1. Bangladesh - Strategic Opportunities & Planning for the Future Date: 24 th 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. 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?

4. Source: McKinsey Report Where Are We Now?

5. Source: McKinsey Report Where Are We Now?

6. Implication of McKinsey

7. SWOT Analysis STRENGTH -EPZ’s -Back to Back L/C -Plentiful Population -Modern Equipment -Dynamic Entrepreneurs - Financial Model WEAKNESS -Infrastructure : Electricity, Gas, Roads, Rail, Ports -Slow Reaction -Product Development -Technical Management -Literacy - Lack of integrated thought OPPORTUNITY -Broaden Categories of Products -Move Up market -Introduce more linkages -Cooperation Partners -Introduce non-woven -Introduce fibre production - Change Philosophies THREATS -Worker Unrest -Uncompetitive Practices - outdated administration Competitive International Factors

8. THE WAY FORWARD

9. What the BEST Program Does? Clustering - Groups of People/ Companies with Similar Interests Competitive HRD -Survey Done -Expand on Knowledge

10. What the BEST Program Does? Clustering - Groups of People/ Companies with Similar Interests Competitive HRD -Survey Done -Expand on Knowledge

11. New Opportunities for Textiles & Garment Entrepreneurs

13. Primary Textiles -New Processes e.g. Backward/ Forward linkages e.g. Spinning/ Weaving Specialties/ Specialist Fabric Finishing New Opportunities…

14. 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…

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

16. -Comprehensive Integrated Manufacture! -Use Critical Path Analysis -Product friendliness (change easy parameters) -Many products from few inputs (raw materials) New Opportunities…

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

18. New Buying Markets Source: McKinsey Report

19. Major Issues Infrastructure Compliance Supplier Performance Raw Materials Economy & Political Stability Source: McKinsey Report Challenges for Growth

20. Source: McKinsey Report The Next Sourcing Hot Spot

21. 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

22. Efficiency Increase to Match Wage Increase

23. RMG Factories in Different Countries Bangladesh5000 + Indonesia2450 Vietnam2000 Cambodia260

24. Shift from ‘Knitwear’ to ‘Woven’ expected Upgrade Service Level e.g. Design, Package, Ticketing, Warehousing, Delivery Expected Trends

25. 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

26. China dominated in 2010 Source: McKinsey Report Expected Trends

27. 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!!

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

29. Thank You For Your Attention