Why Bangladesh is The Second Largest Apparel Manufactures in the World

Do you have any idea why Bangladesh is the second largest apparel manufacture in the world?

Well if you are from US or Europe, you might have not hard about Bangladesh that much.

But maybe you have been wearing your favorite jeans, or shirt or any other garments without knowing where was it manufactured. It is very usual that you might have more than one clothing with a made in Bangladesh tag. You are surprised right?

Bangladesh has more than 7% market share in US fashion market. Meaning the total of 7% apparel being used in USA are made in Bangladesh. Besides Bangladesh is also the largest denim exporter to European Union. More than 8% of global apparel production takes place in Bangladesh. Apparel manufactures in Bangladesh are mostly busy dealing with their clients through the whole year. As a matter of fact, international buyers know about Bangladesh and a significant number of buyers are looking for manufactures online through online marketplaces and directories. Especially those who are new into the business.   

So, what is the reason behind Bangladesh becoming the Hub of Apparel manufacturer?

There is no lack of good reasons for this little potential nation to become worlds second largest apparel manufactures in the world. Because they have multiple opportunities and available resources to capture the entire apparel market, so Bangladesh has done it.

Business and Investment Friendly Policy

To grow into business every nation has to offer something unique which can attract investors to invest. And only investment can help a country to grow into a good business hub. For last couple of decades, countries like China, USA, and European nations businesses have been investing in Bangladesh which pushed this nation to build good manufacturing facility. If we want to give example, Ethiopia is one of those nations which is in the limelight and getting investment for developing textile and apparel sector. In the same ways couple of decades back, Bangladesh became the most potential place for investment. China, USA, Europe and Japan are some of the nations invested in Bangladesh for development of its apparel and textile manufacturing facilities. This is one of the reasons why Bangladesh is now second largest apparel manufacturing hub.

Lower Labor Cost

Do you have any idea what impacts price of apparel product a product?

Mostly apparel product price depends on manufacturing and materials. But workforce is one of the most important things that impacts the rise of cost. Besides labor cost also determine how buyers will react toward the market itself. Lower the cost of the labor, higher the investment you are going to get. This is how Bangladesh attracted investment partners to invest in this country. From the beginning of the apparel and textile startup Bangladesh has been getting good impression and they have also been transforming the entire textile industry. From the starting point to now Bangladesh still remains the best place for investment. Well, there might be some other countries rising to become another textile and apparel hub like Bangladesh but since this nation is the second largest apparel and textile manufacturer. Bangladesh is dominating the market for couple of decades and they are highly likely to become more progressive in the near future. China and some other nations like USA and Germany are investing in Ethiopia because they see this countries potential for apparel and textile manufacturing.

Tax Free Trade Market

Tax free trading facility is another important option that attracts most of the investors and buyers from various market. On the other hand, this trading facility is also helping manufacturers to grow in rapid speed. Bangladesh has been a champion of tax-free trading facility and other countries like Vietnam, Ethiopia have been adopting this to attract investors and buyers. In the near future, some other nations may take over Bangladesh but this nation is not going to be ruled out by other manufactures soon. So, there is a high chance of Bangladesh that it is going to rule the apparel sector for long. On the other hand, China is shifting their factories to other countries and Bangladesh is one of the most favorite places to shift their facility. They will be getting all sorts of privileges and this is the way Bangladesh is becoming popular among all those investors and buyers to come to Bangladesh for sourcing and doing business.

Available Raw Materials and Skilled Workforce

Bangladesh has access to multiple raw materials and workforce. Behind a country’s rise, availability of domestic raw materials and available skilled workforce are very important. Because they are the things those help shaping the entire industrial sector. Bangladesh has more than 70% workable population and garments sector is the second largest sector to employ a lot of employers. An estimated 3.6 million people have been working in RMG sector. The working population in the apparel manufacturing sector is also growing rapidly because, factories and companies are also growing.

In conclusion, we can say that Bangladesh is the most progressive nation according to apparel manufacturing index. They have also been providing value for the entire world and contributing in a massive scale. Bangladesh has several things those are helping this nation to become the world’s second largest apparel manufacture in the world. Investment friendly policy, available raw materials, skilled workforce and low labor cost are some of the most potential reason those make Bangladesh as the most attractive place for buyers.