Introduction to Local and Foreign Brands

Brands: A brand is the name, symbol, or design that a company uses to show who
they are and what they sell. A brand is how people recognize a company. It includes
the name, logo, colors, and the feeling or image people get when they hear that name.

Local and Foreign Brands

Local Brands (BD Brands):
➢ Serve primarily the domestic (Bangladeshi) market.
➢ Focus on local tastes, culture, and affordability.

Examples:
o Aarong
o Sailor
o Apex
o Yellow

Foreign Brands:
➢ Operate on a global scale and often have a presence in Bangladesh.
➢ Known for international fashion trends, branding, and product quality.

Examples:
▪ Nike (USA)
▪ H&M (Sweden)
▪ Uniqlo (Japan)
▪ Zara, Bershka, Lefties (Spain)
▪ Target, PUMA (USA, Germany)
▪ Tesco, Marks & Spencer (M&S) (UK)
🌟 Characteristics of a Great Brand 🌟

🔹 1. Clear Marketing Positioning

• A strong brand knows who its customers are and what makes it special.
• It shows this clearly to customers, so they remember it well.
• Example: Aarong sells to Bangladeshi shoppers who like both tradition and
modern style.

🔹 2. Strong Purpose

• A good brand has a clear mission or reason for existing.

• This helps customers feel connected emotionally.
• Example: Nike’s purpose is “To bring inspiration and innovation to every
athlete.”

🔹 3. Modern Leaders

• Smart leaders who use new ideas, technology, and care about the environment
help brands grow.
• Example: H&M focuses on sustainable fashion with forward-thinking leaders.

🔹 4. Unique Style

• A brand has its own special voice and looks that makes it different.
• This personality helps customers relate to it.
• Example: Uniqlo is known worldwide for its simple and useful designs.

🔹 5. Uses Technology and Data

• Brands use data and digital tools to understand customers better and predict what
will be popular.
• Example: Zara checks real-time customer data to change designs every week.

🔹 6. Consistent Design

• A brand uses the same colors, fonts, logos, and images everywhere.
• This helps people recognize it easily.
 • Example: Apple uses clean designs and the same logo on all products and ads.

🏷️ Types of Brands

👑 1. Luxury Brands

• Customers: Rich people who want special, exclusive things.

• Materials: Use expensive fabrics, hand-made details, and limited items.
• Brand Style: Fancy, elite, and classic.
• Examples: Gucci, Prada, Chanel, Dior

👗 2. Fast Fashion Brands

• Customers: Young people who follow trends and want affordable clothes.
• How They Work: New styles come very fast, sometimes every week or month.
• Problems: Sometimes criticized for harming the environment and poor worker
conditions.
• Examples: Zara, H&M, Forever 21, Bershka

👟 3. Sportswear Brands

• Customers: Athletes, people who exercise, and those who like sporty casual
clothes.
• Features: Use breathable fabrics and designs that help performance.
• Also Worn As: Casual wear, not just for sports.
• Examples: Nike, Adidas, PUMA, Under Armour

🧵 4. Ethnic/Traditional Brands

• Customers: People who love cultural or traditional clothing.

• Designs: Use hand embroidery, natural colors, block prints, and local fabrics like
Jamdani or Khadi.
• Social Good: Often support local artisans and eco-friendly ways.
• Examples: Aarong (Bangladesh), FabIndia, Rang Bangladesh
🧵 Quota System in Textiles

📌 What is the Quota System?

• The quota system means setting a limit on how much clothes and fabrics a
country can import or export.
• It is a way to control trade without using taxes.

Why do countries use the Quota System?

• To protect local factories from too many cheap or large amounts of foreign
clothes.
• To give developing countries time to improve their factories and compete in the
world market.

🧩 Historical Agreements Involving Quotas

📍 1. Multi-Fiber Arrangement (MFA)

➢ Started: 1974
➢ Goal: Control trade of textiles and clothes between rich (developed) and poor
(developing) countries.
➢ How it worked: Limited how much fabric and clothes developing countries
could send to rich countries.
➢ Result: Helped rich countries protect their markets but made it harder for
countries like Bangladesh to grow in exports.

📍 2. Agreement on Textiles and Clothing (ATC)

➢ Started by WTO: 1995

➢ Purpose: Slowly remove the old quota limits from the MFA system.
➢ Time: Took 10 years, finished in 2005.
➢ Result: Textile trade became more open and competitive for all countries.

Benefited countries like China, India, and Bangladesh with strong production
capacity.

📊 Key Impact of Quota System

Before 2005: Limited exports protected developed markets.
After 2005: Open competition, massive growth for countries with low production costs (e.g.,
Bangladesh's RMG sector grew significantly).

📉 Impact and Consequences of the Quota System

🛡1. Reduced Competition

What happened?

• Quotas stopped many products from strong producers (mostly developing

countries) from coming in.

Effect:

• Protected local factories in rich countries.

• Made prices higher for buyers because of fewer choices.
• Made global trade less efficient.

2. Trade Diversion and Deflection

Trade Diversion:

• Buyers started buying from countries without quotas, even if those countries
were less efficient.

Trade Deflection:

• Exporters moved their factories or shipments through other countries to avoid

quotas.

Example:

• A Chinese company might make clothes in Bangladesh or Vietnam to get around

U.S. quotas.

3. Impact on Bangladesh

Good Side (During Quota Times):

• Bangladesh gained advantage because quotas limited bigger exporters like

China.
• This helped Bangladesh become a big exporter of ready-made garments (RMG).
Challenges After Quota Removal (Post-MFA, 2005):
o Bangladesh faced strong competition from countries like China and India that
have better factories and bigger production.
o To keep up without quotas, Bangladesh had to make better quality products,
follow rules, and deliver faster.

🧷 Apparel Category System – Overview

📘 What is a Category System?

• A category number is a specific identifier used to classify different types of

garments.
• These numbers are widely used in textile trade, import/export regulation, and data
tracking.

📦 Purpose of Category Numbers

• Helps organize and monitor trade volumes effectively.

• Facilitates data analysis, quota management, and compliance with trade
agreements.
• Example:
o Category 338: Men’s or boys’ cotton knit shirts
o Category 339: Women’s or girls’ cotton knit shirts

🔍 Detailed Look at Different Category Systems

👕 1. By Garment Type
Garment Type Description
Dresses One-piece garments covering torso and legs
Shirts Upper body garments with sleeves and a collar
Trousers/Shorts Bottom garments worn from waist downward
Jackets/Blazers Outerwear with structure, often used formally
Sweaters/Pullovers Knitted warm tops, often made of wool or acrylic
T-shirts/Vests Casual tops, sleeveless or with short sleeves
🛠️ 2. By Activity or Usage
Activity Type Description

Workwear Designed for occupations and industrial use

Outdoor Clothing Suitable for hiking, trekking, sports

Sleepwear/Nightwear Pajamas, nightgowns, loungewear

Base Layers Innerwear like thermals, used for insulation

🧵 3. By Fabric Type
Fabric Category Examples and Purpose

Natural Fibers Cotton, wool, silk — breathable, biodegradable

Man-made Fibers Polyester, nylon, viscose — durable, quick-drying

Performance Fabrics Moisture-wicking, thermal regulation — ideal for sportswear

🔢 Examples of Common Category Numbers

Category No. Description
338 Men’s or boys’ cotton knit shirts
339 Women’s or girls’ cotton knit shirts
340 Men’s or boys’ cotton woven shirts
347 Cotton trousers and shorts
🌍 Global RMG Export Market Share – 2023
📊 Based on WTO Statistics
🇧🇩 Bangladesh – 2nd Largest Exporter

• 2023 Export Value: $38 billion

• 2022 Export Value: $45 billion
• Change: Decrease of $7 billion
• Global Market Share (2023): 7.38%
• Global Market Share (2022): 7.90%

Despite a decline, Bangladesh retains the 2nd position in global RMG exports.

🇨🇳 China – Still the Largest Exporter

• 2023 Export Value: $165 billion

• 2022 Export Value: $182 billion
• Change: Decrease of $17 billion
• Global Market Share (2023): 31.64%

Though China saw the largest absolute drop, it still dominates the market.

🇻🇳 Vietnam – Close Competitor

• 2023 Export Value: $31 billion

• Global Market Share (2023): 5.96%

Vietnam remains a key competitor to Bangladesh, with a small gap in both value
and share.

🇹🇷 Türkiye – 4th Largest Exporter

• 2023 Export Value: $19 billion

• Global Position: 4th
🇮🇳 India – 5th Largest Exporter

• 2023 Export Value: $15 billion

• Global Position: 5th

📌 Summary Table: Top RMG Exporters in 2023

Export Value
Rank Country Market Share (%) Change from 2022
(2023)
1 🇨🇳 China $165 billion 31.64% -$17 billion

2 🇧🇩 Bangladesh $38 billion 7.38% -$7 billion

3 🇻🇳 Vietnam $31 billion 5.96% [Not mentioned]

4 🇹🇷 Türkiye $19 billion [Not specified] [Not specified]
5 🇮🇳 India $15 billion [Not specified] [Not specified]

📈 Insight:

• All top exporters saw a decline in export value in 2023.

• Bangladesh and Vietnam remain close rivals.
• Even with global slowdowns, Bangladesh holds strong as a top RMG
player.