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RMG makers fail to tap Middle East market

Refayet Ullaii Mirdha
Less variety in products and designs and makers' apathy in an aggressive marketing drive for exports still remain obstacles to Bangladesh's proper tapping of the Middle Eastern (ME) apparel market Bangladesh runs the risk of losing out to competitors such as China, Thailand and India, said industry insiders.
They pointed out that the share of local ready-made garments (RMG) in that region is small, although a considerable number of migrant workers living there are from South Asian countries such as Bangladesh and India, who are the main customers.
Saudi Arabia, United Arab Emirates, Kuwait and Qatar are Some significant importers ofapparel items.
Saibal Roy, director of FASTTRAK, a local buying house, which exports the apparel items to the Middle East, said: "Bangladeshi manufacturers mainly produce textile and clothing items targeting the US and EU markets. They do not target the ME and other developing countries to export the items."
Another reason why Bangladesh made RMG items lag behind other competitors is the designs.
Chinese, Thai and Indian dress designs are more attractive to the ME customers, some Bangladesh exporters viewed.
"I send mainly the stock lot of garment products to the ME countries as the demand for such low priced clothing items is higher to a particular section of customers," Roy said.
When asked, Ghulam Faruque, chairman of SQ Group, a leading sweater maker, said exports to the ME region are the least because the item prices the local exporters usually get from this region are lesser than from developed countries.
"Bangladeshis mainly concentrate on the EU and US markets," Faruque said.
Moreover, the volume of ME buying orders is not bigger than other countries, he added, suggesting exploration of Japanese, Chinese and Indian markets.
"Openings arc there, as we mainly concentrate on basic garment items and those countries have already shifted to high-end markets," the SQGroupchiefsaid.
Echoing Faruque's view, Managing Director of NASSA Group Nazrul Islam Swapan docs not sec the ME market as viable for Bangladesh.
"The retail chains in the region are not so large," he pointed out.
Meanwhile, the state export promotional agency has expressed his opinion on the RMG export basket expansion to the ME market.
Admitting to the poor promotional activities in the ME countries, Shahab UUah, vice-chairman of Export Promotion Bureau (EPB), said, "Although this market is a potential one for Bangladesh's garment business, promotional activities there are so significant compared to other markets."
EPB data show Bangladesh exported woven garment items worth US$2.41 miUion and knitwear worth $7.25 miUion to Saudi Arabia, woven worth $6.39 million and knitwear worth $8.62 milhon to the United Arab Emitates, woven worth $3,03,000 and knitwear worth $6,90,000 to Qatar and woven worth $6,71,000 and knitwear worth $2.65 million to Kuwait last fiscal year (2007-08).
During July-March period of the ending fiscal year (2009-10), Bangladesh exported $4,464 billion woven and $4,750 biUion knitwear products to different countries. reefat@thedailystar.net