It's time to realign business

Visitors browse clothes at Batexpo at Sonargaon Hotel. Photo: STAR

The two main economic pillars of the world, the US and the EU, face turbulent times due to the ongoing global financial turmoil. Countries in the rest of the world scratch their heads, puzzled and confused, as they had based their budgets and business plans, targeting to export products to those destinations.
Manufacturers around the world are busy trying to distinguish their products from the rest, innovating their formulas and theories to make the cut. Most of the tested formulas have failed so far, pushing powerhouses into deep waters.
Businessmen say it is time to sit together and chalk out a future plan of actions to maintain normal business.
Bangladeshi manufacturers are also struggling in the race, trying to find a reasonable way to maintain the ready-made garments (RMG) export.
Scholars, academics, local and international trade experts, economists, researchers, independent think-tanks, government officials, manufacturers and exporters have been frequently hosting roundtables, seminars, discussions and conferences on how to increase their share of the RMG global export market pie.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held such conferences on the sidelines of the association's annual Batexpo-2008 fair at Sonargaon Hotel.
A few days ago, another RMG exporting association, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) held such conferences on the sidelines of its annual Knitexpo-2008 fair, where the future of the local RMG sector was mainly was discussed.
Even in such tough times, local RMG exporters are upbeat about the sector's future, as Bangladesh mainly produces basic items.
Foreign RMG manufacturers and exporters, who have displayed their products at the Batexpo fair, also expressed similar opinions about Bangladesh.
Talking to The Daily Star, foreign participants view Bangladesh should follow suit and undertake corrective measures to align themselves with the rest of the world.
They also believe Bangladesh is at low risk as the country produces basic items and has an opportunity to export their products all over the world.
Manufacturers say success depends on the ability to embark upon aggressive marketing drives, especially in such difficult times.
Joe Han, sales manager of Wuxi Yihe Textile Company Ltd and Hotex Industrial Company Ltd, the Chinese textile companies at the Batexpo, said aggressive marketing drives are a must.
Bangladesh should seek new markets soon, to be more competitive in the global apparel business, he said.
China's performance in the global textile and garments business is no longer impressive as many giant companies have faced closure due to the high wages of workers and the appreciation of the Chinese currency against the US dollar, he says.
Now most Chinese RMG products belong to the high-end category. As a result, China has been losing their grip on the market for basic products, he says.
Vichai Phromvanich, executive director of Absolute Denim, one of the biggest denim factories in Thailand, says the situation is such that quite a lot of people are chasing fewer markets with similar products.
"The market for RMG products will soon face saturation,” he adds.
He advises Bangladesh to diversify markets for RMG products, as the country has potential to diversify both products and markets.
Aminul Islam Sagar, chief executive of Intimates Corporation, a local buying house, says Bangladesh has the ability to grasp a major share of the global apparel market. Bangladeshi manufacturers can now even target the Middle East and South Africa, he says.
South Africa has also recently been coming to Bangladesh to place orders in bulk. The country mainly supplies apparel items to many other African countries.
"To strengthen Bangladesh's ties with South Africa, initiatives from both the government and private sector entrepreneurs is required,” he says.
Bangladesh may export apparel items even to the Middle Eastern countries like Saudi Arabia, Kuwait and Abu Dhabi, as there are a lot of Bangladeshis, Indians and Pakistanis living there, participants at the Batexpo says.
The good sign for Bangladesh is that local manufacturers have already started exploiting the Japanese, Canadian and New Zealand markets, in fresh vigour to tackle any fallout from the global financial recession.

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