initial sampling & pattern making.
· Strong network in sourcing all over the country.
· Variety of embroideries and patch/appliqué work, ethnic and exquisite hand work.
· Varieties of prints in hand, machine & all over.
· Different kind of washes and dyeing, antique look range, print options.
· Dedicated and professional corporate management team with over a decade of experience in the field.
- A marketing office located in Canada to serve foreign buyers more closely.
Trendz is one of the leading trendy apparel manufacturer & buying agent located in Bangladesh helping foreign buyers. We provide services to the foreign buyers concerned with identifying the products in the Bangladeshi market, negotiating prices and proper sourcing of products. We assure the highest degree of professionalism and provide wide variety of services to the foreign buyers. Our presence in the international market keeps us well-informed of customer tastes and changing market scenarios.
We offer fast and reliable delivery, excellent Quality Control and flexible manufacturing and production options. We have a unique methodology of paper work that is immaculately followed and managed by our team. Our team consists of highly professional; the most skilled personnel hired from top most garment companies of the country. Our team consists of management, merchandisers, quality control, schedulers, and commercial personnel. We also have a marketing office in Canada to have continuous connection with North American Buyers.
Our Strengths
· Strong network of sourcing. With our extensive network of suppliers from all over Bangladesh, TRENDZ is well placed for proper vendors selections for your valued orders. Which includes keeping well in mind your pricing, quality and delivery requirements prior to best vendor’s selections for your orders? Also should your orders be requiring certain fabrications which are made more expensively we can produce in Bangladesh better than India, Pakistan, china and Taiwan quality through our extensive network sources.
· Trendz is one of the rare companies in Bangladesh who owns and follows a quality manual compliant to international code and standards.
· In-house expertise in initial sampling & pattern making.
· Hi-fashion garment with lot of value addition.
· Variety of embroideries and patch/appliqué work, ethnic and exquisite hand work.
· Varieties of prints in hand, machine & all over.
· Different kind of washes and dyeing, antique look range, print options.
· Dedicated and professional corporate management team with over a decade of experience in the field.
· A marketing office located in Canada to serve North American buyers more closely.
Our Services:
We can guarantee to manufacture the sample within 4 to 7 days.
1. Collecting customer’s requirement of fabric and style.
2. Identifying and selection of appropriate source.
3. Preliminary screening by inspection and testing.
4. Forwarding samples to the customer and receiving feedback.
our huge networking in Bangladesh allows us to provide the cheapest price available in Bangladesh.
1. Receiving and verifying the quotations of suppliers by studying their suitability both in terms of quality and capacity to meet contractual requirements.
2. Negotiation and finalization of price.
Order Progress Process
On receipt of orders based on above, discussing with suppliers on process planning, preparation of critical path by highlighting critical stages involved.
Production Monitoring
Monitoring the production is one of our main services to our clients because once the product cut wrong it will stitch wrong, so we do monitor every step deeply, from fabric, it’s dying, the shrinkage, the patterns, the cutting layers, bundling, distribution on the machines, general checking, washing, cropping, pressing, final checking, tags/stickers placements etc, packing in bags, master bags, cartons and it’s quality and marking etc, so nothing will be left which will make problem for our clients.
Product Development
We know the marketing of any company or any product is not so easy, for marketing purpose most of the buyer’s demand several samples to show them to different clients, so we develop them with our existing suppliers according to the buyer’s requirements in timely manner. Other then that order related samples are always be there like approval sample, size set, sales samples (if need).
Weekly Progress Report
Meeting with Merchandiser, Quality Controller and Logistic staff will be held every Saturday and status will be e-mailed to customers on every Monday. This will enable all the customers to verify their order progress.
Quality Progress Report
Trendz is one of the few garment manufacturing/ trading companies in Bangladesh who owns a quality plan compliant to international code/ standards (such as MIL, AATC, ASTM and ISO codes).
Quality Assurance is conducted in 4 stages of production.
1. Pre production check (PPC)
2. Initial production check (IPC)
3. During productions check (DUPRO)
4. Final random inspection (FRI)
Shipment
Arranging vessel for shipment with the forwarders and follow up shipment points for smoother connections. The above are some of the important activities we perform to provide a very effective service.
Workplace environment
We believe work place environment is the most important factor to get the best performance from the employees. Our goal is to exceed requirements of local legislation and reach the global standards, and thereby support clients’ images and sourcing principles. Our factories strictly maintain safe, healthy and hygienic provisions as per ILO and Bangladesh Labor Act, 2006. We also believe in quality can not compromise with quantity. our factories are quality management system ISO 9001:2000 certified.
Trendz adopts a rigorous selection process for garment manufacturer ensuring only those that are totally committed to exceeding our high ethical standard become appointed suppliers.
We recognize and honor our duty to protect the workforce used in the manufacture. We also ensure the factory has the following facilities employees:
- Children must not be employed below the legal minimum age required by the law of the individual country
- A day care centre for employees’ children
· Full time medical doctor with medical beds are available in the factory premises.
- Free work time medical assistance, medicine and pr