MARKET REVIEW

Market review of Accessories Business in Bangladesh

Bangladesh has turned into a major source for garment accessories, as direct export of such items increased by 66.67 percent year-on-year to $1 billion in the last fiscal year.

Once a net importer of garment accessories mainly from Hong Kong and China, Bangladesh is now a lucrative source of such items, with spiraling demand coming from international buyers of many garment-making nations, including the African ones. A new entrant making direct shipments to Chinese-dominated global markets, local manufacturers of Bangladesh have been exporting the integral parts of apparel items to Vietnam, Cambodia, Myanmar, Sri Lanka, South Africa and Malaysia. Accessories like buttons, zippers, labels, price tags and washing instructions are used in making finished garment products.

If a T-shirt is sold at $5, the share of accessories is 15 percent. At present, nearly 1,600 factories are producing the accessories. Some are directly exporting to other earnings from apparel accessories hit $600 million in 2015-16 and $300 million in the previous year, according to Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).

Bangladeshi garments accessories and packaging manufacturers have made a massive new investment to seize a larger chunk of the global export market share.

According to data from the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), garments accessories and packaging manufacturers have made an investment of Tk722.5 crore, with more proposals in the pipeline.

Sources in the sector said this new investment focuses on producing higher quality garment accessories with an aim to increase exports and establish the sector as a direct export earner instead of just deemed. Since there is more capacity than is currently needed, accessories can be another big export earner, they opined.

“Bangladesh is already well established as a sourcing hub for apparel products. Garment accessories and packaging products are key components for competition. The demand of accessories is increasing very fast at home and abroad.

Bangladesh is almost self-sufficient in meeting local demands in the garment accessory manufacturing sector. This direct exporting will open up a new avenue for local manufacturers.

WE ARE COMMITTED TO EXCEL YOUR BUSINESS

We never stop investing in advanced component of accessories business in Bangladesh. We are proud to possess the supply of buttons, zippers, buckles, snaps and rivets, etc to the garments production. NALAM GROUP is not positioned itself as manufacture of garment accessories; rather we are provider of supply chain solution in apparel industry with support of thousands of professional across various functional areas in its value chain. We have the strong supply chain management from the manufacturer of the accessories production to the garments industries in Bangladesh and other neighbor countries. The highly experienced professionals are posed in the business chain for developing the business items regularly as the market trends changed day by day. A regular monitoring team moves locally and internationally for the potential business profit with our client and makes the stability of export the items widely. We have our own shipment service for what the price of the service is limited to increase. A wide range of potential clients are communicating with us for the exact information of the components for the production. Our quality control team work with the clients to ensure the supply.

The allover socio-economic condition we analyze for accelerating the supply chain business which have an impact of maintaining the business with considering the quality and price. Our all product promotion and online business management system makes us smart enough to operate locally to different level clients. Before the supply of accessories, we committed to make an agreement with business clients as well as partner’s which may for long time that we preferred most.

Direct Export Opportunity

According to BGAPMEA’s latest data, garment accessories and packaging products earned $6.7 billion in the last fiscal year, of which over $1 billion came from direct exports. Usually, accessory products are exported with finished products and termed deemed exports. Now, they are being separately exported to several countries as direct exports.

Bangladesh has enormous opportunities as we have the ability to execute bulk export orders in terms of quantity and quality.

According to industry insiders, India, Vietnam, Indonesia, Malaysia, Pakistan, Sri Lanka, Finland, Myanmar, and other apparel manufacturing countries are all potential markets for Bangladesh.

“There is no doubt that Bangladesh will turn into a global leader in accessory export very soon as it has already established an international standard in manufacturing the products.

According to people of the sector, accessories contribute to 15% to 18% of a finished garment product.

Challenges For The Industry

Since there is a huge opportunity to grow in the local market as well as in the export market, investors want to pour funds. However, a lack of policy support including gas and electricity connections and tax burdens hinders the inflow of investments, with port congestion being another issue.

Import dependency for raw materials is another challenge. Due to this import dependency, production becomes more time-consuming and expensive. If the government paves the way for local industries to produce raw materials required for accessories, it will help to save foreign currency. Due to a high price of raw materials, sometimes it’s unable to beat foreign companies.

Manufacturers of apparel products choose China for sourcing accessory products as they offer lower prices than us. This is because of a higher price of raw materials caused by import duty combined with the delay of importing.