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Marketing Products from the Art of Weaving Jamdani and Jute Diversified Products (JDP) of Bangladesh in Canada

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Marketing Products from the Art of Weaving Jamdani and Jute Diversified Products (JDP) of Bangladesh in Canada Promoting specialty textile and fabrics: Marketing products from the art of weaving Jamdani and Jute diversified products (JDP) of Bangladesh 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 textile industry................................................................................................................. 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 textiles’ 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 cotton or raw silk, while jute fabric is produced from a vegetable fiber 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
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