Final ProjectcentertopBranding For Bangladeshi Clothing: A Multi-Channel Approach to Long Term Sustain in the Global Apparel MarketBatch 141 AMTPrepared ByName Emdadul Haque Shamim Shuvo MondolID 141-102-0-145 141-106-0-145Batch 141 Section AMT – 03 B. Sc. in Apparel Manufacture & TechnologyDepartment of Apparel Manufacture & TechnologySupervisorIshrat JahanAssistant ProfessorDepartment of Apparel Manufacture & TechnologyA Project Report Submitted In Partial Fulfillment Of The Requirements For The Degree Of B.Sc.
In Apparel Manufacture & Technology In The Department Of Apparel Manufacture & Technology (AMT), BGMEA University Of Fashion & TechnologyDepartment Of Apparel Manufacture & Technology (AMT)May, 2018-2540topBranding For Bangladeshi Clothing: A Multi-Channel Approach to Long Term Sustain in the Global Apparel MarketBatch 141 AMTPrepared ByName Emdadul Haque Shamim Shuvo MondolID 141-102-0-145 141-106-0-145Batch 141 Section AMT – 03 B. Sc. in Apparel Manufacture & TechnologyDepartment of Apparel Manufacture & TechnologySupervisorIshrat JahanAssistant ProfessorDepartment of Apparel Manufacture & TechnologyExam CommitteeExaminer–1 (Chairman of Exam Committee; Pro-VC): __________________________Signature:Examiner–2 (Co-Chairman of Exam Committee; Dean): _________________________Signature:Examiner–3 (Member of Exam Committee; Controller of the Exam): __________ Signature:Examiner–4 (Member of the Exam Committee; Senior Faculty): ______________ Signature:Examiner–5 (Convener of the Committee & HOD): ______________________________ Signature:Project Supervisor: _________________________________ Signature:May, 2018DeclarationHerewith I assure that the project work “Branding For Bangladeshi Clothing: A Multi-Channel Approach to Long Term Sustain in the Global Apparel Market” is our own work. The work has not been presented or published elsewhere for assessment. Where material has been used from other source it has been properly acknowledged.Name Emdadul Haque Shamim Shuvo MondolID 141-102-0-145 141-106-0-145Batch 141 141Section AMT – 03 AMT – 03B. Sc.
in Apparel Manufacture & TechnologyDepartment of Apparel Manufacture & TechnologyEmdadul Haque Shamim Shuvo MondolDepartment Of Apparel Manufacture & Technology (AMT)May, 2018AcknowledgementsI would like to extend thanks to Honorable founder chairman, Board of trustee Mr. Muzaffar U. Siddique, BUFT, for not only for his tremendous academic support, but also for giving us so many wonderful opportunities and logistics support to do this project.Special thanks goes to our enthusiastic Architect Prof. Dr. Nizamuddin Ahmed, vice chancellor, BUFT and Prof. Dr.
Engr. Ayub Nabi Khan, Pro Vice Chancellor, BUFT, who so generously inspired and contributed to do this type of project work.Special thanks go to my enthusiastic supervisor, Ishrat Jahan, Assistant Professor Department of AMT who gave us an opportunity for this area of research. She has been an amazing experience and I thank her wholeheartedly, not only for his tremendous academic support but also for giving us so many wonderful opportunities. Similar, profound gratitude goes to head of the department of Apparel Manufacture & Technology (AMT), Ms. Farhana Jannat Asst. Professor who has been a truly dedicated mentor.We would like to extend Thanks to all of persons, who contributed to the work presented in this project.
Project would probably not have been completed without the innovative assistance of Assistant Professor Anindya Chakroborty, Department of Fashion Designing. His critical comments have pushed our thinking on many difficult questions, of course, any errors are mine alone. The BGMEA University of Fashion & Technology has provided a stimulating atmosphere for research. Thanks alsoFinally thanks go to all survey respondents, and particularly the local fashion brands who offered us some of their limited time.
Table of ContentContents TOC o “1-3” h z u 1. Introduction PAGEREF _Toc514532874 h 92. Literature Review PAGEREF _Toc514532875 h 123. Objectives of the Study PAGEREF _Toc514532876 h 134. Research Methodology PAGEREF _Toc514532877 h 136. Forces Driving Branding Operations PAGEREF _Toc514532878 h 146.1. Pull Factors PAGEREF _Toc514532879 h 146.
1.1 Potential New Entrants PAGEREF _Toc514532880 h 146.1.
2. Overall Cost Leadership PAGEREF _Toc514532881 h 146.1.3. Competitive Strategies PAGEREF _Toc514532882 h 156.1.4. Price Gap: Lucrative Opportunity to Utilize this Gap PAGEREF _Toc514532883 h 156.
1.5. Increase Export Volume PAGEREF _Toc514532884 h 156.1.6. Increase competiveness in international market PAGEREF _Toc514532885 h 156.2. Push Factors PAGEREF _Toc514532886 h 166.
2.1. Bargaining Power of the Buyer PAGEREF _Toc514532887 h 166.2.2. Competition from Substitute Products PAGEREF _Toc514532888 h 166.
2.3. Rivalry among Existing Competitors PAGEREF _Toc514532889 h 167. Current Status of Bangladeshi Apparel Brand PAGEREF _Toc514532890 h 177.1. Local Market Integration PAGEREF _Toc514532891 h 177.1.
1 Aarong PAGEREF _Toc514532892 h 177.1.2 Yellow PAGEREF _Toc514532893 h 187.
1.3 Sailor PAGEREF _Toc514532894 h 187.1.
4 ARTISTI PAGEREF _Toc514532895 h 187.1.5 Amber Lifestyle PAGEREF _Toc514532896 h 187.2.
Foreign Market Integration PAGEREF _Toc514532897 h 209. Essence of Brand PAGEREF _Toc514532898 h 2210. Why Branding is required for Bangladesh? PAGEREF _Toc514532899 h 2311.2 Product and Market Survey PAGEREF _Toc514532900 h 2311.2.1 Why product and market surveys? PAGEREF _Toc514532901 h 2311.3 Integrated Marketing Communication PAGEREF _Toc514532902 h 2611.3.
1 Brand Analysis PAGEREF _Toc514532903 h 2611.3.2 Cheap and high quality PAGEREF _Toc514532904 h 2611.3.3 Mass customization available PAGEREF _Toc514532905 h 2611.3.4 Packaging: PAGEREF _Toc514532906 h 2611.3.
5 Support Services: PAGEREF _Toc514532907 h 26SWOT ANALYSIS: PAGEREF _Toc514532908 h 2611.3.6 Media Selection PAGEREF _Toc514532909 h 2712. The Opportunity for Bangladeshi Apparel Manufacturing Companies PAGEREF _Toc514532910 h 3012.1. Survey Report Analysis PAGEREF _Toc514532911 h 3112.
2 Factors Behind Purchasing Behavior in Apparel Products PAGEREF _Toc514532912 h 3314. Global value chains PAGEREF _Toc514532913 h 3514.1. Buyer-Driven & Producer-Driven Value Chain PAGEREF _Toc514532914 h 3514.2.
Upgrading of Regional Capabilities within the Apparel Supply Chain PAGEREF _Toc514532915 h 3614.3 Lead Firms in the Contemporary Apparel Value Chain PAGEREF _Toc514532916 h 3714.4 Vertical Integration on Product Manufacturing PAGEREF _Toc514532917 h 3814.
4.1 The facilities of vertical integration in the RMG industry PAGEREF _Toc514532918 h 3814.4.2 Competitive Advantages of Vertical Integration PAGEREF _Toc514532919 h 4014.4.3 Challenges in vertical Integration System PAGEREF _Toc514532920 h 4014.4. New Roles and Relationships in the Apparel Value Chain PAGEREF _Toc514532921 h 4014.
5. Short-Term Suggestions to Get Through the Crisis PAGEREF _Toc514532922 h 4114.6. Long-Term Suggestions to Enable Growth after the Crisis PAGEREF _Toc514532923 h 4115.Proposed Strategies for Launching Own Apparel Brand in the Global Market PAGEREF _Toc514532924 h 4415.1 Product Development PAGEREF _Toc514532925 h 4615.
1.1 Geographical Indication (GI) Product PAGEREF _Toc514532926 h 4615.2 Product Diversification PAGEREF _Toc514532927 h 4815.3 Establish fashion institute & promotion of R&D PAGEREF _Toc514532928 h 4815.
4 Online Sale – The Future of the Apparel Industry PAGEREF _Toc514532929 h 4915.5 Create Brand Differentiation & Brand Segment Compare to Other Brand PAGEREF _Toc514532930 h 5015.6 Extensive Research on Consumer Insights PAGEREF _Toc514532931 h 5015.
7 Focusing on target marketing PAGEREF _Toc514532932 h 5115.8 Brand Positioning & Brand Building Strategy PAGEREF _Toc514532933 h 5215.9 Discover Unique Marketing Communication Media for Premium Merchandise PAGEREF _Toc514532934 h 5215.10 Variety in Women’s and Children’s Wears should be brought PAGEREF _Toc514532935 h 5315.11 Fashion Designers Activities PAGEREF _Toc514532936 h 5315.11.
1 Fashion Designer’s Activities PAGEREF _Toc514532937 h 5315.11.2 Major Components that represents fashion PAGEREF _Toc514532938 h 5415.12 Other Initiatives PAGEREF _Toc514532939 h 545. Results ; Findings PAGEREF _Toc514532940 h 5716.
Conclusion PAGEREF _Toc514532941 h 57Bibliography PAGEREF _Toc514532942 h 58AbstractA businessman wants to invest in a foreign country when he has vast experience in a particular field. Though Bangladesh has so many millionaire, though Bangladesh is proficient enough in RMG industry it hasn’t take any initiative to promote its own international apparel brand yet. Today’s market economy is characterized by a very changeable environment ; strong competition caused mainly by enlarging globalization, it is becoming more ; more difficult for an enterprise to maintain long-term success. Using traditional techniques such as simply maintaining low costs, large human resource ; innovative solutions are losing their importance. That is why the significance ; meaning of brands have been growing recently. Bangladesh is the second largest RMG exporter in the global market; it holds a 6.4% share of the global RMG export market.
The country earns $34.65 billion from its total export last year (2016-17) where $28.14 billion came from the apparel sector which is 81.
23% of total export income. There is no doubt that we can make good quality products. Since our products are being sold with global brand tags. We export a T-shirt to USA only for $2.49 but the same T-shirt is sold for $19 there”.
The aim of this project is to show that a properly establishment of brand strategy is the enterprise’s most valuable asset & should be listed in the top priority in the company’s work. A strategic & calculative action aimed at building a brand or strengthening an already existing one is especially necessary in the RMG industry to sustain in the global competition.Keywords:Branding, R&D, Visual Merchandising, Customer Buying Behavior, Value Chain,1. IntroductionBrand creation is an important form of business strategy for any kind of enterprise. Branding not only increases company image but also upholds the country image represented by a particular company. Bangladesh has got vast experience in RMG sector but it has a rare opportunity to be world famous county in clothing brand as many renowned clothing brands around the globe are already using Bangladesh as a sourcing hub for buying their products.RMG sector of Bangladesh has started its journey in late 1970s. In the year of 1978 just 69 thousand USD, More than 4 million people works in about 4500 garment factories.
RMG sector of Bangladesh also contributes more than 14.15% of GDP of Bangladesh. Within a expand of only three decades the RMG sector of Bangladesh has been able to make around 34.26 billion USD in the 2015-2016 fiscal year with 9.72% of promotion rate & secured the second position in RMG export after China.
This simple statistics shows how much potential it has in playing the most vital role in the further economic growth of the country & how rapidly this sector has bloomed. This area contributes around 85% of total foreign currency earnings CITATION BGM l 1033 (BGMEA).The facilities available in the RMG sector of Bangladesh has been the main reason why the foreign brands are so much interested in buying their products from here for selling in the global market. The main strengths of the RMG sector are low labor cost, efficient worker, organizational support and government support CITATION MTH14 l 1033 (Moon, 2014).It is true that Bangladesh is earning a considerable amount of foreign currency by working as a sourcing hub of international clothing brands but instead of having all the facilities Bangladesh could not yet be able to create any significant global clothing brands where the foreign brands are using this opportunity for increasing their brand value.
Along with the world, the economy of Bangladesh is also undergoing remarkable gradual changes. As a Least Developing Country (LDC) Bangladesh gets to enjoy various facilities that include international aids for business purposes and cheap man power CITATION Apu13 l 1033 (Apu, 2013). But the rapid economic growth of the country shows that the situation is not going to stay like this forever. The agenda of the current government of Bangladesh suggest that the country is going to be a developed country within a very short period. So, some of the facilities that are now helping to keep the selling price lower compared to other countries will not be available.
China, for example is on the verge of losing the leading position in exporting RMG because they have been forced to move towards other industries as a result of decreasing cost- effectiveness in RMG sector CITATION Noo16 l 1033 (Siddiqui, 2016). As Bangladesh does not have so many alternative industries to shift to, it is sensible to look for other ways to sustain the earning from the garment industry. So creating as many global brands as possible is the most feasible option to survive in the global clothing market.Creating new international clothing brands and competing with those that are already established in the global market is a mammoth task. But for Bangladesh, the positive factor is that the country has all the resources and other requirements to emerge as a leading name in the global market for apparel brands.
However, the task needs a lot of efforts such as extensive analysis of all the factors involved in the whole process, making careful and realistic planning and strategies considering all the related issues and finally executing them successfully. The first thing that is most important in this regard is to create some Bangladeshi apparel brands for the global market and to launch them successfully. In this regard, the most important thing is the initiative from already established local apparel brands to launch their products in the global market. Some of the Bangladeshi apparel brands have already started doing business globally, but other brands also need to take the same initiative to increase the presence of Bangladesh in the international apparel market.
Now making products for the international market is really a challenging task. To be able to do that it is necessary to take measures. The RMG sector of Bangladesh has the experience of manufacturing apparels for many international brands. In addition to that establishing a Research and Development (R & D) center for apparel manufacturing for the international market can be useful. As the products are for the global market, there must be some strategies for product diversification. Keeping the factor in consideration that Bangladeshi brands have to compete with already established international brands in the market, there must be the assurance of good quality products along with effectively lower pricing compared to other international brands.
Strong marketing strategy is a vital factor for any enterprise. To ensure a good market for Bangladeshi brands in the international market strong marketing and promotion strategy will be the vital factor. To build capability doing business successfully in the global apparel market Bangladeshi apparel brands must ensure quality products & maintain good reputation & country image. So the Bangladeshi brands must increase the visibility of their brand names and quality products in the global apparel market through promoting them in all the possible forms of marketing. Building strong business reputation is not matter of day, business reputation largely depends on some issues like uninterrupted access to all the resources, developed infrastructures, enhancing the skills of the manpower to increase productivity and so on. So the government and the concerned authorities must take necessary measures to upgrade the communication system, to ensure proper supply of all the required resources and to provide sufficient skill development training for the workers with a broader view to maintaining business reputation.RMG sector is an asset for Bangladesh, and by using this asset, it is possible to create a place for Bangladeshi apparel brands in the global market.
Bangladesh has all the necessary resources to show the world that it can offer the world its creation in apparel manufacturing rather than just delivering the orders for other countries.2. Literature ReviewTextile Today published an article entitled “Branding of Bangladeshi ‘Clothing’: are we ready?” In 2013.
The article addressed that in spite of having vast experience in apparel sector Bangladesh didn’t take any initiative for country branding. Here, the article also mentioned the current status of apparel industry & the mode of their branding activity. The core competitiveness of Bangladesh RMG industry is low cost of manpower which is losing it strength. The proposed strategy given here is to create a strong position in the domestic area before going international operations. CITATION Apu13 l 1033 (Apu, 2013). US based consulting giant McKinsey & Company has revealed Bangladesh the ‘next China’ and the firm predicted that Bangladesh clothing export might cross more than 43 billion USD by 2020.
Local Fashion Brands like Aarong, Kay Kraft, Yellow, Sailor, Richman Lubnan, Gentle Park, Cat’s Eye, Amber Lifestyle, ARTISTI, Bishworang, Raw Nation, Occult & Noir have already gained huge popularity in the local market. Few of them trying to go international & few already doing business in international market. CITATION Jas171 l 1033 (Uddin, Many garment makers launched own brands for local market, 2017). Tanjim Hossain have made a survey on the strength, contribution & prospect of future branding among the different types of respondents which was published on Global Journal of Management and Business Research: E Marketing CITATION MdT l 1033 (Md. Tanjim Hossain, 2018). Before going international Bangladesh need extensive research on brand & retail operation for better execution. Region, population type, culture, buying behavior etc.
are the main factors to create better brand positioning CITATION Ell12 l 1033 (Diamond, 2012). In Nigeria, customer tends to buy foreign products rather than local ones CITATION Ogu101 l 1033 (Ogunnaike, 2010). Brand manufacturers are recently opening their own retail stores. This approach helps to focus more on demand of the domestic consumer besides than meeting the needs of their external customers (Euro monitor, 2009). Branding more or less for centuries has been a mean to differentiate goods of one producer from those of another.
Brand can be seen from two perspectives one from companies point of view and other from consumer’s point of view CITATION Amb92 l 1033 (Ambler, 1992). Bangladesh stands in the Developing country preceding the least developing country (LDC). Bangladesh is doing well in several sectors specially small & medium sized industries. It will take time to stand in a better economic position.
Higher income nations generally predominate in more capital-intensive segments, while lower income countries dominate labor-intensive segments CITATION Kil06 l 1033 (Kilduff, 2006). Bangladesh will also enlist their name in the higher income nation one day & they dominate capital intensive segments.3.
Objectives of the StudyThis paper work aimed to find out some outcome regarding the branded apparel products as like-To establish Bangladeshi apparel brand dealing in local market & global market alsoPromotion of own apparel brand can make double export incomeTo sustain in the global market since the RMG industry becomes more competitive day by dayTo not only depend on the purchase order of foreign brandsIdentify the clothing’s local brand most preferred by customersDetermine the various positive attributes of popular local brandsTo find the potential market for Bangladeshi Apparel BrandTo find out the suggestions for future local clothing brand who want to start his clothing brand business4. Research MethodologyThe methodology of this research is neither experimental nor comparative study, this research is innovative in manner. The study is based on a concept which aim is to find the possible solution to long term sustain in the global market for Bangladeshi RMG industries in the nearest future. The first step was to identify the problem.
The problem is-Bangladesh is proficient enough in manufacturing readymade garments but it hasn’t taken any initiative to promote its own international apparel brand yet.Secondly, it was tried to define the identified problem. Here it was tried to show that why indifference in promoting brand is a problem & how it will affect the entire industry. At the Third phase, in order to fulfill the needs of our research objectives we have collected primary data from internet through several online information sites such as Textile Today, Global Journals Inc, Mckinsey & Company, BGMEA, Prthom Alo, Daily Sun, The Daily Star etc. After collecting primary data it was needed some secondary data for the acceptance & authentication of our research report. So, we have taken interview of the Managing Director of Grameen Uniqlo, Director of Alim Knit (BD) Ltd. At that stage data was collected by the designed questionnaire in the light of research objectives. So many positive aspects & suggestions have been found regarding this research objectives moreover some negative aspects been experienced.
After collecting plenty of research resources it was time to analyze all the data for the implementation of proposed research. Here, very important elements were found which would be effective to implement the proposed research such as strong branding strategy, national supply chain, customer buying behavior, join venture, online business, R&D, visual merchandising etc. have been explain consecutively. At the end of the study some recommendations were prescribed which might be helpful for those who are intended to establish a global apparel brand.6. Driving Factors of Taking Brand Initiative for BangladeshBusiness experts predict that a big business in the near future for Bangladesh as China, the largest garments exporter in the world, continues to lose business because it cost of productions are continuously increasing and shortage of skilled workers. Following such a shift in production conditions, Bangladesh’s prospects look bright. At the same time Bangladesh is also facing some difficulties to continue it growth rate.
In these circumstances some facts are closely related to go international integration for Brand promotion. These facts can be classified into two sections. That are-6.1. Pull Factors6.1.1 Potential New EntrantsPotential new entrants pose a threat for Bangladesh due to the increased level of capacity they afford. Such additional supply could drive prices down and cut into the profits of current producers.
The chance of newcomers entering the market depends upon many variables like economies of scales, product differentiation, capital requirements, switching costs; government policy and so on which can play a role in market entry and the ability to compete CITATION Sta04 l 1033 (Standard and Poor’s, 2004).6.1.2. Overall Cost LeadershipCost leadership requires the firm to implement or attain a variety of competencies including efficient-scale facilities, vigorous pursuit of cost reductions from experience, tight cost and overhead control, avoidance of marginal customer accounts, and cost minimization in protection against the bargaining power of suppliers. And the firm controls its costs from every aspect of the operation Particular.6.
1.3. Competitive StrategiesA firm experiences expensive advantage when its actions in a market create economic value and when few competing firms are engaging in the similar action.
Firms gain competitive advantages when their theory of how to compete in a market is consistent with the underlying economic processes in that industry or market. The three main Competitive Strategies are Overall Cost Leadership, Differentiation and Focus.6.
1.4. Price Gap: Lucrative Opportunity to Utilize this GapProduct Per Unit Price (US$) Per Unit Price (US$)BD to USA BD to Sweden USA SwedenT-shirt 2.49 3.41 19 14Polo Shirt 3.
52 3.45 25 17Lingerie 0.69 0.89 13 9Source: Bangladesh Knitwear Industry: Retail Branding Governance & Market CreationTable –016.1.5. Increase Export VolumeMen’s Polo Shirt Men’s T-ShirtAverage Selling Price to Buyer USD 02.
50-05.50Actual Price in the Global Market USD 12.00-20.00 Average Selling Price to Buyer USD 02.00-03.00Actual Price in the Global Market USD 10.
00-15.00Increase Export Volume: 15 billion x 2 = 30 billion15 billion x 3 = 45 billionTable – 026.1.6. Increase competiveness in international marketYear Bangladesh’s Share inWorld RMG Market China’s Share in World RMGMarket2012 5.53% 40.
75%2013 5.70% 41.21%2014 6.21% 38.44%2015 6.4% 39.3%2016 6.
81% 36.4%Table – 036.2. Push Factors6.2.1. Bargaining Power of the BuyerBargaining Power of the Buyer occurs when power is given to the buyer and demand for lower prices, increased quality and more services are made. The amount of power enjoyed by a buyer group may be determined by the concentration of buyers or volume of purchases CITATION Blo01 l 1033 (P.
, 2001). Additional occasion for high levels of buyer power may occur when the purchase represents a large portion of the buyer’s overall expenditures, if differentiation and switching costs are low, if there is likelihood of backward integration and if the buyer is fully informed about demand, market prices and supplier costs.6.2.2. Competition from Substitute ProductsThe threat from competition from substitute products occurs if multiple products are found to perform the same function. Such substitutability relinquishes much of the control from the firm to the consumer. No longer is the consumer at the mercy of the producer for quality, price or availability; instead producers have to worry about savvy consumers and must offer a superior product to avoid the loss of market share CITATION Par04 l 1033 (Parrish E.
, 2004).6.2.3. Rivalry among Existing CompetitorsThe intensity rivalry among brand competitors depends upon the level of saturation within the industry. If in order for one firm to gain market share they must take it from a competitor, the level of rivalry that exists is high, often resulting in retaliation and price wars.
Cats-Eye, Yellow, Richman, Aarong, Kay-Kraft are trusted brands to the customers. The problem is that when they started they were pioneers in their line, where as today, there are multiple brands that are able to deliver the same quality at a lower price perhaps.Rivalry may stem from a variety of sources-Numerous and equally accessibility of distribution channelsBalanced high fixed or storage costsEconomies of scale and overproductionHigh exit barriers such as economic, strategic, and emotional factors7. Current Status of Bangladeshi Apparel Brand7.
1. Local Market IntegrationMany large export oriented apparel manufacturer companies have launched their own fashion brands for the local customers, adding value to the retail market in the country. After the success in the global market, the top exporters now are aiming for the local market with their own brands & already earned huge popularity among local customers. “Bangladesh has potential market as she has a large young population, and their income is also increasing consecutively every year. So, we have started the business in the local market mainly targeting the middle-income customers,” said Rezaul Kabir, assistant general manager for business development of the group.
According to industry insiders the size of the domestic apparel market is about $5 billion a year. At present, the majority of the demand is met by local manufacturers, with some items being imported mainly women’s item from India, China and Pakistan.As the buying capacity of people has increased with the growing middle class, the size of the local apparel industry has been extending in an unprecedented pace. Around 15 large export-oriented apparel manufacturers, who have been supplying clothing items to the top western brands, have created their own retail brands.
Owing to their popularity, they are now opening flush stores across the country.Fashion Brands like Aarong, Sailor, Yellow, Gentle Park, Cat’s Eye, Amber Lifestyle, ARTISTI, Bishworang, Raw Nation, Occult & Noir have already gained huge popularity in the local market.7.1.
1 AarongThe word ‘Aarong’ is a Bengali word meaning the village fair or village market. Aarong also do the same thing like its meaning. It is a concern of Brac, started its journey in 1978. It sells commodities made by ordinary people in the rural area. Originally, the Aarong’s journey was started from the idea of collecting handicrafts from the rural area & selling domestic to the urban area. Now, it has become a versatile & one of the gigantic institutions. Still today the original supply of Aarong’s commodities comes from rural area.
Now the name ‘Aarong’ has become a trust & a symbol of quality to the people.7.1.2 YellowA premium fashion brand, a concern of Beximco Group. It started its journey in 2004 as a retailer. It has multiple collections of fashion clothing, textiles, accessories & fragrance for men, women and children, ceramic items, paintings, books, & many more items in its collection. Yellow has a design team led by high profile designers who have experience at renowned brands such as Pepe Jeans and Massimo Dutti.
Till now it sets up 15 outlets around the country.7.1.3 SailorOne of the leading RMG exporters Epyllion Group, supplies garment items for the western consumers, in 2015 launched its fashion brand ‘Sailor’ for the local consumers & now has five outlets in Dhaka City. CITATION Jas17 l 1033 (Uddin, Many Garment Makers Launched Own Brands for Local Market, 2017).
7.1.4 ARTISTIA concern of Milon Garment, was also among the first local clothing brands and got great popularity after starting its journey in 2000.7.1.5 Amber LifestyleA concern of Amber Group, launched its retail store in 2014 and now has 4 stores in Dhaka City. Shahidul Hasan, director of Amber Group, said “It’s a great opportunity that comes with a lot of challenge.
It is not about denim, we have to bring all kinds of products for men, women and child at affordable prices.”He also said they have an expansion plan but it will depend on the time and demand.RMG exporter Giant Group launched its first retail store in 1998 named ‘Texmart’ and later established another local brand ‘Occult’ in 2007 in Dhaka.
The company has a great recognition as a pioneer in the local retail clothing industry. Faruque Hassan, Managing Director Giant Group, said he realized long ago that local market can offer massive opportunity for fashion brands. “With this realization, I launched a retail brand Texmart in 1998 in addition to the exports,” CITATION Jas171 l 1033 (Uddin, Many garment makers launched own brands for local market, 2017)Trendz, a concern Babylon Group, started its journey with its first retail store in Bashundhara City in 2000 and now this fashion brand has 8 retail stores in Bangladesh.Evince entered into the local retail market through its fashion brand named ‘Noir’ in 2014 and now have two outlets in Dhaka.
Chittagong based denim manufacturer Smart Jeans Ltd opened their retail brand Bar Code & Shoishab. ‘Dhaka Republic’ is another brand brought by garment manufacturer Sonia Group.Market experts said that, the grooming of local fashion brands would help the country to diminish the import of apparel items to the minimum level.”Bangladesh’s economy is expanding and it has a potential market. It is a good sign for the local market ; many export oriented apparel manufacturers who have started retail fashion brands,” said Shahidullah Azim, former vice-president of BGMEA.
He is also the chairman of Classic Group, launched an online store called ‘Brent Wood’. “I launched this online fashion store and now getting orders from abroad,” he added.In conclusion, the fastest growing ready-made fashion brands of Bangladesh can not compromise with their quality. Their target customers are those who can perceive that brand is all about quality & most importantly those who can afford the products. They develop their products for the targeted market based on apparel culture, trends as well as from the religious views of Bangladesh. According to the 4ps of marketing mix, even though they don’t have much variation in their product, they are successful in offering best quality in the market. Their promotional activities are prioritizing to build their quality & reliability attributes on customers mind with trust.
Price is not their main concern to focus in their marketing activities. Being both manufacturer & retailer, they have direct control both on their production, distribution and marketing activities. They mainly target area where the population density is higher, & per capita income is higher comparatively such as Dhaka, Chittagong, Sylhet. The Company fall under the Question Marks in The Boston Matrix which means their market growth is high and on the other hand their market share is low in clothing industry. So, they are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash.Sometimes the changes are good or sometimes the changes are bad.
But they didn’t stop the Changing process and taking measured risk for the betterment of customers, employees, and the organization as a whole. They may not adopt the best marketing strategies but yet comparatively their marketing strategies are best than the other local companies. Their quality is their primary concern in their strategies and they are being successful in maintaining it. No wonder the tag line of the brand is “Quality that you can Trust”7.
2. Foreign Market IntegrationWith the success of the retail brands in local market, RMG entrepreneur said now the apparel manufacturers should focus on expanding their retail business to other countries, but this will be a huge challenge. “As they have already got vast experience in the international market, now they are thinking to go international,” they said. CITATION Jas171 l 1033 (Uddin, Many garment makers launched own brands for local market, 2017)It is needed to expand the local retail shops internationally through concerted effort by the government and apparel makers. Extensive marketing and promotion along with assuring quality standard are also very important for expanding the fashion retail business to global market,” said BGMEA Senior Vice-President Faruque Hassan said.”In order to excel at a global scale, local brands will have to know the demand of global consumers and have to bring new trends and fashions with the change in season” said Denim specialist Mostafiz Uddin, CEO of Bangladesh Apparel Exchange.
CITATION Jas17 l 1033 (Uddin, 2017)AarongThere are many enterprises in Bangladesh who are making world-class products, aiming to be international. One of the enterprises that have introduced Bangladesh in a new identity in the world map is Aarong. Aarong is a unique brand in term of fashionable clothes by embracing the culture ; heritage of Bangladesh with high standards of quality and artistry.Tamara Abed, Senior director of Brac said, “Aarong always works with mission. Aarong has sold domestic products for 32 years. We have never sold any foreign products. I worked in the development of crafts.
We’ve done indigenously, now the confidence has been developed in the peoples’ mind. Everyone appreciates our work at home and abroad. These are basically our strengths, motivation sources. Aarong is very well known to foreigners. The organization has taken their image to such a stage that it is a very common incident that if a state or government head or an important visitor comes to Bangladesh, he/she chooses Aarong. We have to go to the next level. Though we do not have the preparation, we need to go to the international level. I’m trying.
There are some limitations in Bangladesh.”Yellow a concern of Beximco Group is manufacturing clothing, textiles, accessories ; home appliance. Yellow has marked its footprint in Pakistan ; South Korea.
Yellow’s International Retail OutletsNumber Locations3 Pakistan: Islamabad, Karachi, Lahore1 South Korea: SeoulSource: The Daily Star, 18 September, 2007Table – 05It also has distribution partnerships in Algeria and India, and is negotiating to get a brand presence in Thailand and Singapore, Burney said.ARTISTI, a local brand of Milon Garments, has extended its business over the geographic area up to Singapore.Kay KraftShahidullah Azim, also the chairman of Classic Group, said he also launched an online store called ‘Brent Wood’. “I launched this online fashion store and now getting orders from abroad,” he said. With the success of the retail brands in local market, sector insiders said now the apparel manufacturers might be focusing on expanding their retail business to other countries, but this will be a huge challenge.9. Essence of BrandThe constantly changing market creates new challenges to clothing company, and the clients’ demands are also continually increasing, and so it is necessary to offer customers a higher added value.
It is a properly planned brand strategy, the so-called branding CITATION Bra l 1033 (‘Branding – Optymalizacja strategii marki w kontek?cie celów przedsi?biorstwa’). The firm which don’t have a clear vision or specific mission will sink in the mid of the voyage. So it is necessary to launch brand with making some strategy to distinguish not only from the competitors but also set values to the customer to communicate with the market in a manner which would be easily recognizable.
A brand image is defined through its selected symbolic patterns. The most important among these are the brand’s name, logo, and composition of graphic elements and colors all associated with the company. It is crucial for a brand built on these elements to give a clear message to the customer about the kind of company he is dealing with, what its product is and who the clients are. All the elements comprising a brand image have to be closely related to the idea and goals of the company. This certainly helps its positive identification, and as a result a strong and distinct image is created in the customers’ mind CITATION Apu13 l 1033 (Apu, 2013). By translating a business strategy into a brand strategy, the firms become more visible on the market and more understandable for their environment; further more, the messages included in the advertisements reach the potential customers more efficiently. Positive features have to be spotlighted and combined with culture and target groups according to the strategy already developed. This increases customer loyalty to a given product.
It is important that the customer’s mind should absorb and retain as much information about a brand as possible; some time later this is translated into the recognize ability and prestige of a brand on the market. A brand product offers a sense of safety, and guarantees quality and reliability. Brand values are features that appeal to the emotional sphere of human perception .Hence a brand is the most valuable asset of a company, and customer satisfaction is the key to a long-term success. As consumers must have a reason for selecting this given brand from among many others, each brand should have a motto apart from its distinctive usability.
It is necessary to define why it is different and what its position is. A brand is not an advertisement, but rather a whole philosophy underlying a set of combined actions fixed on the company’s success. It is certainly an indispensable tool allowing effective conquest of markets, retention of the market position, and international competition.10. Why Branding is required for Bangladesh? Branding is a tool for promotion of sale in the marketBranding aid in knowing the customer’s requirements It creates special consumer preference over the product.It facilitates easy advertisement and publicityTo sustain the competitiveness positionTo identify key competitive issues in the textile and apparel industryTo satisfy the customers demand towards a branded products.To enhance the export of knitwear ($220 billion export markets ; more than $1 trillion retail markets in the world)Adding more foreign currency to the national reserveTo grab the market of US$108 billion left by china by 2025To increase the global value addition in the supply chain (N.b.
Currently Bangladesh is adding only 6-7%Create global value chain for knitwear products11.2 Product and Market Survey11.2.1 Why product and market surveys?Making the right products for the right people is difficult.
Making your product for the right person market survey is done. When you are investing on a business you might utilize risk you can. Gathering proper feedback gives you the insider knowledge you need to evaluate your products. Plan new releases, grow your business and succeed in competitive marketplace.Pick your audienceFrom the general population, you can define and get insights from your target market quickly.
We’ve profiled millions of people on hundreds of different attributes so you can reach the audience you need, including segmentations profiled by their job status, types of style, living situation, education, marital status & income.Reach your customersSocial sharing website integrations will help you to reach your target market.Get instant feedbackDon’t wait days or weeks for your feedback, be there right when it happens.Create better productsWhether you are making fashion apparel product feedback will get you prepare on your way. Being more competitive, improving your product, and creating items your customers will love your products.
Pains ; NeedsUnderstand customer needs ; concern that your products can reduce the pain now or future.AssociationsWhat associations make by your consumers when thinking of your products, brand and designs?FeaturesFill the desire feature that consumers demand.PricingBefore pricing you need to think about the target consumer willing to pay ability.
Explore new marketsUse market research to uncover new opportunities before entering a new market. Identify the small segment that can make a big difference. DemographicsTarget market should be demographically perfect, before setting a shop or select a place should concern about demographic position Verify opportunitiesBefore selecting your market verify that it is profitable. The desire market should have more opportunities.Product-market fitFind your best customer on the new market and how can you adapt to reach product-market fit.Market readinessResearch your product can fill up the demand of your consumers now or in future. Existing products and servicesRepot on your current product in the market.
Need to know customers like and choice. Improve the service for current users and attract new customer.New products and servicesAlways grow up with a planning ; discover new product ; promotion for desire market. Launch the product or service on desire time. Quality controlFollow up your product till delivery ; avoid unnecessary thread. A product quality survey can help a good quality product and service. Adjusting featuresUse product satisfaction survey and find the customers demand.
Eliminate unnecessary features that customers do not like. Adjusting features will improve maintain the market strategy.Usability testingThe product of your company should be easy to use for the customers. This survey can improve finding a product problem ; will create customer satisfaction.Pricing pollsPrice should always appropriate for the target market.
Too much price will lose your customers ; too much lower price can kill your company value in the competitive market.11.3 Integrated Marketing Communication11.3.1 Brand AnalysisGarments manufacturer are known for their quality, durability and beauty. Textile and apparel industry benefits from a large pool of skilled low cost workers than any other country in the world. It will take advantage of all these factors and will enter the global market. It is an advantage over its competitors in terms of the quality of products being exported and also the price.
The garments industry in Bangladesh is the best by compering quality ; cost in the world. Bangladeshi readymade garments are extremely popular all over the world over.11.3.2 Cheap and high qualityTo enter in the global market we have to apply the cost leadership technique as a new brand to the market and unknown to the customers.
Quality will always first in comparison to the cost because quality attract a consumer rather than low cost.11.3.
3 Mass customization availableWe can produce customized product, mass customization will also be given us as a choice for the business customers. Consumers can provide their designs and ask for manufacturing or get it done. It can be easy way to get place to the market.11.3.4 Packaging:Being a manufacturer the products will be packed when imported from Bangladesh and delivered to the customers directly after checking the samples.
11.3.5 Support Services:We can open our office in several countries to meet the customer complaints. Customer satisfaction should main focus.SWOT ANALYSIS:Brand strengths:High quality product in low cost.
Many variety of designsAvailable mass customizationBrand weaknesses:Lack of knowledge of the global brandingToo many established brand in the market – could compromise on qualityLack of contacts in the marketplaceOpportunities:Easily expand the target marketCan expand the product lineEnter the competitive market as wellThreats:Threat of new entrantImport/export rules and regulations changes11.3.6 Media SelectionWe are living in a modern life. Consumers can get in contact with through the reach of many different channels.
The important task for brands and their marketers is to find out what media is preferably used by their audience and see if this particular media works with their brand message and their actual product. A thorough scan can help in choosing the adequate channels. A choice is necessary because a brand will not have enough resources, be it human or monetary resources, to be active on all marketing channels (Team, 2013).
It is also recommended to change up your channels, depending on the product and message you need to deliver. The use of just one single medium is not generating the best benefits for a company. Cross channel usage at the same time is believed to be the next best thing. If you use many channels for your customer communication, your chances of reaching your audience increase, because each channel regulates different benefits.
Single channel use will put a limit on the company’s overall achievement. “The most successful fashion brands will embrace a blend of both traditional and new media to communicate a consistent and authentic message across multiple channels in a manner that both piques customer interest and creates long-term brand value” CITATION Tea13 l 1033 (Team, 2013).11.
3.6.1 Digital Media (Internet & Online Marketing)Digital media is the youngest channel group of this bunch. It is also the most low cost one. The internet is the most rapid growth communication way in the industry. Having the internet on their display, companies have the possibility to conserve 10-20 % of their marketing budget, if they invest more in digital media rather than in traditional channels CITATION Clo07 l 1033 (Clow, 2007). Everything is easier to rich to the desire customers. The internet contains a huge number of information.
The online world is very complex but it is a nexus that can reach the consumers much easier. The users are offer individual ads just for their interest, online advertising can monitor the online path of the user choice. The fashion industry is also grown up with the rise of the internet. Apparel is the third most sold online commodity after travel and electronics CITATION Kim05 l 1033 (Kim, 2005). That is why it is the most efficient way to reach to the consumer. Website & e-commerce, email marketing is the ways though internet & online marketing.
Website and E-CommerceA brand website is like online flagship for his company. When someone wants to look for information about the brand a he or she will goes on to that page & get inspiration by its outlooks, choice products, or contact the brand about any information. A website is online store like as the actual store.
It can deliver the same benefits that a customer can get from the store. In the online environment the in-store feeling needs be realized. All experiences can found in a digital form at the website. The website should be inviting through its design and visual aspects, as well as being easy to handle, just like a store. Now it is easy to inform the visitors about the latest trend and what goes on back stage at a fashion label. The news spread faster through the social networks. People started to see online shopping as their hobby. Too many consumers love shopping but due to their working hours the stores are closed when they leave the office.
Online shopping gave them the shopping solution any time.Email MarketingInstead of receiving something from the company via mail, the customer receives the electrical version into his or her email account & that thing of marketing is email marketing. This method of marketing should be individualized. Their click stream behaviors are observed. Then internet direct marketing used to offer consumers products based on their latest buys. The online stores and websites the organizations should optimize their email sending into a mobile format, people are used to open emails via their smartphones. Most widely spread form of email marketing is the newsletter. The customer subscribes at the newsletter in the website and then receives weekly or monthly news about their desire. Before launching a new product or a new store is opening, the consumer will be informed via the newsletter. People feel more connected to the brand if they are treated individually CITATION Buc16 l 1033 (Bucher, 2016).TELEVISIONTelevision would be a strong medium to introducing a new brand and its products into a new market. Most of the individuals and households have a television and give ads on the most viewed stations. The competitors would raise awareness in an effective manner.RADIORadio is one of the best ways to reach the target consumer during their daily life. Before the invention of television, radio has never been the same, but it becoming old and ignored. Now it switched formats and became the King of the Road. On an average a person can spend up to 3 hours round trip in his daily traveling and radio includes commotion by personal and public vehicles.NEWSPAPERSNewspaper can reach to a wide spread demographic and varied general content it would be the most economic and reliable mode of media. The community is more driven by the regional newspapers available in regional languages. On an average, everyday millions of newspapers are picked up by the people. So it would be a strong connecting media to reach consumers.MAGAZINESMagazine is a high content within the basic target market with a unity of all the age ranges. Placement of ads in multiple magazines, it will total focus on the target market. It is a great manner to engage and drive the prospects. Selection of specific magazines geared towards the target market with magazine. Focus on lifestyle, fashion and trends would leverage the brand image and awareness level amongst the chosen demographics.11.3.6.2 OUTDOOROutdoor advertising is a vast idea and includes various themes. This media is also effective to concern consumer attention. But the selection of the place is also important on outdoor advertising. Some outdoor media are; Bill Boards, Hoardings, Bus Backs, etc.Public Transport HoldersThe huge communities are generally out of their homes to meet their daily needs travel different places for work and leisure. To reach the communities and in the outdoor environment it could be a good media.12. The Opportunity for Bangladeshi Apparel Manufacturing CompaniesDespite of being the second largest exporter of RMG products and producing for global apparel brands, the country don’t build its own clothing brands with name recognition in the international arena yet. Bangladeshi manufacturers have to invest more in research and fashion development, focusing on trendy and innovative designs considering the taste and behavior of the local ; foreign consumers. Market insiders said the flourishing local fashion brands have helped the country to cut the import of apparel items to the minimum level.Bangladesh holds a 6.4% share of the global RMG export market. Of the country’s $34.65 billion export earnings last year, $28.14 billion came from the apparel sector. Business Experts say Bangladeshi RMG manufacturers have to invest in research and fashion development, focusing on trendy and innovative designs considering the taste and behavior of the local & international customers.They point out that China is reaping out the benefits of its investment in research and fashion innovation in creating brand. ” Now The biggest challenge is competing in terms of quality and designs, as established brands already have a strong foothold in the global apparel markets,” Hadi SA Chowdhury, head of retailing of Yellow, a local clothing brand owned by Beximco, pointed out.Yellow is currently running four (4) outlets in Pakistan & is considering venturing into the market of Europe and North America. To overseas expansion, Hadi said, it was essential to explore markets and understand the dressing pattern of the regions.Mostafiz Uddin, managing director of Denim Expert, who is arranging Bangladesh Denim Expo, said Bangladeshi manufacturers needed to globalize their innovative products as well as the industry strength.”A Bangladeshi manufacturer has to keep in mind that he is going to compete world’s top brands like Zara, H;M, GAP, Levi’s or Marks and Spencer. The key tool to fight would be innovative fashion design and products,”He also mentioned that Bangladesh need international exposure. It has to arrange fashion shows to showcase product diversification and varieties, as well as participate in international events to learn innovations.12.1. Survey Report AnalysisA survey was made with the help of some of the textile professionals regarding different facets of Branding Bangladeshi Apparel Products for global Market. Findings are illustrated below:All respondents agree that it is possible to uphold our country image by building Bangladeshi Apparel Brand in global Market. 66% have strongly believes on those issues. The question was, whether Bangladeshi clothing brand will be able to compete with the world famous fashion brands or not. On the question, if Bangladesh has some reputed international apparel brands then it will help to increase RMG industry strength or not, 66% of them strongly agree that Bangladeshi clothing brand will fit enough to compete with world famous brand. 50% strongly agree, and the remaining agrees that it will increase the strength. On the question, building international brands can contribute to the GDP, and economy of Bangladesh, 83% strongly agree, and the remaining only agrees that it could be.Analysis of the surveyQuestions 5 4 3 2 1 Remarks1. Is it possible to uphold our country image by building Bangladeshi Apparel Brand in global Market 34 66 0 0 0 Yes2. Bangladeshi clothing brand will be able to compete with the world famous fashion brands 34 66 0 0 0 Yes3. If BD has some international apparel brands then it will increase the strength of RMG of Bangladesh 45 55 0 0 0 Yes4. Building international apparel brands can contribute to the GDP, and economy of Bangladesh 83 17 0 0 0 YesNote: 1 – Strongly Disagree, 2 – Disagree, 3 – Neutral, 4 – Agree, 5 – Strongly AgreeSource: Branding of Bangladeshi Apparel Products in International Market: A SurveyGlobal Journal of Management and Business Research CITATION MdT l 1033 (Md. Tanjim Hossain, 2018)Table –06Image – 01Table – 07Source: CITATION Ell12 l 1033 (Diamond, 2012)12.2 Factors Behind Purchasing Behavior in Apparel ProductsIt is considered that apparel products’ visual and physical characteristics have a great impact on consumer purchasing decision. Most of the cases it was concerned with the preference of product attributes. Therefore, it is proposed to extend consumer behavior studies in textile ; apparel area with special concern of fit, size, comfort ; performance. The country of origin is defined as an important part of textile products that could impel or discourage consumer to buy a product. Purchase channel has been an important concern for researchers as it constitutes the environment of buying process. This environment affects well the consumer buying decision. In USA, factors affecting buyers behavior form actual store were: type of clothing desired, outside appearance of the shop (such as window display and landscaping), shopping hours and advertisements. In Canada, females and especially middle of the road consumers were reported like buying from shopping malls. Independent shops were preferred by consumers in Izmir city, Turkey. However, Russian consumers (after communism) prefer buying textile products from apparel shops rather than street markets seeking products of good quality. A study carried out in India found that variety of collection available in showroom is essential for buyers and innovative and attractive ads and hospitality and promotional activities could attract purchasers to actual stores. In England, sight was the most important sense used in recognizing actual stores followed by hearing and then smell. Touch was the least important sense in buying apparel products from store.Proper display of collection artifacts including 3D presentation, enabling enlargement features, customize the viewing process was suggested to increase intention to buy online. Interactivity customized alternative information availability and virtual experiences were three key customized electronic site features proposed by researchers to affect consumer attitude toward inter-net apparel shopping and could encourage a consumer to purchase. Mobile apps have been increasingly becoming an important tool used in electronic shopping for determining the importance of fashion products assisting retailers to implement, enhance or dismiss the stimuli from their app. matching of offline and online consumers’ selection for textile and apparel products was found highly dependent on the person and the product..Price of apparel products is a crucial factor affecting consumer purchase decision. Studies carried out in USA, Australia and Turkey showed that price is the most important factor-affecting consumer purchase decision and overweight other product attributes. Value brands of apparel products have been increasingly playing an important role in textile, apparel and fashion market. Supermarket clothing market could be a thriving market for both young and children consumers in the near future..Creating significant image and name of textile and products were found leading to consumers’ loyalty, however not enough for marketing man-made fibers. Advertising of textile and apparel products could be carried out using various media. Printed advert in magazine is one of the promotional tools. A study conducted in Taiwan found consumers highly influenced by the design of print apparel advertising rather than detailed information included. Using celebrities in advertising of textile, apparel and fashion products is effective for teenagers in China..Consumer purchase decision towards fashion apparel has been studied. However, fashion is always seeking newness and uniqueness, UK consumer were found more self-expressive than following fashion. Fast and slow fashion consumers seek product conform to their self-image, however there were differences in terms of utilitarianism concept. Mass customization is an alternative marketing technique by which manufacturers and buyers could be able to satisfy costumer’s needs and wants promptly. Females were found buying fashionable apparel more than men. Consumer involvement level should be considered by manufacturers and sellers as it influences purchase decision making..For variables related to consumer, there were found impact for consumer lifestyle in recognizing the symbolic meaning of textile products. Consumer was found with good intention of buying textile and apparel products made in sweatshop-free labor conditions and eco friendly manufactured products. However, they need to be well guided for these products. The current study is considered stimulating for future research directions to academia and practitioners. It was found that designers, manufacturers, and sellers of textiles and apparel products should be up to date with target consumer behavior, which is affected by several variables dependent on market and consumer.14. Global value chains In global capitalism, economic activity is international in scope & global in organization. “Internationalization” refers to the geographic spread of economic activities across national boundaries. It is not a new phenomenon. It has been a prominent feature of the world economy since at least the seventeenth century when colonial powers began to carve up the world in search of raw materials and new markets. “Globalization” is more recent, implying functional integration between internationally dispersed activities.14.1. Buyer-Driven & Producer-Driven Value ChainIndustrial and commercial firms have both promoted globalization, establishing two types of international economic networks. One is “producer-driven” and the other “buyer-driven”. In producer-driven value chains, large, usually transnational, manufacturers play the central roles in coordinating production networks (including their backward and forward linkages). This is typical of capital- and technology-intensive industries such as automobiles, aircraft, computers, semiconductors and heavy machinery. Buyer-driven value chains are those in which large retailers, marketers and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in developing countries. This pattern of trade-led industrialization has become common in labor-intensive, consumer-goods industries such as garments, footwear, toys, handicrafts and consumer electronics. Tiered networks of third-world contractors that make finished goods for foreign buyers carry out production. Large retailers or marketers that order the goods supply the specifications. Firms that fit the buyer-driven model, including retailers like Wal-Mart, Sears and JC Penney, athletic footwear companies like Nike and Reebok, and fashion-oriented apparel companies like Liz Claiborne, Gap and The Limited Inc., generally design and/or market—but do not make—the branded products they order. They are “manufacturers without factories”, with the physical production of goods separated from the design and marketing. Unlike producer-driven chains, where profits come from scale, volume and technological advances, in buyer-driven chains profits come from combinations of high-value research, design, sales, marketing and financial services that allow the retailers, designers and marketers to act as strategic brokers in linking overseas factories and traders with product niches in their main consumer markets. Profitability is greatest in the concentrated parts of global value chains that have high entry barriers for new firms. Thus, large manufacturers control the producer-driven value chains at the point of production, while marketers and merchandisers exercise the main leverage in buyer-driven value chains at the design and retail stages14.2. Upgrading of Regional Capabilities within the Apparel Supply Chain In the past, the global apparel industry has been characterized by a large number of exporting countries due to the MFA quota system, but the level of export concentration is sharply increasing. The apparel supply chain is also marked by substantial country specialization. Higher income nations generally predominate in more capital-intensive segments, while lower income countries dominate labor-intensive segments (Kilduff & Ting, 2006). The most labor intensive activity is apparel production, followed by textile (yarn and fabric) production. The most capital-intensive segments, such as man-made fiber production and machinery manufacturing, are located upstream where barriers become progressively higher (Gereffi & Memedovic, 2003). As countries grow richer and wages rise, the comparative advantage in manufacturing is eroded, and the focus shifts to high value-added products or to other manufactured products with lower labor intensity (Adhikari & Weeratunge, 2006). Figure A-3 (see Appendix) illustrates how this division of labor between countries at different levels of development shapes the pattern of industrial upgrading in the Asian apparel value chain. The main segments of the apparel chain – garments, textiles, fibers, and machinery are arranged along the horizontal axis, and they reflect low to high levels of relative value-added as capital intensity increases. Countries are grouped on the vertical axis by their relative level of development, with Japan at the top, China and India in the middle tier, and the least-developed exporters like Bangladesh, Cambodia, and Vietnam at the bottom.This figure reveals several important dynamics about the apparel value chain in Asia. First, individual countries tend to progress from low to high value-added segments of the chain in a sequential fashion over time. Second, there is a regional division of labor where each & every region forms in every level of development. (e.g., the US generates the product designs and large orders, Japan provides the sewing machineries, the East Asian newly industrializing economies (NIEs) supply fabrics, and low-wage Asian economies like China, Indonesia or Bangladesh sew the garments). Industrial upgrading occurs when countries change their roles in these export hierarchies.Table – 08OEM= Original Equipment Manufacturing,OBM=Original Brand Manufacturing, ODM=Original Design Manufacturing,CMT=Cut Make & Trim14.3 Lead Firms in the Contemporary Apparel Value ChainIn the apparel value chain, there are three main types of lead firms (retailers, brand marketers, and brand manufacturers), which are highlighted in Figure 1. These lead firms not only have significant market power because of their size (reflected in sales), but they also have moved beyond production to different combinations of high-value activities, including design, marketing, consumer services, and logistics.Figure – 02The Global Apparel Value Chain: What Prospects for Upgrading by Developing Countries?14.4 Vertical Integration on Product Manufacturing14.4.1 The facilities of vertical integration in the RMG industryReduction Transaction CostsEliminate, or greatly reduce the buying and selling costs load is the major thing, when separate companies own two terms of production and the physical handling costs. So reduce the cost, a company that manufactures integrated circuits at the same time finished products can operate with little or no sales force, advertising, sales promotion, or market research. Another producer selling to independent customers would need all these activities.Supply AssuranceTo assure a supply of critical materials vertical integration is also important. Materials costs, shortages of materials in industries with high fixed costs are extremely damaging lead to low usage of expensive facilities for assuring proper supply within low cost.Improved CoordinationVertical integration may permit cost reductions, when supplies of materials are certain through improved coordination of production and inventory scheduling between stages. If we have better vertical integration we can make better coordination among the customers & also retailers.Technological CapabilitiesSome claim that, in general, businesses and companies that are vertically integrated, especially backward, are best equipped to innovate because they participate in many of the production and distribution activities in which change can occur. This argument rests in part on the notion that a critical requirement for successful innovation is adequate coordination of marketing and technical functions and that integration improves coordination. CITATION Wag75 l 1033 (Wagner, April 1975)SWOT ANALYSISStrengthVertically integrated business has full control over the business.Strong communication system that operates to meet demand. Able to quick delivery. Can easily outreach to global.WeaknessClosely tied with competitors Target market not consumeAdvertising not possible Limitation of quality & serviceThreatCompeteLimitation of goods Economically lowdownOpportunityOnline marketplace & E-retail Possible of internationally expansion14.4.2 Competitive Advantages of Vertical IntegrationHaving shops gives knowledge into its customers really wantEasy on the variety, amount, and frequency of their productHelps to make its manufacturing operations fasterInnovate fast fashion systemCentralized controlAvoid misunderstanding or conflictsEasily manageable time scheduling14.4.3 Challenges in vertical Integration SystemPreferences to coordinate the local customersQuality and perception issuesLocal transportation costsAdjusting retail & customer retention14.4. New Roles and Relationships in the Apparel Value Chain The roles and relationships among national and global lead firms, apparel manufacturers, and intermediaries have become increasingly blurry in recent years. The following trends are closely tied to buyers’ strategies and long-term objectives. These shifts began before the economic crisis and will likely persist after the crisis is over. Brand Owners Becoming Specialty Retailers: Brand manufacturers and marketers are increasingly opening their own stores. In addition, brands with existing retail operations are likely to focus more on their own stores rather than meeting the needs of their external customers (Euro monitor, 2009).Full-Package ‘Manufacturers’ Becoming Intermediaries: Rather than manufacture, they establish a network of global suppliers. Essentially, these suppliers are doing what brand marketers and manufacturers did 10 to 20 years ago. There are a host of firms in countries around the world that make products for multiple brands, based on the buyers’ requirements. They provide full-package services along with production capabilities.Increase in Private-label Brands: There is a sharp increase in the volume and diversity of retailer private labels. Retailers that develop proprietary brands use in-house design teams and outsourced manufacturing capacity, often by direct foreign product sourcing. By eliminating the middleman associated with national brands, retailers can shave costs and widen profit margins. Today, retailers are expanding the range of private-label products offered and developing higher-margin private-label goods (Euro monitor, 2009).14.5. Short-Term Suggestions to Get Through the CrisisImplement the equivalent of “furlough” days rather than lay off workers. By reducing the number of hours or wages, firms and countries can maintain the labor force and industry expertise that will be needed when production returns. CITATION Gar10 l 1033 (Gary Gereffi, 2010)Improve access to credit. Encourage production for the local market to keep companies in business. For example, MOL Magazalari (Turkey) is a consortium of 38 local clothing manufacturers that have recently set-up manufacturer-owned shops selling goods “Made in Turkey” (including design and marketing). The group would like to expand retail operations to other countries, but success will depend on the group developing a real competitive edge (like Inditex in Spain). These Turkish firms have used the crisis as an opportunity to upgrade their skill sets in marketing and retailing that is helping them survive the recession and become more competitive in the future CITATION The09 l 1033 (The clothing industry and the economic crisis-a just-style review, 2009).14.6. Long-Term Suggestions to Enable Growth after the CrisisEducation and Training: Invest in both education and training opportunities to overcome the skills deficits that could hinder economic upgrading. Whereas quotas helped to initiate a textiles and clothing industry in developing countries, maintaining or improving a country’s position in the global apparel value chain requires a continuous process of workforce development. In the long run, innovative capacities depend on suitable human capital. Education should include technical skills as well as soft skills in areas such as management, product development, design, and market research.Marketing ; Networking: Create organizations to market and network the country/region and align firms with international organizations dedicated to standards development, industry advocacy, research and development, and best practices. Provide assistance to attend and participate in international trade shows to increase visibility to potential buyers. Promote Foreign Direct Investment or Joint Ventures to Develop Vertical Capabilities: Countries without domestic textile production should promote FDI in countries that do not have vertical capabilities. This is a good strategy for countries that are still dominated by assembly or CMT production models, such as Africa, Southeast Asia, and the Caribbean. This will help to establish backward linkages and to develop skills not in the country. Economic authorities need to provide a one-stop shop for any investor or supplier wishing to set up a new firm CITATION Kna08 l 1033 (Knappe, 2008).Technology Investment and Flexible Production Systems: Stakeholders with a long-sighted vision of recovery are prepared to invest in technology that enables more efficient and flexible business and production models. Investments are needed to upgrade production machinery as well as logistics and information technologies that enable suppliers to become more integrated into their buyers’ networks. Enterprises willing to invest in creative solutions are likely to be the winners in the aftermath of the recession.Develop Full Package Capabilities: Buyers not only want to purchase a final product, they want to purchase services. Firms must be able to (or have alliances with firms that can) provide additional services related to product development, design, logistics, and quality control. Global brands and retailers are starting to move product development and design divisions closer to regional manufacturing. Suppliers able to offer these services can be indispensable to the buyer (strategic suppliers) and are likely to maintain market share through tough economic times. International & Regional Standard Certifications: Encourage and provide assistance to firms with product and process standards required by international buyers, such as ISO 9000 & 14000, the Global Organic Textile Standard (GOTS), and the European Union’s REACH directive. Promote Sustainable Practices ; Production: Surviving suppliers will be companies that chose to compete on their environmental credentials in addition to cost, quality, and other traditional factors. Whether legally enforceable or “voluntary,” making adjustments to have a more green and transparent firm and supply chain will be mandatory to compete in the future. Countries that develop policies that facilitate the transition to more sustainable practices will be the winners. Diversify Buyers, Products ; End Markets: Encourage firms to diversify into multiple product lines and end-use markets as well as different geographic markets. Equally important, suppliers should expand their export focus to emerging countries with growing disposable incomes. These markets are often less demanding than traditional export markets in the United States and the European Union, but they offer more opportunities to upgrade skills to higher value-adding functions such as product design, marketing, and branding. Bilateral and regional trade agreements can help facilitate this process and build future long-term relationships.Figure – 03Industrial Upgrading by Asian Economies in the Apparel Value Chain15.Proposed Strategies for Launching Own Apparel Brand in the Global MarketThere are several burning questions against launching apparel Brand by Bangladesh for the global market. Those questions are-whether Bangladesh is capable of initiating a global apparel brand or not, What will be the strength of Branding for Bangladesh?Can Bangladesh meet the demand of global customer?Can they ensure the quality of product?Can they adopt the taste, trends ; culture of foreign consumer?To find the best answer at first it is required to determine some key factors which can help to make the SWOT analysis. Here we tried to analyze the strength, weakness, opportunity ; threats to determine the possible answer-SWOT Analysis of establishing a Bangladeshi Apparel Brand for the Global MarketStrength Low cost of manpowerSkilled human resourcesYoung ; talented fashion designerEasily accessible water and air communicationA wide range of port facilitiesA high-quality standard for RMG productsLow labor cost and cheap resourcesCapability of producing various types of garmentsFavorable business climateReputation for RMG products in the global marketWeakness Lack of skilled business consultantLack of willingness to brand creation of local entrepreneurLack of enough manufacturing methods and advanced technological knowledgeLack of sufficient fund, training personnelUnsafe ; unhygienic working environmentInsufficiency of utilities (electricity, gas, water)Compliance issues are not fulfill yetLower efficiency in productivityOpportunity Potential new Entrants Price LucrativenessBusiness enter into a Competitive marketReputation of quality product around the worldSufficient cheap resourcesFavorable export transportationExtensive support from the Government in textile ; RMGInternational support in export business for being least developed countryThreat Risk of lossesCustomer buying decisionWithdrawal of Free trade ; quota benefitHave to compete with giant global brandLabor unrest in RMG sectorPolitical instability15.1 Product DevelopmentToday’s competitive market Product development is the core competitiveness to sustain in the market with reputation as well as greater profit. Product competitiveness is the ultimate process of bringing new product in the existing markets. In the market whether it is old or new, RMG products need to be modified to meet the demand of the market and opportunities. In 2002, Bangladesh exported a total of 183 types of RMG products including 87 knitwear products and 96 woven products which increased in 2011, it exported 200 types of RMG products including 97 knitwear products and 103 woven wear products. Meanwhile, at least 20 knit and 10 woven wear products were newly introduced. Previously Bangladesh RMG sector export only basic T-Shirts and other low value added knit and woven garments. However, currently it produces a variety of RMG products including sportswear. Moreover, it produces sportswear for Olympic Game regularly or occasionally, FIFA World Cup and other international event too. According to Export Promotion bureau (EPB), the total garments exports to the United Kingdom have been increased by 20 per cent in last fiscal year (FY 2011-12) because of mainly London Olympic Game 2012. He reported that According to the industry insiders, during July 2012, over twenty per cent of the total RMG exports to UK were sportswear. They also added that most of importers have imported jerseys, T-shirts, overcoats, car-coats, caps, ski-jackets, cloaks, wind-cheaters, wind-jackets and similar articles like blazers, jackets, trousers for men, women, boys and girls, for the Olympic Game 2012.15.1.1 Geographical Indication (GI) ProductAccording to World Intellectual Property Organization (WIPO), GI is a name or sign used on certain product which corresponds to a specific geographical location or origin such as a town, region, or a country.Bangladesh government has recently enacted a law, Geographical Indication Act 2013 to protect the rights for GI products. According to the act, geographical indication (GI) is a sign which defines the source and contains the goodwill of a product that originated in a particular area.The word Jamdani is Persian-origin, deriving from ‘Jam’, meaning flower, and ‘Dani’, a vase or a container, named after decorative floral patterns found on the Dhakai textiles. “Jamdani” has got registration as the first Geographical Indication (GI) product of Bangladesh. The classic Muslin craft and one of the finest textiles of the country got the GI registration and become the first GI product of Bangladesh. CITATION Jam16 l 1033 (Jamdani — 1st GI product of Bangladesh, 2016)”By getting GI registration to Jamdani, the country has stepped ahead to protect the rights on traditional and national products,” the industries minister told the certificate giving ceremony, held at his office in the capital. CITATION Jam l 1033 (Jamdani first GI product of Bangladesh)On the other hand Nakshikantha another exclusive item has its historical, cultural and geographic roots to the soil of Bangladesh has already lost its famous products like for failing to pass the law in due time. Nakshikantha was registered as a GI product from the country in 2008. CITATION Abu17 l 1033 (Siddique, 2017)Bangladesh government is recently concern with the dependency on import textile fiber & yarn. They recently have announced that they will make viscose fiber from jute with the help of Chinese technology Bangladesh Jute Mills Corporation (BJMC) and China Textile Industrial Corporation for Foreign Economy and Technical Co-operation signed an agreement. According to the agreement, China will provide technical and financial assistance to Bangladesh for the project. CITATION Man17 l 1033 (Manufacturing of regenerated cellulose fiber (viscose) in Bangladesh using jute as a raw material, 2017)Bangladesh imported 33,737 tones of viscose last year which market value is about BDT 650crore. About 50-60 spinning mills use viscose fiber which is mixed with cotton fiber to manufacture yarn said Mansur Ahmed, Secretary, Bangladesh Textile Mills Association (BTMA); if it is produced domestically, the mill-owners will get benefited. CITATION Ban16 l 1033 (Bangladesh to make viscose fibre from jute, 2016)Moreover, Woven Fabric of Sirajgnj is waiting to get GI certificate. Sirajganj is popular for its woven based textile & clothing like Lungi, Gamchha, Saree & other hand loom items. If the government concentrates & provide sufficient facilities on this small industry one day it would be the second largest sector of export incomeGovernment didn’t keep sufficient data on GI products. Sufficient records are necessary for GI registration which is not maintained. e.g. we do not have proper historical data of Jamdani, Muslin ; Nakshikantha. CITATION Geo14 l 1033 (Geographical Indication Products, 2014)The enactment of the Geographical Indications of Goods (Registration and Protection) Act in 2013 gives new momentum to the policy advocacy to protect Jamdani, Nakshikantha ; other items as GI for its market value and to preserve it as a national heritage.The government has already passed laws in parliament and wrote various rules to provide registrations for GI products. Now rights of the artisans and specific industries are well established across the globe. ‘Jamdani producers will be encouraged and benefitted by the trade mark.15.2 Product DiversificationBangladesh needs to invest more in product diversification. It’s not mean that Bangladesh has to change its RMG product; it means that Bangladesh should be more dynamic in their offered product. They should produce different range of textile ; clothing products. Bangladesh has vast experience in producing low price basic garments such as T-shirt, Polo Shirt, Trouser CITATION Tra17 l 1033 (Tradeinformation, 2017). But now it should generate more stylish product which carry high price range. China, Vietnam, Thailand produce high price range products such as winter jacket, formal shirt, trouser, coat blazer etc. the core benefit of produce these type of product is more profit by less production. So, it is the right time to produce high price range product along with basic garments.15.3 Establish fashion institute ; promotion of R;DFashion institute can play a vital role for the long term sustain of apparel industry of Bangladesh. In developed country specially who are well recognized for their fashion trends such as England, Italy, USA, France, Germany have several fashion institute. Recently, developing country are take operations in the same manner. Bangladesh has several fashion institute such BGMEA University of Fashion ; Technology, Shanto-Mariam University of Creative Technology, Ahsanullah University of Science ; Technology, National Institute of Fashion Technology etc. are offering several fashion ; other textile based course by which creating a skilled ; efficient human resourse.Besides dealing business with the foreign buyers companies are establishing its own Research ; Development Department to meet the current demand of the customers. This R;D is responsible for developing new fabric construction and meets the buyer’s requirement efficiently and effectively. R&D is using world-class textile design software “Dexpro” by famous software company “Textronic”,Foreign designers are taking lots of money from Bangladesh every year. In these circumstances, the apparel industry should bring R&D department to create strong position & vital contribution for the industry & country as well. It’s a great news that our young generation are now studying in fashion designing. Most of them are working in the local fashion houses. They are doing well in the fashion arena. So, near future our fashion designers would be able to reach in better positions not only in the local market but also in the export oriented fashion industry. CITATION Ahm17 l 1033 (Ahmmed, 2017) Many RMG manufacture now open R;D department by recruiting some young ; talented fashion designer along with the senior fashion designers. They all are graduated in several fashion universities ; institutes in Bangladesh. Mondol Group, a leading RMG manufacturer in Bangladesh have determined to produce fashionable clothing not for the local market but for the global market too. Their fashion designers are concern to the local ; global fashion trends, try to make exclusive dresses to attract the buyers.15.4 Online Sale – The Future of the Apparel IndustryOnline activity is no more a luxury, it’s a necessity. Now a day it becomes habit. Now, what difference things does it bring for fashion retailing? Warren Buffet, the most respected investment guru betted that: “the brick-and-mortar real estate will hold up better than others in the age of Amazon.” Physical stores are becoming more expensive over time due to rising cost. Moreover, in many cities the number of mall goers is alarmingly going down. Many popular brands are closing down hundreds of their retail stores, which is being replaced by online sales operation. So, offline retailing (online sales) is going to be the next big marketplace for fashion retailing in the near future & save the space to better ecological balance.Chinese Smartphone maker Xiomi, which started with nothing in China, is now selling more than SAMSUNG and Apple. It sells its brands completely through e-commerce. So, it can be easily assumed that retail operation through online would be a revolutionary approach in future. CITATION MDF15 l 1033 (Rahman, 2015)A recent survey showed that Western fashion companies may be facing more competition from Asia this year, as the Asia already accounts for 60 percent of the world’s total e-commerce, more than half of global online retail sales. According to the McKinsey ; Company, Asia is expected for nearly 40 per cent of global apparel sales by 2018, it is expected in the Asian online apparel market to reach $1.4 trillion in just two years. Asian apparel companies may reverse the old global expansion movement from Western companies moving to East, move outbound to other global regions, including the Europe Americas ; Africa. CITATION 10k18 l 1033 (10 key trends to drive the global fashion industry in 2018, 2018)15.5 Create Brand Differentiation ; Brand Segment Compare to Other Branda) To make it difficult for the competitors to diagnose the determinants of success and cannot be easily copiedb) To create exclusive brand segment to create channel of consumer who are exclusive and within sophisticated premium clothing segment (introduce club concept) to make a company more competitive, it has to build difficult to imitate elements in and around its business model. The more multidimensional a firm’s competitive advantage is, and the more each dimension of competitive advantage is based on complex bundles of company’s capabilities, the more difficult it is for a competitor to diagnose the determinants of success. Artisti Collection Limited needs to pay attention to things that add value to their proposition, because these things accumulate and they cannot be easily copied or challenged by competitors. Artisti Collection Limited can create exclusive brand segment compare to other clothing related products. Like Executive Motors they bring highly expensive BMW cars in Bangladesh; they are creating specific consumer group for selling this Cars. Artisti marketing differentiation strategy should be like that to create channel of consumer who are exclusive and within sophisticated premium clothing segment. To implement the differentiation the Artisti Collection Limited can introduce club concept where customers buying Artisti products worth more than a specified amount (say for Artisti merchandise worth more than TK 50,000) will automatically registered in Artisti Club. The Artisti club members can get various kinds of privilege for example: Shopping discount in Shoppers world, various offer in star labeled hotel or big restaurant, exclusive waiting lounge in Airport, travel discount etc.15.6 Extensive Research on Consumer Insightsa) To understand consumers’ needs and their perception on brand fashion shopb) To know about consumer insights for targeting new consumers more effectively and serve current consumers better.iii. To identify consumers who are influencers for spreading the word-of-mouth (WOM) or word of mouse further, and respond quickly and fairly to customer complains to hinder negative word-of-mouth Artisti Collection Limited need to conduct various consumer research programs to help in the understanding of consumers? needs and their perception on Artisti brand. It is suggested that consumer research be also delegated to showroom offices to gain area specific effects and nuances. The headquarter can focus more on generic research such as advertising effectiveness, focus group on new product innovation and development, clothing patterns etc. If available, the purchase of showroom consumer insight reports from staff members is a useful tool. Artisti should add demographic profiles to the online questionnaire on consumer registration to gain better insight and to help Artisti target new consumers more effectively and serve current consumers better. In terms of customer relationship management, the system should be able to identify consumers who are influencers or what influences consumers. An influencer is someone or something able to persuade the target audience to purchase the product and it Is assumed that every target audience has an influencer group. Having good consumer insight from this group of consumers will help in the profiling and acquisition of new consumers. Artisti should put more marketing effort on groups of influencers and give them unexpected rewards to motivate them to spread the word-of-mouth (WOM) or word of mouse further and respond quickly and fairly to customer complains to hinder negative word-of-mouth. Word-of-mouth communication is individual sharing information with other individuals, which are a critical influence on consumer decisions and business success. On the contrary, negative word-of-mouth can offset thousands of Artisti customers in positive media advertising. Unhappy customers tell an average of nine others about their dissatisfaction.? So, Artisti must give priority on negative word-of-mouth regarding the brand if any.15.7 Focusing on target marketingFor grouping customers with similar needFor choosing appropriate media for communicating with their target consumers once the company knows more about their target consumers, then they can launch more focused marketing campaigns to sub groups to achieve higher acquisition rates more cost effectively. Below are some examples illustrating how Artisti can maximize return of investment through target marketing. If Artisti makes good use of a variety of media, technology, partners and communities, they will be able to target their consumers more effectively.If the decision makers or influencers of purchasing an expensive items such as Sherwanis, KURTAS, Men’s Suit, premium Gold Collection Shirts etc. are mainly purchased by corporate executives, rich business person. In that case the enterprises can post the advertisement in appropriate Newspaper, magazines, on IT, orientated web sites.In terms of online advertising, if ARTISTI know that their consumers like Internet and watching advertising, then they can place online advertising that target people who search the words clothes, accessories, fashion, sport, movie or surf the pages related to these topics.Marketing can develop a referral program targeting or exclusive premium clothing segment people, as this group of consumers has more leisure to engage with their friends and family.15.8 Brand Positioning ; Brand Building StrategyPositioning the brand to match its quality by creating more classy and elegant image the overall brand essence of Artisti is „indulgence?. Currently, the marketing communications of ARTISTI project a classy and elegant image. The researcher suggests that the brand or certain products within the portfolio could be extended to communicate a more lively, joyful and playful and in doing so projects the indulgence image to appeal to a wider group of audience. Artisti may also want to or need to target a more mature group of consumers, as the more mature segments oft he population have increased per capita income today, people who enjoy the clothing ritual and are willing to pay a premium price for the experience. They are usually the people who like to have a classy and elegant look.15.9 Discover Unique Marketing Communication Media for Premium MerchandiseMarketing Communication is very important for premium Artisti products like Artisti Sherwanis, Artisti Kurtas, Artisti Men?s Suit, Artisti Italiani Gold Collection Shirts etc. Since its target consumer group is exclusive upper class segment that’s why the marketing communication willbe very sensitive. Internet can be used for communicating regarding the premium Artisti products because the target Consumer frequently used Internet. Major daily Newspaper Specially English (The Daily Star, New Age) can be used for communication with target group.15.10 Variety in Women’s and Children’s Wears should be broughtTo gain market share Most of the consumers in clothing industry are women and children. If the company focuses on them then they might win more market share against Shoppers World. So, these help can the organization gain market share and Artisti’s products might eventually become a Star Products where both market growth as well as market share is high in The Boston Matrix shown at page 48. Beside all those recommendations mentioned above, I also would like to recommend some others basic requirements for the organization. They are as follows:Communication skill needs further improvement between corporate office and market outlets. The man power should be increased for lessen the load of worker in showrooms15.11 Fashion Designers Activities15.11.1 Fashion Designer’s ActivitiesFashion designers conduct research on fashion trends and interpret them for their audience. They create design & create clothing, accessories and shoes. A fashion designer analyze of what looks good or bad with a huge social definer. He is a primary setter of fashion trends. The fashion designer writes the rules which assure social expectations. A fashion designers help visually categorize expressions. If you want people to buy your products, then it should be different from what they have. A fashion designer is to conceptualize designs based on feelings of fashion history and trends. He make sketch them out and create your products. His specific tasks include choosing fabrics, developing patterns, overseeing production, and putting on shows to exhibit your designs.15.11.2 Major Components that represents fashionStyleStyle is a particular look. A specific style always remains that style, style may come and go in fashion, but that weather it is fashion. Style mainly depends on the person. It can vary from person to person.ChangeWhen people get bored what they have they looked for change. Fashion needs changes constantly. The continuous change comes on fashion and it is called change.AcceptanceAcceptance is the acknowledgment from the consumer. It is one of the pre-conditions of fashion. Acceptance is must because there is no fashion if nobody buys it.World fashion industriesMost important industry in the current world is fashion industry. Most of the countries have a fashion industry. Bangladesh is a fashion manufacturing country. France, Italy, the United Kingdom, the United States, and Japan have established an international reputation in fashion.15.12 Other InitiativesAs Bangladesh has gathered vast experience in RMG sector in the last forty years, it has already the ground to enter the global Market with its apparel brands. The survey is made with the help of several textile professionals’ suggestion. They give some strategies in favor of launching Bangladeshi apparel brands in the global apparel market. They are as follows:Taking Initiatives from the existing local brands to popularize their brands in the global marketMaintaining business reputationEstablishing product diversification strategyEnsuring best quality with pricing to attract the customersEnsuring strong marketing strategyEstablishing Research and Development (R;D) for the international apparel marketDetermine target groupDetermine Unique selling proposition (USP) for brandCreate entrepreneurs’ interest in going global operationMaintain Quality in every aspectsUnderstanding market demand and competitorsIncentives from GovernmentEmphasize on retail branding with country brandingExplore the undiscovered opportunity, etc.Maintaining compliance issues properlyImproving marketing resourcesThe global market economy is changing faster than ever before & the competition is increasing due to fast globalization. Since our natural resources are becoming decreasing and costlier day by day; price competitiveness, the prime tool for doing business is losing competitiveness. Thus the importance of formulating new technique like branding own product will play important role keeping competitive business in the global RMG market. Introducing own brand and know how to keep its image will not only bring good image for the products and the country, but also capture higher share of profitability.Before going international in apparel branding, the specific country has to ensure its brand power in the country, and this is regarded as a ‘laboratory test’. The pass-fail results will further provide guidelines & instructions what to do in corrective measures, before integrate in the global market. The acceptance of the clothing products in own country people would boost global acceptance of the products because these citizens are ultimately be your brand ambassadors & clients when travelling & residing in the other countries.Bangladesh don’t undertake position yet to initiate own branded apparel items for the global market. There are long list of international supports that Bangladesh has been enjoying being a Least Developing Country (LDC) that highly contribute to our export income. Government supports are also playing vital role in booming of clothing export. Cheap labor and utilities (gas, electricity, water etc.) are also helping extremely in export growth. But this cheap labor and utilities will not remain cheap ; the government support will not remain forever; as well the international support will be taken back soon after the country graduates from Least Developing Country (LDC) to Developing Country (DC) status. It is the perfect time for Bangladeshi industry to make a blueprint to remain competitive even after all the supports would be taken back. Simultaneously the industry should concentration the above-mentioned table (present status of Bangladesh) and tries its best to improve status in the mentioned areas.A good brand always concerned with the high quality, competitive price, demand, reliability and services and in order to introduce brand, first of all one must know the specifics of the consumers on that market then the country can go ahead to formulate branding strategies. To initiate branded clothing items in global markets, the experiences in locally grown clothing markets and associations may play vital role in the start of branding activities.Strategies ; tactics should be formulated in such a way that should ensure: accumulating national capacity through cooperation amongst the people, enterprises, and the government; managing local clothing brands through a master plan and developing brand tactics; establishing a national brand motivating force by the expansion of a common national response; the government would works together with the enterprises by promoting investment, providing business consultants and working toward better enhancing the business climate.Apparel branding without any specific features, without policy ; tactics, without a clear vision or specific mission, or without stable values, will sink very soon in the mass market. Generally, mission and vision are formed in powerful intuition, perseverance ; a strongly held conviction. So, the mission ; vision of the introduced branding approach should be formulated right way.Local branded apparel manufacturers ; retailers, associations of clothing manufacturers and exporters, as well as government can worker together to introduce and popularize our apparel items in the global markets. Several teams can be made ; recruited them international zones, open common superstores to display own created clothing designs, product developments, branded clothing ; meeting with prospective retailers who would go for sale of our branded clothing.5. Results ; FindingsIn spite of differentiating Bangladesh garments industry by adding some value the success and the competitiveness will not be sustained if the industry do not focus on their strengths. China has also established its own brands and retailers to cater to local ; international customers. Launching Bangladeshi apparel brands in the global apparel market is the demand of the time. Though there are lots of RMG industries in Bangladesh it doesn’t has much potential to become the lead apparel brand in the global market. By taking strong strategy & proper execution of it would materialize the future dream of Bangladeshi Apparel. By catering quality product it is very much possible to take Bangladeshi apparel brands to the zenith of the global apparel market. If all the problems embedded with this sectors can be solved and the awaiting prospects with this sector can be grasped up, it will not be a distant-dream when people from rest of the world will read more “Made in Bangladesh” hand tag and level tag and Bangladesh will be labeled across world as “Country of choice for RMG” we are waiting to see the dream to-be come in to true.16. ConclusionBangladesh still stand in a lucrative destination for clothing manufacturing due to, international supports, government’s favor, and comparatively cheap resources. But at the same time Bangladesh has never taken strong initiative to establish own brands ; strategies for brand awareness in the global clothing business. Experts have been advocating Bangladesh for promotion clothing brand business. But on the other hand, if Bangladesh takes initiative for brand business, the international supports may be withdrawn or take different forms which might not be in our favor. Branding Bangladesh through clothing branding is very crucial issue for Bangladesh. After several research ; analysis experts say that it is not the perfect time to initiate any such concept right now; rather Bangladesh should concentrate more on burning issues such as compliance in social and environmental issues, efficiency of resources ; improvement of productivity. 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