Bangladesh's RMG exports to Japan at $1bn, but still small supplier

[Black_cats]

Bangladesh's RMG exports to Japan at $1bn, but still small supplier​

29th Jul 2022

Bangladesh’s ready-made garment (RMG) exports to Japan crossed the $1 billion mark in fiscal 2021-22 (July-June) after a decline in the previous two fiscals. But it still accounts for a very small share in the Japanese apparel retail market, which was pegged at $84.30 billion in 2021. Japanese retail market growth is volatile and slow post-COVID.

Bangladesh’s apparel exports to Japan doubled in the last decade, due to exporters’ relentless efforts to meet Japanese standards and the government’s policy support like cash incentive.

The rise in exports is also attributed to Japan's ‘China plus one’ policy and laxity in its rules of origin. Locally made knit items have been enjoying duty-free facility in the Japanese market since April 2011 and woven items since April 2014, although raw materials are imported.

According to data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the country exported apparel items worth $1.098 billion, registering over 16 per cent growth in FY22. This was in spite of several issues raised by Bangladeshi exporters while shipping goods to Japan. These include zero-tolerance policy on quality adopted by Japanese importers, language barrier, and need for timely shipment.

Japan’s apparel retail market is expected to regain $90 billion in 2025 from $84.30 billion of 2021, according to Fibre2Fashion’s market insight tool TexPro. The segment peaked at $93.81 billion in 2019, but it shrunk to $81.50 billion in 2020 due to the dent of COVID-19. The market was recorded at $90.26 billion in 2017, and $92.06 billion in 2018.

As per TexPro, Bangladesh share was mere 4.90 per cent ($1.165 billion) in Japan’s total apparel import of $23.804 billion during 2021. It is the third largest supplier of apparel to Japan. China enjoys the top position with export of $13.878 billion (58.30 per cent) and Vietnam the second position with shipment of $3.450 billion (14.49 per cent) to the Far Eastern country. Cambodia and Indonesia were also among the top five suppliers during the last year.

Bangladesh's RMG exports to Japan at $1bn, but still small supplier - Fibre2Fashion

Bangladesh's ready-made garment (RMG) exports to Japan crossed the $1 billion mark in fiscal 2021-22 (July-June) after a decline in the previous two fiscals. But it still...

www.fibre2fashion.com

 

[bluesky]

Bangladesh’s apparel exports to Japan doubled in the last decade, due to exporters’ relentless efforts to meet Japanese standards and the government’s policy support like cash incentive.

Once upon a time, I tried to get orders from a Japanese company and get the goods done in Dhaka. Most companies refused to take orders because they are very stingy and difficult to satisfy them.

However, once you start making goods as per their requirements, they will not let you go. They would keep on giving orders and would introduce others in their group.

 

[Bilal9]

Once upon a time, I tried to get orders from a Japanese company and get the goods done in Dhaka. Most companies refused to take orders because they are very stingy and difficult to satisfy them.

However, once you start making goods as per their requirements, they will not let you go. They would keep on giving orders and would introduce others in their group.

That is true @bluesky bhai.

There is a Japanese company called MIniso which markets T-shirts among other things that sources a lot of items from Bangladesh.

Japanese people have gotten to be extremely quality conscious for even cheap items like T-shirts.

Bangladeshi companies don't have any clue how to work on QC and consistency.

Japanese market products (like say - from Daiso) may be low quality but they are consistently low quality.

 

[bluesky]

Japanese market products (like say - from Daiso) may be low quality but they are consistently low quality.

DAISO and similar others are 100 yen shops. But, though the name is 100-yen shops, they have many other items that are double or triple that price.

But, I am surprised at the resiliency of the 100 yen shop businesses when the dollar is already equal to 135 yen already. Probably they will wait for a few months before raising the prices of non-100 yen items.

Usually, DAISO companies build factories in a country where labor costs are very cheap, send their managers, and train the workers to produce and pack efficiently. The goods are made cheap and are sold cheap in Japan.

 

[Destranator]

The Japanese should have their own EPZs in BD where goods can be made to their standards. One is already coming online next year in Araihajar:

Japanese economic zone gears up for production from March 2023​

Japanese economic zone gears up for production from March 2023

A number of companies from various sectors have shown their interest in investing in Bangladesh Special Economic Zone, also known as the Japanese economic zone, in Araihazar upazila of Narayanganj

www.tbsnews.net

Once we establish precedence of manufacturing to Japanese needs, there will almost certainly be subsequent investments.

 

[bluesky]

The Japanese should have their own EPZs in BD where goods can be made to their standards. One is already coming online next year in Araihajar:

Japanese economic zone gears up for production from March 2023​

Japanese economic zone gears up for production from March 2023

A number of companies from various sectors have shown their interest in investing in Bangladesh Special Economic Zone, also known as the Japanese economic zone, in Araihazar upazila of Narayanganj

www.tbsnews.net

Once we establish precedence of manufacturing to Japanese needs, there will almost certainly be subsequent investments.

As far as I know, UNIQLO has very large factories in Dhaka and nearby areas. Others will certainly join after Matarbari is built and in operation. I heard that Japanese companies have already moved to an exclusive zone in/ near Narayanganj.

Non-Japanese people always stumble with the thinking of Japanese people. One Nigerian friend of mine was telling me he finds Japanese people are completely different from other cultures. I agree with his opinion.

This is why our people are unable to read and fathom their minds. It is good that they build factories in BD, and train their own workers who would be transmitted about 10% of Japanese thinking.

Yet, they will form a new group with still a little Japanese mind who would be almost understood by the Japanese.