2023 Product Sourcing Guide

from Bangladesh
Created time @January 11, 2023 7:42 AM

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2023 Product Sourcing Guide from

Bangladesh

Bangladesh has evolved as a prominent garment manufacturing country in the last

decade, and it is now the world's second-largest Ready Made Garment (RMG) exporter,
trailing only China. The textile and clothing sector accounts for around 20% of
Bangladesh's GDP, and preferential access to the EU has allowed it to obtain a large
market share in the EU.

A strong trade relationship and close geographic proximity with India have helped
Bangladesh gain easy access to raw materials, yarn, and textiles which has given the
Bangladesh textile industry a competitive advantage.

With a large capacity for knitwear and an industry movement towards producing more
technical garments, Bangladesh is a growing source of traditional wool knitwear for
many big-name brands around the world that have established sourcing offices there.

Some Facts about Bangladesh:

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 Capital: Dhaka
Area: 148,460 sq km
Population: 164 million
Population employed in textiles
and apparel: 4.5 million
Language: Bengali and English
Religion: Islam
Climate: Tropical climate majorly
Major Ports: Port of Chittagong, Port
of Mongla, Port of Payra, Port of Dhaka,
Port of Pangaon, Port of Barisal, Port of
Narayanganj, Port of Ashuganj
Economy: Bangladesh has an impressive track record of
growth and poverty reduction. It is on track to graduate
from the UN’s Least Developed Countries (LDC) list in 2026.
Currently, the economy is sized at USD 324 billion.
Currency: Bangladeshi taka (Dec 2021: 1 USD = 85.84 Taka)
Free Trade Agreements: Large majority of Asia.
Afghanistan, Iraq, Iran, Africa (Tanzania, Zimbabwe,
Mozambique, Sudan, Egypt, Libya, Tunisia, Algeria,
Morocco, Guinea, Ghana, Benin, Nigeria, Cameroon,
Central America (Mexico, Cuba, Nicaragua) South America
(Chile, Peru, Ecuador, Columbia, Venezuela, Trinidad and
Tobago, Guyana, Brazil, Argentina, Bolivia)

Why source products from Bangladesh?

After China, Bangladesh is the world's second-largest exporter of clothing and textiles.
Garments include knitwear and hosiery, accounting for 80% of exports income; others
include jute items, home textiles, footwear, frozen shrimp, and fish. Many shops we
speak with see Bangladesh as a "future project."

While affordable prices make Bangladesh appealing, many merchants are postponing
their trips. This is primarily due to the common belief that the country is challenging, that

2023 Product Sourcing Guide from Bangladesh 2

 quality varies, that deadlines are frequently missed, and that working conditions are
deplorable.
However, they might be wrong as the state and trade-offs in Bangladesh
have improved. There is no such thing as a free lunch. In supply chains, there may be a
trade-off between cost and compliance, convenience, and dependability on the one
hand. A lower-cost site often loses compliance, comfort, and reliability to obtain a price
point that appeals to overseas buyers.
However, Bangladesh has recently improved its position in these areas and now
provides attractive value to international purchasers, mainly if compliance is vital.
Following the tremendous investment, Bangladesh now boasts the world's most
regulated low-cost clothing sector. In 2012, it was projected that between 4,000 and
6,000 manufacturers were in operation in Bangladesh. According to BGMEA, this figure
has already been reduced to roughly 1,500 manufacturers of ready-made garments
since many low-quality enterprises have failed audits and/or cannot pay the expense of
international compliance.
Minimum wage law has been adopted and enforced, and worker representation is now
available at many plants. Bangladesh provides a nice balance of affordable pricing and
effective compliance.

If the above-mentioned trade-off does not appear to be persuasive enough, here are
some facts on how Bangladesh is currently doing now:

1.) Bangladesh is currently home to some of the most reputable manufacturing facilities
in the world.
2.) The variety of products that can be purchased is expanding, resulting from 30 years
of manufacturing expertise and a skilled workforce in the area.

3.) If you are willing to put in the necessary work, there is the potential for significant
benefit to be gained.

4.) Because almost all commercial activity takes place in Dhaka, relationship

management is much simpler.

What products can you source competitively from

Bangladesh?

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 Manufacturing garments require a significant and trained labor force, which Bangladesh
has in abundance. However, Bangladesh does not engage in the cultivation of cotton
and does not produce any quantity of man-made goods.
Historically, the emphasis has been placed on "staples," which refer to woven or knit
fabrics. Regarding placing larger purchases of denim, t-shirts, sweatshirts, polo shirts,
and jumpers, Bangladesh is the place to go. Most of the outfits that have been
displayed do not include outerwear, formal attire, or man-made items.

This is beginning to change today as capabilities are emerging in these more

complicated areas because of many years of experience in production. This
transformation is based on many years of experience in production. But to get more
intricate clothes, one must first locate the appropriate manufacturer.

Items you can source in Bangladesh:

High-end readymade garments denim and garments accessories

Software & IT enable Services, ICT products

Pharmaceutical Products

Plastic products

Leather (Leather, Non-Leather & Synthetic) Products

Jute goods

Agro-products & and Agro-processing products

Ship and Oceangoing Fishing Trawler

Furniture Industry

Home textiles & Terry Towel

Home furnishing

Luggage.

Active Pharmaceutical Ingredients (API) and Laboratory Reagents

Pro-Tips When Sourcing From Bangladesh

Here are some tips on what to do when sourcing products in Bangladesh:

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 1. Do Your Homework on the Product.

Find out everything there is to know about your product. You need to begin by having a
solid understanding of your product. Market research is necessary for successful
product sourcing, and attempting to source products without first conducting market
research is asking for trouble. The investigation had to be thorough.

This may include the following:

What can you learn about certain stores by looking at the facts they provide? Is there a
level of interest sufficient to drive sales and growth across your company's operations?
Or is it possible that certain products are better suited for specific geographic areas?

2. Demand from Customers

Learn what exactly it is that your customers are looking for. Look for trends in surveys,
social media, and other various channels. Given the researched information, when it
comes to establishing contact with suppliers, buyers can make more informed
judgments now that they have this information. You will have a more favorable outcome
if you have more information on the products you are considering purchasing.
3. Make contact with all possible sources of supply

Obtain pricing bids and establish relationships with possible wholesalers.

Be sure that you know precisely what you require as a buyer before you start contacting
potential vendors. Are you interested in obtaining information? For samples? Products
in particular? If you know this and are honest about your requirements, the process will
go much more smoothly.
Before making any decisions, it is essential to get multiple quotes and evaluate them
side by side.

4. Ask for Samples

When evaluating a product's potential and overall quality, samples are an essential tool.
If you were about to buy a car, would you first take it for a test drive? No. As a retail
buyer, you won't stock a product in your shop unless you've had a chance to evaluate it
personally.

You should ask suppliers for samples before determining whether or not to add a
product to your product mix. This will allow you to evaluate the goods up close, get
comments from team members, and watch how the supplier handles the initial

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 transaction. Your sourcing plan should include the practice of requesting samples, as
this is a tried-and-true method for determining how good a product is.

5. Evaluate the Supplier

The most important aspect of the product sourcing process is supplier evaluation.

Whether or not you should move forward with a supplier and create a more long-term
relationship depends significantly on whether they communicated with you promptly and
whether or not they did so in a straightforward manner.

Questions for evaluation can be the following: Were shipments received on schedule,
and did they contain the correct quantities of each item? When they reached your
warehouse, did the products still possess their original condition? Was the cost that was
estimated accurately?
When choosing a wholesaler for a long-term business relationship, it is of the utmost
importance to conduct an assessment of these concerns.

To sum it up, Bangladesh’s industry is undergoing a decent transformation. The

comparative advantage that Bangladesh holds is properly shifting. It used to compete
simply on price to obtain business, but rising expenses associated with compliance,
improved working conditions for employees, and increased compensation have caused
the sector to begin investing in new product lines. The trade-off between price, on the
one hand, and compliance, convenience, and reliability have improved markedly, which
is why one should try and give Bangladesh a go for their product sourcing.

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