NOVEMBER 14, 2016: FINANCIAL EXPRESS
For any category of business, such as large or small, retail or business-to-business (B2B) branding is one of the most important aspects to be considered. In today’s world markets are increasingly highly competitive. So an effective brand strategy gives a major turn in this competitiveness. Innovative, consistent and strategic branding leads to a strong brand equity, which means the added value brought to the company’s products or services that allows to charge more for the brand than what identical, unbranded products command.
Bangladesh has almost 40 years of experience in RMG. More than 4 million people are working in this labor intensive industry and at the same time billions of dollars have been invested in this sector. According to the Bureau of Statistics Bangladesh’s exports industry alone comprised USD 31.2 billion in FY 2014-15, where 81.69% was made up by ready-made garments. On its own, the knitwear sector encompasses 39.83% of total exports which is worth USD 12.43 billion.
The RMG sector has experienced an exponential growth since the 1980s. The sector contributes significantly to the GDP. It has provided employment to around 4.2 million Bangladeshis, mainly women from low income families. A significant number of compliant and world class factories have been established in the country. The tragic incident in the Rana Plaza and Tazrin Fashion were the turning points in RMG industry in Bangladesh. The matter of compliance gained pace through those two incidents. All members of the BGMEA and BKMEA are working wholeheartedly to carry out the corrective action plans suggested by the Accord, Alliance and National Plan of Action after inspections, even investing huge amount of money. This has brought a positive scenario in the RMG sector in the long run.
We have also a huge local demand of 160 million people where almost 50% have the status of middle income. On the other hand China is getting out of establishing typical RMG industry due to lack of cost effectiveness derived from high labor cost, production cost and gradually shifting towards other heavy industrialization. Moreover typical RMG industry is losing its viability there. Bangladesh is comparatively in a better position than India, Vietnam and Cambodia and some other competitors. Because we have a huge cheap labor who are very much hard working and have a mentality to render services for whatever the time and period is required. Our entrepreneurs and workers have also proved that they could endure a lot of hardships to continue their business during severe social and political unrest. Workers are also very resilient in combating any type of derogatory situation.
However hopefully we are observing that our innovative entrepreneurs are trying to establish brand image with RMG. There are many popular local brands who are making casual and formal dresses and establishing many outlets all over the country. Moreover, they are also very serious in upholding quality keeping price at a competitive level. Some of them are also practicing franchising mechanism. Couple of brands have already gone global through setting up some outlets on abroad.
Only a decade ago the RMG factory had to import maximum portion fabrics and accessories from abroad to be used as raw materials. But the scenario has been changed during the last 10 years. Hundreds of thousands of backward linkage industries have been set up. Local as well as foreign investors have come up with their huge capital. And now more than 60% fabrics and accessories are being procured from the local markets, such as EPZ and non-EPZ based industries. Many local factories are producing quality cotton, twill and denim fabrics which are being nominated by many world famous brands, such as H&M, C&A, Zara, Camaieu and others.
The RMG industry of the country mainly produces cheap casual dresses. They just make dress as per the design, specification of the buyer procuring raw materials, in many cases, from buyer nominated suppliers. Now Bangladesh is one of the largest makers of cloths for the famous global brands. Cheap and casual dresses are bought by the people of all income level and therefore gain a huge sales volume. Quartz, a digital global business news publication recently shows how some cheap fast fashion brand and retail clothing chain stores, such as Zara, H&M, UNIQLO, C&A and PRIMARK and their owners have gained the position among the top richest persons not only in their own country but also all over the world. Amancio Ortega, the owner of the Spain based fast fashion brand, ZARA is now the second richest man in the world being the owner of 75.30 billion dollar, Stefan Persson, the owner of Sweden based brand H&M has the wealth worth 22 billion dollar and Lucas Brenninkmeijer, the owner of Netherland based C&A has the wealth worth 33.94 billion dollar.
Bangladesh has also possibilities in high end fashion market creating brands, like Burberry of Britain, Dior of French, Armani, Gucci, Ralph Lauen, Calvin Klein, Levis etc. In order to bring that dream to a reality all the stakeholders including government should set up a master plan for creating a brand image in RMG. Now in this journey to the creation of brand image a huge investment, research, innovation, rigorous and strategic marketing plan and above all favorable government policies are needed for grafting this huge opportunity. Here the BGMEA University of Fashion and Technology (BUFT) could play a vital role. This institute is offering graduate and post-graduate degrees to students on fashion design, knitwear technology and apparel merchandising related subjects. Simultaneously fashion, textile and industrial merchandising related departments need to be established at all of our major public and private universities in order gain the market share of high end fashion markets, to go for branding as well as to meet the current shortfall of competent professionals in the mid-level of our garment factories.
For the creation of successful brands there have been a typical action plans that has to be followed by the entrepreneurs having a long standing experience in the RMG sector. First of all, the industry has to begin with brand names carry business reputation and deliver the message of communicating with the prospect clients. Secondly, blending universal similarities with the brands so that the global community would mean that brand will be catering to consumers with different cultures, gender, race, and religion. However, despite these differences every person shares common similarities that can be used to the brand advantage. Thirdly, Understanding the market and competitors as the new brands will be catering to different countries and therefore, it is essential to understand how this implicates in market positioning. Fourthly, promoting the brands globally online as the internet is a powerful medium that transgresses over geographic boundaries. With the majority of the global internet users searching for products and services online, it is easy to have a better global branding positioning through increasing brand name visibility in the internet community. Fifthly, maintaining domestic marketing strategy is also very important. Therefore, it should not be too engrossed with the globalization approach in building the brand name, but to maintain a good domestic marketing stance when promoting the business. And lastly, localization of marketing strategy remains to be an important aspect of all efforts such as ensuring that the brand if being marketed according to the local dialect or language of the target market location.
Sufficient infrastructural development is prerequisite for smooth functioning of all action plans. Therefore, major highways of the country have to be upgraded into four lanes, uninterrupted power supply has to be ensured, BGMEA, government and other international partners must take initiatives of developing skills of workers to meet the demand of the industry and enhance the productivity, adequate infrastructural development. Above all bureaucratic complexity has to be removed along with showing zero tolerance against corruption.
If everything goes in this way then it would not be surprising when our local brands will establish many outlets in London, New York, Paris and other major cities in the world being established as global prestigious brands of cloths and then our identity will be shifted from cutting and sewing to innovation in design, creation of fashion trends and many more. Then people all over the world shall look for Bangladeshi brands rather than only “Made in Bangladesh” and Dhaka will be the fashion capital, like Paris and Rome.
© Copyright: Reserved by the writer (Noore Alam Siddiqui)
