Worldwide management consulting firm, McKinsey & Company has just released a report and stated, Bangladesh is unmoving the 1st option for apparel supply after China, but other countries are quick holding up. The report headed, ‘Sourcing in a volatile world — the East Africa opportunity’ singled out Ethiopia, billing it as the one to watch out for — for the first time. The positive stance on Sub-Saharan Africa is being prompted by projected long-term expansion in the area’s employable masses, which will accomplish ranks related to those of China by 2035.
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| Workers in Bangladeshi Garment Factory |
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md. Siddiqur Rahman pointed out that, ‘It is exact that African countries are going up in the worldwide apparel business, but it will take no less than ten years for them to turn out to be our opponents as they are now in the very primary junctures.’ He further said that, ‘We have an extra improvement now as the Accord and Alliance have qualified more than 98% of our factories to be secure after the inspection’. In this time, Sub-Saharan Africa has only a 0.56% share or USD 2.6 billion, of the total global capacity of apparel exports. Published last week, the report talked to the chief purchasing officers (CPOs) of retailers from US and the Europe, whose joint resourcing stands at USD 70 billion. While asking to grade their most vital prospect sourcing targets, the CPOs notified Bangladesh, Vietnam, Myanmar, and Ethiopia.
“There is broad prospective in Sub-Saharan Africa and it ruins unused. However, it is essential to analyse the countries in this region at a granular level,” the report said. Around 74% of the CPOs stated they are preparing to reduce their sourcing worth share from China, where in recent years the production costs have moving for lacking of workers. They are glancing at Ethiopia and Kenya as potential choices. Some 40% of the buyers specified that sub-Saharan Africa will become more significant to the clothing business in the next five years, in contrast to 24% in the previous version of the survey in 2013. The survey report defined Africa as the new Asia for the apparel industry. CPOs said that the average plan to boost their presently very tiny stages of sourcing from Sub-Saharan Africa almost tenfold by 2020 from 0.3% to 2.8%.
Situations demonstrate that even with exponential expansion these countries will stay a tiny branch of the world sourcing diagram in the next five years, but with funds from all the stakeholders concerned, the upcoming prospective can be apprehended. At this time, Bangladesh is the 2nd biggest apparel exporter following China. It has a 5% share in the more than USD 450 billion world apparel bazaar. In financial 2013-14, the country scraped from garment exports in USD 24.50 billion, according to EPB (Export Promotion Bureau). Currently, China financial records for 39%, or USD177 billion, of the world apparel exports a year. In 2011 and 2013, McKinsey clutched same surveys, where top CPOs listed Bangladesh to send overseas USD 42 billion value of garment products by the end of 2020. But in December last year, the garment manufacturers define a goal to knock USD 50 billion in exports by 2021.
Reported by-
Ataullah Al Farhan
Executive, Bangladesh Textile Today
Email: ftzataullah@gmail.com
“There is broad prospective in Sub-Saharan Africa and it ruins unused. However, it is essential to analyse the countries in this region at a granular level,” the report said. Around 74% of the CPOs stated they are preparing to reduce their sourcing worth share from China, where in recent years the production costs have moving for lacking of workers. They are glancing at Ethiopia and Kenya as potential choices. Some 40% of the buyers specified that sub-Saharan Africa will become more significant to the clothing business in the next five years, in contrast to 24% in the previous version of the survey in 2013. The survey report defined Africa as the new Asia for the apparel industry. CPOs said that the average plan to boost their presently very tiny stages of sourcing from Sub-Saharan Africa almost tenfold by 2020 from 0.3% to 2.8%.
Situations demonstrate that even with exponential expansion these countries will stay a tiny branch of the world sourcing diagram in the next five years, but with funds from all the stakeholders concerned, the upcoming prospective can be apprehended. At this time, Bangladesh is the 2nd biggest apparel exporter following China. It has a 5% share in the more than USD 450 billion world apparel bazaar. In financial 2013-14, the country scraped from garment exports in USD 24.50 billion, according to EPB (Export Promotion Bureau). Currently, China financial records for 39%, or USD177 billion, of the world apparel exports a year. In 2011 and 2013, McKinsey clutched same surveys, where top CPOs listed Bangladesh to send overseas USD 42 billion value of garment products by the end of 2020. But in December last year, the garment manufacturers define a goal to knock USD 50 billion in exports by 2021.
Reported by-
Ataullah Al Farhan
Executive, Bangladesh Textile Today
Email: ftzataullah@gmail.com
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