Covid-19 &The ReadymadeGarmentsIndustry in Bangladesh-A Study on A Few Selected RMG Manufacturers
Tabassum, Zakia (2022)
Tabassum, Zakia
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022121730703
https://urn.fi/URN:NBN:fi:amk-2022121730703
Tiivistelmä
The covid-19 pandemic affected our lives and livelihoods at the same time. Renowned retail brands faltered and to save their own skin, some of the brands either cancelled or deferred a significant portion of the export order that were already in the production process. Bangladesh being the second largest RMG exporter but at the same time a least developed country with hardly any bargain power felt the brunt of the pandemic. As the orders were cancelled or deferred and factories were closed as per Government enforced lockdown, both RMG factory owners and RMG workers were staring into a void and without support from the Government it could have really been a mess. The RMG owners not being able to pay their workers, even for only a month being under lockdown, also seems quite astonishing. This urged me to research on what happened in that period – how the buyers backed off, so easily, without showing any empathy towards the suppliers or their workers.
The research was conducted by using the service design methods like SWOT analysis, expert interviews, surveys, benchmarking, focus group discussions, personas, role expectation mapping, service blueprints, prototyping, etc. Service design is a relatively new but a creative, innovative and at the same time a practical way of solving ambiguous problems.
My research findings indicate that even though Bangladesh is the second largest RMG exporter in the world, the RMG industry had not evolved much beyond cutting and sewing. Besides that, there are some other competitive disadvantages like low value addition, longer production lead-time, lack of product diversity, etc. All these translates into having very low margin for the owners and very low wages and benefits for the RMG workers. Even then, my research points out that RMG owners need to invest on skill development of workers, if they want to maintain current level of export – competitors are catching up fast. Moreover, they can at least arrange health insurance for their workers, which will be very helpful amid this kind of pandemic or personal emergencies.
The results of the research showed that export orders received through sales contract puts the manufacturer in a vulnerable position as that does not involve any financial institution. I found out that the ordering process can be designed in such a manner that neither the buyer nor the seller can act whimsically - through which the other parties get impacted. As such an innovative ordering process platform has been designed with an aim to make the process more transparent and accountable, which will ensure compensation for the aggravated party – neither the importer nor the exporter will be dependent on other party’s whim. If implemented, this may change the way business is done in the trillion dollar apparel industry.
The research was conducted by using the service design methods like SWOT analysis, expert interviews, surveys, benchmarking, focus group discussions, personas, role expectation mapping, service blueprints, prototyping, etc. Service design is a relatively new but a creative, innovative and at the same time a practical way of solving ambiguous problems.
My research findings indicate that even though Bangladesh is the second largest RMG exporter in the world, the RMG industry had not evolved much beyond cutting and sewing. Besides that, there are some other competitive disadvantages like low value addition, longer production lead-time, lack of product diversity, etc. All these translates into having very low margin for the owners and very low wages and benefits for the RMG workers. Even then, my research points out that RMG owners need to invest on skill development of workers, if they want to maintain current level of export – competitors are catching up fast. Moreover, they can at least arrange health insurance for their workers, which will be very helpful amid this kind of pandemic or personal emergencies.
The results of the research showed that export orders received through sales contract puts the manufacturer in a vulnerable position as that does not involve any financial institution. I found out that the ordering process can be designed in such a manner that neither the buyer nor the seller can act whimsically - through which the other parties get impacted. As such an innovative ordering process platform has been designed with an aim to make the process more transparent and accountable, which will ensure compensation for the aggravated party – neither the importer nor the exporter will be dependent on other party’s whim. If implemented, this may change the way business is done in the trillion dollar apparel industry.