In this article, we aim to cover many different aspects of clothing manufacturers in Bangladesh including the production process, MOQs, unit prices, lead times, SWOT analysis, payment terms, types of garments, materials, quality and environmental/Quality certifications of the manufacturers, and provide an overall well-rounded conclusion about this large industry.
Thus, this article will act as a comprehensive guide for a clothing business willing to source their products from Bangladesh and provides a sort of checklist to businesses looking into this industry.
Introduction of the clothing Manufacturing Industry In Bangladesh
The global clothing and apparel industry was valued at an astonishing 758 billion US dollars in 2018 with an annual growth rate of approximately 7.5% since 2014. However, due to an exponential increase in clothing and apparel due to changing fashion tastes, emerging markets, and e-commerce, the global clothing and apparel industry is expected to expand at an annual rate of 11.8% and will reach an astronomical 1,183 billion US dollars in 2022.
Out of the entire global clothing and apparel industry, women’s wear was the largest shareholder at 55.7% in 2018; however, men’s wear is expected to grow the fastest in upcoming years at approximately 16.4%.
The regional demand shares have been consistent over time; however, the Asia Pacific region had the highest level of growth where India leads with an 8.7% compounded annual growth rate. Other regions that had significant demand shares were the European Union, North American, and China.
However, in production i.e. clothing exports, Bangladesh has remained the second biggest exporter in the industry. Their exports are valued at 32.5 billion US dollars in 2018 according to the World Trade Organisation report on the textiles and clothing industry. 80% of Bangladesh’s total exports are attributed to clothing and apparel exports and 20% of the GDP to this sector as well.
The dominance of Bangladesh in the apparel and clothing industry specifically the ready-made garments segment has been due to its low cost of production due to relatively cheaper labor costs, energy costs, and availability of raw materials which reduce any transportation and procurement costs.
However, certain issues also exist which may repel businesses. These issues include mistreatment of labor, unfair wages, poor working conditions, lack of quality and environment management systems, and other social issues that may affect a company’s corporate social responsibility in a negative way.
However, not all manufacturers in Bangladesh face these issues and there is a solid reason why Bangladeshi clothing manufacturers have attained so much growth in the last decade and it is certainly due to their good areas rather than bad areas.
Therefore, such factors have made Bangladesh an attractive country for businesses to source their clothing and apparel products from, and as such, gain a competitive advantage due to their low costs and enjoy healthy profits on their products.
TYPES OF CLOTHING AND GARMENTSMADE IN BANGLADESH
Bangladesh is famous for ready-made garments and the following are some types of ready-made garments (RMG):
- Jackets, coats, and suits
- Skirts and women wear
- Dresses, t-shirts, shirts, and polo shirts
- Undergarments
- Denim-wear (jeans and jackets)
- Face fabric masks
- Knitted wear (sweaters, cardigans, and others)
- Hoodies
- Pajamas and shorts
- Sleepwear
Swot Analysis Of Clothing Manufacturers In Bangladesh
SWOT refers to strengths, weaknesses, opportunities, and threats. Therefore, in this section, we conduct a SWOT analysis of the Bangladesh clothing manufacturers.
This section will provide an insight into these manufacturers and will allow you to make an informed decision about sourcing your products from Bangladeshi clothing manufacturers.
Covering strengths first, Bangladeshi apparel manufacturers have low-cost based power generation, a relatively cheaper labor force, and have availability and flexibility of raw materials. All these three strengths reduce the production costs of these manufacturers, making them attractive to businesses all around the world.
However, severe weaknesses also exist in the industry. Some of them are lack: in areas such as investment, training opportunities, quality management systems, and engineering. Besides, lead times are quite high although are reducing. Also, poor salary structure of workers, working conditions, and motivation which can be problematic for socially responsible companies.
But opportunities exist that need to be captured and turned into strengths including increased demand from US, Europe, and generally around the world, technology adoption i.e. large brands have invested in Bangladesh and thus have established good technology structures and manufacturers have stellar vertical capacities and increased profit margins.
In contrast, threats also exist. These include rapid technological growth from outside, competition with other countries, political uncertainty, labor unrest and issues (factory fires), and infrastructural bottlenecks.
In addition, we also lack of streamlined processes e.g. assembly lines which have reduced productivity of the factories in Bangladesh.
Overall, the Bangladeshi clothing manufacturing industry is ripe for profits. Although weaknesses and threats exist, opportunities and strengths exist equally and sometimes overcome them. If such weaknesses and threats are abolished, this industry can become one of the greatest in the world.
This is already happening as the industry has registered record growth rates despite political and other issues, suggesting the industry’s flexibility and commitment in the face of challenges.
The strengths, weaknesess, threats, and opportunities are summarised in the table below.
Please note that the SWOT analysis applies generally to a majority of manufacturers in Bangladesh. This means that it is not necessary your supplier or manufacturer will have the same weaknesses or strengths listed above. Thus, it is important to conduct a thorough investigation and analysis of your supplier before continuing above.
Quality Certifications Of Clothing Manufacturers In Bangladesh
Quality is a major factor when it comes to clothing/apparel related items. Businesses tend to stick with manufacturers whose products have great quality and rational businesses prefer quality over quantity.
Bangladesh, apart from its low production costs, produces top-quality clothing products and thus is also famous for that. As such, the clothing manufacturers in Bangladesh hold a range of different quality and environment certifications that we have listed below.
The list is as follows:
- ISO 9001
- BSCI
- SADEX
- ACCORED
- GMP
- WRAP
- HACCP
Please note that not all clothing manufacturers in Bangladesh hold these quality and environment management systems certifications and the ones mentioned above are on average held by a good or an excellent manufacturer.
Besides, Bangladesh is a land of a variety of clothing manufacturers. As a result, we see that there are varying degrees of quality of their products. This is a double-edged sword; a business may be misled by the appearance or by other factors into believing a certain manufacturer in a high-quality producer.
However, some manufacturers are not high-quality manufacturers. But, the advantage in this is that all businesses will find their required level of quality clothing manufacturers in Bangladesh because not all businesses want A-grade quality products due to different reasons.
Thus, this variety of clothing manufacturers can also pose as a benefit. But, it is always important to verify certifications of a manufacturer before proceeding should you wish to work with only A-Class quality manufacturers.
These certifications alone act as a strong attraction force that pulls in many businesses that are searching for clothing manufacturers and also implies that Bangladesh is a key player in the sector of producing clothing products. This should assure and console any business that worries about the quality of their products
Minimum Order Quantities (MOQs)
Minimum Order Quantities (MOQs) are defined, as the name implies, the lowest level of quantity that must be ordered or accepted by a manufacturer. This is to ensure that a manufacturer achieves the lowest average cost and that their own margins are safe. Thus, in this section, we will cover the MOQs of Bangladeshi clothing manufacturers.
It is known that Bangladeshi clothing manufacturers offer very low prices but with good quality; another important factor that will influence your decision will be the MOQ and MOQs can bar some businesses from ordering.
However, Bangladeshi clothing manufacturers exist in large numbers and thus there is a large variety of MOQs as well similar to quality and prices. The manufacturers in Bangladesh have generally set a low MOQ so even start-ups and new businesses can join the market.
MOQs for clothing-related items are measured in pieces. Besides, the MOQs vary due to differences in products, styles, designs, and product quality among other factors. After thorough research, it has been observed that Bangladeshi clothing manufacturers MOQs’ ranges from 1 piece – 1500 pieces per style.
Apart from that, we have also seen that the average clothing is set on 700 pieces, however, please note that this is the average and may vary due to there being a lot of outliers in terms of MOQs. Besides that, negotiations also take place, hence, that is also a major factor that affects the MOQs. Contact Uniway Sourcing for further information and quotes.
Delivery & Logistical Information And Average Lead Times Of Bangladeshi Apparel Manufacturers
Lead times are defined as the aggregate sum of time required for finishing a product starting from the date of getting the order to the shipment of the products to the client. Attire retailers are consistently in a strain to receive the ideal design before the style pattern is outdated.
This strain is transferred to the clothing manufacturers and such manufacturers are always under pressure to push out products as quickly as possible.
Unfortunately, Bangladeshi clothing manufacturers have a high lead time relative to, for example, India, China or Pakistan. According to a report published in 2014, the lead times on average were 90-100 days which was an improvement from the past.
However, over time, this lead time has reduced to better technology adoption, improvement of infrastructure, port facilities, and political stability. So, the lead times on average presently, in 2020, are somewhere around 60-70 days and are expected to go down with structural improvements and government support in the industry.
There is no set lead time and your order lead time can deviate from the average given above as it depends on the supplier you have picked, whether the product is available, the quantity of the order, type of the order & product, logistical connections of the company and many other variable factors thus the lead times are not fixed and may vary.
It is also important to remember, conclusively, that average lead times will change depending on the season. Naturally, lead times will be higher in peak seasons and lower in off-peak seasons.
Please keep in mind the exportation agency that your manufacturers use as well because it also plays a pivotal role in the lead times.
Payment Terms Offered By Clothing Manufacturers in Bangladesh
Because Bangladesh is the second-largest exporter of clothing and apparel, it has a huge number of manufacturers and as such the payment terms offered by these manufacturers are vast. In this section, we will list some of the accepted payment terms by clothing manufacturers in Bangladesh.
Following are some of the accepted payment terms of the clothing manufacturers in Bangladesh:
- Letter of Credit (L/C)
- Telex Transfer (T/T)
- Documents against Payment (DAP)
- PayPal
- Western Union
- Money Gram
- Small amount of payment
- Cash on delivery (rare)
These are some of the payment methods that are used on average. Please note these may vary depending on the manufacturer and other factors. Thus, negotiations are possible and your suitable payment method and terms can be attained from these manufacturers.
Average Unit Prices
Clothing manufacturers in Bangladesh are primarily attractive because of their low cost of production and thus businesses sourcing from Bangladesh enjoy healthy profits and margins. To the luck of businesses, according to recent NBR data, prices have dipped 1.61% on average in the last 4 years.
As the clothing sector is quite vast, we will list the average prices for the year 2018-19 according to the material/type of the clothing and apparel that clothing manufacturers in Bangladesh offer which are overwhelmingly knit and woven. Please bear in mind that these are averages, and in your case, the prices may be different. Contact Uniway Sourcing for a free quote.
Knit’s price [MN USD/Net Mass (kg)] was 12.46 and woven was 14.44. Please note that these vary a lot depending on the product, design, style, order quantity, manufacturer, and many other factors.
List Of Clothing Manufacturers In Bangladesh:
To sum up, we have so far covered the global and Bangladeshi clothing industry, uses, types & materials, quality, MOQs, lead times, payment terms, and industry SWOT analysis.
We will now move on to the most imperative part of this article which covers, according to our extensive research and analysis, the best 10 Bangladeshi clothing manufacturers.
1. STUFF LIMITED
Established in 2015, Stuff Limited falls into the leading clothing manufacturers located in Bangladesh. It covers a huge area of 15,000 square meters in Bangladesh and has acquired its SEDEX, BSCI & WRAP certificate.
The company exports internationally to Canada, the USA, the UK, Germany, Italy, and Australia. It ensures on-time delivery as they continuously follow up with the logistics company and they do the customs clearance thus resulting in efficient and quick delivery. The company offers fully customized garments within a comparatively low price.
2. ONE DESIRE DESIGN
One Desire Design is established in 2019 and is amongst the leading clothing manufacturers in Bangladesh. They have their manufacturing unit for knitting, sweater & woven which is BSCI, SADEX & ACCORED approved.
The company exports worldwide and has built strong relations with China. It has an annual export revenue of $10 million and offers all kinds of embroidery, printing, and further customization to their products. The company keeps its customers at the center of their organization.
3. SENCILEO
Sencileo is founded in 2009 and is a leading Bangladeshi exporter of clothing items. It covers an area of below 1,000 square meters and has an annual export revenue worth up to $1 million US dollars. Their nearest port is located in Chittagong. The company also offers prototypes and samples and offers competitive prices.
4. NITEX
Nitex is a well-established Bangladeshi clothing manufacturer. It has a capacity of 150 million pieces per year and has over 210 production lines. The company has its design studio so customers could provide their customized sophisticated & comfort designs.
The company also has its digital platform which provides a real-time update for its clients to view every part of the production process 24/7.
They also take care of Air and Sea Freight, Clearing & Forwarding on the port, Custom Broker Management to reduce clients’ trouble, and ensure on-time delivery.
5. ALHAJ TEXTILE MILLS LTD
Alhaj Textile Mills is a prominent clothing manufacturer in Bangladesh, and it was established in 1962. It has a total of 20,160 spindles and 800 rotor head. It was established as a private limited company first but was then converted to a public limited company in 1983.
It has a total of 20,160 spindles and 800 rotor head and employs 1600 workers and 200 officers and has a production capacity of 20 tons per day.
It currently mainly exports to the South American market. This includes Perú, Brazil, Columbia, Chile, Ecuador, Guatemala, Argentina, and other small countries in this region.
6. ENVOY TEXTILES LTD
Envoy Textiles was established in 2005 and has been LEED-certified since 2016, it has also received the Premium level of rating. The factories are located in Bhaluka and Mymensingh and they both cover around 48 acres of land.
The production unit has a capacity of producing 50 million yards annually. They have obtained their ISO 9001 and 14001 quality certifications in addition to their OEKO-TEX certifications which are environment management systems certifications.
It was also assigned an AA+ rating by the credit rating Agency of Bangladesh. Envoy Textiles is linked with brands such as H&M, Zara, Disney International, Calvin Klein, and Walmart. It exports worldwide and exports directly to Cambodia, Egypt, Germany, Italy, Sri Lanka, USA, and China.
7. ANLIMA TEXTILE LTD
Anlima Textile is a well-established and major exporter in the clothing sector. They are an export-oriented supplier that consists of knitting, dyeing, finishing, and garment manufacturing. The company has a production capacity of 15 tons per day. The company claims to use state-of-the-art machinery and ensures on-time delivery with top-notch quality.
8. DIRD GARMENTS LTD
Founded in 1984, DIRD Garments is a leading Bangladeshi clothing manufacturer. Its’ factory covers a floor space of approximately 44,000 square feet. It has a daily production capacity of 12,000 pieces and a monthly capacity of 170,000 pieces.
The company currently has over 1,000 production workers employed. DIRD Garments Ltd has renowned brands all over the world as its clients including Walmart, OKAIDI, Tchibo, Hangten, Bel&Bo, and Gymboree.
9. DIRD COMPOSITE TEXTILES LTD
DIRD Composite Textiles was established in 2005 and covers a floor space of 1,221,844 square feet. Their production unit consists of four sections namely Knitting, Dyeing, Printing and Embroidery, and Garment Manufacturing. It has a production capacity of 3,000,000 pieces monthly and has so far employed 11,000 workers.
The company exports worldwide and has a clientele base worldwide including prominent companies such as Tesco, Next, M&S, and Mothercare.
10. ACS TEXTILES & TOWEL (BD) LTD
ACS Textiles was founded in 2004 and is amongst the top Bangladeshi clothing manufacturers. The company has obtained its Okeo-Tex standard 100 certifications. Their manufacturing facility offers a wide range of services such as weaving, dyeing, printing, finishing, and packaging. It has so far employed over 6,000 people and has a capacity of producing 30,000 pieces per day.
ACS Textiles ensures superior delivery times comparatively and has managed to develop strong relations with European countries including Italy, France, and the United Kingdom. Along with that, they have also expanded their clientele to Australia and North America.
CONCLUSION
In this article, we covered many aspects of the clothing manufacturers in Bangladesh and substantiated our claims with relevant research. This included an introduction to the global & local clothing industry, SWOT analysis, uses, types, and materials of clothing, payment & logistical terms, and most importantly, the top 10 clothing manufacturers in China. This article is a complete package and guide to clothing manufacturers in Bangladesh.
Please note that the top 10 manufacturers are listed in no particular order or ranking, and the list is not exhaustive. And, that, this article was composed after extensive research and analysis of available data on the Clothing manufacturers in Bangladesh industry.
Apart from that, please note that the information presented in the sections above is on the general or average basis meaning that it is crafted and written so that it applies to vast majority of clothing manufacturers in Bangladesh.
In some areas such as production processes, payment terms and prices, and other sections, may not always a hundred percent be the same for your manufacturer. As such, you can contact Uniway Sourcing for further information about your supplier if you do choose one. Also check out our article on Clothing manufacturers in Pakistan.
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