Promoting specialty and fabrics: Marketing products from the art of Jamdani and diversified products (JDP) of in Canada

Submitted by Nawshad Ali Khan CEO, JOYA and Subarno Rekha 620, Shahin Bagh, Lane-6 Tejgaon, Daka-1215

Dr. Rafat Alam Assistant Professor and Discipline Coordinator MacEwan University, Edmonton, Alberta [email protected] (corresponding author)

Submitted to Trade Facilitation of Office Canada (TFO Canada) and International Development Research Center (IDRC)

September, 2016

Abstract Increased free trade and market-based policies have opened the door for export-oriented growth for developing countries. ‘But the development of trade relationships with new export markets is complex and needs more than a general privatization and liberalization policy (Keegan, 1995)’, especially for the specialty textile products that are produced by small firms in the cottage industry which overwhelmingly employ rural, low-income and female workers. Many domestic and international market obstacles make it difficult for these unique products to be exported.

This paper looks into the cases of two specialty textile products from Bangladesh - Jamdani and Jute diversified products (JDP) and investigates the export problems perceived by the sectors. The paper finds that JDP is export ready and well supported by government policies and institutions. The sector also has enough export experiences in European Union (EU) and North American markets. However, the sector faces fierce competition domestically and from Indian and Chinese firms. The sector also lacks in product design and has some weaknesses in quality. A vertical network is necessary to exchange information and cooperate in quality control, design and product development among the local trade association, government supporting institutions, local firms and designers, and foreign buyers and designers. Compared to the JDP sector, the Jamdani sector is not enough ready for export. As a high quality, niche cultural product – it lacks the market access to western countries. There is high potential of the Jamdani sector to develop new designs and unique products to match the taste of western consumers. But the sector will need significant financial, human resource, and marketing help from government institutions.

The paper finds that horizontal networks among the weavers to meet foreign demand, as well as vertical networks among weavers and local and foreign buyers and designers, will both be necessary to make the Jamdani sector successful in exporting to western markets. Both the Jamdani and JDP sectors will need low cost and easier access to financial resources and export- related human resource development. Government financial institutions and export promotion bureaus can take the lead in these areas. Jamdani and JDP sectors also need to establish brand image by highlighting their rich traditional and cultural value, eco-friendliness and social development aspect of reducing rural poverty and empowerment of women. Increased use of web marketing has to be a key to this branding. The Jamdani and JDP sectors can also be mixed with local tourism to create a unique cultural experience for tourists that will promote both the sectors as well as tourism. The main conclusion of this paper is that besides domestic policy and institutional supports, the development of horizontal and vertical network trade relationships is a necessary condition for accessing new export markets by specialty textile sector firms from

i Bangladesh. The Artisan Hub and roadshow projects of TFO Canada and other innovative marketing and promotional projects that can be initiated by bilateral and international organizations like TFO Canada, Global Affairs Canada and IDRC (International Development Research Centre) can provide support in these areas.

ii Table of contents

Abstract ...... i Table of contents ...... iii List of tables ...... iv List of acronyms ...... v 1. Introduction...... 1 1.1 Methodologies and objectives ...... 2 2. Bangladesh’s ...... 3 2.1 Specialty textile industry in Bangladesh ...... 3 2.2 Jamdani sector overview ...... 5 2.3 Jute diversified product (JDP) sector overview ...... 7 2.4 SWOT analysis...... 10 3. Business case and entry to Canadian market ...... 14 3.1 Results from the Jamdani sector ...... 14 3.2 Results from Jute Diversified Product (JDP) sector ...... 17 3.3 Policy recommendations and strategies for entry into Canadian market ...... 20 4. Summary of business strategy ...... 23 References ...... 25 Appendix 1: List of Jamdani entrepreneurs ...... 26 Appendix 2: List of JDP entrepreneurs ...... 28 Appendix 3: Survey of potential exporters ...... 31

iii List of tables Table 1: Specialty textile products of Bangladesh with place of production 5

Table 2: List of jute diversified products 9

Table 3: Constraints for export of JDPs 9

Table 4: Importance of factors affecting the Jamdani sector 15

Table 5: Importance of factors affecting the JDP sector 20

Table 6: Business strategy for ’ exporters 24

iv List of acronyms BRAC Bangladesh Rural Advancement Committee

EU European Union

IDRC International Development Research Centre

JDP Jute diversified product

JDPC Jute Diversification Promotion Center

LDC Least developed countries

NGO Non-governmental organization

R&D Research and development

TFO Trade Facilitation Office Canada

v 1. Introduction Literature shows that ‘concerned consumers’ are ready to pay more for the social responsibility features of specialty products, aimed at supporting the development and inclusion of marginalized producers from least developed countries (LDCs) in global markets (Becchetti, Leonardo and Camillo Rosati, Furio (2007). Bangladesh can offer two such products to Canada and other countries. The first one is the textile product made from the “Traditional art of Jamdani Weaving” recognized by UNESCO as the “Intangible Cultural Heritage of Humanity.” The second one is the product made of high quality organic Jute fabrics, which is an effective alternative to harmful synthetic fabrics. Both of these products are organic and eco-friendly and produced by the cottage industry in Bangladesh.

Jamdani is produced from or raw , while jute fabric is produced from a vegetable known as jute. Raw materials for both items are available in Bangladesh. Cottage industry refers to the traditional artisanship of the rural people of Bangladesh, who produce various household items with locally available raw materials and unique artistic skill and creativity inherited from past generations. It is a method of production where the members of the family learn the know-how and the process of production from the skilled older member of the family from their early life. They work in a cluster for their specific production. This makes a positive effect on the production by minimizing the cost and ensuring keen supervision on each step of production. Cottage industry in Bangladesh is playing a vital role in developing the national and the rural economy. The appeal of buying from a cottage industry manufacturer is that the consumer can receive a unique, one-of-a-kind, hand-made product that isn't mass produced. Many consumers also appreciate the individual creative aspect of home-based products and services and feel that the majority of these cottage industry services produce a higher quality product than one that is mass produced.

Jamdani weaving and jute crafts and textile are two of the most precious cottage industries of Bangladesh. Small weaving businesses in these sectors can produce a world class product for local and international markets. But many domestic and international market failures and distortions make it difficult for these unique products to be exported. This report will look into these obstacles, as well as the opportunities and strengths of the sectors, and suggest measures to overcome the barriers for export.

1 1.1 Methodologies and objectives The report used the following methods to achieve the desired study objectives.

Provide a brief overview of the specialty textile/ fabrics sector: Sections 2, 3 and 4 provides a brief overview of the sectors. These sections were written based on academic, industry, non- government and government literature.

Provide export profile of small producers: Using a primary survey, exporter profiles were collected for 13 JDP companies, 18 Jamdani companies and 7 other specialty textile companies (3 silk, 3 Nakshi Katha and 1 Comilla ). The exporter profile survey was provided by TFO Canada. The profile was used to select 13 companies for a visit by a Canadian buyer to collect samples and bring those to Canada for a roadshow.

Provide a detailed business case strategy for entry into Canada: Surveys were conducted to collect data on the characteristics and composition and factors that affect Jamdani and JDP sectors. The sample size for the Jamdani sector was 37 and JDP sector was 34. Seven expert and stakeholder interviews were conducted to identify the opportunities and obstacles of both the sectors. The analysis of the quantitative survey data and qualitative interview data are used to write the SWOT analysis, business case and strategies.

Provide a series of recommendations: Using the results of survey, expert opinion and literature review, the authors provided policy recommendations and actions for producers, local authorities, and Canadian partners in order to promote entry into Canada.

2 2. Bangladesh’s textile industry

2.1 Specialty textile industry in Bangladesh The specialty textile industry of Bangladesh incorporates mostly the significant handloom industry present in the country which has been producing fine quality clothes for over centuries. History and archeological discovery suggest that was famous in the distant past for its textile production. Many fabrics of Bengal were noted for their fineness of texture, beauty of design, intricacy of weave, lightness of weight, and durability. Textile of many varieties made the principal item of export of Bengal during the Mughal rule. The dominant status of textiles in export began to decline when Britain began to manufacture fabrics soon after the Industrial Revolution. Britain imposed heavy duties on Bengal textiles, thus raising its prices in Britain. On the other hand, at the same time Britain was exporting textiles to the Bengal market duty free. Bengal textiles thus lost the world market (Islam, Md. Khairul and Hossain, Md. Elias (2012). During the British rule, though the export market shrunk, movements for wearing domestic handloom products and rural demand for homemade cloth helped the handloom industry survive.

After independence, the Bangladesh Government set up a new Handloom Board in 1978, which took over the development of the handloom industry from the Small and Cottage Industries Corporation. Since its formation, the Handloom Board has taken some policy measures to develop the industry. Handloom is considered as a priority sector for development because of some of its characteristics such as labor intensity, female employment, product demand and profitability (Bangladesh Cotton and Textile Convention, 2006). As the Bangladesh Handloom Board (2010) states: “Currently, Handloom sector in Bangladesh consists of more than 0.183 million handloom units with 0.505 million handlooms and about 1 million handloom weavers of which about 50% are female workers. A manpower of about one million weavers, dyers, hand spinners, embroiderers and allied artisans have been using their creative skills into more than 0.30 million active looms to produce around 687 million meters of fabrics annually. Production of these handloom fabrics is diffused in numerous production centers all over the country which are linked up by a network of primary, secondary and central markets.”

Among the different types of looms - Benarosi looms are concentrated in Mirpur area, . work called is also famous in Mirpur. Jamdani looms are specially operated in Rupgang (Taraboo) area of Narayangang District and Kamer, while waist loom is found in the Hill Tracts of Chittagong. The Tribals of the Chittagong Hill Tracts, Borguna and Sylhet produce colourful tribal

3 textile products. The vast majority of Bangladeshi handlooms are engaged in weaving cotton and blended fabrics, although handloom cloth of silk earned a good reputation. Famous areas for silk weaving are Rajshahi, Tangail and Nobabgonj. Rajshahi produces mainly silk sarees. Tangail also produces silk saree named Tangail . The weavers of Comilla produce . It is a material that involves the of cotton manually by hand into for the production of handwoven cotton weaves. Nakshi , a type of embroidered , is another centuries-old Bengali art tradition of Bangladesh. The basic material used is thread and old cloth. Kanthas are made throughout Bangladesh, but the greater Mymensingh, Rajshahi, Faridpur and Jessore areas are most famous for this craft.

4

Table 1: Specialty textile products of Bangladesh with place of production Sl. Name of the Products Place of Production i. Jamdani Rupgonj and of Narayangonj district. ii. Benarasi Mirpur of Dhaka, Iswardi of Pabna district and Gangachara of Rangpur district. iii. Tangail Sharee (Cotton sharee, Half Silk, Tangail Sadar, Delduar and Kalihati, Nagorpur, Soft Silk, Cotton Jamdani, Gas-mercerised Basail of Tangail District. twisted cotton sharee, Dangoo sharee, Balucherri) iv. Handloom Cotton share Shahjadpur, Belkuchi and Sadar of Sirajgonj district, Narsingdi and Pabna districts. v. Silk share Sadar and Shibgonj of Chapai Nawabgonj and Rajshahi district. vi. Fabrics Belkuchi of Sirajgonj district. vii. Rakhine Special Wear (Wooling Shirting, Taltoli of Borguna district, Kalapara, Rangabali Woolen Sheet, ladies chadar, of Patuakhali district and Cox’s Bazar district. Bag, and Thami for tribal ladies) viii. Tribal Fashion Wear (Thami for tribal ladies, Rangamati, Khagrachari & Bandarban Hill Khati (Orna), Ladies Chadar & Lungi. districts.

ix. Minipuri Fashion Garments (Monipuri Sylhet and Moulivibazar districts. Sharee, Punek for ladies like lungi, Lungi, Un-stitched cloth (three pieces), Innachi(Orna) & Vanity Bag Source: Bangladesh Handloom Board

2.2 Jamdani sector overview Among all the different specialty textiles described above, Jamdani is one of the oldest. The craftsmanship of famous Muslin of Dhaka has partially survived in the art of weaving Jamdani sarees and fabrics. Muslin was a brand name of pre-colonial Bengal textile (present Bangladesh) especially of Dhaka (present capital of Bangladesh) origin. It was handspun and hand processed by young women which attained worldwide fame as Dhaka Muslin. Bangladesh’s fine white muslin’s were known since antiquity until the 12th century. The artisans of Dhaka Muslin weavers used to produce as many as thirty-six varieties of textiles. Muslin today is the historical heritage of Bangladesh and is no longer in process of weaving. Jamdani originated from the Muslin. Jamdani is a vividly patterned, sheer cotton fabric, traditionally woven on a handloom by craftspeople and apprentices around Dhaka (Sonargaon, Rupganj and Shiddirganj of the district of Narayanganj). Jamdani textiles combine intricacy of design with muted or vibrant colours, and the finished garments are gorgeous. The patterns are generally geometric and designs can contain items such as flowers, plants, and living species like fish. The range and varieties of Jamdani are quite extensive and numerous, but there seems to be three basic layouts: jaal, the

5 most intricate, is an all-over design covering the entire ground, terchi denotes floral or geometric diagonal, and buti is a combination of individual floral motifs and springs scattered across the fabric (Ghuznavi, Sayyada R., 2006 and Gillow, John and Barnard, Nicholas, 2008). Jamdani is a time-consuming and skill-intensive form of weaving because of the richness of its motifs, which are created directly on the loom using the discontinuous weft cut technique. It takes about two to three months to finish one Jamdani saree. Weaving is surviving today due to the fabric’s popularity for making sarees, the principal dress of Bengali women at home and abroad. The Jamdani saree is a symbol of identity, dignity and self-recognition and provides wearers with a sense of cultural identity and social cohesion. The weavers develop an occupational identity and take great pride in their heritage; they enjoy social recognition and are highly respected for their skills. A few master weavers are recognized as bearers of the traditional Jamdani motifs and weaving techniques, and transmit the knowledge and skills to disciples. However, Jamdani weaving is principally transmitted by parents to children in home workshops. Weavers – together with spinners, dyers, loom-dressers and practitioners of a number of other supporting crafts – form a closely knit community with a strong sense of unity, identity and continuity. It is part of Bangladesh’s cottage Industries and is eco-friendly, and its creativity is intangible. In December 2013, UNESCO gave recognition to the traditional art of Jamdani Weaving as the intangible heritage of the people of Bangladesh.

According to the Bangladesh Handloom Board, the handloom sector in Bangladesh consists of more than 183 thousand handloom units with 505 thousand handlooms and about 1 million handloom weavers. Among them, a smaller group is Jamdani weavers. The Bangladesh Small and Cottage Industries Corporation (BSCIC) has set up a Jamdani Industrial City and a research center at Noapara in Narayanganj for safeguarding the art of weaving and for the further development of the ‘Jamdani sector’. The sector is mainly comprised of independent, networked artisans and private entrepreneurs. A few large non-governmental organizations (NGOs) like Bangladesh Rural Advancement Committee (BRAC) also operate in the sector through their production units run for AARONG.

Jamdani has survived hundreds of years of competition from mass produced textiles. There is strong local and regional demand for Jamdani that has helped the sector to flourish. The value addition of the product is high and it can provide substantial income to the artisans – a significant number of whom are female. Growth of the sector can positively contribute to saving tradition, heritage, and cultural values; to increasing social inclusion; to reducing poverty; to empowering women; and to enhancing tourism. So far, local and regional demand has helped the sector, but

6 Jamdani has the potential to attract multicultural consumers around the world. Jamdani can move beyond the production of sarees only. Jamdani weaving can be done in cotton, silk or mixed cotton-silk. The textile can be used for clothing and clothing accessories. New and innovative products such as home decorations, bags, artwork, and covers can be produced using Jamdani. It can be marketed as a comfortable, skin-friendly, non-allergic synthetic textile that is also socially responsible. This sector has started initiatives to export their products to western markets, but the pace of growth is slow as the sector faces many obstacles and limited access to the international market. This project may help them to bridge the gap between the producers and the international market, which would be very inspiring for the Jamdani art of weaving.

2.3 Jute diversified product (JDP) sector overview Jute manufacturing sector is one of the oldest traditional manufacturing sectors of Bangladesh, which emerged in erstwhile East Pakistan in the early 1950s. During the 1960s and 1970s, major share of the manufacturing output and employment was accounted for by this sector. Exports of jute and jute goods were the two most important sources of foreign exchange of Pakistan during the 1960s. However, both share and importance of jute and jute good manufacturing, export and overall foreign exchange earnings have gradually declined over time. ‘The present share of Jute in total exports 2.73% (in 2013-2014). But in the past, jute had glorious position with 90% of export share in 1972-73 (Export Promotion Bureau, 2015).

Bangladesh holds the 2nd position as a Jute producer in the world with the average production of Jute 1.08 m ton/Year (Bangladesh Jute Mills Corporation report). More than 85% of world production of Jute is cultivated in the Ganges Delta & having the major portion of it; Bangladesh became one of the largest producer of Raw Jute or Jute Fiber in the world. With the decline in traditional jute products, new niche products are coming up based on jute fiber. ‘Fabrics made of jute are carbon-dioxide neutral and naturally decomposable. These properties are also why jute can be used in high performance technical textiles. Jute, as a natural fiber, has many inherent advantages like lustier, high tensile strength, low extensibility, moderate heat and fire resistance and long staple lengths. It is a biodegradable and eco-friendly. It has many advantages over synthetics and protects the environment and maintains the ecological balance. Diversified jute products are becoming more and more valuable to the consumer today. Supported by several technological developments today jute can be used to replace expensive fibers and scare forest materials (Vries, Johan de, 2007). ‘Among these are espadrilles, floor coverings, home textiles, high performance technical textiles, Geotextiles, composites, and more. Jute has many

7 advantages as a home textile, either replacing cotton or blending with it. It is a strong, durable, color-absorbing and light-fast fiber. Its ultraviolet protection, sound and heat insulation, low thermal conduction and anti-static properties make it a wise choice in home décor.’ (Vries, Johan de, 2007).

‘With the developed market (EU, Australia, Japan, US, Middle East and North Africa) becoming more sensitive to environment friendly products - with emphasis on bio-degradability, recyclability and carbon emissions (several EU countries including , Belgium, Italy, UK either banning or limiting usage of plastic bag), JDPs have made it into the limelight. Not only opportunities exist as a substitute for the current synthetic alternatives, but also with consumers becoming more environmentally conscious, JDPs can ascend to a “Life Style” product. Some middle-eastern markets have opened up which will further increase demand for jute products. Bangladesh already enjoys duty and quota free access to major developed economies and will need to cash in to further expand their pie.

Over the last decade, demand for jute products in international market has propelled for these factors. With availability of quality raw jute, Bangladesh sits at an advantageous position to tap into the growing market for Jute Diversified Product (JDP). According to recent Jute Diversification Promotion Center (JDPC) research, there are approximately 400 JDP producers in Bangladesh which mainly operate on sub-contract basis for the export market. JDPC research further estimates total turnover of JDP sector at BDT 1,540 M as of 2011-12, with export contributing BDT 1,232 million. The growth trend is encouraging with total market projected to expand by 20% over the next three years. In total, JDP constitute about 5% of all jute export earnings. Export- oriented JDP enterprises have the experience of both the direct and indirect export. Overall, JDP has overwhelming growth prospects and potential for higher value addition compared to export of raw jute.’(Light Castle Partner Ltd, 2014).

‘JDP value chain has several key players adding significant value to the end products. JDP mills wield significant control over the market due to their size and financial muscle. Mills normally prefer exporting semi-processed jute for reaping benefits of export incentives, rather than selling to local JDPs. Likewise, local JDPs are unable to secure competitive pricing which subsequently hamper their international standing. JDP normally export to international markets either directly or through buying houses. Currently, JDP SMEs face severe dearth of supply of raw materials as

8 many mills are unwilling to supply at low volume. Government needs to intervene to establish a raw material bank for supporting procurement of raw materials.’ (Light Castle Partner Ltd, 2014).

JDP sector has a mix of different kinds of producers – private small entrepreneurs focused on local and international market, small NGO’s focused on social development and large NGO’s (e.g. BRAC) focused on domestic and international markets. But in all three types, the predominant workforce is rural poor women. Like Jamdani, selling JDPs can play a major role in reducing poverty rates among rural and female populations in Bangladesh. Increasing worldwide interests matched with trade can lift the sector significantly in the future. There are already established trade links in this sector. Entrepreneurs are marketing the products with their own brand names and participating in international trade fairs.

Table 2: List of jute diversified products Fiber Pulp, paper & paper products, jute composites, wood/plastic substitutes, nonwoven based products, wipes, medicare textiles, absorbents, insulation & bonding materials, cellulose products and its derivatives, micro crystalline cellulose, high-tech fibers, panels, floor tiles, etc. Fine , bleached yarn, dyed yarn, de-haired yarn, polished yarn, woollenized yarn, Yarn blended yarn, other treated yarn, fire retardant/proof yarn, corded yarn, , shikkas, based shoes, shoe uppers and soles, , doormats, belts, tape, , braids, braided rugs, products door and window screens, sweaters, cardigans, jackets, mufflers, caps, carrying kits, etc. Light fabric, striped fabric, checked fabric, dyed fabric, bleached fabric, treated fabric, laminated fabric, printed fabric, suitcases, briefcases, gift and jewelry boxes, pots, purses, Fabric bags, folders and files, beach products, , apparel, home textiles, furnishing fabric, based cloth, , ventian blinds, , tarpaulin, carpet, , different kinds of mats, products satranji, geotextiles, brattice, linoleum backing cloth, floor covers, different kinds of bags, travel kits, sacks, toys, decorative products, berets, nursery pots etc. Source: Value chain assessment for the jute sector in Bangladesh in Vries, 2007

Table 3: Constraints for export of JDPs  Quality issues  Instability of pricing and delivery of raw jute  Lack of support and poor implementation of policies and strategies from government bodies Main  Weak image of the industry constraints  Lack of research and development (R&D) facilities for JDP  Competition from other countries, including India exports  Non-availability of export market information  Lack of producers’ export experience  High costs of participating in trade fairs

Source: Value chain assessment for the jute sector in Bangladesh in Vries, 2007

9

2.4 SWOT analysis SWOT analysis for the Jamdani sector Following is an evaluation of the potential strengths, weaknesses, opportunities, and threats (SWOT) of the Jamdani sector.

Strengths  Strong cultural heritage and traditions to draw upon for developing unique designs and enhancing product differentiation.  With the growth of tourism in Bangladesh, increased sales in local tourist markets will enhance the reputation and promotion of Bangladeshi products around the world.  Availability of natural raw materials, and unemployed and underemployed women interested in training and production.  Growing international interest in handicraft products, particularly handmade items by local women using local natural products who are paid fair wages.  Low capital investment to get started, few barriers for market entry, and high ratio of value added to the local economy per unit of investment capital.  Existing strong network of weavers serving the domestic and south Asian market.

Weaknesses  Shortage of next generation apprentices to learn weaving, spinning, , and product design skills, thus requiring expensive training.  Most products produced to date have been supply rather than demand driven. There is lack of information on tastes and preferences of western buyers that restricts market access of potential products.  Companies have little or no experience in exporting. Thus they require substantial training and technical assistance in business and marketing skills.  Narrow product range and lack of new and innovative designs and/or products suitable for overseas markets.  Absence of properly equipped design centres is responsible for some of the drawbacks in production, design, innovation and adaptation, combined to the lack of experts’ involvement such as textile engineers, fashion designers, etc.  Lack of co-ordination between government bodies and private players.

10  The industry is still confined to rural areas and small cities which contributes to transportation problems.  Lack of financial support and incentives for Jamdani producers and exporters.

Opportunities  Jamdani has the potential to attract multicultural consumers around the world. Jamdani can move beyond the production of sarees only. Jamdani weaving can be done in cotton, silk or mixed cotton-silk. The textile can be used for clothing and clothing accessories. New and innovative products like home decoration crafts, curtain, bags, art work, and cushion covers etc. can be produced using Jamdani. It can be marketed as a comfortable, skin- friendly, non-allergic synthetic textile that is socially responsible and eco-friendly.  There is a growing interest in many of the western countries including Canada for high quality handmade products using local natural resources produced under fair-trade labour standards. Jamdani producers can take advantage of that.  This niche market is not being adequately supplied by any groups or organizations at the current time within Bangladesh. It provides an opportunity for Bangladeshi artisans to earn a decent wage while not competing in markets dominated by low cost products from countries paying poverty level wages.  Jamdani producers should benefit from an increasing volume of domestic and international tourists.  E-commerce and Internet may be promising as distribution channels to market and sell the Jamdani products.

Threats  If existing Bangladeshi Jamdani companies become financially viable, it will likely encourage others to try and work in the sector.  The sector can at least partially protect their market niche by developing strong brand and protect it through international copyright laws.  Hand-crafted products have to compete on price, design and adaptability with modern machine made products, which make it hard for traditional products to be competitive in international markets.  Artificial automated product produced by competing countries, such as Indian ‘Uadhaya Jamdani’ or Chinese machine products are competitors. Sometimes, these competing countries are enjoying better terms of trade.  Some competing countries are offering better technological support for R&D.

11 SWOT analysis for the JDP Sector Following is an evaluation of the potential strengths, weaknesses, opportunities, and threats (SWOT) of the JDP sector.

Strengths  Higher profit margins for JDPs than for traditional jute goods  Market share of JDPs offer room for expansion compared to other (traditional) jute products  Quality of jute fibers is among the best in the world  A high share of people are familiar with the processing of jute  Labour costs are amongst the lowest in the world  Government’s strong interest to revive the jute sector  Increasing worldwide interest for environment friendly jute products

Weaknesses  Lack of information from government bodies  Lack of R&D facilities and product development  Instability of pricing and delivery of raw jute  Lack of support from government bodies, as well as poor implementation of policies and strategies  Lack of development of the domestic market for JDPs  Quality issues  Lack of export experience for small JDP producers

Opportunities  Increasing international interest in environmental friendly products from developing countries  Increasing market for gift items from developing countries  Marketing JDPs as eco-friendly, socially responsible alternatives for synthetic products  Because of low wages, Bangladesh can be competitive with other less developed countries  The history and experiences in the jute sector  The quality and supply of raw jute in Bangladesh

Threats  Competition from India, which has more experience with JDPs and a greater product range and depth

12  Competition from other similar eco-friendly gift items from other developing countries which have more support from their government  The constant competition of natural jute fiber and products with other artificial fibers and products  Fierce domestic competition and fear of copyright infringements in design

13 3. Business case and entry to Canadian market 3.1 Results from the Jamdani sector A sample of 37 companies from the Jamdani sector were surveyed. They are located in greater Dhaka – in Rupgonj, Narayangonj, Sonargaon, Tarabo and Gazipur. The companies mainly serve the domestic market. The surveyed Jamdani producers have been in business for an average 30 years which shows that the sector is well established. Though many of the surveyed producers have their own factories, more than half do not have their own showroom. Many of the producers are suppliers to larger companies. Irrespective of size, most producers use a network of weavers to meet the demand. The family based weavers are located in greater Dhaka, Tangail, Manikgonj, Munshigonj, Jamalpur and Kushtia. Though Jamdani have been around for a long time, there is not much export from the sector. Exports are mainly for south Asian countries and south Asian consumers in Europe and North America. They have neither explored nor penetrated into the western mainstream markets. The government also never considered Jamdani as a prospective exporting good and it did not receive enough government support like other sectors in Bangladesh.

As mentioned earlier, Jamdani is eco-friendly and has huge positive social impacts in communities. The majority of the workers in our surveyed companies are women. The weavers are located in rural areas and are usually low income households. Increased export would therefore directly empower female workers and reduce rural poverty. The surveyed companies produce the following products: Jamdani sharee, gents wear, kids wear, household items (hand embroidery), jewelry, salwar kamiz, tops, skirt, ties, gown, frock, Halloween dress, cushion cover, maxi, other ladies wear, curtain, yardage, household item, décor materials, lamp shade, wall mat, show pieces etc. There is limited export experience of few firms to India, USA, Canada, UK, Greece, France and Germany.

The survey categorized different types of issues and factors that may have impact on the Jamdani sector. The respondents identified the importance of each factor on a scale of 1 to 5 – where ‘1’ was ‘not important at all’ and ‘5’ was ‘extremely important’. The majority of the factors that were identified as highly important (a mean score of above 3.5) were domestic in nature. As identified earlier - Jamdani as a sector is not much export oriented though the sector has enormous potential to serve niche markets in the western world. Domestic policies and incentives will be needed to transform Jamdani into successful export goods. Financial obstacles (high cost of capital, strict credit requirements, high interest rates, inability to self-finance export), training and learning weaknesses (lack of HR in export, lack of knowledge about export procedures), lack of

14 government export support (lack of government assistance to pass export barriers, lack of export promotion) were identified as the most important factors affecting the sector.

Table 4: Importance of factors affecting the Jamdani sector Low importance Medium importance High importance (Mean below 2) (Mean from 2.1-3.5) (Mean above 3.5)  Language issues  Lack of information about  High cost of capital (problem to foreign contacts  Strict credit requirements from communicate)  Lack of pricing knowledge banks  Quality concerns  Lack of knowledge of  High interest rates  Lack of quality raw buyers’ expectations  Inability to self-finance export materials  Lack of export experience  High freight costs to foreign  Strong competition  Lack of skills to adapt markets from foreign producers products for export  Size prohibits export  Can’t meet importers  Political instability  Lack of HR in export product quality  Strong competition from  Lack of knowledge about foreign standards domestic producers market opportunities  Red tape in public  High-value of domestic  Lack of knowledge about foreign institutions currency market and business culture  Insufficient foreign demand  Lack of knowledge about export procedures and practices  Lack of government assistance in passing barriers  Lack of export promotion program from government  Lack of export promotion from international organizations

Source: Authors’ analysis following data collection

The sector has a long history of serving the domestic market and can rely on an extensive weaver network to meet an increasing export demand. It is reflected in the survey as the identification of product quality, the inability to meet foreign demand or expectations, and raw material quality are identified as least important factors.

International factors are identified as very important by the survey respondents. Lack of knowledge about foreign market opportunities and business culture, insufficient foreign demand and lack of promotion from international organizations are identified as most important international obstacles for the sector. Bi-lateral and international organizations like TFO-Canada or Global Affairs Canada can provide support in these areas. Aid and support in these areas can create long-lasting, sustainable and socially responsible trade promotion for countries like Bangladesh. Most of these high important factors were also identified as ‘very difficult to solve’ by the survey respondents. There is unique possibilities and capabilities in the Jamdani sector if proper support and initiatives are provided domestically and internationally.

15 Besides the surveys, a small number of expert and stakeholder interviews were completed for both sectors. The experts and stakeholders identified few more obstacles and opportunities. A group of weavers re-iterated the niche market status of Jamdani even at the domestic market. Jamdani sarees are labour and time intensive product and the demand is exclusive – not for regular use. Despite steady demand in the domestic market, it is not high enough. Because income is low with long hours of work, the sector is not attracting new weavers and off-springs are leaving the profession. It is getting harder to find local apprentice workers and weavers and often they must be found from other regions which is driving the training cost higher. Raw material prices are also increasing. The experts confirmed that export can significantly help in the revival of the sector.

The following statement from Jacques Nadeau, the Canadian entrepreneur sent by TFO Canada to visit Bangladeshi producers, highlights some of the weaknesses and possibilities for the Jamdani sector: “Jamdani draws its name from the fact that the fabric is always offered in traditional patterns. The patterns I have seen will not automatically raise the interest of Canadian buyers or interior designers. Also, the making of Jamdani fabric is a costly operation which requires a high retail price thus making products as high end products. The making of one single Jamdani (six yard fabric) requires 6 weeks to 3 months. Consequently, the development and marketing of new products can only be achieved if unique and exclusive products are offered to foreign markets.”

The following statement from a local company shows the possibilities and optimism for the sector: “Jamdani is a beautiful traditional product. Jamdani fabrics with thin and soft cotton or silk can be used for making any type of products following modern Canadian demand. Design, color and texture of Jamdani products suitable for the Canadian market needs to be developed. Research on developing such products in our region is ongoing and we have also joined that diversification effort.”

Both of the above statement identify the need for product and design development as a key to export Jamdani products. Other experts also identified the high potential of Jamdani as an exporting good. Jamdani raw material, machineries, technology, design and skills are local owned and the capacity and capability to meet export demand is already present. According to these experts, Bangladesh just needs to market the uniqueness, exclusivity, eco-friendliness and social responsibility of Jamdani in a better way. It will sell well in niche markets of the western world. Government can help to promote export through trade shows, funding, training and marketing.

16 The sector also needs help for design development that may be provided by importing countries. They can help to create a network of designers, entrepreneurs, and weavers to play with the thousands of available Jamdani designs to fit the western markets and consumption patterns.

Pro-active measures are needed both locally and internationally to increase visibility of Jamdani textile products in the western markets. Proposals like the following stated by the visiting Canadian entrepreneur are examples of pro-active measures.

“We tested the ground with one weaver ……..as to whether he would be interested to develop new lines of muslin fabric and derived products enhanced with market-adapted patterns. The Weaving Factory is willing to develop new products as long as it does not technically change its way of making fabric. Therefore, I suggest to launch a pilot project with a strong involvement of a Canadian designer developing a few promising silk made products. A market test would thereafter be conducted to demonstrate if the approach is sustainable. A parallel avenue to explore would be to get some producers becoming Fair Trade certified which would then automatically establish a high value for their lines of products. This avenue may be difficult though considering conditions under which Jamdani fabric is often produced.”

3.2 Results from Jute Diversified Product (JDP) sector A sample of 34 companies were surveyed from the JDP sector. The surveyed companies are mainly located in greater Dhaka. The JDP sector is significantly different from the Jamdani sector in terms of export readiness and government policy support. The companies currently mainly serves the domestic market, but are striving to become export oriented. The surveyed JDP companies are relatively new companies. On average, the companies have been in business for about 13 years. Many of the surveyed companies also sell other handicrafts products. 31 out of the 34 companies have their own factories, but more than half do not have their own showroom. The factory is also the showroom for these companies and they supply other handicraft companies. Besides greater Dhaka, factories are located in Jhinaidah, Goplagonj, Rangpur, Khulna, Tangail and Moulovibazar. Irrespective of size, most producers (68%) use a network of rural craftsmen to meet the demand. The family based craftsmen are located in greater Dhaka, Tangail, Manikgonj, Munshigonj, Jamalpur, Sylhet, Chittagong, Gaibandha, Rangpur and Panchogar. The availability of the raw material expanded the locations of JDP factories and craftsmen all over the country. Jute was the main export product of Bangladesh in Pakistan in the

17 post-independence era but started to lose its market in the 1980s. Recent Bangladeshi governments have been trying to revive the sector since then.

More diversified products are an avenue for the revival of the sector, which explains why JDP is a high priority sector for the government. Financial and other incentives and policy supports have attracted many new entrepreneurs in this sector. Though Jute products have been around for a long time, jute diversified products are relatively new. Ongoing incentives and support are also geared towards export. This has made this sector more export ready. 65% of the surveyed companies have export experience and 30% has more than 60% of revenue generated through export. The surveyed companies have exported to EU, United-States, Japan, Australia, Thailand, United Kingdom, Sweden, Bahrain, Italy, Malaysia, Canada, Singapore, Germany, Spain, Switzerland, India, Ireland, China, South Korea, , Lithuania, Netherlands, United Arab Emirates, Greece, France and Denmark. They also produce and export a wide range of unique and innovative products. It includes curtain, table cloth, runner, place mat, cushion cover, coaster, laundry basket, jute bag, laptop bag, ladies bag, shopping bag, wine bag, rice bag, lunch bag, beach bag, nursery bag, purse, coin purse, fruit basket, curtain, office folders, room slipper, show pieces, wall mat, pot hanger, doll, tissue box cover, photo frame, flower vase, jewelry box, watch box, shoe hanger, lamp shade, mail organizer, pen pot, note book cover, file folder, wallet, tab holder, jute rugs, pet house, punjabi, , fotua, muffler, , shawl, hat, jute tape , burlap ribbon, dyed burlap roll, wire edge burlap ribbon, Christmas sacks, draw string bags, jute , jute hammock, key ring, pouches, apron, tea towel, lamp shade, juton yardage (jute-cotton blend).

Like the Jamdani sector, JDP is eco-friendly and has huge positive social impacts in communities. The majority of the workers in our surveyed companies are women. The craftsmen and factories are located all over Bangladesh and in rural areas. The craftsmen and workers are usually low income workers. Increased exports would directly empower female workers and help to reduce rural poverty.

Compared to the Jamdani sector, the JDP sector identified fewer obstacles that are highly important. The majority of the factors that were identified as highly important (a mean score of above 3.5) were domestic financial obstacles (high cost of capital, strict credit requirements, high interest rates, inability to self-finance export, high freight cost). Jute as the umbrella sector has a long history of export and so JDP as a sub-sector can draw strength from the experience of Jute sector. JDP has a larger craftsmen network to meet increased demand from export. As mentioned earlier, the sector is way more export ready and it is reflected in the survey by the identification of

18 product quality, inability to meet foreign demand or expectations, raw material quality as least important factors affecting the sector. The only international factor identified as very important by the survey respondents is the lack of promotion from international organizations. In spite of greater export readiness, the sector has not yet fully penetrated the western markets. It is why bi- lateral and international organizations like TFO-Canada or Global Affairs Canada can provide support in the area of export promotion. Like Jamdani, export promotion support for JDP sector can also create long-lasting, sustainable and socially responsible trade promotion for countries like Bangladesh. All of these high important factors were also identified as ‘very difficult to solve’ by the survey respondents.

Jacques Nadeau, the visiting Canadian Entrepreneur, stated high optimism for the JDP sector. It is reflected in his statement below.

“I come out of meetings with producers with a high level of optimism as far as the potential for export of jute-made products is concerned. First of all, jute is a grass growing in huge volume in Bangladesh. From an economic structural point of view, it is being processed in so many ways that the potential for export becomes tremendous. Grass can be processed in raw yarns for the making of burlap being largely exported to Europe and North America as well as very fine yarns leading, in combination with cotton to the making of women and men garments. In between, we find the whole spectrum of yarns being processed in different ways for the making, among other things, of fashion products such as bags of all kinds, shoes, etc. Besides, at least one producer keeps developing exclusive yarns such as the wax yarn, unique to Bangladesh, leading to making even more fashionable jute products that we will showcase in Canada as part of the TFO Canada project. Consequently, the presence of many producers offers an enormous potential of export for the country.

Most of the producers making handmade products told me they essentially rely on designs of foreign buyers to develop new collections. It can be seen as a strength to rely on foreign buyers to make products suitable to specific markets. However, it could also be a weakness if producers are not capable to develop their own lines of products to differentiate themselves from the competition. In the future, local designers should work closely with producers to develop unique lines of products for export markets. This would alleviate the pressure coming from the Chinese and Indian competition.”

19 The experts and stakeholder interviews also identified other obstacles and opportunities for the sector. The experts appreciated the government training support, fiscal incentive for JDP as an agro product, and financial incentives. As JDP export can add more value to jute, product diversification is a priority in the government five year plan.

Table 5: Importance of factors affecting the JDP sector Low importance Medium importance High importance (Mean below 2) (Mean from 2.1-3.5) (Mean above 3.5)  Language issues (problem  Lack of knowledge about  High cost of capital to communicate) foreign market opportunities  Strict credit requirements  Product quality concerns  Lack of information about from banks  Lack of knowledge about foreign contacts  High interest rates buyers’ expectations  Lack of pricing knowledge  Inability to self-finance  Lack of skills to adapt  Lack of HR in export export products for export  Lack of export experience  High freight costs to  Can’t meet importers  Lack of knowledge about foreign markets product quality standards foreign market and business  Lack of export promotion  Size prohibits export culture from international  Lack of knowledge about  Lack of quality raw materials organizations export procedures and  Strong competition from practices domestic producers  Red tape in public  Strong competition from institutions foreign producers  Political instability  Insufficient foreign demand  Lack of government assistance in passing barriers  Lack of export promotion program from government  High-value of domestic currency

Source: Authors’ analysis following data collection

Stakeholders also identified the need for a one stop service center for JDP sector. An integrated service center for jute products may decrease export cost significantly. The sector is ready for export, as production capacity is there. Quality and skill wise, JDP sector is ready for export. The worldwide increase of demand for eco-friendly products will help in the revival of both jute and jute based products. According to these experts, Bangladesh just needs to market the exclusivity, eco-friendliness and social responsibility of JDP in a better way.

3.3 Policy recommendations and strategies for entry into Canadian market Following are some policies and strategies to facilitate entry into the Canadian market. The strategies and recommendations are for entrepreneurs, weavers, Bangladeshi domestic institutions and international buyers.

20  Both the Jamdani and JDP sectors will need an easier access to financial resources. Government financial institutions could take the lead.  The Jamdani sector is not as export ready as the JDP sector. For both sectors, export training will be needed. The export promotion bureau could take the lead.  Both Jamdani and JDP sectors already have rich traditional and cultural values and are eco-friendly products that benefit rural poor and women. Jamdani is a non-allergic, healthy textile. One of its greatest characteristic is flexibility and adaptability according to the customer’s choice. JDP is a green alternative to many synthetic products in the western world. The customer should be made aware of these qualities.  The Jamdani sector mainly serves domestic and south Asian consumers. To serve western economies, the fabrics need to match the western life style. Domestic and international designers could create a network with local weavers and entrepreneurs to design new products.  Export market entry will not be successful if horizontal and vertical business networks are not established (Tesfom, Goitom, 2006). Both the Jamdani and JDP sectors have the capability to create strong horizontal networks among artisans and fulfil demand requirements. But vertical networks among artisans, suppliers and buyers are missing. Both domestic institutions and international institutions as well as buyers should play a pro-active role to strengthen vertical networks to expand trade.  There is insufficient international market information about specialty textile products. The artisans are unaware of the market demand for new designs because of the lack of customer feedback. This hampers their creativity and innovation. Increased networking and sharing of information is needed.  There is insufficient advertisement of the Jamdani products. It needs continuous promotion and advertising campaigns to have an effective impact on customers.  A stronger brand image for the two sectors will be needed. There needs to be more innovative products, which can be supplied to niche markets within the country and abroad.  There is a lack of quality standardization. A procedure is needed to check quality standards of the products (durability, shrinking, etc.) so that the customer is reassured.  Given their limited production capacity, exporting entrepreneurs should therefore form groups to take bulk orders and ensure timely delivery to international buyers (Vries, Johan de, 2007).

21  India and Thailand, among others, have achieved great success in promoting their textiles worldwide. They have done so by establishing institutions for design and technical support, matched by well documented publications and promotional exhibitions. The Export Promotion Bureau needs to work closely with the commercial wings of Bangladesh diplomatic missions to promote Jamdani and JDP products to the world markets (Vries, Johan de, 2007).  A multitude of approaches need to be used for marketing the products. These include but are not limited to use of foreign agents, participation in trade shows, web-based promotions, frequent advertisements etc.  Some producers are hesitant to set up a website listing their products, since other producers could copy their designs. But websites are a powerful tool to reach customers (Vries, Johan de, 2007).  Most producers currently follow a buyer driven production model which hampers growth. The products become too westernized and lose cultural and traditional characteristics. A mix of buyer driven and independent local seller/designer driven production process will work better.  Canadian prominent designers can work with local artisans and designers to re-design and develop products to bring into Canadian market.  There are many fashion designers in Bangladesh, but very few ‘other’ product designers. Export promotion should include promotion of product designers too.  Both sectors face competition from Indian producers. Bangladesh need to protect the intellectual property rights for Jamdani and promote it internationally. For the JDP sector, Bangladesh government institutions need to match the R&D, marketing and export promotional support received by the Indian producers.  Both Jamdani and JDP sectors are composed of mainly SME producers. Rather than competing with each other, these SMEs should increase collaboration to increase their reach to international markets.  Middlemen in the specialty textile sector absorbs 80% to 90% of the profit. If external markets can be brought to the source, transport costs for rural artisans would be reduced and the risk of local producers being exploited by ‘middlemen’ would be avoided (Pereira, Taryn, et al., 2006).

22 4. Summary of business strategy The table below summarizes the suggested business strategy for Bangladeshi producers of Jamdani and JDP textiles. The successful implementation of the listed recommendations will help to protect the natural environment and valuable cultural heritage of Jamdani and JPD products. It will also support the empowerment of women and eventually help to reduce poverty in rural Bangladesh.

Table 6: Business strategy for textiles’ exporters Action Plan Business strategy  Facilitate the entry of specialty textiles to the Canadian niche market.  Introduce the rich cultural heritage and expertise of artisans and their Objective craftsmanship to Canadian consumers.  Introduce eco-friendly and organic products to Canadian consumers.  Create a long lasting good business relationship between Bangladeshi exporters and Canadian consumers.  Empower rural women, youth and cluster based families.  Generate employment for the different ethnic groups of Bangladesh in their handicraft production process.  Contribute to a sustainable income generation for the cottage industry and alleviate poverty. Export high quality handmade and specialty textiles for fashion wear, home- Mission décor, handcrafts gift items produced by Bangladeshi artisans. Exporting to Canada will contribute to a growth in hand weaving and jute sector. This will promote the role of women in production process in rural area. This Vision project will generate revenues for artisan families and empower rural women. It will also greatly contribute to the economic development of both countries. Nature of Export specialty textiles and jute fabric products to importers/buyers or agents in business Canada with assistance from TFO Canada. Type of business Product manufacturing and exporting through L/C (letter of credit). Focused sectors Clothing and home textile/home décor produced in handloom and by handicrafts.  Customized size and weight  High tearing strength  Strong and neat stitching  Colour fastness Features  Perfectly weaved  Exactly stitched  High quality control  Eco-friendly  Promotes social justice by empowering women and reducing rural poverty Out of Jamdani weaving textile:  Jamdani weaving fabrics Products  Jamdai stole  Jamdani Scarf  Summer wear

23 Action Plan Business strategy  Jamdani Curtain  Home-decor  Table- decor  Home crafts etc.

Jute fabric products: Curtain, table cloth, runner, place mat, cushion cover, coaster, laundry basket, jute bag, laptop bag, ladies bag, shopping bag, wine bag, rice bag, lunch bag, beach bag, nursery bag, purse, coin purse, fruit basket, curtain, office folders, room slipper, show pieces, wall mat, pot hanger, doll, tissue box cover, photo frame, flower vase, jewelry box, watch box, shoe hanger, lamp shade, mail organizer, pen pot, note book cover, file folder, wallet, tab holder, jute rugs, pet house, punjabi, kurta, fotua, muffler, scarf, shawl, hat, jute tape , burlap ribbon, dyed burlap roll, wire edge burlap ribbon, Christmas sacks, draw string bags, jute tapestry, jute hammock, key ring, pouches, apron, tea towel, lamp shade, juton yardage (jute- cotton blend)  The rich cultural and heritage story of the products need to be better marketed, along with the eco-friendliness and socio-economic development impact of the products.  SMEs should use different marketing approaches (foreign agents, participation in trade shows, web-based promotions, frequent advertisements etc.)  Bangladesh government institutions should play a proactive role in financing, Proposed training, supporting R&D and product development and in helping the recommendations promotion of the products.  SMEs in both sectors need to strengthen horizontal network among themselves with increased co-operation for product development, export market quantity, quality and design development.  Bangladeshi sectoral associations, producers, designers and artisans need to build a strong vertical network with Canadian institutions (e.g. TFO Canada) and buyers to create regular buying orders, R&D and design development. Source: Authors’ analysis following data collection

24 References Akter, Rahima (2015). Jute Goods Export to Australia: An Analysis of Market Potentials for Bangladeshi Jute products, International Journal of Management and Business Studies, Vol. 5, Issue 2.

Becchetti, Leonardo and Camillo Rosati, Furio (2007). Global Social Preferences and the Demand for Socially Responsible Products: Empirical Evidence from a Pilot Study on Fair Trade Consumers; the World Economy, Blackwell Publishing Ltd.

Export Promotion Bureau (2015). Country wise Export Statistics, Bangladesh

Keegan (1995). W.J., Global Marketing Management, 5th edition, Prentice Hall, U.S.A

Ghuznavi, Sayyada R. (2006). Jamdani: The Legend and the Legacy, National Crafts Council of Bangaldesh publication.

Gillow, John and Barnard, Nicholas (2008). Indian Textiles, London: Thames & Hudson Limited, 2008

Islam, Md. Khairul and Hossain, Md. Elias (2012). An analysis of present scenario of handloom weaving industry in Bangladesh, Rabindra Journal, Volume 3, Number 1.

Light Castle Partner Ltd. (2014). Bangladesh Market Snapshot – Jute Diversified Products

Nadh, Rayapati Raveendra; P.Venkata Rao and B.M.HarshaVardhan (2013). Handloom market: need for market assessment, problems & marketing strategy; International Journal of Emerging Research in Management &Technology; Volume-2, Issue-5.

Pereira, Taryn, et al. (2006). Trade in reed-based craft products in rural villages in the Eastern Cape, South Africa, Development Southern Africa Vol. 23, No. 4.

Syeda Mushda Ali (2014); Museum and research center for the traditional textiles of Bangladesh; Unpublished undergraduate seminar paper, Brac University.

Tesfom, Goitom, et al. (2006). Solving Export Marketing Problems of Small and Medium-Sized Firms from Developing Countries Journal of African Business, Vol. 7(1/2)

Tushar Kumar Paul (2010). Textile Handicrafts and its Prospect in Bangladesh; Unpublished undergraduate seminar paper; Dhaka University of Engineering and Technology, Gazipur.

Vries, Johan de, (2007). Export of jute products from Bangladesh to Europe: Analysis of market potential and development of interventions for GTZ-PROGRESS, Unpublished graduate research paper; University of Twente, Netherkangs.

25 Appendix 1: List of Jamdani entrepreneurs SL # Name Enterprise /Company Kanishka 1 Mrs. Fauzia Amin House # 20, Road # 7, Mirpur road Dhanmondi, Dhaka-1205 E-mail: [email protected] / Mobile: 01713016243 Nipun Crafts 2 Mr. Ashrafur Rahman 17/1/C/1, Tolarbagh, Mirpur 1, Dhaka, E-mail: [email protected] / ph# 01711563332 Shilleikon 3 Ranjana Robin 137/E, Jahanar Garden, green road, 1205 E-mail: [email protected] / ph# 01711465019 Shahina Jamdani 4 Mr. Lal Miah Dakshin Rupshi, Rupgonj, Narayangonj Mobile: 01748041118 Khondokar Jmdani 5 Khokon khondokar Sadimpur, Sonargaon Narayangonj, ph#01720011959 Mahima Jamdani 6 Akkel Ali Dakshin Rupshi, Rupgonj Narayangonj, ph# 01756209837 Sufia Jamdani Weaving Factory Vill. South Rupshi, P.O. Rupshi Bazar 7 Md. Rafiqul Islam P.S. Rupganj, Dist. Narayanganj Mobile:01715362710 Abi Jamdani, Vill. South Rupshi, P.O. 8 Mr. Nahidul Rasel Rupshi Bazar P.S. Rupganj, Dist. Narayanganj Designer Line House No-460, Road-8,East 9 Mrs. Hosne Ara Begum DOHS, Baridhara, Dhaka-1212 Phone: 8849283/8849282 / Mob: 01711-525516 E-mail: [email protected] Din Jamdany And Co 27 Dilkusha, 8th floor 10 Mr. Idris Ali Room-901, Dhaka-1000 Phone: 9550866/01711970087 /Mob: 01552 430237 E-mail: [email protected] Weaving Factory Bargaon, Kazi para 11 Mr. Ali Hossain Union: Sadipur; P/O: Borabo, P/S: Sonargaon, Narayangonj. Bibi Productions 12 Mr. Haider Alim 12-13 Motijheen C/A, Dhaka-1000 Email:[email protected] Shailpik Craft 13 Nahida Sharmin E-2, First floor, Mirpur Road, Dhanmondi, Dhaka Mob:01715026982 / Email:ahmedna@dhaka. Anjan1`s, Khan Villa 14 Md. Shaheen Ahmed 34. B, Malibagh Chowdhury para, Dhaka-1219, Mob:01711520985 / Email: [email protected] Peyara-Jamdani Weaving Factory Vill-South Rupshi 15 Md. Siddiqur Rahman P.O.Rupshi,P.S.Rupgonj, Dist.Narayangonj. Phone: 01715784684/01199-096588 16 Mrs Peyara Begam Rukshana Jamdani Weaving Factory

26 SL # Name Enterprise /Company South Rupsi,P.S Rupganj Dist: Narayanganj Phone: 01199-096588/01715986424 Mak Textile Mills Ltd. Anandi Madhabdi,Narsingdi 17 Mr.Tapan Kumar Paul Phone:01757324144/ 01714026019 E-mail : [email protected] Weaving Factory 18 Md. Younus Ali Bargaon, Kazi para Union: Sadipur; P/O: Borabo, P/S: Sonargaon Narayangonj. Muslim Jamdani Factory Vill: Noapara. P.O.Tarabo 19 Md. Khorshed Alam P.S. Rupganj, DIST. Narayanganj Phone: 0189-130150/01818225959 Weaving Factory Bargaon, Kazi para 20 Md. Alam Union: Sadipur; P/O: Borabo, P/S: Sonargaon Narayangonj. Sagarika International 21 Gouranga Basak Kalibari Road,Adalatpara Tangail-1900 / Phone:092155558/01819433554 Joya Nawshad Ali Khan 620, Shaheen Bag, Lane- 6, Tejgaon, Dhaka-1215. 22 ph# 01196262542, 01750922184 email: [email protected] [email protected] Jamdani Weiving Factory Bargaon, Kazi para 23 Md. Ismail Union: Sadipur; P/O: Borabo, P/S: Sonargaon Narayangonj. Phone: 01718229719/ 01199423233 Jamdani Weiving Factory Bargaon, Kazi para 24 Md. Ali Hossain Union: Sadipur; P/O: Borabo, P/S: Sonargaon Narayangonj. ph# 01855733964 25 Ahana Fabrics Mr. Raju Saha 92, Railway Market. B.B. Road, Narayangonj. Phone: 02-7640847/01711-708741 26 Jamdani Weiving Factory Bargaon, Kazi para Md. Harun Union: Sadipur; P/O: Borabo, P/S: Sonargaon Narayangonj. ph# 01911962203

27 Appendix 2: List of JDP entrepreneurs SL # Name Enterprise /Company Time Expo Design Spark, Flat# D/1, 23/1, North Dhanmondi, Kalabagan 1 Mr. Faisal Hassan Dhaka –1205, Phone :02-9144571/01818000048 E-mail :[email protected] The Source House No-56, Road No-5 Block-B,Mons Society. Adabor, Dhaka.urabadHousing 2 Md. Tafazzal Hussain Phone: 8114684/8150643 (Off) 9133709 (Res) / Mob: 01713016980 E-mail [email protected] Karupannya Rangpur Ltd C/O.Satranji 3 100/A,Sukrabad,Mirpur Road. Shafiqul Alam Selim Dhanmondi, Dhaka. Phone: 8153512/01713063328 E-mail: [email protected] Diamond Jute Diversification & Co Suvechha Plaza,Suit#29,30 4 Md. Mosharrof Hossain 32/1,Shahid Nazrul Islam Road Phone:7500516/01713-025548 E-mail :diamondjute @gmail.com Jutemart & Craft in Bangladesh House # 13, Block # A, Road # 2, Banasree 5 Khaleda Sultana Rampura, Dhaka-1219. Phone : 8396784/01811414391 Email : E-mail: [email protected] Golden Jute Product 6 118, South Dariapur,Savar,Dhaka D. Hakim Ali Sardar Phone : 01818505179 E-mail: [email protected] Rahman Jute Crafts House#101,Road#3,Block#A Nemykashari,Siddhirgonj 7 Md.Ohidur Rahman Narayangonj Phone: 01715129875, 01738773040 E-mail:[email protected] Classical Handmade Products BD 26.Baitul Aman Masque Complexe 8 Md.Tauhid Bin Abdus Motijheel.C/A.Dhaka –1000 Salam Mob:01713036940(Resi)7101206 Cell:01734953050 (Shaheen) E-mail :[email protected] Golden Jute Diversification Centre Bagmara,Sanarpar,Siddergonj, 9 Md. Mokbul Hossain Narayangonj Phone: 01670142357/01712195019 Email : [email protected]

28 SL # Name Enterprise /Company Jute Land (PVT) Ltd Asina,House#54.Road#03 10 Mrs Protima Chakraborty Block-B. Niketon Gulshan-1.Dhaka Phone : 8836351/01715962900 E-mail : jute land @yahoo.com Eshana Jute Products Ltd House No. 1 Flat-4B,Road No 23/A 11 Mr.Mahfuzul Hoque Gulshan-1, Dhaka. Phone: 8817317/Fax: 8820387 Email : [email protected] Uttaran Enterprise 12 Kazi Sahabuddin 259 East Kafrul Phone:01715186719 E-mail :[email protected] Joya 13 Nawshad Ali Khan 620, Shaheen Bag, Lane- 6, Tejgaon, Dhaka-1215. ph# 01196262542, 01750922184 email: [email protected] [email protected] Uttama Ltd House# 212, Road# 2, (4th Floor) DOSH 14 Sheikh Selina Islam Baridhara, Dhaka – 1212 Phone: 8815772/8851646(Res.) 01793533444 2 Z Crafts 2/H/4, Golden Street, Ring Road. 15 Md. Zamal Hossain Shamoli, Dhaka. Phone: 01715102573/01684682962 E-mail: zamalalhossain92@ yahoo.com Shakh Crafts 16 Section-11/A,Road-3/3,Mirpur, Dhaka Mrs. Razia Zaher Phone: 01711544596 (Resi)8034684 E-mail: [email protected] Swajan Crafts House No-6, Road No23/A Mr. Taibul Hasan 17 Gulshan, Dhaka-1212 Khondaker Phone: 8817607/01819410508 E-mail: [email protected] Heed Handicrafts Plot # B-17, BSCIC Industrial Estate, Tongi, Gazipur 18 Mr.Ranjit Kumer Sarker Phone: 9803829/9803632 Mob: 01713277155 E-mail: [email protected] Shohojogita 14/1,Borobag,Mirpur-2.Dhaka 19 Mr Kamal Gomes Office:8060306/01714446297 E-mail : [email protected] Craft N Kraft 113/A, Monipuri Para 20 Md. Wasiur Rahman Tejgaon, Dhaka-1215 Phone :01766943490/01963512926 E-mail : [email protected] Nipun Craft Ltd. 17/1/C/1, Tolar bagh, Mirpur 1, Dhaka E-mail: 21 Sadia Afrin Eva nipunltd@yahoo. Com Mob: 01918347089

29 SL # Name Enterprise /Company Liza Boutique 57, Central Road, Flat No# A/4 22 Ezaz Nasrul Islam Dhanmondi, Dhaka –1205 Phone:01820101049/01552336958 E-mail :[email protected] 23 Mony Jute 82,W/1, Monypuri, Madertak, Bashabo, Dhaka-1214. Md. Moin Uddin

24 Ms. Humayra Rahman Parvin Handi crafts 37 Uttar Mugda, Dhaka. Ahmmad Handicraft A/02,Bagmara, Sanarpan, Siddirganj, 25 Md. Mainuddin Narayangonj Creative Connections Ph# 01817673787 , email: [email protected] Mashraka Binta Mosharrof 26 Factory Address: 66/10 West Raja Bazar, Tejgaon, Dhaka- 1215.. Office Address: House No: 511, Road No: 9, DOHS Baridhara,Dhaka. Eshana Jute Products Ltd House No. 1 Flat-4B,Road No 23/A 27 Mr.Mahfuzul Hoque Gulshan-1, Dhaka. Phone: 8817317/Fax: 8820387 Email : [email protected]

30 Appendix 3: Survey of potential exporters 1. Name of Company: 2. Number of years in operation: ……………………… 3. Do you have your own showroom: Yes ………….., No ………………, if yes, location: ……………….. 4. Do you have your own factory: Yes…………….., No…………………, if yes, location: ……………….. or, Do you have your own network of small suppliers: Yes ………….., No ……………….., if yes, location: ……………….., 5. Number of workers in own factory: Male ……………………, Female………….……… or, number of workers in an average supplier’s factory/production unit: Male ……………………, Female………….……… 6. List the names/types of the products produced: 7. Do you export or have you ever exported: Export regularly …………………………Exported in the past ……………….. 7.1 If yes, how long have you been exporting: …………….. 7.2 If you currently export, what is the approximate share of your export in your total production: ……………% 7.3 If you currently export, what is the approximate share of your export in your total revenue: ……………% 7.4 List the countries where you export/exported: 7.5 List the names/types of the products you export/exported: 7.6 If you never exported, list any products that you think you can export; 8. Did you get any government support/incentive: Yes ……………, No ……………….. 8.1 If yes, what type of support: 9. Did you get any support from any NGOs and/or other private companies: Yes …… No …….. 10. If yes, what type of support: 11. Do you have any standard certification like ISO, HACCP, organic, health, labour, GAP etc.:………………………………………….. 12. Describe any Corporate Social Responsibility activities (e.g. fair trade certification, environmental protection, community support, etc.):……………………………………………….

Note: In Answering the Following Questions Use the Following Values. 1 = not important at all, 2 = somewhat important, 3 = moderately important, 4 = very important, 5 = extremely important, 6 = not applicable 1 = not difficult at all, 2 = somewhat difficult, 3 = moderately difficult, 4 = very difficult, 5 = extremely difficult, 6 = not applicable

31 Difficulty to Importance Export problem factors solve the of the issue issue

1. Marketing knowledge barrier 1.1 Lack of knowledge to locate foreign marketing opportunities

1.2 Lack of specific information regarding foreign agents, distributors and prospective buyers

1.3 Lack of export marketing research

1.4 Language problem to communicate to overseas customers

1.5 Lack of pricing knowledge for foreign markets

2. Human resource barriers 2.1 Lack of personnel trained and qualified in export marketing

2.2 Lack of experience in planning and executing export operations

2.3 Lack of domestic support in export consulting

2.4 The lack of exposure to other cultures and to different methods of doing business

3. Financial barriers 3.1 Inability of the firm to self-finance exports

3.2 High cost of capital to finance exports

3.3 Strict credit requirements of the bank

4. Product quality barriers 4.1 Product quality problems

4.2 Lack of knowledge about product standard and quality expectation in foreign markets

4.3 High sensitivity of products to fashion

5. Product adaptation problem 5.1 Lack of adequate skill/knowledge to adapt products for foreign markets

5.2 It will be difficult in meeting importer’s product quality standards

5.3 It will be difficult in meeting export packaging and labelling requirements

5.4 Lack of ability to supply required quantity on continuous basis

6. Industry structure 6.1 Lack of adequate quality of raw materials

6.2 Too Small in size to initiate export operations

32 Difficulty to Importance Export problem factors solve the of the issue issue

7. Competition 7.1 Strong competition from domestic producers

7.2 Strong competition from other domestic/foreign producers in potential markets 8. Customer barriers 8.1 Poor image/knowledge of products in foreign market

8.2 Insufficient foreign demand

9. Procedural barriers 9.1 Lack of knowledge about export procedures and practices

9.2 Problems in making arrangements for getting paid

9.3 Problems in making shipment arrangement and meeting delivery dates

9.4 Restrictive foreign tariffs, rules and regulations

10. Government policies 10.1 Lack of government assistance in overcoming export barriers

10.2 Red tape in public institutions

10.3 Lack of export promotion programs sponsored by the government

10.4 Lack of export promotion programs sponsored by international organizations

10.5 Protectionist barriers in foreign markets

10.6 Inadequate diplomatic support

11. Exogenous economic barriers 11.1 Political instability in local economy

11.2 High interest rates

11.3 High freight costs to foreign markets

11.4 High international communication costs (telephone fax, travel)

11.5 High value of domestic currency

Any comments:

------

33