Professional Documents
Culture Documents
Nation Branding
Bangladesh
as a Global destination
Trade block: Asia Pacific Economic Cooperation
Product: Ready-made garments
Prepared for:
Professor
IBA, University of Dhaka
Prepared by:
Name
Md. Mostafijur Rahman
Tasfina Islam
Md Shah Aziz
ID
ZR1502017
RQ1502022
ZR1502013
LETTER OF TRANSMITTAL
Sincerely yours,
Md Mostafijur Rahman
EMBA program
22nd Batch
ZR 1502017
Tasfina Islam
EMBA program
22nd Batch
RQ 1502022
Md Shah Aziz
EMBA program
22nd Batch
ZR 1502013
Executive summary
Bangladesh, the southern Asian country has a
population of approximately 164 million people.
The economy of Bangladesh is significantly
dependent on agriculture. But its great news for
the country that, readymade garments (RMG)
sector of Bangladesh has risen as the biggest
earner of foreign currency. This sector creates
about 4.2 million employment opportunities and
contributes significantly to the GDP. Readymade
garments (RMG) of Bangladesh are powered by
young, urbanizing, workers, where most of them
are women.
Bangladesh holds immense opportunities due to its geographical position, 45% of working
aged population blessed with blend of cultural and religious activities and strong social
bonding. A country of rivers and canals has golden fiber, silvery hilsha and thousand years
of connectivity with its neighbors. Currently the economy is dominated by RMG and
followed by pharmaceuticals, Handicrafts, fishery, ICT outsourcing etc.
Since 7 out of top 10 business partner of Bangladesh are of APEC members, Bangladesh
is interested to get membership of this trade block. Moreover APEC has a high median
aged population and their current sluggish investment opportunities and economic growth
forced them to find out new market.
Recent political changes in USA and business environment in China may go in favor of
Bangladesh especially to RMG sector. We have decided to focus on USA and China for
our RMG sector.
Newly elected president is very much negative regarding TPP. According to TPP, Vietnam
has the chance to be a strong competitor to Bangladesh in RMG export to USA. Because,
Vietnam will get condition applied tariff benefit.
ii
Moreover, if USA going to apply 45% tariff on Chinese product, Bangladesh will have more
opportunity. 36% of USA market is dominated by China where Bangladesh has only 6% of
total RMG import of USA. On the other hand, Mexico is another big RMG manufacturer.
Due to NAFTA agreement, Mexico get trade benefit and they exported 355 crore USD
RMG last year to USA. So, if USA applies 35% tariff on it, Bangladesh again will be
opportunistic in RMG.
Under GSP Bangladesh exports very less around 5 crore USD and tariff of this amount is
negligible. Still Bangladesh has improved a lot to the 16 indicative conditions which are the
pre-requisite of getting GSP plus.
China is the leading manufacturer in RMG sector and itself a major consumer. China also
itself imports 12% RMG, but China is looking for outsourcing as they are losing costeffectiveness and the same reason USA also looking for Bangladesh as the replacement
of China. So, China will be our one the major target for getting investment in Bangladesh in
RMG as well as contract manufacturing. China still charges 10% tariff on our RMG. If we
can get free of that, China can be the main destination for Bangladesh to export RMG as it
will give less shipment cost than exporting to Europe and USA.
Recent few unwanted activities has created negative image on our branding, but we have
a lot positive in us to promote and get back of our image and lead the market too. We have
a huge working people and we have capable working industries too. If we can have a
master plan in communication strategy, we can have more GDP contribution from RMG.
iii
Table of Contents
LETTER OF TRANSMITTAL
EXECUTIVE SUMMARY
i
ii-iii
1.0 Introduction
1-13
Negative images
2.2.2.2
Positive images
14-21
3.1 Introduction
3.2 Evolution
3.3 Impact on economy
3.4 Competitive and Comparative advantages
3.5 Compliance status
3.6 Doing business comparison: Bangladesh Vs india
3.6 Leading market players with capabilities
4.0 Tools for Communication Plan for Branding Bangladesh in RMG
4.1 People: Celebrity endorsement
4.1.1 Professor Dr. Mohammad Yunus
4.1.2 Shakib Al Hasan
4.1.3 Noble Bangladeshis around the world
4.2 Media promotion
4.2.1 Festive promotion: International mother language day
22-31
32
References
33
1. Introduction
After birth in 1971 Bangladesh passed a lot of hurdles in its journey and today it is 4th
fastest growing economy in the world. Bangladesh is the founding member of SAARC and
hosts the permanent secretariat of BIMSTEC. The country is the worlds largest contributor
to United Nations peacekeeping operations. It is a member of
Developing 8 countries (D8)
The OIC
The common wealth of Nations
The World Trade Organizations
The group 77
The Non-aligned Movement
BCIM
Indian Ocean Rim Association
Bangladesh is not a member of APEC but considering the importance of immense
potential of this block, Bangladesh wishes to be a member of APEC. Until then we can use
polity strategy to do trade benefit and business expansion and increase more revenue
here. Before doing so, we have to identify what we have, what we can improve ourselves
and what we can promote in or favor. So, we need a solid plan to brand our country and
promote our products to APEC members.
2. Nation Branding and Bangladesh
2.1 Nation Branding
2.1.1 Definition
A nations brand generally refers to the common images, perceptions and associations
people have with that nation. Therefore, nation branding is an important tool used by
countries to create, change or promote a distinct self-image and international reputation
that serves the nations interests in a positive and effective way. In other words, A
Promise that a nation makes.
A nation gets a brand identity based on its strength of delivering a quality product
consistently over time (EG: Switzerland for tourism and banking, USA for freedom, Italy for
food and fashion, etc.)
2.1.2 Why Nation Branding
Nation branding is important to build and manage the reputation of countries as the image
and reputation of a nation can dramatically influence its success in attracting tourism
receipts and investment capital, in exports, in attracting a talented and creative workforce,
and in its cultural and political influence in the world.
Nation brand is an important concept in todays world. As a consequence of globalization,
all countries must compete with each other for the attention, respect and trust of investors,
tourists, consumers, donors, immigrants, the media, and the governments of other nations:
so a powerful and positive nation brand provides a crucial competitive advantage. It is
essential for countries to understand how they are seen by publics around the world; how
their achievements and failures, their assets and their liabilities, their people and their
products are reflected in their brand image.
2.1.3 Phases of nation branding
There are several phases for branding a nation:
a)
b)
Starting the process of brand delivery (e.g working for Digital Bangladesh by
establishing a separate ICT ministry in 2011)
c)
Nation
2014
Rank
United States
Germany
United Kingdom
France
Canada
Japan
Italy
Switzerland
Australia
10
Sweden
10
1
8
11
14
20
28
36
38
48
50
60
64
66
72
Pakistan
73
Key Findings:
Investment
Governance
Market
People & Skills
Society
Goods & Service
Governance
Market
Tourism
Nation
Brand
Value
(Bn $)
USA
$20,574
China
$7,087
Germany
$3,822
Japan
$3,002
UK
2,942 $
France
$2,339
India
$2,066
Canada
$1,810
Italy
$1,521
10
Australia
$ 1,305
Japan has recorded the most significant growth ( 18% growth in brand value)
Marked increase in perception of the competitiveness and dynamism of its
work force
Luxembourg is the fastest growing nation brand ( 43% increase )
Its status as financial center
Initiated a nation branding campaign
Reliability, Dynamism, Openness
Focusing on credible attributes rather than aspirations
Key Findings:
Not all countries qualify as brands, and the findings are striking. Among the 75
countries included in their survey, only 22 qualify as country brands by Future
Brand measures.
Country brands must have a competitive advantage
Awareness alone does not make a strong country brand
Country brand strength is connected to how many consumer brands you are known
for
Strong country brands are seen to have expertise across multiple consumer
categories
Country brands have most momentum in technology, innovation & sustainability
Methodology
Anholt and GFK Nation Brand Index
Future Brand Index
Brand Finance Index
Bloom Consultancy Country Brand
Index
Good Country Index
Bangladesh Ranking
Not included
72nd
44th with USD 170 Bn
Tourism : 162nd
Trade : 70th
121st
2.2 Bangladesh
2.2.1 Bangladesh at glance
Constitutional Name
Government System
Parliamentary Democracy
Capital City
State Language
Bangla
Liberation Achieved
Area
Climate
Tropical Monsoon
October-March
Total Boundary
5138 Kilometers
Land Boundary
4246 Kilometers
Territorial water
12 Nautical Miles
Population
Population Growth
1.21%
Population Density
1015/Square Km
Literate Rate
61.5%
Poverty Rate
Average Span
69 Years
Currency
Central Bank
Bangladesh Bank
Scheduled Banks
31
7.1%
GDP by sector
Inflation Rate
7.13 (Sep-13)
Annual Budget
Economy of Bangladesh
Number of EPZ
08
International Airport
Employment Sector
Network
2,835.04 km
National Highway
3538.00 Km
Total River
Natural Resources
Major Industries
Negative images:
Bangladesh has some negative images globally which is mainly due to mainly
misconception:
Politically Violent: This concept is due to the hostility between two main
political parties and occasional movements and blockades by opposition
parties. There were killing of political leaders in the past which portrayed
Bangladesh wrongly. BDR violence and State of Emergency in 2007-08 was
also affected the image of Bangladesh.
Extremely poor : Bangladesh has recently entered to lower middle income
group and only 13.7 % love below poverty line. This is one of the fastest
growing economies. So, this concept will be changing gradually.
Natural Disaster prone: Due to its geographical position, Bangladesh suffers
from some natural calamities like flood, cyclone, earthquake etc but
Economic Factors:
th
Economic Freedom Status: Mostly Unfree (Global Ranking: 137 )
GDP (nominal) is $226.7 billion with 46th Rank
GDP Per capita $ 1,403 with 7.1% Growth Rate
Service (56.3%) dominates the GDP
Inflation rate 5.6%
Population below poverty line 13%
Labor force 81.95 million
Unemployment : 4.5%
Main Industries : jute, cotton, garments, paper, leather, fertilizer, iron and steel,
cement, petroleum products, tobacco, pharmaceuticals, ceramics, tea, salt, sugar,
edible oils, soap and detergent, fabricated metal products, electricity, natural gas
Exports : $37.61 billion (FY2015-16
Export Goods : Garments, Knitwear, Agricultural products, Frozen food (fish and
seafood), Jute and jute goods, Leather, Pharmaceuticals
Main Export Partners : US 13.9%, Germany 12.9%, UK 8.9%, France 5%, Spain
4.7% (2015)
Imports : $40.69 billion (FY 2014-15
Import Goods : Cotton, Machinery and Equipment, chemicals, Iron and Steel,
foodstuffs
Main Import Partners : China 22.4%, India 14.1%, Singapore 5.2% (2015
FDI Inflow : $2.2 billion (2015)
Foreign reserves : $31.20 billion (July 2016)
Sociocultural Factors:
Technological Factors:
Environmental Factors:
Legal Factors:
The Constitution of Bangladesh was draft in the year of 1972 and has undergone 15
amendments.
The utmost judicial body is the Supreme Court and Justices are selected by the
President and the judicial & law enforcement institutions are feeble. Separation of
powers judicial from executive was finally implemented on 1st November, 2007.
Laws are loosely based on English general law except family laws such as marriage
& inheritance are based on religious scripts, & therefore differ between religious
communities.
The restoration of democratic system in the year 1991 has been follow by relative
calm & economic progress.
12
Distinctive Culture
Hospitality
Micro credit
Weakness:
Political Instability
Natural disaster
Omer population
Poor Infrastructures
Corruption
Lack of available funds is another serious problem of our country
Opportunities:
Human capital
Women Empowerment
Improvement in governance, infrastructure and investment climate
can attract more foreign Direct Investment.
3.2 Evolution
Bangladeshi Garment Industry is the largest industrial sector of the country. Though the
history of Readymade Garment Industry is not older one but Bangladeshi clothing
business has a golden history. Probably it started from the Mughal age in the Indian
subcontinent through DhakaiMusline. It had global reputation as well as demandable
market around the globe especially in the European market. After industrial revolution in
the west they were busy with technological advancement & started outsourcing of readymade garments to meet up their daily demands. Many LDC's took that chance & started
ready-made garment export at that markets. As an LDC Bangladesh took this chance
enjoyed quota & other facilities of them. Thus ready-made garment industry started to
contribute in our economy from late eighties (1977). TheBangladeshi RMG sector
flourished during the 1980s with the support of the multi-fiber arrangement (MFA), which
secured quotas for the Bangladeshi rms. With thesecurity of quotas, the RMG sector grew
by demonstrating its skill and efficiency, satisfying clients across the world, including the
USA and Europe. Over the last three decades the RMG sector has had tremendous
growth, with factory based increasing from 804 during the 1980s to around 5,000 in 2015.
In fact, efficiency went beyond ensuring product quality.
14
It also plays a pivotal role to promote the development of linkage small scale industries.
For instance, manufacturing of intermediate product such as dyeing, printing, zippers,
labels has begun to take a foothold on limited scale and is expected to grow significantly.
Moreover, it has helped the business of basling, insurance, shipping, hotel, tourism and
transportation.
15
The sector also has created jobs for about two million people, of which 80 percent are
women who mostly come from rural areas. The sector opened up employment
opportunities for many more individuals through direct and indirect economic activities,
which eventually helps the countrys social development, woman empowerment and
poverty alleviation. In such a way the economy of Bangladesh is getting favorably
contribution from this industry.
3.4 Competitive and comparative advantages
A McKinsey survey also tells us that the potential for the garment industry is promising.
McKinsey forecasted export-value growth of 7-9 percent annually within the next ten years,
so the market will be double by 2015 and nearly triple by 2020. According to another
recent report, the global apparel market will cross the $2 trillion mark by 2025 from the
current value of $1.1 trillion. So there is a great opportunity for us to further penetrate the
global apparel market and boost our export earnings.
16
The key factors behind success of RMG sector of Bangladesh are the following
1.
2.
3.
4.
5.
18
Platforms such as Alliance, Accord and National Plan of Action have been formed and all
are working sincerely to make every factory safer and compliant. Moreover, the factories
which were established in an unplanned way and housed in converted and shared
buildings have started relocating to purposely-built buildings. Moreover, an initiative has
been taken to set up an industrial park to relocate the non-compliant garment factories. A
total of 67 inspectors have already been appointed who will monitor workplace safety at
garment factories and recruitment of more inspectors is in the process. However, ensuring
workplace safety at all garment factories is a gigantic task and will take time to accomplish
it. But we believe the government of Bangladesh with the support of global brands and
international development partners, will be able to ensure the safety of the industry and
maintain the momentum of socio-economic development in the country.
Another challenge for our RMG industry is to ensure workers' rights. The government of
Bangladesh has amended the Labour Law 2006 in July 2013 making it more favourable for
ensuring workers' rights, including the right to freedom of association and collective
bargaining. The RMG sector also demonstrated its capability in ensuring social compliance
19
by successfully resolving child labor from garment industries and rehabilitating child
workers into schools.
3.6 Doing business comparison: Bangladesh Vs India
India and Pakistan are major competitors in south-asia in RMG but we have better
business environment to do business than these two countries
Indicator
Starting a business (rank)
Procedures
Time
Dealing with construction permits
(ranks)
Cost (% of Warehouse value
Cost (% property value)
Building quality control index (0-15)
Bangladesh
117
9.0
19.5
118
India
155
12.9
29.0
183
Pakistan
122
8.0
19.0
61
1.7
7.0
11
26
7.5
11
3.2
7.5
13.7
20
KNITTING DYEING &FINISHING LTD. was established in 1997 with a vision to build a
premium Garments house.
5. NRB Fashion Garments manufacturing company
NRB Fashion Garments manufacturing company established in 1995. NRB Fashion is a
prominent apparel sourcing organization based in Bangladesh that offers garments for
men, women, boys, girls and kids/babies. Over the years, they have gained immense
industry expertise that has enabled them in identifying prominent vendor base across the
country from which they procure range of products.
6. BASE Textiles Limited
BASE Textiles Limited a leading Knit ready-made garments factory (Knit composite),
Base Textiles Limited, was set up in 1996, located in Chittagong (the port city and
business capital) and has established itself in Bangladesh as a confident supplier of knit
fabric and garments.
7. Euro Group Bangladesh
Euro Group has always been the trendsetter in providing total solution package to its
customers in the field of Textile and Garments, ensuring value for price and in turn
achieving the entire customer satisfaction.
8. Greenland Garments
Greenland Garments Ltd. is a vertically integrated knit manufacturer. Our siege of the
garment production process begins with the knitting of yarn into fabric and extends into
and beyond the dyeing and manufacturing of various types of knit garments.
9. Givensee Group
Givensee Group of Industries is one of the largest composite garments manufacturers
in Bangladesh. Established in 1982, it has more than 17000 workers producing over 70000
pieces of garments per ranging from knitwear items to heavy denim wear. The group was
one of the pioneers of Garment business in Bangladesh.
10. AFTAB GROUP
AFTAB GROUP is one of the leading enterprises with businesses in banking sec
tor, textile, food, readymade garments, agriculture, compressed natural gas, industrial
pump manufacturing so on and Real Estate in New York USA. Aftab Group has wellestablished enterprises in these fields and most of its projects have been success stories.
11. Zaber&Zubair Fabrics Bangladesh
Zaber&Zubair Fabrics was incorporated in 1997 with a mission to grow up as an
internationally recognized home textile manufacturing company, by meeting day todays
market requirement and achieving customers' satisfaction.
21
Format of cricket
OdI all-rounder
Test all-rounder
T20 all-rounder
ICC ranking
1st
2nd
2nd
23
Amit Chakma (born in Chittagong at 1959) is the 10th president of the University of
Western Ontario, Canada.
From 1988 until 1996, he taught chemical engineering at the University of Calgary. In
1996, he moved to the University of Regina as dean of engineering. He then served as
Regina's vice president research from 1999 to 2001. During his time at the University of
Regina, Chakma was named to Canada's Top 40. He became vice president academic
and provost at the University of Waterloo in 2001. His research interests are natural gas
engineering and petroleum waste management.
Monica Ali
Monica Ali (born 20 October 1967) is a Bangladeshi-born British writer and novelist. In
2003, she was selected as one of the "Best of Young British Novelists" by Granta
magazine based on her unpublished manuscript; her debut novel, Brick Lane, was
published later that year. It was shortlisted for the Man Booker Prize. It was adapted as a
2007 film of the same name. She has also published three other novels.
24
Margarita Mamun
She is the current Record Holder under the 20-point judging system with the highest Allaround total of 77.150 points; which she scored at the 2016 Baku World Cup. At the 2016
Olympic Games, Mamun won the all-around gold setting a new Olympic Record
under the 20 point judging system with a total score of 76.483 points, surpassing the
previous mark score of Evgenia Kanaeva. Her father Mr Abdullah al Mamun is from
Rajshahi.
Saif Ahmad
Saif Ahmad is a Bangladeshi-American restaurateur and World Series of Poker
champion. Ahmad is the owner of several Tony Roma's restaurants in Los Angeles,
California, and won the 2007 World Series of Poker bracelet in the $2,000 Limit Hold'em.
25
In line with Sustainable Development Goal 4 on education of the 2030 Agenda, this
year's theme emphasizes the importance of appropriate languages of instruction, usually
mother tongues, in the early years of schooling. It facilitates access to education while
promoting fairness for population groups that speak minority and indigenous languages,
in particular girls and women; it raises the quality of education and learning achievement
by laying emphasis on understanding and creativity, rather than on rote and memorization.
Language and culture are intricately related and dependent on each other. Language is
formed by culture, while culture is influenced and impacted by language. Language is the
medium of culture. This is clearly seen in immigrant societies in, for example, America.
These immigrants are accustomed to a certain language, and therefore, despite the
assimilation, will continue to use it and keep it alive, creating different and cultured
societies in this foreign land to keep the language alive.
Furthermore, not only is language an expression and a display of heritage and history, it is
also the component of culture that makes it unique, and that creates a difference from one
to another. Linguistic differences are also often seen as the mark of another culture, and
they very commonly create divisiveness among neighboring peoples or even among
different groups of the same nation. A good example of this is in Canada, where Frenchspeaking natives of Quebec clash with the English-speaking majority. This explains how
language can be a pathway to culture.
26
27
21st February is the pride of Bangladesh and we can hold a huge promotion and
campaign and reach to the whole world with our products especially with our RMG.
28
29
Member of BCIM
The BangladeshChinaIndiaMyanmar Forum for Regional Cooperation (BCIM)
is a sub-regional organization of Asian nations
Strategic partner
Defense cooperation
Defense Cooperation Agreement in 2002
Chinese tanks
Chinese frigates and missile boats
Chinese fighter jets
2008-an anti-ship missile launch pad near the
Chittagong Port with assistance from China
30
Economic cooperation
4.3.2 Malaysia
Strong fraternal relations with Malaysia
31
Conclusion
Land is the least competitive advantage whereas technology can be adopted and skilled
human resource will be the major contributor for future market domination. Bangladesh has
less land so; we need to go outbound with our skills to increase capability and capacity in
production for cost-effective manufacturing. Already we are present in Africa and we can
also go to Brunei. Bangladesh has two strong points Muslim country which is the 2nd
largest religion of the world and Language Bangla 7th largest in the world.
Malaysia, China, Indonesia, Japan and Brunei can be good cooperators to Bangladesh in
expanding bilateral business and helping in advocacy in nation branding. USA is going to
be our potential market due to recent political change and USA is close to strategic
association with Bangladesh too. If we can ensure total quality management and value
negotiation none other in the Southeast Asian country but Bangladesh will lead in RMG
very soon. RMG is going to contribute more than today in not only in GDP but also in job
creation. BGMEA will have more responsibility to make collaborative strategy with the
buyers and countries. We have to search for more cost-effectiveness and introduce more
technological advances to meet the global competitiveness.
32
References:
1. Shariful Islam, CEO, Bangladesh Brand Forum
2. Bangladesh Bank Data
3. Bangladesh
Economic
Review-2015,
Ministry
of
Finance
Export Promotion Bureau
4. http://www.tradingeconomics.com/bangladesh/ease-of-doing-business
5. Anholt GFK Nation Branding ranking 2015
6. Brand Finance Nation Branding Index 2014-15
7. http://www.futurebrand.com/uploads/CBI
8. Bloom Consulting Country Brand Data 2014-15 (Tourism Edition)
9. http://www.un.org/en/events/motherlanguageday/background.shtml
10. http://www.garmentsmerchandising.com/readymade-garments-industry-of-bangladesh/
11. Economic Census-2016
12. http://aboutworldlanguages.com/bengali
13. The Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS)
14. http://www.apec.org/
15. ARTA MAY 2016 Final-4
16. FT MAY 16
17. http://www.bgmea.com.bd/home/pages/AboutGarmentsIndustry
18. Business report of the daily Prothom ALo on 19 October, 2016, based on EPB data
19. Bangladesh Bank
20. Economic Census-2016
33