Presidency University

Presidency University

Name: Azmol Hossen

I’D: 193 046 067
Program: MBA/ EMBA
Semester: Spring’2021
Course: Strategic Management

Title: Assignment details are strategy management for Pretty Group.

1. Executive summary

2. Introduction

3. Company profile

4. Objectives of the study

5. Methodology

6. Findings of the study

 Pricing Strategy
 Service strategy
 Distribution strategy
 Sales promotion strategy

Competitive strategy

7. Conclusion

8. Recommendation

9. References (Harvard Style)

10. Bibliography

1. Executive summary

Friday, April 16, 2021 1|Page

Presidency University

The readymade garment Sector plays an important role in the economic

development of Bangladesh. As our biggest foreign currency earner, this
sector accounted for 79.63% of the total exports in the fiscal year 2012-
2013. It made up 10% of the country’s GDP that year, and if the
supplementary industries are considered, that share was almost 14-15%.
Two thirds of country’s labor force (approximately 4 million) is engaged in
this sector, of which almost 85% are women. It is the biggest formal sector
employer in the country and is considered the backbone of the economy.
The economic success of this sector, however, does not reflect the overall
scenario prevailing in this sector. Numerous financial and policy incentives
from the government have failed to ensure the rights and safety of the
workers, who are the driving force of this sector. Unsafe and unhealthy
working conditions and social compliance gaps have been hindering the
progress of the Sector.

In the last seven years, Bangladesh's garment industry has increased its
annual revenue from $19 billion to $34 billion—a 79 percent rise. This
makes the country the second largest exporter of garments in the world,
with the sector accounting for 80 percent of Bangladesh's total export
earnings.

No. of Facilities: 12 State-of-the-Art Factories

Employment : Over 17,000 skilled workers
Capacity : 2M PCS Knitwear & 1M PCS Shirts / Month
Turnover : Projected US$250M by 2019 (Achieved $190M in 2018)
Registration : USGBC for LEED certification in Gold & Platinum
Specialty : Largest Japanese Shima Seiki Knitting Machine holder
Customers : World’s Leading Clothing Brands & H/S Retailers
Business Portfolio: RMG, Auto Brick, Real Estate, Steel Mills, Banks,
Insurance, etc.
Markets : EUROPE, AUSTRALIA, USA, CANADA, JAPAN & AFRICA.

2. Introduction

Pretty Group — Pretty Group started its operation in 2001. Quality and on time
delivery is the mile stone of our success. Total customer satisfaction is our only aim and
under no circumstances it is compromised. We ensure timely shipment and delivery to
gain faith and Confidence from our valued customers.

We make all types of Bottoms and Tops (Sweaters, Dress Pant, Blazer, Fashion Trousers,
Jackets, Ladies Dress, Overall Shorts, Romper, Shirts and more) due to excellent in
house facility and high standard, washing plant and Grinding Capacity. We are highly
specialized in Sweater Manufacturing. Nevertheless, we can also handle any kind of
cotton, Twill, Canvas, Corduroy, Poplin, and any stretch fabric.

Friday, April 16, 2021 2|Page

Presidency University

Products- as below,

 Knit
 Woven- Shirts
 Fully Fashion Sweaters

Our yearly capacity is 24 Million pcs Sweaters and 8 Million pcs of Shirts.

Our buyers are: Okaidi, Springfield, Pimkle, Jules, Auchan, JC Penny, Kohls, Walmart,
Tesco, Target, Soriana, GU, Carter’s, Celio, Akermans, Brice, Cotton on, Debenhams,
H & M, Mr.Price, Uniqlo, Zara, S.Oliver, C & A and so on.

Corporate office location

House # 5-A, Road # 94, Gulshan # 2

Dhaka – 1212, Bangladesh.

Certificate

ISO. 9001-2008, C-TPAT

Wrap/ BSCI/ Sedex/ Accord/ BGMEA/ ALLIANCE/ BKMEA/ BDYEA/ DCCI

Production capacity: 36 million pcs per year

Total work force: As on January 2017; 20,000 (Work Force)

3. Company profile

PRETTY GROUP (Bridging Technology and Sustainability)

Company Logo

Group’s Overview…. HIGH LEVEL

Friday, April 16, 2021 3|Page

Presidency University

No. of Facilities: 12 State-of-the-Art Factories

Employment : Over 17,000 skilled workers

Capacity : 2M PCS Knitwear & 1M PCS Shirts / Month

Turnover : Projected US$250M by 2019 (Achieved $190M in 2018)

Registration : USGBC for LEED certification in Gold & Platinum

Specialty : Largest Japanese Shima Seiki Knitting Machine holder

Customers : World’s Leading Clothing Brands & H/S Retailers

Business Portfolio: RMG, Auto Brick, Real Estate, Steel Mills, Banks, Insurance, etc.

Markets : EUROPE, AUSTRALIA, USA, CANADA, JAPAN & AFRICA.

Company Vision:

 Creating benchmark thru Technological advancement;

Service excellence and Sustainability.

Company Mission:

 To our Customers….. Total Satisfaction by building long term partnership;

assuring delivery discipline; product conformity; safe workplace and
maintaining price continuity without compromising to quality.

 To our People….. An equal opportunity employer by ensuring highly ethical &

comfortable working environment and compliant with all national &
international rules.

 To our Society…… Turn as a Green factory with aim to release no waste to land
field; reduce carbon footprint, use sustainable materials & employ partially
challenged people.

Friday, April 16, 2021 4|Page

Presidency University

Pretty Sweaters Ltd

Key Highlights

 Total Floor Area - 500,000 SFT

 Energy Efficient Green Building
 LEED Certification: GOLD
 Knitting Machine - 697
 ACCORD – 100%
 BSCI & SEDEX Certified
 Capacity – 650,000 PCS / Month
 Turnover – US$45M
 Employment - 5,250 person
 Year of Establishment - 2014

D&S Pretty Fashions Ltd

Key Highlights

 Total Floor Area - 3,00,000 SFT

 LEAN Manufacturing Facility
 Knitting Machine - 860
 ACCORD – Avg Score 82.22%
 BSCI, SMETA, ICS, OEKO-TEX Certified

Friday, April 16, 2021 5|Page

 Presidency University

 Approved Facility of Okaidi, Carters, Zara H&M, C&A, Celio, Spring Field, Jules &
Auchan
 Capacity – 750,000 PCS / Month
 Turnover – US$50M
 Employment - 3,600 person
 Year of Establishment - 2001

S. Suhi Industrial Park Ltd

Key Highlights

 Total Floor Area – 200,000 SFT

 LEAN Manufacturing Facility
 Knitting Machine - 400
 ACCORD – Avg Score 48.94%
 BSCI, SEDEX, OEKO-TEX Certified
 Approved Facility of Okaidi, Carters, Zara H&M, C&A, Celio, Spring Field & GU
 Capacity – 4,00,000 PCS / Month
 Turnover – US$30M
 Employment - 2000 person
 Year of Establishment – 2009 (Take Over)

Pretty Group- Capacities

Planned Planned Actual Actual

Gauge Knitting Capacity (Pcs/ Knitting Capacity Brand
Machines month) Machines (Pcs/ month)
Multi Gauge: (3, 5 & 7) :
900 900,000 718 720,000 Shima Seiki
Jacquard
Multi Gauge: (10, 12 & 14) :
900 800,000 654 600,000 Shima Seiki
Jacquard

Friday, April 16, 2021 6|Page

 Presidency University

1.5/3 Gauge Jacquard 50 75,000 0 0 Shima Seiki

9 Gauge Jacquard 100 100,000 60 60,000 Honquima

Multi Gauge (3,5 & 7)
200 225,000 200 225,000 Cixing
Jacquard
Multi Gauge (9,10 & 12) Cixing/
300 270,000 300 270,000
Jacquard Guosheng
Multi Gauge: (10, 12 & 14 ):
50 50,000 25 25,000 Shima Seiki
Intarsia
3,5,7,12 Manual 0 0 600 100,000 Flying Tiger

Total Capacities 2,500 2,500,000 2,557 2,000,000

Expansion….. Capacities

Friday, April 16, 2021 7|Page

Presidency University

Oxford Shirts

 Automatic Loading, Cutting & Spreading with IMA machines for high efficiency
& productivity
 auto placket scissoring machines from MAICA for better quality
 Separate Pin table facilities for check fabric cutting
 KANBAN signal application for line input loading and less transportation.
 Special VEIT & MACPI machine for perfect quality fusing
 Automation at pocket joining, sleeve placket joining, body hole and button
attachment
 Specialized MAICA machines at collar & cuff run stitch for assuring better
quality
 Auto stacker system for box placket and button placket.
 100% Electronic control system (color & PO wise) and (ETS-RFID/Smart-MRT)
for Visual Work Studio
 1 unit is designed for Casual Shirt having TECHZEN smart auto hunger system
with ETS or Smart MRT system
 Dehumidification zone for moisture management, relaxation
 Completely automatic shirt folding and poly bag system

Friday, April 16, 2021 8|Page

Presidency University

Pretty Group- London Design Studio

Pretty Group….…USP

 Fully Functional Laboratory

 Effluent Treatment Plant (Bio-Chem)
 Installed RFID/ETS for Visual Work Studio
 Automated & Computerized Shima Seiki Machine from Japan
 Most Advanced Production Management: LEAN Manufacturing System
 London R&D Studio: lead by EU Fashion Designer, creating over 100
designs/month
 Safety & Security Equipments: All are UL certified & installed as per ACCORD/
ALLIANCE
 Strong Mid Level Management; Dedicated Industrial Engineering and Planning
Team
 Highly Experienced Production Team from India, Sri Lanka and Technical
Advisor from Europe

Pretty Group- Energy Savings Initiative

• LED Lighting

• Absorption Chiller

• Roof Top Gardening

Friday, April 16, 2021 9|Page

Presidency University

• Rain Water Harvesting

• Effluent Treatment Plant

• Reverse Osmosis for Drinking

• Condensate Heat Recovery System

• Frequency Inverters for Winding Machines

• Servo Type Motor Mechanism for Linking Machine

On Going

Pretty Group- Customers & Partners

4. Objectives of the study

Scientific and monitored analysis of current techniques for carrying out a job. Simplify
the job. Measure mental and physically skilled workers and define performance
measurements as a standard. Improve job effectiveness at all levels.

These are the program objectives:

Friday, April 16, 2021 10 | P a g e

Presidency University

1. To promote an understanding of Fashion and Textile Design in relation to the needs

of fashion, contractual furnishings, home textiles, and the business to business textile
products.

2. To provide hands-on experience using a set of complex technologies found in industry

today to build prototypical solutions to solve current needs.

3. To provide experience in responding to market opportunities with creative and

innovative products that integrate a set of academic disciplines such as textile materials,
design fundamentals, business fundamentals, sourcing, data mining of market
information, and new developments in material science and engineering.

4. To create an educational environment that approximates the actual conditions in

industry by building studios and workshops containing state-of-the-art systems,
resources, technologies, and a community of creativity and innovation.

5. To develop strong multi-functional teamwork and communication skills using visual

and verbal presentation assignments and interfaces with practitioners in the design
community and the industry.

Objective: To promote an understanding of Fashion and Textile Design in relation to the

needs of fashion, contractual furnishings, home textiles, and the business to business
textile products.

a. Students will be able to locate, analyze, and synthesize market research data and
apply that data to delineate the needs of specific markets.

b. Students will be able to critically evaluate textile product design solutions in terms of
needs of diverse textile end uses and communicate those evaluations using appropriate
vocabulary, terminologies, and structural dimensions.

Objective: To provide hands-on experience using a set of complex technologies found in

industry today to build prototypical solutions to solve current needs.

a. Students will use proprietary and off the shelf CAD systems to build virtual
prototypes and labs and studios to build the actual prototypes.

b. Students will be able to successfully execute projects using various software packages
for fashion and textile design including LECTRA, Adobe PhotoShop, EAT, and Gerber.

Objective: To provide experience in responding to market opportunities with creative

and innovative products that integrate a set of academic disciplines such as textile
materials, design fundamentals, business fundamentals, sourcing, data mining of market
information, and new developments in material science and engineering.

a. Students will develop innovative and creative fashion, home and contract products for
diverse textile markets.

b. Students will be able to prepare entries and compete in industry and academic
competitions and juried exhibitions.

Friday, April 16, 2021 11 | P a g e

Presidency University

Objective: To create an educational environment that approximates the actual

conditions in industry by building studios and workshops containing state-of-the-art
systems, resources, technologies, and a community of creativity and innovation.

a. Students will be able to execute design projects utilizing industry design,

development and production equipment.

b. Apply knowledge of design elements and principles, product, market and technology
to critique of fashion, textile and textile product design work.

Objective: To develop strong multi-functional teamwork and communication skills

using visual and verbal presentation assignments and interfaces with practitioners in
the design community and the industry.

a. Students will be able to effectively execute projects utilizing self- critique and
criticisms of cohorts, industry guests, and faculty in the collaborative studio
environment.

b. Students will formulate effective design solutions individually and in teams and in
response to real world problems.

5. Methodology

Method study is more of a systematic approach to job design than a set of techniques. It
is defined as the systematic recording and critical examination of existing and proposed
methods of doing work. Method study is also known as methods engineering.

Flow Chart of Garments Manufacturing Process / Technology:

A basic garment manufacturing flow chart is presented below:

Design
↓
Pattern Making
↓
Fit Sample Making
↓
Production Pattern Making
↓
Grading
↓
Marker Making
↓
Fabric Spreading
↓
Fabric Cutting
↓
Cutting Parts Sorting or Bundling
↓

Friday, April 16, 2021 12 | P a g e

Presidency University

Sewing
↓
Garments Inspection
↓
Garments Ironing and Finishing
↓
Final Inspection
↓
Garments Packing
↓
Cartooning
↓
Shipment

Each process of garments manufacturing flow chart is discussed in the below with the
details:

1. Design:

Design is provided by the buyer. After placing an order buyer send the technical sheet
and art-work of an order to the merchandiser. This process is done both manually and
by using the computer.

2. Pattern Making:

By following the technical sheet and art-work, the pattern of each garment style should
be made. It’s done both manually and by using a computerized method.

3. Fit Sample Making:

The main target of making a fit sample is to follow the detailed instruction about the
style of that garment. After making it’s sent to the buyer to rectify. It’s done manually.

4. Production Pattern Making:

For bulk production, allowance is added here with net dimension. Production Pattern
Making is done both manually and by using the computer.

5. Grading:

During an order confirmation, the buyer suggests the size ratio of that order. So that
order should be graded according to the buyer’s instruction. Grading is done manually
or by using the computer.

Friday, April 16, 2021 13 | P a g e

Presidency University

6. Marker Making:

Marker is a very thin paper that contains all the parts of a particular garment. To make
the cutting process easy, it’s must be needed. Marker making process can be done both
manually and by using the computer.

7. Fabric Spreading:

To cut the fabric properly fabric is spread inlay form. Fabric Spreading is done manually
or by using a computerized method.

8. Fabric Cutting:

Fabrics have to cut here according to the marker of garments. The fabric Cutting process
is done by using a manual method or computerized method.

9. Cutting Parts Sorting or Bundling:

Here, cutting parts have to sort out or make bundling to send these easily into the next
process. This process is done manually.

10. Sewing:

All the parts of a garment are joined here to make a complete garment. The sewing
process is done manually.

11. Garments Inspection:

After completing sewing, inspection should be done here to make fault free garments.
Garments Inspection is done by using the manual method.

12. Garments Ironing and Finishing:

Here garments are treated by steam; also required finishing should be completed here.
This process is done by using the manual method.

13. Final Inspection:

Finally, the complete garments are inspected here according to the buyer’s specification.
Final Inspection is done by manual method.

Friday, April 16, 2021 14 | P a g e

Presidency University

14. Garments Packing:

Complete garments are packed here by using the buyer’s instructed poly bag. Garments
packing are done by using the manual method.

15. Cartooning:

To minimize the damages of garments, all the garments have to cartoon by maintaining
buyers’ instruction. This process is done manually.

16. Shipment:

After completing all the required processes it’s finally sent to the buyer.

6. Findings of the study

Pricing Strategy

Garment Costing and Pricing Strategies

The costing of apparel products is one of the most important planning functions
performed within the company. Mastery of pricing and costing is crucial for an
apparel manufacturer in today’s fast-paced, global marketplace. Costing must be
made in such a way that none of the manufacturing, distribution, management
process is left out of the calculation. Also, one needs to keep in mind that the
profit that has to be made on that. The main objectives of an ideal garment costing
and pricing strategies should always be to minimize the wholesale price which in
turn will maximize its difference between the retail selling prices.

Friday, April 16, 2021 15 | P a g e

Presidency University

The cost of a garment should be calculated such that it is as accurate as possible to

the actual production cost. Thus a competitive market price can be established for
that garment. This becomes the responsibility of both a merchandiser and the
accountant.

The merchandiser will be responsible for the production costs. And the
accountant will be responsible for the overhead expenses. Together will allow for
making effective costing and pricing decisions. A merchandiser must be aware of
each and every cost from production to financing as he will be responsible for all
the pricing decisions.

Related: Garment costing sheet

Garment Costing and Pricing Strategies

Below are the three cost accounting strategies for identification, measurement,
and allocation of costs.

Direct Costing

Absorption Costing

Activity Based Costing

1. Direct Costing

This is the most primitive costing strategies used in the apparel industries, sometimes
also referred to as variable costing. This method of costing compiles all the variable
costs related to materials and labor as product cost or cost of goods. Apart from this the
entire non-variable factory expenses, marketing, product development, general and

Friday, April 16, 2021 16 | P a g e

Presidency University

administrative costs are allocated through gross margin as either a fixed cost per
garment or as a target gross margin percentage. This form of costing strategy is very
effective for companies manufacturing basic garments like basic T-shirt, jeans, khakis,
classic suits, etc. with very little variations in labor, product development, and
marketing costs.

Below is an example of an effective direct costing method to price a new product being
added to a basic shirt line?
Direct Costing

A shirt manufacturing company is using direct costing since most of their products are
basic garments. It projected a sum of $660,000 as factory overhead, general and
administrative costs for an order quantity of 400,000 pieces thus having a cost of $1.65
per unit. The cost of goods contains only direc t variable costs for materials and labor.

A shirt has the following cost of goods:

Fabrics- $1.75
Trims/Accessories- $0.9
CM- $1.2
Commercial cost- $1.00

Cost of goods = $ 4.85

Mark up or gross margin contribution for factory overhead, general and logistics costs
and profits…
Administrative cost and profits - $1.65

Wholesale selling price –$ 6.50

Retail selling price - $12.00

The company decided to add a T-shirt to its products line. This transaction requires new
capital investments for equipment and additional marketing and products
developments cost of $240,000, which increases its gross margin contribution to
$900000 or $1.80 per unit at projected sales of 400000 pcs shirts 100000 T-shirts.
Under its current direct costing system the two products would be priced out as

Shirt T-shirts
Fabric $1.75 Fabric $1.15
Trims/Acc $0.90 Trims/Acc $0.50
CM/Labor $1.20 CM/Labor $0.47
Cost of goods $3.85 Cost of goods $2.12
Gross margin $1.80 Gross margin $1.80
contribution contribution
Wholesale selling $5.65 Wholesale selling $3.92
price price
Retail selling price $11.30 Retail selling price $7.84

Friday, April 16, 2021 17 | P a g e

Presidency University

Using direct costing to price these products would result in a 5% increase in the retail
price of the shirt therefore could price them out of the market. From direct system the
company shifts to actively-based costing strategy to estimate the change in price during
introduction of T-shirt into the line. The new capital investment for equipment and
additional factory overhead marketing and product developments costs are carefully
analyzed and assessed to the styles create the to the

2. Absorption costing

Absorption costing allocates fixed manufacturing overheads to each unit of production

along with variable manufacturing costs. It is also referred to as whole cost method. As
the name indicates, this method of costing absorbs all the fixed and variable
manufacturing costs into the cost of goods, which is used to establish the costing values.

The specialty of this type of costing is that it takes into account the relative effect of
variable and fixed manufacturing overheads to each style produced. The advantage of
this is that there are more equitable cost distributions of manufacturing overheads
between different styles thus low direct labor product does not have to take the burden
of high direct labor product’s overhead costs.

The below example shows the effect of absorption costing on the new product being
added to a basic shirt line in which the variable manufacturing overheads are applied to
each product as a percentage of the direct labor. Whereas the gross margin contribution
includes general and administrative costs added as per unit basis.

3. Activity-based costing

It is considered the most difficult costing system as well as the accurate. It works on the
principle that each activity that generates costs is sorted and calculated separately. The
sorted activities are assigned to garments based upon their use of those activities. The
examples of these activities are supervision, material management, engineering,
operator training, production planning, quality assurance, advertising, market research,
etc.

The difficulty in this strategy comes in creating a standard costing system which will be
able to capture and allocate costs to specific products. It also becomes important to
correlate the difference between the activity cost to the actual utilization of that cost by
a particular garment style or category to achieve accurate costing results.

Friday, April 16, 2021 18 | P a g e

Presidency University

Activity-based costing thus focuses on the activity as a base for allocating costs. It
becomes the responsibility of the department managers to use these activities with
maximum efficiency to justify their expenditures directly for the benefit of product
styles or categories.

Below example shows the effect of activity-based costing on the same above example.
By this process, the basic shirt is not carrying the overhead burden or additional general
and administrative costs generated by the T-shirt. The shirt is also benefited from the
fact that some of the fixed costs that it was totally absorbed are now being partially
absorbed by the new T-shirt.

Activity-based costing

Apart from the above, there can be many specialized strategies or variations of the
above for product costing depending upon the type of business but the intent of each
one of them is to take in consideration each and every expense into the costing as
accurately as possible.

OPEN COST SHEET FOR SWEATERS

COST BREAK DOWN SHEET
DATE 1-Feb-21 AGENT: TERRANOVA
BRAND TERRANOVA/TEDDY STYLE NO MGKD05757A
SPA
QUANTITY 20,000 ITEM
21 SS LADIES PULLOVER
SET PRICE $4.54 FABRIC C/O BANGLADESH /CHINA
AMOUNT $1,361,957.14 GARMENT C/O BANGLADESH
SIZE S - XL VENDOR  
Material
DETAIL ITEM C CONSUMP UNIT UNITPRI AMOUN TOTAL
W TION CEE T $1.13
SHELL 100% Acrylic,   0.63 LBS $1.800 $1.13 $13.61
FABRIC 2/36smm,
TRIM 100 % COTTON 5 0.00 YARD $1.600 $0.00 $0.00
FABRIC FLANNEL TWILL 6" S
WEAVE, 165 GSM
(20*20/72*68)
               
THREAD TEX 27   1.03 YDS $0.100 $0.10 VENDOR
SOURCE
HANG TAG MAIN HANGTAG   1.03 PCS $0.030 $0.031 VENDOR
SOURCE
TAG-1 PRICE TAG   0.36 PCS $0.020 $0.007 VENDOR

Friday, April 16, 2021 19 | P a g e

Presidency University

SOURCE
TAG-2 EURO TAG   0.36 PCS $0.020 $0.007 VENDOR
SOURCE
TAG-3 BLANK TAG   0.36 PCS $0.020 $0.007 VENDOR
SOURCE
MAIN LOOP WOVEN MAIN WITH   1.03 PCS $0.030 $0.031 VENDOR
LABEL SIZE LABEL SOURCE
WASH CARE PRINTED CARE LABEL   1.03 PCS $0.010 $0.010 VENDOR
LABEL SOURCE
BARCODE BARCODE LABEL   0.36 PCS $0.015 $0.005 VENDOR
SOURCE
Button 9+1 button   5.03 PCS $0.008 $0.040 VENDOR
SOURCE
PRINTED PP POLY PRINTED   1.03 PCS $0.040 $0.041 VENDOR
POLY BAG SOURCE
BLISTER WITHOUT PRINT   0.36 PCS $0.060 $0.022 VENDOR
POLY BAG SOURCE
TISSUE TISSUE PAPER   1.03 PCS $0.010 $0.010 VENDOR
PAPER SOURCE
SILICA GEL SILICA GEL   1.03 PCS $0.020 $0.021 VENDORSOUR
CE
CARTON 20 PCS IN ONE BOX - 5   0.25 PCS $0.500 $0.125 VENDOR
SETS SOURCE
GUM TAPE GUM TAPE   0.20 PCS $0.500 $0.100 VENDOR
SOURCE
PP BELT PP BELT            
              $0.56
               
MATERIAL SUB TOTAL $1.695
PICTURE OF STYLE    
MAKING/PACKING/FINISHING/PROFI     $2.50
T/COMMERCIAL  
EMBROIDERY       $0.00
TESTING       $0.02
PRODUCTION OVERHEAD       $0.05
PO RELATED COURIER COST -       $0.02
TOTAL YARN/FABRIC COST       $1.13
TOTAL TRIM COST       $0.56
NET FOB TO VENDOR     10% $4.29
ADD: SERVICE TAX     10% $0.04
TOTAL FOB LC AT SIGHT       $4.32

  ADD: 5 % OF BUYING OFFICE $0.22

      TOTAL FOB INCLUDINGBUYING OFFICE $4.54

Article References:

Apparel Merchandising:

Service strategy

Friday, April 16, 2021 20 | P a g e

Presidency University

Our multi-disciplinary teams provide a comprehensive range of services to the property

and development market throughout the EUROPE, AUSTRALIA & AFRICA.

We increase profitability and efficiency for our clients by coordinating our experienced
professional and agency teams and providing authoritative insights from market
specialists.

We can provide standalone single service delivery but this can be extended to provide
comprehensive coverage on multi-disciplinary instructions. We aim to deliver a truly
bespoke service, ensuring that each client benefits from a co-ordinate team, all under
one roof.

For more information on the services we offer, please click on the links below.

IN-HOUSE QUALITY CONTROL

Factory has its own Quality Assurance Team for every single order. For the satisfaction
& Assurance of quality, garments several inspections are conducted (ILC, IPC, MPC &
FRI) by Pretty Group corporate office team to our factories as per desired AQL.

SOURCING COLLECTIONS OF SWEATERS

We are professionally competent in sourcing sweaters & knit for winter season in
various types of styles in different types of yarns like Acrylic, Shetland wool, Marino
wool, lamb’s wool, blended fancy yarn (both local & imported yarn) & for the summer in
Cotton, Cotton like & various mixed yarns. Our departments have different collections
from our shipments to European & US market.

FABRIC/YARN QUALITY TESTING

Quality soft line products require quality piece goods. Even the most outstanding
manufacturing methods cannot compensate for defective material. Our goal is to create
an aggressive piece goods quality control program and eliminate many quality
problems before the manufacturing process begins. Yarn quality inspection should start
the day the yarn is in house.

IN LINE CHECK (ILC)

In Line Inspections starts the moment the production starts. It includes checks in
different stages of production i.e. knitting, linking, trimming, mending, finishing &
packing for sweaters.

INITIAL PRODUCTION CHECKS (IPC)

The IPC is conducted as soon as the manufacturer has started production and has 50 –
100 pieces completed and ready for packing. The purpose of the IPC is to determine if

Friday, April 16, 2021 21 | P a g e

Presidency University

the initial batch of products produced by the manufacturer complies with the cliental
specifications. If at this stage, any deviation beyond established tolerance is noticed,
timely corrections are made, before bulk production begins. A written inspection report
is prepared, confirming observations and a copy is given to the manufacturer. If
required a copy can also be sent to the customer.

MID PRODUCTION CHECKS (MPC)

The MPC is conducted a few days after the IPC, particularly when decencies have been
found during IPC depending on the shipment date. For large orders MPC are performed.
The MPC is conducted to ensure that any variation / discrepancies previously reported
are being corrected during further production and that a satisfactory quality standard is
being achieved.

FINAL RANDOM INSPECTION (FRI)

This is the final inspection and is done when goods are ready for shipment. This
inspection is conducted by at least two quality control officers, one of who has not been
associated with the order before this inspection. This ensures an unbiased report.

Distribution strategy

Sales promotion strategy

Competitive strategy

6. Conclusion
Pretty Group is one of Bangladesh’s foremost private sector companies with a
turnover of US $ 110 million.

Pretty Group has a diversified presence in Garments manufacturing, Garments

Dyeing, Fabricated Steel Manufacturing, Accessories Manufacturing. Pretty
Group’s Textile-Business is one of Bangladesh’s largest exporters of Garments
Products. Pretty Group started it’s journey in 2001 with an ISO 9001-2000

Friday, April 16, 2021 22 | P a g e

Presidency University

certificate and still successfully running it’s business by exporting big volume of
garments to Europe, USA & Canadian markets. It has been directly executing
business with many reputed Brands like H&M-Sweden, Okaidi-France, Spring
Field-Spain, Pimkie-France, Jules-France,Tesco-UK, Auchan- France, Rivers-
Australia, Celio SA- France, Ackerman- South Africa, Boyd- Australia, WDI- France
etc.

In recognition to minimized risks and occupational hazards in our factories,

pretty Group has been certified by various bodies Sedex, BSCI, Oeko-Tex.Pretty
Group has also membership of BGMEA, BKMEA, DCCI, BDYEA.

7. Recommendation
The nature of the marketing functions in garments business is somewhat
dissimilar from the marketing of other products. However the importance of core
marketing activities is not little for garments business. Proper emphasis should
be given to the marketing activities of garments business. Supply chain or
procurement department is not very strong in garments organization which
causes that the merchandisers procure all the raw materials of garments. For that
reason the merchandisers become unable to meet the lead time. So supply chain
department should be strong enough to release the pressure from the
merchandisers. Quality assurance system should be modernized because quality
is the top priority of all international buyers. Garments companies should have to
set the competitive price for their product and should have to provide discounts
to the buyers. The promotion of garments product is not so easy because here the
role of mass media is not significant for that reason the garments companies
depend on merchandisers and well qualified salespeople. Highly skilled and

Knowledgeable sales person or sales representative should be appointed who can

deal with professional buyers.

Web communication with buyers and online Dealings is essential for the success
of garments business for that reason technological development and the
exploitation of Internet is a must.

Friday, April 16, 2021 23 | P a g e

Presidency University

8. References (Harvard Style)

https://myassignmenthelp.info/assignments/strategic-management-
1147906/
https://www.researchgate.net/publication/334510338_Strategy_Manage
ment_in_the_Apparel_Industry/link/5d2f0f3a458515c11c37066f/downloa
d

https://prettygroupbd.com/

https://textiles.ncsu.edu/tatm/wp-content/uploads/sites/4/2017/08/TD-
Objectives-and-Outcomes.
http://textilelearner.net/

https://en.wikipedia.org/wiki/Bangladesh_textile_industry

http://www.dhakatribune.com/

http://www.mckinsey.com/

http://www.bgmea.com.bd/

http://www.textiletoday.com.bd

https://www.onlineclothingstudy.com/2019/05/garment-costing-and-
pricing-strategies.html

The line starts here By Jeremy A. Roseneu and David L.

Wilson_https://www.onlineclothingstudy.com/2019/05/garment-costing-
and-pricing-strategies.html

9. Bibliography
Bangladesh, the southern Asian country has a population of approximately 164
million people. The economy of Bangladesh is significantly dependent on

Friday, April 16, 2021 24 | P a g e

Presidency University

agriculture. But it’s great news for the country that, garments sector (RMG)
sector of Bangladesh has raised 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.

History of RMG Sector in Bangladesh:

The foundation of the textile sector was first established in the 60th decade of
the 19th century. For the first time, the industry exported shirts (Mercury shirts)
to the European market in 1965-66, which was produced from Karachi. In the
latter, 9 exporting industries were available in 1977-78. The three largest
industries at that time were Riaz Garments, Jewel Garments, and Paris Garments.
Among those, Riaz Garments was the most famous and oldest industry at that
time.

In the earlier stage, Riaz Garments of Mohammad Reaz Uddin started its business
with some tailoring shop in the name of Riaz store. Later, the name turned into
Riaz Garments from Riaz store in 1973, and from 1978 the company started
exporting products in the abroad by exporting 1 million pieces of shirts in the
South Korean Company named “Olanda”. “Desh Garments” is another pioneer of
the Bangladesh RMG sector. In 1979, Desh Garments started a joint project with
the South Korean company “Daiyuu”.

At the same time, several garments were introduced such as-Stylecraft limited by
Shamsur Rahman, Aristocraft Limited by AM Subid Ali, Azim Group by Engineer
Mohammad Fazlul Azim, and Sunman Group by Major (Retd) Abdul Mannan.

By following the beginners of the RMG sector, some other discreet and hard-
working entrepreneurs started their RMG business in the country. From there,
the RMG sector of Bangladesh was developing day by day and not needed to look
back. Though this sector had passed various critical stages through the path. In
that time, we learned about child labor in 1994, and in 1995 we made our
garments industry free from child labor very successfully.

Present Situation of RMG Sector in Bangladesh:

The quota system was a great blessing for establishing our garments industry.
We were strongly benefited from using that. As a result, we can see a matured
garments industry today. But while the quota system was approaching an end in
2004, there are so many who got upset about the RMG sector of Bangladesh.
Though in the latter it can’t be affected here as the experts seemed. We
conquered the post-quota challenges and made that a successful story.

In the RMG sector of Bangladesh, there are more than 5000 garment factories
(private statistics) at the current time, employing more than 12 lack laborers,
where 85% of the labor force is women. But, according to BGMEA the number of
garment factories in Bangladesh around 4000. Now, the RMG industry is the
country’s largest export earner with a value of over $24.49bn of exports in the
last financial year. It’s great news for us that Bangladesh is clearly ahead of other

Friday, April 16, 2021 25 | P a g e

Presidency University

South Asian suppliers in terms of the capacity of the ready-made garments

industry.

Though, there are various types of garments are manufactured in Bangladesh,

but all the ready-made garments are classified into two broad categories, where
one is woven products and another one is knitted products. Woven products
include Shirts, Pants, and Trousers. On the other hand, the knitted product
includes T-Shirts, Polo Shirts, Undergarments, Socks, Stockings, and Sweaters.
Woven garments still dominate the export earnings of the country. From the
BGMEA website, it’s seen that Day by day knitted items production is increasing
at a considerable rate and now about 40% export earnings have been achieved
from knitted products.

Contribution of RMG Sector to the National Economy:

The role RMG sector in Bangladesh’s economy is remarkable. It’s seen that, from
the last decade, the RMG sector contributes to the national economy at a
considerable rate. About 76% of the total export earnings come from the RMG
sector. From statistics, it’s known that in FY 2003-04 RMG sector of Bangladesh
earned US$ 5,686.06 million, in FY 2004-05 the value was US$ 6,417.67.67
million, in FY 2005-06 the value was US$ 7900.80 million, in FY 2006-07 the
value was US$ 9,211.23 million, in FY 2007-08 the value was US$ 10,699.80
million, in FY 2008-09 the value was US$ 12.35 billion and finally in FY 2013-14
the value stands at $24.49billion. Contribution of RMG sector to the National
Economy

The opportunity of RMG Sector in Bangladesh:

RMG sector of Bangladesh has some key factors which inspired the steady
growth of this sector. Though it’s a matter of great surprise for so many that how
the RMG sector of Bangladesh continues to show its robust performance in the
world.

The main key factors which have a great influence on the RMG sector of
Bangladesh are the following:

Vast labor force,

Skilled human resources,
Technological upgrades,
Government supports for textile and clothing,
Special economic/export processing zones,
Creation of textile and clothing villages,
The incentive for use of local inputs,
Duty reduction for the import of inputs/machines,
Income tax reduction,
And international supports like GSP, GSP+, duty-free access, etc.
By using the above key points we can easily take place the world”s readymade
garments market very strongly. But there”s some another key factor. If we apply
those key factors in our readymade garments sector, then we will achieve the
priority to the world’s famous buyers’ notebook.

Friday, April 16, 2021 26 | P a g e

Presidency University

Those key factors are-

Cost-Effective Strategy,
New Product Development strategy,
Product Diversification Strategy and
Market Diversification Strategy.
All the above points are discussed below:

Cost-Effective Strategy:
Cost-Effective Strategy includes the following two key points:

Cost Reduction Strategy and

Labour Productivity Improvement.
Those key points are discussed below:

1. Cost Reduction Strategy:

Cost reduction strategy should begin with assigning the highest priority for
establishing backward linkages. The establishment of backward linkages will
reduce our dependence on foreign sources which will reduce the total and
average production cost of garments. This Strategy will make our products more
competitive in the world’s ready-made garments market.

2. Labour Productivity Improvement:

Bangladeshi workers are not as efficient as Hong Kong, South Korea, and Sri
Lankan workers. Wages are low in Bangladesh, but it does not necessarily mean
that relatively low wages workers automatically lead to higher productivity. So,
to keep the place in the world’s largest competitive market, labor productivity
must be improved.

New Product Development strategy:

It’s a matter of great sorrow for us that, we are regularly produced the same
products. Our product categories are very less in quantities. Our product items
that are exported into the foreign market are Shirts-60%, Jackets-11%, Knit
items-10%, Trousers-7%, and Others-11.50%. To survive in the world’s most
competitive RMG market, we have to develop new product items with a lot of
variations.

Product Diversification Strategy:

Product Diversification Strategy is an important factor to keep the place in the
world’s readymade garments market. Different types of products should be
produced by applying fashion. Thailand, China, India, Pakistan, Hong Kong,
Singapore, Malaysia, Indonesia, and others are the main competitors of
Bangladesh. They are already ahead of Bangladesh in product diversification
strategy areas.

Market Diversification Strategy:

Bangladesh has exported its products to the world’s limited market. Most are in
the USA, Canada, and Europe. About 46% of its total garment exports go to the
USA, 14% to Canada, and the rest of those into the European market. The

Friday, April 16, 2021 27 | P a g e

Presidency University

competitors of Bangladesh have regularly expanded their markets and keep

changing their products by using fashion.

The following key factors must be undertaken during a market diversification

strategy:

Market research on product design

Market research on product development,
Market promotion through trade fairs, exhibitions, etc.
Human resources development by providing training.
Challenges for RMG Sector of Bangladesh:
Though the RMG sector of Bangladesh has achieved the second spot for the
highest number of garments exporter, it has a lot of problems. The major
problems faced by the RMG sector currently is the lack of safety in working place
and working conditions for the millions of garment workers. It’s become a great
challenge for the upcoming fiscal year of Bangladesh. Another important one is
political stability.

Two major incidents in the RMG sector of Bangladesh are the Tazreen fire and
the Rana Plaza collapse, which have brought the issue of workplace safety to the
fore and led all stakeholders to act accordingly. But it’s good news for the RMG
sector that, following the unfortunate incidents, various platforms such as the
Bangladesh Accord on Fire and Building Safety, the Alliance for Bangladesh
Worker Safety, and the National Plan of Action have been formed to improve
building and fire safety of Bangladesh’s garment industry. Also, BGMEA and
BKMEA are working together here to solve such kinds of problems. They have
also taken necessary actions and invested a huge amount of money.

It’s a huge responsibility for the government of Bangladesh to ensure working

place safety in all the garments manufacturing factories. If we can’t do it, foreign
buyers will refuse to place orders here, which will be a massive blow for the RMG
sector of Bangladesh. We hope, the government of Bangladesh, BGMEA, and
BKMEA, with the support of global brands and international development
partners, will be able to ensure the safety of the RMG industry and maintain the
momentum of socio-economic development in the country.

Political stability creates a negative impact on the RMG sector of Bangladesh. If it

continues, it will be a massive blow to destroy our most valuable sector. So,
political leaders should come out immediately to solve such kinds of problems.

Hoping for RMG Sector of Bangladesh:

According to the McKinsey survey, it’s seen that 86 percent of the chief
purchasing officers in leading apparel companies in Europe and the United States
planned to decrease levels of sourcing in China over the next five years because
of declining profit margins and capacity constraints.

Also, they said in that survey, “Western buyers are evaluating a considerable
number of sourcing options in the Far East and Southeast Asia, many chief
purchasing officers said in the survey that they view Bangladesh as the next hot

Friday, April 16, 2021 28 | P a g e

 Presidency University

spot”. Many chief purchasing officers mentioned Bangladesh as the hot spot in
the readymade garments market.Hoping for RMG sector of Bangladesh

McKinsey survey also reported that, with about $15 billion in exports in 2010,
ready-made garments are the country’s most important industrial sector; which
represents 13% and more than 75% of GDP and total exports, respectively.
McKinsey forecasts, export-value growth of 7 to 9% annually within the next ten
years, so the market will double by 2015 and nearly triple by 2020.

Conclusion:
It’s a prime duty for us to provide a perfect working place for the readymade
garments sector of Bangladesh which has given our economy a strong footing,
created jobs for millions of people, especially for women, lifted them from the
abyss of chronic poverty, and given them a magnificent life. Now what we have
needed to do is dealing with all the challenges facing our readymade garments
industry, paving the way for its further development.

References:
http://textilelearner.net/

https://en.wikipedia.org/wiki/Bangladesh_textile_industry

http://www.dhakatribune.com/

http://www.mckinsey.com/

http://www.bgmea.com.bd/

http://www.textiletoday.com.bd/
https://www.bgmea.com.bd/page/Export_Performance

Main Apparel Items Exported From Bangladesh

(Export Value in Million USD)
YEAR SHIRTS TROUSERS JACKETS T-SHIRT SWEATER
1994-1995 791.2 101.23 146.83 232.24 ….

1995-1996 807.66 112.02 171.73 366.36 70.41

1996-1997 759.57 230.98 309.21 391.21 196.6
1997-1998 961.13 333.28 467.19 388.5 296.29
1998-1999 1043.11 394.85 393.44 471.88 271.7
1999-2000 1021.17 484.06 439.77 563.58 325.07
2000-2001 1073.59 656.33 573.74 597.42 476.87
2001-2002 871.21 636.61 412.34 546.28 517.83
2002-2003 1019.87 643.66 464.51 642.62 578.37
2003-2004 1116.57 1334.85 364.77 1062.1 616.31
2004-2005 1053.34 1667.72 430.28 1349.71 893.12
2005-2006 1056.69 2165.25 389.52 1781.51 1044.01

Friday, April 16, 2021 29 | P a g e

 Presidency University

2006-2007 943.44 2201.32 1005.06 2208.9 1248.09

2007-2008 915.6 2512.74 1181.52 2765.56 1474.09
2008-2009 1000.16 3007.29 1299.74 3065.86 1858.62
2009-2010 993.41 3035.35 1350.43 3145.52 1795.39
2010-2011 1566.42 4164.16 1887.5 4696.57 2488.19
2011-2012 1733.54 4686.39 2231.16 4713.11 2340.34
2012-2013 1972.89 5185.48 2634.28 5143.22 2620.73
2013-2014 2173.73 5690.78 2973.16 5863.81 2932.94
2014-2015 2271.43 5697.83 3183.17 6064.13 2829.16
2015-2016 2317.09 6319 3774.08 6118.53 3182.47
2016-2017 2108.38 6026.69 3546.88 5861.98 3361.53
2017-2018 2063.57 6389.38 3978.47 6292.25 3674.7
2018-2019 2324.85 6939.61 4384.81 7011.26 4255.91
2019-2020 1783.14 5447.13 3514.21 5614 3597.68

Comparative Statement on Export of RMG & Total Export of Bangladesh

Value in Million USD

       
Year Export Total Export of % of RMG’s to
of RMG Bangladesh Total Export
1983-84 31.57 811 3.89
1984-85 116.2 934.43 12.44
1985-86 131.48 819.21 16.05
1986-87 298.67 1076.61 27.74
1987-88 433.92 1231.2 35.24
1988-89 471.09 1291.56 36.47
1989-90 624.16 1923.7 32.45
1990-91 866.82 1717.55 50.47
1991-92 1182.57 1993.9 59.31
1992-93 1445.02 2382.89 60.64
1993-94 1555.79 2533.9 61.4
1994-95 2228.35 3472.56 64.17
1995-96 2547.13 3882.42 65.61
1996-97 3001.25 4418.28 67.93
1997-98 3781.94 5161.2 73.28
1998-99 4019.98 5312.86 75.67
1999-00 4349.41 5752.2 75.61
2000-01 4859.83 6467.3 75.14
2001-02 4583.75 5986.09 76.57
2002-03 4912.09 6548.44 75.01

Friday, April 16, 2021 30 | P a g e

Presidency University

2003-04 5686.09 7602.99 74.79

2004-05 6417.67 8654.52 74.15
2005-06 7900.8 10526.16 75.06
2006-07 9211.23 12177.86 75.64
2007-08 10699.8 14110.8 75.83
2008-09 12347.7 15565.19 79.33
7
2009-10 12496.7 16204.65 77.12
2
2010-11 17914.4 22924.38 78.15
6
2011-12 19089.7 24301.9 78.55
3
2012-13 21515.7 27027.36 79.61
3
2013-14 24491.8 30186.62 81.13
8
2014-15 25491.4 31208.94 81.68
2015-16 28094.1 34257.18 82.01
6
2016-17 28149.8 34655.9 81.23
4
2017-18 30614.7 36668.17 83.49
6
2018-19 34133.2 40535.04 84.21
7
2019-20 27949.1 33674.09 83
9

Friday, April 16, 2021 31 | P a g e