Bangladeshi Apparel Makers Paid One of the Lowest Prices in the World

Bangladeshi garment makers received one of the lowest prices in the world last year due to a lack of value-added apparel items, lack of negotiation skills, and an image crisis. Among the garment trading nations in the world, Bangladeshi garment items were paid $2.79 per unit or per square meter equivalent (SME) in the US market in 2018, according to data from the Office of the Textiles and Apparel (OTEXA) in the US.

Chinese and Ethiopian exporters were paid lesser: $2.35 and $2.45 per SME respectively. The Turkish exporters were paid the highest: $7.38 per SME. Per SME from Malaysia fetched $5.37, Laos $4.98, Indonesia $3.81, Myanmar $3.08, Vietnam $3.28, and Thailand $2.88Bangladesh has not been receiving high prices because the local exporters are mainly competing in some particular items like woven shirts and bottoms that have many competitors, said Sharif Zahir, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“The buyers have alternatives, so they do not want to pay high prices.” However, a few new competitors like Myanmar and Ethiopia are managing better prices than Bangladesh although they are far beyond in compliance, he said. “Here, the image crisis of Bangladesh is a major challenge. The buyers do not want to pay because of our image crisis after the Rana Plaza building collapse.” Although the minimum wages of many garment-producing countries are below Bangladesh’s, they are still receiving better prices.

                                                                  

he said. “We are working to brighten the image of the country as we have been following compliance strictly and strengthening workplace safety,” said Zahir, also the managing director of Ananta Denim. Bangladesh needs two particular improvements at this moment: improving its rankings in the World Bank’s ease of doing business index and manufacturing value-added garment items. 

Only 20 percent of the exports now are value-added garment items.“Bangladesh will get more prices if it manufactures outerwear, dresses, and jackets,” Zahir said. The efficiency level of workers needs to be enhanced too: it is nearly 50 percent whereas in other countries it is 80 percent, he said. (thedailystar)


Category and Tags
More stories by
Down: Facebook, Instagram, Messenger: Massive outage caused by meta platforms that abruptly stop functioning

It looks that parent company Meta is experiencing a significant outage that has affected Facebook, Instagram, and Messenger.Users discovered that they couldn't load the websites or apps normally. Affected users discovered that Instagram would not fun

Elon Musk lost the Richest person's crown! Who behind ?

World's Richest Man: For the first time since 2021, Amazon.com Inc. founder Bezos, 60, has topped Bloomberg's ranking of the richest people.Elon Musk is suddenly under pressure. For ...

Just when 5G network deployment is almost complete, telcos are already discussing "5.5G."

Spain's BARCELONA The deployment of 5G wireless mobile networks has not yet been completed by telecom providers. Nevertheless, leaders of significant carriers are already discussing the development of "5.5G," or "5G Advanced," technology.At the Mobil

Google Gemini's product lead withdraws from social media following an unsettling AI product launch that resulted in abuse

Important PointsJack Krawczyk, the Gemini Product Lead, has deleted content from his social media accounts in response to a recent wave of hostility.Elon Musk, the owner of social networking platform X, among other public figures and users have been

VR apps are tried in emergency evacuation drills at Japanese universities

In the Japanese prefecture of Fukushima in the northeast, a disaster evacuation drill utilizing an augmented reality app was conducted on Sunday. At an Iwaki City mall, about 110 locals and students gathered to test ...

Follow Business Habit on Facebook, Twitter