Bangladesh wants better prices for its garment products from foreign buyers. Reason: Production costs have shot up due to factory upgradation and also workers’ wages have increased. BGMEA say the proceeds will be spent on furthering welfare of readymade garment workers.

Wages have hiked wages by over 200 per cent since 2009. Besides, dormitories are being set up for women working in garment units. An additional port has come up alongside the existing ports in Chittagong and Mongla. As per BGMEA president Md Atiqul, before launching the inspection program to improve safety standards in the RMG sector, the global buyers promised to raise prices of apparel products, but did not do so, rather they took the opportunity to lower the prices

European and US companies that focus on apparel market’s value segment plan to expand the share of their sourcing from Bangladesh to 25 to 30 per cent by 2020 from an average of 20 per cent now. Midmarket brands, which generate about 13 per cent of their sourcing value in Bangladesh, plan to increase that share to 20 to 25 per cent over the same period. While growth in current product categories will drive some of the increase, 63 per cent of the chief purchasing officers want to expand into more fashionable or sophisticated items such as formal wear and outerwear.

Attractive prices are the most important reason for purchasing in Bangladesh. Price levels there are expected to remain highly competitive in the future since significant efficiency increases may offset rising wage costs.