Presentation on theme: "Bangladesh - Strategic Opportunities & Planning for the Future Date: 24 th Nov’ 12 Venue: Lake Shore Hotel ICTA 2012."— Presentation transcript:
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 The Textile Institute
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 Where Are We Now?
Primary Textiles -New Processes e.g. Backward/ Forward linkages e.g. Spinning/ Weaving Specialties/ Specialist Fabric Finishing 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 New Opportunities…
Garments - More effective production -More CAD/ CAM -More Design Groups -More Fast Response /ERP -More Integrated Product Design -More Mix & Match New Opportunities…
-Comprehensive Integrated Manufacture! -Use Critical Path Analysis -Product friendliness (change easy parameters) -Many products from few inputs (raw materials) New Opportunities…
Major Issues Infrastructure Compliance Supplier Performance Raw Materials Economy & Political Stability Source: McKinsey Report Challenges for Growth
Source: McKinsey Report 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% The Next Sourcing Hot Spot
RMG Factories in Different Countries Bangladesh5000 + Indonesia2450 Vietnam2000 Cambodia260
Shift from ‘Knitwear’ to ‘Woven’ expected Upgrade Service Level e.g. Design, Package, Ticketing, Warehousing, Delivery 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 ’ Expected Trends
China dominated in 2010 Source: McKinsey Report Expected Trends
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!!
With thanks to : -The McKinsey Report - Textiles Intelligence Reports 145 & 157 - UNIDO BEST BWTG Reports Sources
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