Bangladesh, as an apparel manufacturing hub, is known for the scales and price-competitiveness of its apparel manufacturers, but in the past couple of years the industry has matured into a more ‘self-sustaining’ industry with apparel manufacturers integrating backward, establishing linkages to manufacture buttons, labels, zippers, sewing threads and other trims that were previously imported. Ananta Group, Dekko Group, Shinest Group, KDS Group, Ha-Meem Group, Shanta Group, Well Group and Mondol Group are few apparel manufacturers with an exemplary backward linkages.
Till the early 90s the apparel export business in Bangladesh was low and the players were more concerned about adding capacities, but with the expansions come the bottlenecks of on-time delivery of resources, breaking the entire supply chain causing delays in final deliveries. In an effort to address the bottlenecks, many companies started production of accessories with the intention to fulfil their in-house needs, but which later became profit centres catering to the entire industry. “Initially we were importing all accessories mostly from Hong Kong, but with the growth of activities the volume and frequency of imports started increasing and we faced problems with regards to on-time delivery of garments, hazards in shipment schedules, short shipments, quality variance, pilferage in transit, lot of commercial activities for frequent imports, difficulties in accommodating buyer’s last moment changes/choices and over and above to become self-reliant. In order to overcome these problems, we chose the most important and ever changing accessories like polyester buttons, woven labels and poly bags to manufacture. We thought if we could start with these, at least 60% problem would be solved,” says SA Jamal, Director, Dekko Buttons, which is the biggest manufacturer of buttons in Bangladesh with production capacity of 3,000 GG (36,000 gross) per day.
According to the Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association (BGAPMEA), currently 95% of the country’s accessories requirement is being met from in-house manufacturing and only the balance 5% is imported. In fact, now the companies are looking to export accessories and the Association has set a target of exporting apparel accessories and packaging products worth US $ 4.5 billion in 2012-13, aiming at achieving the target of US $ 12 billion by 2018.
Considered a pioneer in backward linkages, Shinest Group has actually set an example for many apparel manufacturers by flourishing in garmenting because of its auxiliary facilities and services. “When I started my business of apparel manufacturing in 1991, I soon realized that the quantum jump we wanted was possible only if we could control the material supply, not only in fabric but also the buttons, labels, cartons and other such accessories, which is when we decided to ‘in-house’ all such units to support our own garmenting operations,” averred Ali Azim Khan, Chairman, Shinest Group and President of the Bangladesh Button Manufacturers & Exporters Association. Today, 20% of the group’s revenue is being generated from accessory manufacturing. Khan firmly believes that the kind of growth the country has seen in the last five years is mostly due to the composite nature of apparel manufacturers in the country, else the delays would have forced air freight, further reducing the already low margins.
Though Bangladesh was totally dependent on China for buttons till about 6-7 years ago, the situation has turned around due to the rapidly developing button manufacturing capabilities of the country. In polyester, as much as 80% of the country’s demand is being fed in-house, while in metal buttons the ratio is the other way around with 80% still coming from imports, but the equation could change soon. With a core agenda to achieve speed to market through a streamlined supply chain, the industry has continuously upgraded technology, moving from Taiwanese and Chinese manufacturing technologies to world class Italian machines like Juicy and Bonetti for manufacturing polyester buttons at par with global standards.
Presently, the country has 40 button manufacturers in the country, who are not only satisfying the demands of the country but also exporting to neighbouring apparel manufacturing nations. Of the 40 manufacturers in the country, 80% are solely button manufacturers and 20% are garment manufacturers who are also into button manufacturing, all majorly producing plastic and polyester buttons with only 10 factories manufacturing metal buttons. As the biggest manufacturer of buttons in Bangladesh, Dekko Buttons, which started commercial production in 1996, is among the few who is manufacturing both polyester and metal buttons. While revenue from polyester buttons is US $ 5 million, for metal buttons it is only US $ 2 million and jointly both account for about 48% of total revenue generated by the group in accessories.
Shinest Buttons the second largest manufacturers of polyester and plastic buttons in the country, is not only supplying to the industry in Bangladesh but in India and Pakistan also. The company recently expanded its button manufacturing capacity by adding 10 more machines. “We are exporting to Pakistan as H&M nominated suppliers and in India, we supply buttons to the domestic brand US Polo. We have the same edge in buttons as in garments, of a really competitive price,” says Azim Khan, consuming just around 12% of the capacity in-house with the balance being offered to garment exporters as deemed exports.
Among the names of exclusive button manufacturers in Bangladesh is Angel Button, which is producing around 800 GG per day of polyester, horn and chalk buttons. The company, which is supplying many exporters working with retailers like Walmart, H&M and C&A, is looking for 25% growth year-on-year. “We have the systems in place to give new samples in four days and bulk production in ten days,” informs Md. Faridul Islam, MD, Angel Button. Maintaining a library of buttons, the company claims that it can supply exactly the same button even after ten years.
Metal Buttons – The next growth target
Bangladesh might have successfully snatched the plastic and polyester button business from China, but the manufacturing giant is still the biggest supplier of metal buttons to the world, with a few high-end manufacturers in Europe like Prym. With the country still importing over 80% of its requirements in metal buttons, many associate the absence of metal button manufacturing capabilities in the country to the manufacturing complexities of the product. “You really need to have the technical know-how and hands-on experience for manufacturing metal buttons, which is missing from the country. When Prym started its plant in China it took them 10 years to achieve an acceptable quality level, as it takes time in setting up a plating line and getting the desired finish,” opines Md. Musarrat H. Chandan, Owner, Pandora Associates, the sole agent of Prym buttons in the country.
The challenge is to produce millions and millions of fasteners that comply with the tiniest product tolerance and warrant absolute attachment safety at all times. In the case of metal buttons for babywear the technicality involved is very high. Companies like Prym have invested in R&D to get perfection. Some 30-odd years back, M&S, the front-runner in top quality babies’ garments, asked Prym to develop a snap safety method that is beyond visual or a simple manual checking. Prym took the call and developed the Data Sheet and Statistical Process Control method, which is now copied by every other superior snap supplier.
This system focuses on absolute snap safety, starting at the snap ordering stage by correct machine installation, complete snap attachment with consultation and training, and finally constantly monitoring snap attachments until the end of production.
Endorsing the view that metal buttons are technically more difficult to manufacture, SA Jamal says, “It is not about the investment, one has to be technically equipped with all process of production like prefabrication of metal parts and their assemblies, electroplating of various colour shades required by customers, designing and manufacturing of various moulds, tools, dies and punches. For all these you need to have a very sophisticated, precise, CNC controlled machinery as well as very good team of technical experts and operators. Investors are generally shy in new things and they like to follow the proven and established business.” Dekko started production of metal buttons in 2011 and have already established a good name in the market to become a nominated supplier of VF Corporation and H&M.
[bleft] Dekko Buttons is the biggest manufacturer of polyester buttons in the country and is also manufacturing metal buttons. The 2nd biggest is Shinest Buttons manufacturing only polyester buttons.
In polyester, as much as 80% of the country’s demand is being fed in-house, while in metal buttons the ratio is the other way around with 80% still coming from imports, but the equation could change soon. [/bleft]
Seizing the opportunity, is another unique case of backward linkage; Ananta Group one of the biggest apparel manufacturer of the country in a joint venture with US-based Brandot International and T&S Buttons Hong Kong, established T&S Buttons Bangladesh, for manufacturing metal buttons for the Bangladesh industry. With an annual capacity in excess of 5 million grosses, T&S Buttons manufactures jeans tack buttons, snap buttons, eyelets and rivets. “In the next two years we would double our targets, and in the next five years we will have full capacity utilization,” says Shafraz Meezan, CEO, T&S Buttons Bangladesh. The company’s success can be fathomed by the nominations the company has from C&A, H&M, GAP and M&S, the biggest buyers for the country.
The industry believes that the garment’s sector in Bangladesh has bright prospects in the future and with a lot of value-added items now being added with the traditional and basic items, there will be a growing demand for buttons both polyester and metal. “The requirement of polyester buttons will increase proportionately with the gradual increase of garments and may be the present gap of 20% will further be reduced. As for the requirement of metal buttons, it too will increase to a great extent and the present gap of 80% would be a target of attainment for Bangladeshi manufacturers,” concludes SA Jamal.
Leave a Reply