National Institute Of Fashion Technology, Hyderabad

Fashion Export Merchandising & Exim

Documentation
OUTLINE
INTRODUCTION
BANGLADESH AT A GLANCE
EXPORT-IMPORT COMMODITIES
EXPORT IMPORT PARTNERS
PRESENT EXPORT SCENARIO
SWOT ANALYSIS
RECOMMENDATIONS
IMPORTANCE FOR INDIA IN TERMS OF EXPORTS
CONCLUSION

INTRODUCTION
Bangladesh emerged as an
independent Country in 1971.
Bordered on India by 3 sides
and by Myanmar on south-
east.
8th largest populous country in
the world.
Size of the country is 147570 sq.
kilometers.
160.4 million people with
1.27% growth rate.
Small country with huge HR:
More than 64 million labor
force.
BANGLADESH AT A GLANCE
Capital: Dhaka;
Other major cities: Chittagong,
Khulna, Sylhet, Rajshahi, Barisal
& Rangpur
Climate: Sub-tropical monsoon
Temperature: Average
maximum 35C and minimum
21C
Major language: Bengali,
English is generally understood
Adult Literacy Rate: 64% (15
years +)
Currency: Taka
GDP per capita: US$
1700(2010)
International Air Ports :
Dhaka. Chittagong, Sylhet
Sea Ports : Chittagong and
Mongla
Investment climate: Conducive
investment climate compared to
other South Asian countries.
EXPORT ~ IMPORT COMMODITIES
Export:

RMG (Woven & Knit)
Frozen food (shrimp)
Agricultural products
Leather & leather products
Jute goods
Engineering goods
Ceramics
Home Textile
Textile fabrics etc
Import:
Oil
Edible oil
Petroleum products
Wheat
Seeds
Fertilizer
Yarn
Capital goods
Machinery
Scientific & medical
equipments.
EXPORT ~ IMPORT PARTNERS
Export:

USA
EU
Canada
Turkey
Japan
Australia
India
China
South Korea etc.
Import:

China
India
Singapore
Japan
Malaysia
South Korea
Germany
Middle-east
Uzbekistan etc.
PRESENT EXPORT SCENARIO
Bangladesh is exporting 705 products to the global market.
Share of major export products are -
01 RMG and knit wear 78.13%





6 Items
02 Jute goods 3.30%
03 Frozen Foods 2.73%
04 Raw Jute 1.56%
05
Leather & Leather
Products
1.54%
06 Footwear 1.30%
Total 88.56%
Only 6 commodities are contributing 88.56 % to our total export earning
where as 699 items have share of 11.44 % in our total export.
SWOT ANALYSIS
OF BANGLADESH
Advantage over China, Pakistan & India
Adequate supply of labor force of both sexes, attributed with less
attitudes problem (less absenteeism and, aptitude for learning, and
loyal) and high morale
Cheaper labor cost
Low cost of captive power generation using gas as fuel
GSP facility up to 2015 (renewed recently)
STRENGTHS
Bangladesh produce mostly basic products- which are low cost items; the share of fashion
products i.e., high value added product is very low.
Bangladesh does not produce the basic raw materials (only a negligible quantity of cotton
but no manufactured fiber) and as such has to depend totally on sensitive global market.
Because of inadequate backward linkage, lead-time happens to be long, nearly 3
months.
Public power supply is erratic.
Bank interest rate is still high enough, particularly of private sector bank, for investment
of export oriented high value project.
HRD facility, productivity and quality support, testing and accreditation support, design
support and compliances are yet to be enhanced.
Cost of doing business is high because of under table money
WEAKNESSES
Bangladesh has now a scope to go for more fashion oriented products
deserving high price in the global market.
With the help of further increase of productivity & quality and design
support, Bangladesh can minimize cost and maximize profit and export
value.
Bangladesh, as a proven experienced RMG & Textile manufacturer, can
expand share in the existing market (USA, EU, Australia, Canada, etc.) and
can also explore opportunity in Japan & CIS countries.
In the long run, Bangladesh has a scope to target huge populated countries like
China and India- where demand as well as cost of manufacturing will be wider.
OPPORTUNITIES
Unless new strong market is explored in home or abroad, any non-cooperation
from USA & EU may jeopardize the whole Bangladesh RMG export business and
consequently the textile manufacturing.
Sudden price hike of cotton and yarn in the global market may push
Bangladesh to a very awkward situation to devastate the business.
The type of labor and political anarchies of the recent days if prevails in
the future, Bangladesh may lose the business in the way Sri Lanka has
lost.
Growing terrorism, or its false/amplified propaganda, is also a big threat.
The poor political culture and violence is one of the most important threats.
(Source: http://forum.daffodilvarsity.edu.bd/index.php?topic=5141.0)
THREATS
Bangladesh has to create new capacities and modernize & balance
the existing ones.

Encouragement of FDI from ethnic Bengalis in foreign countries
would be one of the best options for the needed financing in
addition to the local banks' efforts.

Power supply has to be ensured.

Bangladesh needs to develop capacities to provide the industries
with a sustainable supply of resource personnel and support
services in regard of research, design, testing & standardization,
accreditation, compliances, etc.

RECOMMENDATIONS:
Bangladesh to improve its situation
Bangladesh has to improve the port efficiency further and gear up
domestic transportation.

Labor crisis, labor safety, social rights and gender issues have to be
dealt with more efficacies.

It is important that the buyers should have a preferred access to the
country; starting from reception on arrival to facilities such as
hotel/rest house, tourism and recreation should be improved.
IMPORTANCE FOR INDIA
IN TERMS OF EXPORTS
WEAKNESS VIEWPOINT
India produces all types of high, mid and low cost items and the pool of
textiles India produces almost covers every kind of need in the market.
India happens to be a hub of textiles and raw material majorly Tirupur
for its knits, Bhagalpur for its silk and Cotton in many states like
Gujarat, Andhra Pradesh, Punjab, etc.
India has been exporting since many years now, the lead times here are
lower comparatively.
OPPORTUNITY VIEWPOINT
Bangladesh has now a scope to go for more fashion oriented
products. India, being closest in terms of distance will have
higher exports of raw material and high cost fabrics to
Bangladesh.
India has strong ties with US and European countries, hence,
Bangladesh focusing on big countries shall face tough
competition from India.
THREAT VIEWPOINT
If the political situation doesnt improve, Bangladesh
shall increase imports from India, so that the labor
doesnt face unemployment.
West Bengal becomes the highest source of
material and labor exchange during power and labor
crisis.
CONCLUSION
India's exports have grown much faster than GDP over the past few
decades. In the past, its exports have grown over 11% per annum
while growth in GDP is about 5% during 1970-98 periods. Exports
have grown even faster since 1945-95. Several factors appear to
have contributed to this phenomenon including foreign direct
investment (FDI)which has been rising consistently especially from
the early 1990s.

India and Bangladesh are in bilateral trade relationship. Whereas,
Bangladesh has its advantages in exports, India has a major chunk
of merits over Bangladesh in reaction to many of the threats and
weaknesses Bangladesh has.
REFERENCES
1. http://forum.daffodilvarsity.edu.bd/index.php?topic=5141.0
2. http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/
SOUTHASIAEXT/0,,contentMDK:21177520~pagePK:146736~
piPK:146830~theSitePK:223547,00.html
3. http://shodhganga.inflibnet.ac.in/bitstream/10603/1169/14/
14_chapter%207.pdf
4. http://aida.wss.yale.edu/growth_pdf/cdp816.pdf

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