Bangladesh has emerged as a low-cost sourcing solution for global retail giants in the last decade. This article will talk about the significant advantages of the manufacturing sector in Bangladesh that have made Bangladesh sourcing so lucrative.
5 Important Aspects That Has Made Bangladesh Sourcing So Lucrative
Here is a list of advantages Bangladesh’s manufacturing sector provides, making it the ideal partner for sourcing products at great prices.
- Bangladesh industries are adopting greener technology
Bangladesh is a significant exporter of ready-made garments. Some of the biggest global brands in the fashion industry source their garments from Bangladesh. However, it is well known that the garment industry is very polluting. To deal with the environmental fallout of this high revenue-generating industry, the factory owners have invested huge capital in green technologies to pursue sustainable manufacturing practices.
- The manufacturing wages are meagre
One of the biggest reasons Bangladesh sourcing has caught the attention of global retail giants is its low cost and skilled labor force compared to some of the other low-cost countries in the region. Therefore, if you’re looking for a sourcing destination with cheaper manufacturing costs, you should look at Bangladesh favorably.
- Bangladesh is expanding its range of exports
At present, Bangladesh is a well-known manufacturer of textile and ready-made garments. However, the government and industry are pushing big to diversify their export. In recent years Bangladesh has also emerged as a big force in leather export. The country has a huge livestock population, which helps establish a reliable leather supply chain at a low cost. This has helped the country become a low-cost leather sourcing option for global companies. The country is also making rapid strides in the pharmaceutical and automotive industries.
- Duty-free access to multiple countries
Many countries, including the European Union, have offered duty-free market access to Bangladesh products due to its least developed economic status. At the last count, more than 52 countries worldwide had provided duty-free access to Bangladesh goods, making products in this country highly competitive in the global market. Bangladesh is also a member of several economic groupings like the SAARC preferential trade arrangement, Asia Pacific trade agreement, and South Asian Free trade area. As a member of all these important economic groupings, Bangladesh manufacturers have easy access to the market of several countries.
- Adoption of the latest technologies
Bangladesh has entered the fourth industrial revolution and has readily adopted some of the latest technologies, including digitization and technological innovation. Adopting the best technologies has ensured that the goods it manufactures are of the highest quality and meet all the global standards. This has raised the reputation of Bangladesh’s manufacturing products worldwide. Many retail giants have long-term supply source agreements with Bangladeshi companies to get their products at a very low rate.
As you can see, Bangladesh offers a massive opportunity for high-quality sourcing products at great prices. However, companies looking for sourcing options must research the country, the industrial scenario here, and the best manufacturer who can provide high-quality goods at competitive prices. Finding the proper manufacturer who can offer you the goods you are looking for at a cheaper rate will ensure the success of your business.