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Competitive Factors Analysis of Garments Accessories Industries of Bangladesh

NASIF CHOWDHURY

Senior Lecturer,Department of Textile Engineering, City University, Dhaka,Bangladesh.

Email : [email protected]

Abstract:

RMG sector is one of the biggest and most GDP earning sectors in Bangladesh. This sector works with some raw materials. One of those raw materials is industrial sewing thread. RMG sector could be stopped without industrial sewing thread. There are many industries in the world for manufacturing sewing threads and accessories. The current research contains a brief study of sewing thread and accessories industry in Bangladesh. For completing this study researcher went through the porters five force analysis, swot analysis as well as positioning of the industry. Researcher has tried to analyze the real situation for finding solution of the study.

Keyword: Competitive factors analysis, Porters five force analysis, SWOT analysis, Garments accessories industries of Bangladesh

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Introduction:

In a worldwide commercial center an undeniably colossal rivalry strengths organizations endeavoring to discover procedures that the upper hand over the contenders. Bangladesh is perceived as the most trusted and suggested string maker and market pioneer of modern sewing string and different extras. Its fundamental item is sewing string which is utilized as a part of pieces of clothing industry yet it has additionally zipper and different accessories businesses. It has advertise in 30 nations around the globe however as of now it is primarily roundabout sending out to worldwide purchasers. Bangladeshi pieces of clothing and adornments enterprises has the notoriety of best in quality and claim to fame. For quality affirmation and administration Bangladesh pieces of clothing extras is best to its clients. Bangladesh articles of clothing adornments businesses has serious rivalry with some other sewing string and accessories producer organization around the globe, for example, China, India, Pakistan, Vietnam and so forth. As like as a worldwide piece of the overall industry where its closest rival has 21% of the Total piece of the overall industry.

Objectives of the Study:

There are some particular objectives of this study are :

    To think about the general economic situation of Bangladesh garments accessories industries

    To recognize the Segmentation, Targeting and Positioning of Bangladesh garments accessories industries

To think about the Marketing Mix of  Bangladesh Garments Accessories industries.

Literature Review:

Related Bangladesh pieces of clothing frill, Ayesha Jamal(2013) said in her industry report that "Bangladesh articles of clothing adornments is working its business in light of its notoriety, quality administration and notoriety of direct contacts to its clients. Best arrangement and best steadiness about any issue with respect to its item is given by Bangladesh pieces of clothing accessories producer to its clients. This is precisely saying that the predominance of articles of clothing embellishments item instead of its rivals and best administration to clients. Irshad Rahman (2007) said in his industry report "Streamlining client administrations point of view from Bangladesh Garments Accessories Industries", said that "Bangladesh ought not keep running behind everywhere throughout the market of RMG division yet it ought to remain its quality administration so that the genuine target showcase like the celebrated purchasers Puma or Wal-Mart stay still. Along these lines other widely acclaimed organizations can likewise be

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pulled in by its sewing string and articles of clothing adornments" This gives some thought regarding what kind of market Bangladesh pieces of clothing frill ventures focus to offer its items ought to. In the report ("reasonable improvement for business strategy in exchange and production network)" Md.Mostafizur Rahman(2010) said that "exchange transaction between deals compel and client is vital on the grounds that both gathering need a win-win circumstance". This demonstrate the requirement for a very much prepared deals drive for managing a business gainfully. Initial two reports demonstrate the items prevalence and sort of market over offer. However, in these reports creators primarily worked with client benefit wing of promoting division as it were. Be that as it may, in flow examine scientist attempted to discover the general focused components of Bangladesh articles of clothing adornments enterprises. Specialist attempted to concentrate on Porter's five constrain examination, SWOT investigation, what sort of situating arrangement utilize and so on.

Methodology:

In this research, researcher tried to find out the competitive factors of garments accessories industries in Bangladesh. It gives a description about the garments accessories industries. Researcher has used qualitative analysis because it describes a market or its characteristics. Both Primary and secondary sources data has been collected for this research. There was a structured questionnaire survey. All of the primary information is based on this. For secondary sources of information researcher used some articles published on academic journals, industry reports on Bangladesh  garments accessories industries and  also assistance from textbooks.

For this study researcher used non probability sampling, interviewed some managers of Bangladesh garments industries. Among various methods of non probability sampling, researcher used Judgmental sampling because interviewed only to those people who are marketing managers of Bangladesh garments accessories industries. Researcher took interview from 20 marketing managers of various garments accessories industries of Bangladesh.

Global Market  of  Bangladesh Garments Accessories Industries

Bangladesh is a nation where article of clothing and sew industry is an extensive wellspring of aggregate GDP procuring. As a piece of general article of clothing industry, sewing string and articles of clothing extras industry additionally a substantial part. Different multinational and local organizations maintain their business in pieces of clothing extras industry. Among them Coats Bangladesh, A&E, Well string, Etafil are for the most part known organizations. A couple of years back Bangladesh have 22% piece of the overall industry . In any case, this rate has been diminished and it comes to 18% of aggregate. In spite of the fact that it is the market pioneer still, however it is exceedingly taking after by different articles of clothing frill producer, for example, China, India, Pakistan, Vietnam have enormous segments of piece of the pie with 71% of worldwide market.

Porter’s Five Forces Model and Bangladesh Garments Accessories Industries

One of the well known showcasing examinations including the aggressive and the appeal of the market is the Porter's five constrain demonstrate. In light of this model Michael Porter has recognized five powers which influence the engaging quality of the market fragment. In view of perceptions and meeting in these enterprises, the Porter's model can be utilized to give a brief thought regarding the business of pieces of clothing frill fabricating. The doorman's model can be found in the chart given beneath

i. Danger of extreme portion contention: Bangladesh articles of clothing frill at one time had a market lead with 22% piece of the overall industry. This now has tumbled to 18% piece of the pie. This demonstrates since there were moderately less players in the market, it was alluring and still is. As of now China and India have picked up a promising execution in the market. The high beginning capital necessities required for this industry are being dealt with by the contenders by shaping joint endeavors with remote speculators. Therefore leave hindrances are high starting capital necessities required for this industry are being dealt with by the contenders by shaping joint endeavors with remote financial specialists. Therefore leave boundaries are high because of altered expenses and consequently this has prompted to value wars where contenders are always cutting costs. In a value Sensitive market this is exceptionally urgent.

ii. Danger of new contestants: The industry of garments accessories producing in Bangladesh has low section boundaries however high leave obstructions. The section hindrances were once high, yet because of accessibility of different financing alternatives, for example, joint ventures et cetera, the high introductory capital speculation is presently not an issue. Then again because of the high capital venture is currently not an issue. Then again because of the high capital speculation, organizations are not ready to leave the business as effectively as it needs. This implies they think that its difficult to leave amid awful times thus it prompts to overcapacity and discouraged profit for all.

iii. Danger of Substitute items: This industry or section of the materials business has no substitutes. Accordingly the portion is appealing because of the accessibility of no clear substitutes.

iv. Danger of purchaser's developing bartering power: This industry has one greatest risk and that is the expanded haggling force of the purchasers. The reason is that they are composed as they all fall under the umbrella of Bangladesh Garments Manufacturing Exporting Association (BGMEA) and in this manner are concentrated. Additionally string speaks to a noteworthy bit of purchaser's cost however it has just a 2% estimation of the last item which is any piece of clothing. Despite the fact that a little separation is available in string in view of the yarn quality and in addition innovation utilized, the low exchanging expense of the purchasers to another provider and the high value affectability among the purchasers have prompted to this industry being an ugly section. Another approaching danger has been the upstream combination by a portion of the purchasers. One of the greatest providers to Wal Mart in South Asia is Bangladesh, who is additionally one of the greatest customers.

v. Risk of provider's developing bartering power: Since Bangladesh providers are determined with auxiliaries of worldwide organization, the providers are basically outer and therefore the providers dealing force are less for Bangladesh in this section.

SWOT Analysis

The SWOT analysis of the marketing department can be done, but must also to some extent incorporate the SWOT of the company as a whole, the reason being that this company is market

oriented and the main means of getting and retaining clients is through the use of relationship marketing. The SWOT analysis of the industries given here:

Strengths

The qualities of the articles of clothing frill enterprises are as per the following:

    The presence of a productive deals compel. The showcasing division has a business drive which is youthful and powerful in stamping deals calls. These business people are furnished with cruisers encouraging their business calls. Additionally the way that they have a particular customer list; they are required to make visit calls along these lines enhancing the relationship amongst them and their customers.

    Excellent client benefit. The expansion in client benefit has been through coordination between the C.S.O, C.O thus with divisions prompting to lower lead times and compelling method for giving administration. The idea under promising yet over conveying has helped this office to keep up a strong customer base in this manner making the organization a market pioneer in this aggressive environment. The change in the client benefit has been through the diminishing in the time expected to provide food a request of the client.

   Low representative turnover in this enterprises which is as low as 5% just, has implied that the general population in these division are to keep up their customer base which they have worked over the period and in addition keep up the relationship promoting.

   They appreciate a similar preferred standpoint in that they have an individual association with every one of the clients as all the colleagues in every zone is included in the association with the clients.

    The human resources in this businesses are considered to be high because of their aptitudes and the expanded rivalry for accomplishing deal target relegated to every region.

    Last yet not slightest, the great relationship showcasing that the group has worked throughout the years with the technique for utilizing direct deals as a part of individual and following up in the wake of making the deals has implied that the businesses appreciates a solid goodwill and it is obvious with the way that they have a high piece of the pie and are the pioneer because of the devotion of their customers.

Weaknesses

The weaknesses of the garments accessories industries are as follows:

The needs key masterminds at present and therefore the vision is not long haul. This clear with the way that the client market is disregarded despite the fact that the prospects are brighter. Additionally the way that the organization is youthful implied it required drivers at first, however now it needs individuals who can shape techniques over the long haul. Lamentably the exclusive focus s there as on the grounds that the market examination as far as presenting new product offerings, for example, interlining and zippers were disregarded despite the fact that they would have demonstrated fruitful over the long haul.

   The enterprises in times is inclined just like the entire organization to work distress and also mechanical issues. Being a generation arranged organization; any disturbance in the process can prompt to stoppage underway. Since the promoting capacity depends on client benefit conveyance as far as lower lead times, this interruption causes them harms as they neglect to conveyance on time prompting to misfortune in relationship showcasing. Since the organization does not outsource, the office is inclined to these unrests and interruptions.

    One of the significant shortcomings of this enterprises is that it has the absence of coordination with different divisions. Because of the life of its business group, it seeks after deals which now and again prompt to struggle with the assembling office over booking of the request, with the back division because of credit restrict offered to the customers and the inventory network office over organizing the business arrange. This prompts to struggle with different offices and influences the organization overall. Likewise the method for offering in credit honed in this businesses has implied that the organizations has expanded danger of having high measure of indebted individuals.

Opportunities

After the internal analysis of the industries is done, the external analysis will shed light into the opportunities of the industries. The opportunities of this industries are:

Increase in new open doors for the showcasing group to investigate new markets abroad. For the modern part, the opening of new markets lies in the expulsion of exchange boundaries on Myanmar. This has opened of the market for offering both as far as mechanical and in addition purchaser area. Likewise the purchaser market is taking a gander at chances to exploit its ease generation office to investigate at new markets, for example, Sri Lanka and also Malaysia which have higher cost of creation.

    There is an awesome open door for the businesses in attempting to utilize its abilities in attempting to offer the new creation offerings the organization is presenting in the market, to be specific, interlining, zippers and modern strings. This has given the office more current chances to making relationship promoting.

    The chance of taking into account the sew division and also the European market is a savoring prospect for the office. At one time the proportion of offering to organizations providing food the US market to the organizations taking into account the European market remained  at  70:30.  Presently the  proportion  remains  at  40:60.  This  has  implied  that the

promoting of these ventures has met with difficulties and additionally opened up ways to an imminent market after the post M.F.A(multi fiber assention) disorder.

    The extent of marking the items is giving the promoting a chance to group a chance to practice its skill in showcasing as the marking techniques if fruitful will prompt to dependability and in addition increment deals.

Threats

The industries is not without facing any forms of threats. The main threats faced by the industries are:

Increased rivalry from new multinational, joint wander and in addition neighborhood sewing thread and accessories makers to be specific China, India, has implied that the promoting group has monstrous weight to keep up their present client base and keep up piece of the overall industry. The expansion in rivalry is because of the way that there are no passage boundaries because of absence of any directions in this industry by the administration which advances send out. Likewise the capital speculation is high to the point that once an organization enters this industry it confronts hindrances to leaving this industry this industry along these lines making them stay in this industry. Likewise as there are no substitutes for string all in all, the industry is alluring to the new potential participants. Additionally the way that there are no current forceful contenders implies that the business is appealing. These are a portion of the reasons why the opposition is extraordinary.

   As every one of the general population of this businesses are getting to be senior and are getting advanced, it is getting to be troublesome for the office to renew its human asset by searching for new individuals who have the fundamental aptitudes.

    Regulatory issues issued by the administration hamper the lead time and additionally administration of the organization. The regressive linkage which bolsters the forward business is hampered by these issues, for example, traditions freedom, security issues prompting to enormous weight on the showcasing directors attempting to keep up the client relationship and administration

Competitive advantages for positioning Garments Accessories Industries of Bangladesh

For identifying the best possible competitive advantages for positioning a product, we know that there are some criteria for this. These are product differentiation, service differentiation, channel differentiation, personal differentiation, image differentiation etc. These criteria can be discussed as this way-

Item Differentiation: Bangladesh gives the best quality item its clients. They generally attempt to hold the prevalent execution and global standard. So Bangladesh's parameters for serving the sewing string and adornments can be the best as a result of unrivaled quality and global standard, it can give the affirmation about the item, strength and dependability are another parameters which gives a much more separation item than of its rivals. Since it is universally said that for modern sewing string and extras result of Bangladesh is generally solid.

Benefit separation: Service separates from other item includes. Bangladesh, alongside the best item, gives some one of a kind administration include likewise with the goal that clients can separate from others of its rivals. Parameters for administration separation for Bangladesh best Service separation: Service separates from other item includes. Bangladesh, can be depicts by conveyance, client preparing and client counselling. Conveyance maybe one of the best administrations of Bangladesh articles of clothing adornments ventures since it has a decent store network office which takes the minimum conceivable time after requesting an item. Bangladesh pieces of clothing embellishments enterprises has a decent business advancement and specialized administration wing under advertising administration. Primarily specialized administration group gives an appropriate preparing and introduction of item furthermore gives consultancy about any issue about pieces of clothing frill items.

Individual separation: Bangladesh has one of best pieces of clothing adornments of world at present in the event that we consider the capability of workers of an individual organizations. With an accomplished, very much prepared and all around acted group, Bangladesh is giving the best worker conduct in pieces of clothing extras industry. With four noteworthy offices - HR, Marketing, Finance and Supply Chain and four wings of showcasing ward Customer Service, Sales, Business Development and specialized deals, Bangladesh articles of clothing embellishments ventures has best work force separation.

Picture separation: Bangladesh is the world market pioneer in creating and providing modern sewing string and pieces of clothing adornments. They have a superior picture in the worldwide purchasers, for example, Nike, Puma, and Wal-Mart. Now and then clients specifically allude to the purchasers to purchase sewing string and embellishments. Instead of different contenders, for example, China, India, Vietnam Bangladesh gets a gigantic separation.

Findings

From the study researcher has observed that coats add up to piece of the pie and economic situation. In spite that Bangladesh is still the market pioneer of sewing string and accessories providing industry on the planet yet it is losing its position to some of its rivals. Just 18% of piece of the overall industry is staying by Bangladesh.

    It has been distinguished that Coats set its client base with those sorts of clients who really look for the best quality. It additionally focuses on those business sectors that are had practical experience in serving a specific market not just to a specific item. For situating Coats has its own item, benefit picture separation

   In this exploration, elements of promoting branch of Bangladesh articles of clothing frill ventures and its wings is being attempted to distinguish.

Recommendation

After analyzing the total marketing process of Bangladesh garments accessories industries some problems we already have identified. It has also identified that Bangladesh is losing its market share to some of its competitors.

By completing line adjusting in planning as it is done in high volume frameworks.

   Priority standards, for example, FCFS (First Come First Serve), EDD (Earliest Due Date) can be actualized and authorized while booking client requests to streamline client benefit.

    Electronic Data Interchange (EDI) can be executed to build profitability, diminishment of lead time, stock lessening, increment exactness and assistance of JIT.

   Total Quality Management (TQM) is extremely important adversary CBL. From administration to warehouse’s bring down level representatives, all ought to take after the

   Price decrease is impractical. Be that as it may, Bangladeshi RMG segment is extending step by step. New and widely acclaimed numerous brands are likewise getting included with Bangladeshi market. So a superior limited time action is required.

    For getting the shopper showcase coordinate promoting can be utilized as a part of TV or print media.

Conclusion

Bangladesh pieces of clothing frill enterprises are working its business on its notoriety, quality administration and relationship of direct contacts with clients. It has a decent picture of giving the best answer for any seller and accessibility to purchasers at whatever time. With its brilliant Bangladesh chiefly focus on those clients who are most quality looking for. As a market pioneer Bangladesh is doing what it ought to do yet it ought to likewise remain the opposition in its psyche since it is losing its piece of the pie to its rivals. On the off chance that the aggregate promoting process gets to be enhanced from current circumstance, than confident Bangladesh may recapture its position.

Limitation of the Research

Every research has its limitations. There were several limitations in preparing this research. The main limitations were:

Each examination has its restrictions. There were a few restrictions in setting up this exploration. The fundamental constraints were:

    In this report there is no customer overview. Just meeting on workers of coats Bangladesh are gotten some information about their showcasing procedure.

    Satisfaction of client additionally can't be measured in light of absence of shopper review.

    The extent of the report was wide and as a general rule was qualified for additional time and exertion. The significant confinement could be back of time in setting up a thorough investigation.

    Very couple of optional information can be gathered from different Bangladesh articles of clothing adornments has less information in diaries or web.

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BGMEA, “Trade Statistics”, Bangladesh Garment Manufacturers and Exporters Association: Dhaka. 2013, 2014

C.H.M. Ketels, “Michael Porter’s competitiveness framework: recent learnings and new research priorities”, Journal of Industrial Trade and Competition, vol. no.6, pp.63–66, 2006 “Export Promotion Bureau, Bangladesh”  Monthly Export Datasheet,2015.

Jamal, Ayesha (2012), Process of Customer service associated with marketing department & operations of Coats Bangladesh Ltd. Internship report, East West University, Dhaka.

Kotler, Philip and Armstrong, Gray( 2010) Principles of Marketing, 13th Edition, New jersey, Prentice hall, pp, 288-336

Kotler, Philip. Et al (2009) Marketing Management, 13th edition,Delhi, Pearson education, pp:198-223

M. E. Porter, “The Competitive Advantage of Nations”, Harvard Business Review, vol. 68, no. 2, pp. 73-91, 1990

M.W.Peng, “Global Strategic Management”, 3rd International Edition, CENGAGE Learning, 2014

R.M.Grant, “Porter’s Competitive Advantage of Nations: An assessment”, Strategic Management Journal, vol.12, no.7, pp. 535-48, 1991.

Rahman, Irshad (2007), streamlining Customer service-perspective from Coats Bangladesh limited, Internship report, Institute of Business Administration, University of Dhaka.

Rahman, Mustafizur (2012), a study report on Analysis and recommendation for trade diplomacy and supply chain, Coats Bangladesh.

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06, 2006-07, 2007-08, 2008-09, 2009-10, 2010-2011, 2011-12, 2012-2013). Dhaka.

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World Economic Forum (WEF), The Global Competitiveness Report, 2014-2015.

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