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Bangladesh - Strategic Opportunities & Planning for the Future

Bangladesh - Strategic Opportunities & Planning for the Future. Date: 24 th Nov’ 12 Venue: Lake Shore Hotel ICTA 2012. John T. Smith Comp TI, CText , FTI, CMC, MIMC. International Coordinator / Long Term Adviser Textiles and RMG UNIDO – BEST & Chairman, International Events

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Bangladesh - Strategic Opportunities & Planning for the Future

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  1. Bangladesh - Strategic Opportunities &Planning for the Future Date: 24th Nov’ 12 Venue: Lake Shore Hotel ICTA 2012

  2. John T. Smith Comp TI, CText, FTI, CMC, MIMC. International Coordinator / Long Term Adviser Textiles and RMG UNIDO – BEST & Chairman, International Events The Textile Institute

  3. Where Are We Now? • Textiles and Clothing accounted for 87.9% for export in 2011/12 • EU demand for Bangladeshi textiles and clothing surged by 28.6% in 2011 • The EU was also Bangladesh’s largest market for woven clothing Source: McKinsey Report

  4. Where Are We Now? Source: McKinsey Report

  5. Where Are We Now? Source: McKinsey Report

  6. Implication of McKinsey

  7. Competitive International Factors • SWOT Analysis

  8. THE WAY FORWARD

  9. New Opportunities for Textiles & Garment Entrepreneurs

  10. New Opportunities… • Primary Textiles • - Backward/ Forward linkages • - New processes • - Value raw material for its positive properties • - Use international research results • - New Fibre use e.g. Bamboo • - New Fabric finishing

  11. New Opportunities… • Garments • - More effective production • More CAD/ CAM • More Design Groups • More Fast Response /ERP • More Integrated Product Design • More Mix & Match

  12. New Opportunities… • ComprehensiveIntegratedManufacture! • Use Critical Path Analysis • Product friendliness (change easy parameters) • Many products from few inputs (raw materials)

  13. New Opportunities… • Literate Educated Workforce • Design & Build Eco-Friendly Economic Factories

  14. New Buying Markets Source: McKinsey Report

  15. Challenges for Growth • MajorIssues • Infrastructure • Compliance • Supplier Performance • Raw Materials • Economy & Political Stability Source: McKinsey Report

  16. The Next Sourcing Hot Spot Source: McKinsey Report

  17. The Next Sourcing Hot Spot • Goldman Sachs includes Bangladesh in the Next 11 (N-11) • J P Morgan – ‘Frontier Five’ • stating that major advantages of Bangladesh is ‘ Price & Capacity’ • Labour cost expected to rise by 30%

  18. Efficiency Increase to Match Wage Increase

  19. Expected Trends • Shift from ‘Knitwear’ to ‘Woven’ expected • UpgradeService Level e.g. Design, Package, Ticketing, Warehousing, Delivery

  20. Expected Trends • Government • Supplies ( Garment Makers) • Buyers • ‘The story of Bangladesh has just begun’ – Head of Sourcing Office • ‘ Battle for Capacity is on the Horizon’

  21. Expected Trends • China dominated in 2010 Source: McKinsey Report

  22. CPO Forecasts • 32% will decrease sourcing from China • 54% plan to decrease their sourcing from China i.e. 86% are reducing • Wages in Coastal China increasing rapidly • Shortage of Garment Workers in the area • China will eventually be a net importer – not exporter!!

  23. Sources • With thanks to : • The McKinsey Report • - Textiles Intelligence Reports 145 & 157 • - UNIDO BEST BWTG Reports

  24. Thank You For Your Attention

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