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Development and Promotion of Trade Linkages with Emerging RMG Markets |
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Companies adopting market diversification strategies achieve better export performance than those following concentration strategies. In today’s severe global economic downturn, it is becoming increasingly important that Bangladesh’s highest export earner – the RMG sector, applies this lesson. RMG’s current overdependence on a limited number of markets in North America and Europe threatens the future of the sector.
Diversifying Bangladesh RMG’s export markets is an issue that PROGRESS is addressing. The program works with a range of partner organizations to assist the garment sector access new markets. To achieve this, PROGRESS is employing a three-pronged approach, which is described below.
- Trade strategy: PROGRESS aims to support the development of a coherent and unified Apparel and Textile Trade Strategy. As current efforts in this area still lack adequate coordination, PROGRESS will facilitate multi-stakeholder dialogue and discussion. Leading industry associations such as BGMEA and BKMEA, the public sector, and civil society actors will contribute to the formulation of the trade strategy. As effective strategies are evidence-based, PROGRESS will also support policy analysis and research on developments in emerging markets.
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New markets information provision: Timely and successful entry into new markets requires quality market intelligence. Therefore, PROGRESS will enable the main private and public service providers to regularly generate, update, and disseminate relevant information about new markets with export potential such as Japan , Hong Kong, South Africa, Brazil, Mexico, Argentina and Chile. To achieve this, for instance PROGRESS will enhance the capacity of the research cells of BKMEA and BGMEA, and the Export Promotion Bureau under the Ministry of Commerce. They in turn will support export market diversification of the RMG industry in Bangladesh.
- Export promotion: Promotional activities are vital for penetration into new markets. Therefore, PROGRESS will work to enable associations, chambers and government agencies to provide marketing services to the industry, including development of advertising and promotional materials, export guides, trade visits and fairs, strategic communication and marketing plans, and event management.
These initiatives will not only result in substantial increase in RMG export value but will also help mitigate the risks associated with export market concentration.
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