Market Diversification Leads Rmg to Hit Vigorous Growth Record Despite of Falling Demand in Traditional Market
Shoheli Dil Afroz, 2011-2-10-400
Business Communication, BUS231 (5)
East west University
Journal 1, 23 January 2013
Market Diversification leads rmg to hit vigorous growth record despite of falling demand in traditional market
Global recession in 2007 and 2008 caused financial meltdown in the traditional western market so RMG had to face falling demand for local items. Though RMG export recorded vigorous growth in the first half of the current fiscal year (FY 2012-13), as the manufacturers looked beyond the traditional western markets after they were encouraged by the cash incentives to the exporters that government offered.
According to the Export Promotion Bureau (EPB) data, the growth of exports to the new destinations is phenomenal and not of higher value like traditional markets. The non-traditional market contribution increased to 10.02% in the first half of the current fiscal. Apparel exports grew by 70.07% in Russia, 64.98 % in Australia, 47.92 % in Korea and 39.60 in Chile during 2012-13 fiscal. While Europe, US acquired 58.80 fall from 59.74 % and 22.87 fall from 23.91 % respectively. About $ 996.89 million was generated from the new destinations, of the total earnings; $ 5.81 billion was generated from Europe, $ 2.27 billion from the US, $478.92 million from Canada and the rest from other countries of the total earnings worth $ 9.94 billion (current fiscal year).
Apparel manufacturers believe, Government to government negotiation along with strengthening of commercial wings of its foreign missions needed to maintain greater export growth.
The new potential markets are Australia, Japan, China, Russia, South Africa, Korea, India, Brazil, Chile, Mexico and Turkey. Japan and Russia are possibly the biggest among the new destinations. According to President of BGMEA, Korea could be the fourth largest new destination for RMG. Batexpo 2012 got good response from the buyers especially from China, Japan, Brazil,
Business Communication, BUS231 (5)
East west University
Journal 1, 23 January 2013
Market Diversification leads rmg to hit vigorous growth record despite of falling demand in traditional market
Global recession in 2007 and 2008 caused financial meltdown in the traditional western market so RMG had to face falling demand for local items. Though RMG export recorded vigorous growth in the first half of the current fiscal year (FY 2012-13), as the manufacturers looked beyond the traditional western markets after they were encouraged by the cash incentives to the exporters that government offered.
According to the Export Promotion Bureau (EPB) data, the growth of exports to the new destinations is phenomenal and not of higher value like traditional markets. The non-traditional market contribution increased to 10.02% in the first half of the current fiscal. Apparel exports grew by 70.07% in Russia, 64.98 % in Australia, 47.92 % in Korea and 39.60 in Chile during 2012-13 fiscal. While Europe, US acquired 58.80 fall from 59.74 % and 22.87 fall from 23.91 % respectively. About $ 996.89 million was generated from the new destinations, of the total earnings; $ 5.81 billion was generated from Europe, $ 2.27 billion from the US, $478.92 million from Canada and the rest from other countries of the total earnings worth $ 9.94 billion (current fiscal year).
Apparel manufacturers believe, Government to government negotiation along with strengthening of commercial wings of its foreign missions needed to maintain greater export growth.
The new potential markets are Australia, Japan, China, Russia, South Africa, Korea, India, Brazil, Chile, Mexico and Turkey. Japan and Russia are possibly the biggest among the new destinations. According to President of BGMEA, Korea could be the fourth largest new destination for RMG. Batexpo 2012 got good response from the buyers especially from China, Japan, Brazil,