Buyer Paying Lower Price of Bangladeshi Apparel: An Empirical Investigation on Causes


  • Md. Zahid Hasan Lecturer, Department of Knitwear Manufacturing & Technology, BGMEA University of Fashion & Technology, Dhaka 1230, Bangladesh.
  • Siddika Haque Lecturer, Department of Knitwear Manufacturing & Technology, BGMEA University of Fashion & Technology, Dhaka 1230, Bangladesh.
  • Prof. Dr. Engr. Ayub Nabi Khan Pro Vice Chancellor, BGMEA University of Fashion & Technology, Dhaka 1230, Bangladesh.


Garments, price, valuable apparel items, Image crisis, negotiation


In the last few decades RMG sector has been acted as backbone of economy of Bangladesh. It consumed about 80% of foreign earning. In the recent time, it has been noticed that buyers are not interested to pay the equal price of garments from Bangladesh and from other countries although the quality remains same. For instance, per square meter priced $ 7.38 the products of Turkey $ 5.37 from Malaysia where $ 2.79 from Bangladesh. The main aim of this study is to find the causes of this. For this descriptive research method was followed and data were collected from secondary sources like case studies, journals, thesis papers, online newspapers, research articles, garments manufacturing industries annual reports, newspapers, survey reports, and BGMEA yearly report. After the study, it was observed that due to lack of diversified products, image crisis, poor negotiation techniques, labor and political unrest are the main reason behind this.


. Gereffi, Gary. “The Organization of Buyer-Driven Global Commodity Chains: How US Retailers Shape Overseas Production Networks.” Contributions in Economics and Economic History, pp. 95-95, 1994.

. Gereffi, Gary. "International Trade and Industrial Upgrading In the Apparel Commodity Chain." Journal of International Economics, vol. 48.1. pp. 37-70, 1999.

. Joarder, Mohammad Abdul Munim, A. K. M. Hossain, and Md Mahbubul Hakim. “Post-MFA Performance of Bangladesh Apparel Sector.“ International Review of Business Research Papers,vol. 6.4 pp. 134-144, 2010.

. Dickerson, K. G. "Textiles and apparel in the global economy Prentice Hall." Englewood Cliffs (1995).

. Gelb, Bernard A., and Resources, Science, and Industry Division. "Textile and Apparel Quota Phaseout: Some Economic Implications." Congressional Research Service, Library of Congress, 2005.

. Shelton, Ruth K., and Kathy Wachter. "Effects of Global Sourcing On Textiles and Apparel." Journal of Fashion Marketing and Management: An International Journal (2005).

. Kim, Yongju, and Margaret Rucker. "Production Sourcing Strategies in the US Apparel Industry: A Modified Transaction Cost Approach." Clothing and Textiles Research Journal, vol. 23.1, pp. 1-12, 2005.

. Su, Jin, Carl L. Dyer, and Vidyaranya B. Gargeya. "Strategic Sourcing and Supplier Selection in The US Textile—Apparel—Retail Supply Network." Clothing and Textiles Research Journal , vol. 27.2,pp. 83-97, 2009.

. Jin, Byoungho. "Apparel industry in East Asian newly industrialized countries." Journal of Fashion Marketing and Management: An International Journal, 2004.

. Gary Teng, S. and H. Jaramillo, A Model for Evaluation and Selection of Suppliers in Global Textile And Apparel Supply Chains. International Journal of Physical Distribution & Logistics Management, vol. 35(7), pp. 503-523, 2005.

. Nam, Jan Hathcote, Il-Ji. "Advantages of sourcing apparel from China, Taiwan, South Korea, and Mexico." The International Trade Journal, vol. 13.2 (1999): 157-185.

. Ahamed, Ferdous. "Background of History of Bangladesh and Ready-made Garment Industry: Key challenges in the RMG Industry." Middle East Journal of Business, vol. 8.1, 2013.

. Shikder, B. N. "Present and Future of Bangladeshi Women Garments Workers: Profile of globalization." Contribution to the International Communist Seminar on Economic Crises and Possibility of a Major World Crisis, Brussels, Jatio Shromik Jote-Bangladesh, National Trade Union Federation, www. icsbrussels. org, viewed on. Vol. 2. No. 10. 2002.

. Taslim, Mohammed Ali, and M. S. Haque. "Export performance of Bangladesh global recession and after." London: International Growth Centre, 2011.

. Tanvir, Saiful Islam, Noorul Muqaddim, and Arafat Hossain. "Future Panorama of Bangladesh Garments Concerning SWOT Scrutiny." Future, vol. 6.16, 2014.

. Wadud, Zia, Fuad Yasin Huda, and Nizam Uddin Ahmed. "Assessment of fire risk in the readymade garment industry in Dhaka, Bangladesh." Fire Technology, vol. 50.5, pp. 1127-1145, 2014.

. Hasan, Jahid. "The competitiveness of ready-made garments industry of Bangladesh in post MFA era: How does the industry behave to face the competitive challenge?." Journal of Economics, Management and Trade, pp. 296-306, 2013.

. Lee, Khai-Loon, Zulkifli Mohamed Udin, and Mohamad Ghozali Hassan. "Global Supply Chain Capabilities in Malaysian Textile and Apparel Industry." International Journal of Supply Chain Management (IJSCM), 2014.


. Dey, Soma, and Palash Basak. "Rana Plaza Disaster and Thereafter: Evaluating Efforts to Manage Safety and Social Security in the RMG Sector, Bangladesh."

. Hasan, Kamrul, Ashraful Islam, and Md Arifuzzaman. "A Study on the Major Causes of Labour Unrest and Its Effect on the RMG Sector of Bangladesh." International Journal of Scientific & Engineering Research vol. 6.11,pp. 199-212, 2015.

. Mirdha, R.U. “Bangladeshi apparel makers paid one of the lowest prices in the world. Internet: July. 14, 2019 [Sept. 15, 2020].

. Wiig, Arne. "Has recent political unrest affected garment exports from Bangladesh?." CMI Report, 2018.

. Nur, Md Shihab. "A Study on Advantages of Sourcing Apparel from Bangladesh.", 2016.




How to Cite

Hasan , M. Z. ., Haque , S. ., & Khan, P. D. E. A. N. . (2020). Buyer Paying Lower Price of Bangladeshi Apparel: An Empirical Investigation on Causes. American Scientific Research Journal for Engineering, Technology, and Sciences, 72(1), 152–161. Retrieved from