Bangladesh is dubbed as the hero in the knitwear manufacturing and exporting industry. An industry estimated to earn at least US$2 billion a year. Though India's garment manufacturing hub Tirupur has earned the nickname "Dollar City," the price-conscious global retailers obsessed by discounts of as little as one U.S. cent still prefer the Bangladesh when it comes to pricing.
Chairman for the India-based retail consultancy Technopak Advisors, Arvind Singhal said, "The reason Bangladesh went from zero to hero in the garment sector is because there is no country with such low labour and other costs. No buyer is in a hurry to move from Bangladesh because Western retailers are stressed about passing any retail price increases to customers. Currently, there is no substitute for Bangladesh, where manufacturers even risk operating from rickety structures to cap costs."
Southeast Asian and Indian apparel manufacturers hoped the orders would come flooding in, after the deadly collapse of a Bangladesh garment factory complex this year galvanized global brands such as Hennes & Mauritz AB (H&M) to consider relocating production. But several industry organizations and factories in Vietnam, Cambodia, Indonesia, Sri Lanka and India mentioned that international retailers were not beating a path to their door just yet. When it comes to price, Bangladesh is still the king
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