"Buying house in Bangladesh "playing a vital role in the RMG sector

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"Buying house in Bangladesh "playing a vital role
in the RMG sector
Buying house in Bangladesh is the backbone of the
RMG sector. Bangladesh wouldn't have flourished
throughout these years without buying houses,
because of their bargaining power and know-how
skills. Over the last few years merchandisers
dedicated and hard work lead Bangladesh to make a
major impact on the apparel market all over the
world. A buying house acts as a media between
foreign companies and local manufacturers. Their
activity consists not only of marketing, looks
for new foreign buyers and collecting the order,
but also order placement to suitable local
garments manufacturers. Foreign buyers explain
all the requirements, policies and deadline to
Buying houses, which later maintains a steady
workflow from receiving the order to job
completion from local manufacturers. Thus, Buying
houses solely provide technical and communication
support to both the buyers and local
manufacturers. Due to the cultural barrier and
nature of business foreign buyers setting up a
local office can be expensive, that is why they
have to depend on local buying houses. For this
reason, the number of buying houses has increased
over the years. Buying houses tends to provide
quality products at a competitive price. Low
labor cost is one of the competitive advantages
in Bangladesh and foreign buyers don't want to
increase their cost of production by setting an
office locally which will have an impact on their
business. Buying houses get a commission they
tend to minimize the cost to maximize the
profit. For the smooth running of business, it is
mandatory to deal with crucial issues like lead
time (60 days), therefore, from supply to
production everything needs to be checked
intensely. If any faults detected during the
inspection must be solved immediately. A local
manufacturer needs to get approval from the
buying house before they export the final goods
to the foreign buyer Since compliance issues are
very much in focus, nowadays, buying houses are
seeking for 100 compliance local manufacturers.
All the credit goes to the Buying house in
Bangladesh for putting a lot of effort into
converting local manufacturers to be 100
compliance these resulted in getting more orders.
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There has been a significant reduction in the
amount of product handling time due to the
implication of virtual sampling process provided
by product designers. Therefore, buying houses
like Li Fung TM, etc are focusing on this area
to reduce cost. Buying house in Bangladesh is
surrounded by lots of social and local issues,
like political unrest, transportation issues,
etc. Buying houses are bound to maintain their
schedules accordingly, otherwise, will incur a
huge loss. To cope up with the changing world
buying houses in Bangladesh is trying to
influence local manufacturers to upgrade their
pieces of machinery to increase productivity and
efficiency which result in production cost
reduction. A new vision, "50 billion by 2021",
indicates a huge opportunity for buying houses to
collect orders from top garments buyers around
the world. An increase in Labor salary is
hindering the profitability for small
manufacturers. Some of them are even getting
closed. For this reason, foreign buyers are
moving towards large-scale garments manufacturers.