CONTENTS

BangladeshABigPlayerinGarmentsExport 1
KeyMarketTrendsOverthePastDecade

YELLOW AnOutgrowthofBeximcoTextiles 1
TheChronologyoftheBrandASuccessStory

MarketSize 3
TargetSegments

PriceRange

RisingSales 5

GrossandNetProfitMarginEstimates


DirectSelling

AdvertisingandPromotionalActivities

EffectivePromotionalPrograms

CompetitionintheLocalArena

SWOTAnalysis

10

APromisingFuture

11

Recommendations

12

Bibliography

14

Appendix

15

A1. ConfirmationEmail
A2. OnlineSurveyQuestionnaire
A3. RawSurveyData
A4. TranscriptionofInterview
A5. PeerEvaluation

Executive Summary
Even though Bangladesh is a big player in the garments export business, it doesnt have any wellknown global fashion brand. YELLOW sought to change all that. Its inception from Beximco
Textiles, however, was more of an experimental project. Relying on Beximcos brand name and its
integrated vertical supply chain, Yellow began with the vision to be a high-street fashion brand
known internationally.
Despite numerous possible competitors, YELLOW acknowledges only two local brands as its
opponent. The scanty competition let YELLOW earn a profit of estimated BDT 200 million in 2012
by selling casual wears to mostly the well-off youth.
The intended customers are deliberately targeted by YELLOW using subtle promotional programs in
order to maintain its exclusivity. Its marketing efforts also include directly selling to the customer
and personalized customer care. As a part of being exclusive, it is planning a store in U.A.E and
other countries where all the elite brands are congregating to; while domestically, YELLOW wants
another seven to eight stores.
All the data mentioned were collected various sources interview and survey being the primary data
sources, and websites being secondary data sources. The survey was conducted online using a
random sample of 46 people. The highlights of the findings are listed below:
1. Male to female ratio was 3:2 which conforms to the companys male to female product
ratio.
2. YELLOW was the most preferred brand in a choice five popular local brands.
3. Customers weigh design, product quality, and price as the most important factors when
buying clothes.
4. 80% of respondents associate YELLOW to traits related to high-street fashion brand.
5. A significant percentage of respondents despite having positive attitude towards
YELLOW, have not purchased any YELLOW product.
Although YELLOW has an impressive overall performance, the disparity in the survey results and
the recent closure of the store in Sylhet raises concern. For these reasons, further investigation needs
to be done and the following recommendations be followed: (1) introduce mass marketing tools in
promotion; (2) improve the YELLOW website; (3) ascertain market feasibility before expansion.

Marketing Report on Yellow

Bangladesh A Big Player in Garments Export
The textile and clothing industry accounts for about 80 percent of all exports earnings of
Bangladesh.2 The most important export markets are the United States and the EU with a total market
size for Bangladesh in 2009 being EUR 5.8 billion and rising every year.3 Currently, the sector
employs about 45 percent of all industrial employment and accounts for 10.5 percent of the countrys
GDP. The garments retailing business is also experiencing positive spillover effects from the
prosperous garments export sector.
Key Market Trends Over the Past Decade
Clothing brands in Bangladesh are drawing in a wider span of consumers over the last decade as they
continue to offer fashion-rich items that conform to native tastes. The affordable pricing range of the
clothes has also been a key factor for the local brands' growing popularity, especially among the
youth. Kay Kraft, an ethnic fashion house, has experienced double-digit sales growth on an average
over the last decade. Cats Eye, another clothing brand that sells mostly menswear, saw 10-15 percent
sales growth on an average in the last decade.4 Local clothing brands, like Cats Eye, Westecs, and
Ecstasy, produce goods with imported fabrics. But brands like Kay Kraft, Aarong and Banglar Mela
are completely depended on local fabrics. It seems that every competitor in the market is taking its
share of the market
Low taxes in the earlier stage facilitated the growth. Recently, however, the Bangladesh government
has raised the VAT (value-added tax) on imported fabric from 1.5 percent to 5 percent in June 2010.
Moreover, current customs duty on imported fabric is around 89 percent.5 Despite the increased taxes
local brands seem to be thriving. It is worth mentioning that Aarong's sales in 2010 stood at about
BDT 3.4 billion which is a testament of the potential of the market.
The budding market finally drew the attention of a polished player in the exports business - Beximco
Textiles.
YELLOW An Outgrowth of Beximco Textiles
Beximco is one of the largest conglomerates in Bangladesh. The Group consists of four publicly
traded and seventeen privately held companies. The publicly traded companies Bangladesh Export
Import Company Limited, Beximco Pharmaceuticals Limited, Shinepukur Ceramics Limited and
Beximco Synthetics Limited have a combined market capitalization of approximately USD 550.96
million. The Group had total revenues of USD 834 million in the year ended December 31, 2010
with a major portion of the revenue coming from pharmaceuticals and textiles.6
The Textile and Apparel division of Beximco is a fully integrated manufacturer of cotton and
polyester blended garments for men, women and children, both for domestic and export markets. Key
1

Marketing Report on Yellow

clients of Beximco Textiles include world-renowned brands and commodity retailers including
American Eagle, Arcadia Group, Calvin Klein, H&M, JC Penney, Macy's, Tommy Hilfiger,
Warnaco and ZARA. Beximco Textiles was a 100% export oriented company but they decided to
venture into the domestic market with YELLOW retail outlets so that Bangladeshi consumers can
access the high quality clothes that are being exported out of Beximco. Already handling the full
range of textile manufacturing operations from spinning to finishing garments, Beximco Textiles set
their sights on launching a premium local brand of their own around the year 2003.
On the year 2004, Beximco Textiles Limited launched YELLOW as a premium clothing brand
through the inauguration of its first outlet in Bashundhara City.1 It was initially launched as a pilot
project, with returns not being a major concern. YELLOW started off with its iconic panjabi line
and slowly developed every other segment. Since then the brand has managed to capture a solid
position among the urban target market and has a fast growth rate both in terms of profit and market
share. YELLOW is now a nationally and globally recognized brand for quality branded apparel and
is proudly representing Bangladeshi fashion brands in Pakistan.
The Chronology of the Brand A Success Story
The first YELLOW outlet was situated on the ground floor of the current largest shopping mall in
Bangladesh, Bashundhara City. With its innovative designs, youth-centered approach and reasonable
prices the brand managed to capture the attention of a major portion of high- street buyers on the first
wave. A prime example would be the hype surrounding the affordably priced panjabis by YELLOW.
YELLOW brought tapered fit panjabis without any intricate designs or lacework. The panjabis, with
subtle embroideries on comfortable cloth, sold at an astonishing rate with 400 pieces sold out in the
first two days. This inspired the brand to explore new possibilities and enlarge their market reach.
YELLOW opened its second outlet on the ground floor of Pink City Shopping Mall in Gulshan, this
time with a bigger response than before.
Currently, YELLOW has nine outlets in Bangladesh- one in Chittagong and the other eight in Dhaka.
But YELLOWs vision was to become an internationally recognized brand operating on international
standards, not confined to the borders of a single country. On October 18, 2005, YELLOW opened
its flagship overseas store in Karachi, Pakistan and followed up with one store in Lahore and two
more in Karachi. The positive responses from Pakistani buyers and substantial sales figures have
labeled YELLOW Pakistan a success story too.
The notion that YELLOW is success story is further strengthened when customers perception is
taken into account. The survey on consumer preferences revealed that customers mainly look for
design, product quality, and price when buying clothes. These are qualities that YELLOW seeks to
capitalize on trendy designs, impeccable quality, and correct pricing.
2

Marketing Report on Yellow

Figure 1 Important Factors When Buying Clothes

BrandName
10%

Other
1%
Price
23%

Design
33%

Product
Quality
33%

Almost 90% of the respondents look for the qualities that YELLOW strives to achieve. It can be
observed that price is less important a factor than design or quality; the same might not have been
said if the entire population were surveyed since Bangladesh is a low income country.7
Market Size
Even with such a large overseas apparel market, the domestic market for high-end apparel is
considerably confined by income demographics. Only 17 percent of the entire population (30
million) are at or above the middle class income bracket, and of them about 8 million fall into the
target age group.8 With urban market penetration, local brands like YELLOW have a market base of
about 30 percent of the 16-25 age group, which amounts to 2.5 million potential customers.
Calculating the exact market size and YELLOWs market share was not possible since no formal
study on local apparel brands has been conducted in Bangladesh up to the present. When asked about
the market size, the Deputy General Manager of YELLOW, Mr Ijlal Razi, replied that such a
research is not feasible since there is a lot of disparity between the social classes of people in
Bangladesh. Had it been that majority of the people are mid-level income group, it would then, have
been possible to conduct such a practical market research. Even without knowing the exact market
size, YELLOW knows which customers it has to entice. The following section elaborates
YELLOWs target segments.
Target Segments
YELLOW segments its target market in terms of age, gender, income, and location.1
YELLOW exclusively targets 16 to 25 year olds and kids. YELLOW considers its primary segment
to be the youth. It does so because it wants to grow together with the youth. By growing together,
YELLOW desires to capture the customers lifetime value the spending a customer would be
3

Marketing Report on Yellow

making over his or her lifetime. Its kids section, though operational, is still being developed. The
survey findings were also consistent with YELLOWs target age.

Figure 2 Age of Respondents

40
30
20
10
0
16to20Years

21to25Years

26to30Years

In the survey conducted for this report, it was found that almost 70% of the participants were
between the ages of 16 to 20 years, about 26% of them were between 21 to 25 years of age and the
remaining 4% were equal to or above 26 years of age.
In terms of gender, both men and women are targeted by YELLOW. Obviously, the same was
revealed in the survey.

Figure 3 Gender Distribution of Respondents

Female
39%
Male
61%

The survey exhibited a near 3:2 male to female ratio which conforms to the companys male to
female product ratio - YELLOW offers formal wear for males but not for females.
Being a premium brand, YELLOW targets the middle-income group and above. Catering to the mass
would have hurt its brand image. Pertaining to its income segmentation, YELLOWs customers, in
terms of their social class, consists of the upper middles and above.
Geographically, YELLOW currently provides to the urban population of Dhaka, Chittagong, Lahore,
and Karachi. This is YELLOWs geographic segmentation. Its future plans also focus on the cities.

Marketing Report on Yellow

The cities provide YELLOW with the abundance of customers who are willing to pay a premium
price.
Price Range
A variety of garments are available at YELLOW where the entire line of product ranges from BDT
545 to BDT 4,500.1/9/10
The table below shows the prices of some the best-selling YELLOW products.

Figure 4 Price Range

Mens Wear

Price in BDT

Undergarments

545

T-shirts and casual shirts

695 1,495

Formal shirts

1,299

Formal shirts Prive

4,000 4,500

Panjabis

1,500 1,745

Panjabis limited edition

2,000

Trousers

1,995

Trousers premium denim

3,495

Womens Wear
Accessories

995 1,795

Trousers

1,595

Trousers premium denim

1,795

Casual tops

1,695

Casual tops - premium

2,095

YELLOW believes that products should be priced reasonably. That practice has proven to a sales
mantra for YELLOW.
Rising Sales
YELLOWs sales have been growing ever since it was established. Its 2012 initial sales projection
was approximated at BDT 470 million, but as winter arrives in full swing, its revised figures are
close to BDT 500 million.1 The precise statistics for 2012s current sales and annual sales for
previous years could not be obtained as the company considers them to be confidential information.
Gross and Net Margin Estimates. Like sales, the exact figures for YELLOWs net and gross margin
were not disclosed. But the prescribed net margin in retailing, after having accounted for all the
overhead expenses, should not be less than 30% to 35%.1 Using these figures, an assumption can be
5

Marketing Report on Yellow

made that YELLOWs net margin would be close to 40% as its a high-street fashion brand. Since
net margin will obviously be lower than gross margin, gross margin would be around 60%. Gross
and net profits are based on a 60% gross margin, 40% net margin, and BDT 500 sales revenue:
Gross profit:

BDT 500 million 60% = BDT 300 million

Net profit:

BDT 500 million 40% = BDT 200 million

The sales and profit figures would have been quite different had YELLOW used other channel
members in marketing its products.
Direct Selling
Several reasons justify YELLOWs stance in using a direct marketing channel. Firstly, YELLOW
wants to be held responsible for its successes and failures. Introducing intermediaries in the process
would mean delegation of control over quality to some extent. This might lead to degradation of
customer service and hence may prove to be detrimental to YELLOWs brand equity. Secondly,
permitting channel members might mean higher prices for customers and dilution of profit for
YELLOW. The conservative approach towards delegation of control is also reflected in YELLOWs
subtle promotional practices.
Advertising and Promotional Activities
Initially, there was very little promotional activity done by YELLOW. Its primary focus was on
developing the brand equity. YELLOW relied on the goodwill or brand value of Beximco, hence the
name 'YELLOW by Beximco'. In addition to that, the exclusivity and innovativeness of their designs,
along with the good quality of the fabrics, and proper pricing helped promote YELLOW to its
customers.
YELLOW also believes personalized customer care is an effective tool in further enhancing brand
equity. All customer complaints, suggestions, and queries are listened to by the General Manager of
the brand, which amplifies the message: Customers come first.
Over the past year, YELLOW has significantly increased its advertising and promotional activities.
Several YELLOW billboard advertisements have been set up across Dhaka, in prime locations such
as the Prime Minister's Office, the outlet areas and the Airport Road. They have published several
newspaper advertisements, and lookbooks, showcasing the seasonal collections.
YELLOW invests heavily in social media as well. It has a hugely popular Facebook page, with
approximately 257,000 likes, and 50,000 people talking about it all the time in a period of one
month.1/9 Paid banners of the brand can be seen frequently in Facebook. YELLOW also has a Twitter
6

Marketing Report on Yellow

account, informing about the seasonal collections available in outlets, and the fashion festivals they
organize.
Recently, YELLOW organized fashion festivals in universities across Dhaka, namely Daffodil
International University, United International University, and American International University of
Bangladesh. These sponsorships are aimed at creating brand value for YELLOW, increasing the
customer base and attracting the younger generation through placing the brand in a trendy light.
Moreover, it has sponsored several events, including IBA Freshers Reception 2012 to improve the
companys standing with future graduates.
In the past year, YELLOW has introduced priority cards for premium customers. The cards
themselves are printed abroad and are provided against points, which accumulate and enable the
customer to get discounts. The program lets YELLOW retain its loyal customers and seems to be
working.
Effective Promotional Programs. YELLOWs promotional programs appear to be effective in terms
of fulfilling their goals. In order to maintain exclusivity, YELLOW refrains from mass promotion.
This results in a powerful word-of-mouth dissemination of the brand name. YELLOWs nurturing of
brand equity using subtle approaches is manifested in the survey.

Figure 5 First Encounter

Others NewspaperAds
4%
4%

SocialMedia/
Online
0%

Billboards
24%

OutletStores
20%

WordofMouth
48%

Almost half the respondents have heard about YELLOW from their peers. Zero responses on first
encounter through online sources could be explained by the fact that most people look for online
information after having had some idea of the product beforehand.

Marketing Report on Yellow

The survey also revealed that YELLOWs goal of positioning itself in the minds of the customers as
a high-street fashion label is working.

Figure 6 Impression Regarding YELLOW

Affordable
Prices
6%
Others
13%

PremiumBrand
32%

TrendyDesigns
32%

High
Quality
Product
17%

More than 80% of the survey respondents associate YELLOW with the traits of a fashionable brand.
The promotional strategies used by YELLOW are, however, no different from what its rivals are
using.
Competition in the Local Arena
Seven possible competitors were identified of whom YELLOW considers only two as key
competitors Artisti and Soul Dance. The rest - Ecstasy, Westecs, Aarong, Urban Truth by Pride and
Cats Eye - are considered as either indirect or not a competitor for YELLOW.
YELLOW identifies its competitors as somebody selling exactly the same category of garments or
merchandise. Artisti and Soul Dance design and manufacture their own products which make them
YELLOWs direct competitors. Soul dance is considered the biggest competitor when it comes to
creativity, design, merchandising, and marketing which is almost identical to YELLOWs.
Other brands like Ecstasy do take a share of YELLOWs market to some extent. But Ecstasy is more
of a mixed bag in terms of design, manufacture, and import was quoted by Mr Ijalal Ecstasy
imports most of its products from Thailand, but designs and manufactures only a small portion of it.
Besides, Ecstasy is not trying to be an international high-street brand like YELLOW.

Marketing Report on Yellow

Westecs is a confused brand was also quoted by Mr Ijlal. It is confused in terms of the positioning
of the brand. On one end Westecs sells high-end suits, while on another, cheap export-surplus items.
These conflicting images have not qualified Westecs to be a competitor for YELLOW.
Aarong, too, is not considered a competitor by YELLOW because its ethnic-wear brand. The
panjabis that Aarong sells consists mainly of long-cut embroideries - something that is quite
dissimilar to YELLOWs subtle, short panjabis.
Urban Truth, a venture by Pride Limited, is considered to be operating in a different market. Its
customers are the ultra-modern young women who would buy miniskirts or halter-necks. This market
is a small niche and is different from the market YELLOW operates in.
Cats Eye is confined in serving only a specific group of customers seeking formal wear. Since
YELLOW is more of a casual-fusion-wear brand, Cats Eye is also not a competitor for YELLOW.
Despite the fierce competition in the garments retailing business, YELLOW seems to have a firm
grip, at least in the minds of the customers.

Figure 7 Ranking of Brands

150
145
140
135
130
125
120
115
110
Westecs

Artisti

Yellow

Ecstasy

SoulDance

The survey asked the respondents to rank the five brands in order of preference (1 being the most
preferred). The survey discovered that YELLOW was the most preferred brand. The customers
perspective is indeed important, but in order to gain an inside out view of YELLOW, a more
comprehensive analysis is needed.

Marketing Report on Yellow

SWOT Analysis
A SWOT analysis would thoroughly scrutinize YELLOWs internal strengths and weaknesses while
also revealing the external opportunities and threats.
Strengths
1) Branding. YELLOW has maintained strong brand equity from its inception and is careful not to
let any of its management decisions affect its brand value. This steadfast integrity has helped
foster credibility among customers and positioned YELLOW as one of the premium clothing
brands of the country.
2) Infrastructure. Beximco has the one of South Asias largest vertically integrated textile and
garment factories with in-house analytical and creative abilities in its state-of-the-art industrial
park in Gazipur, Bangladesh. The existing infrastructure works to the advantage of YELLOW by
making its operations not only efficient but effective too.
3) Image. Consumer trust on brand in image perspective is already built. The Beximco name has
now become one of the most recognizable brand names in Bangladesh. It is synonymous with
innovation, trust and quality.
4) Quality. Since its inception, YELLOW has been paying attention to the deepest possible details
in its products. It could do so because it had no historical background and hence did not need to
pay attention to volume, rather it focused on quality.
Weaknesses
1) Mass Marketing. YELLOW may be a strong brand, but their promotional activities are not
designed to penetrate the majority of potential buyers. Without use of proper mass marketing
tools YELLOW cannot expand their customer base beyond traditional market segments.
2) Variations in Product Range. YELLOW does not offer much variety in product; the brand
focuses on certain articles of clothing and certain market segments for generating revenue. Most
of its apparel is designed for young urban men, and there are no products like saris, and salwar
kameez etc. at all.
Opportunities
1) Increased Tariff on Imports. The increase in VAT (value-added tax) from 1.5 percent to 5
percent in June 2010 and a customs duty of about 89 percent on imported fabric should make
10

Marketing Report on Yellow

YELLOWs opponents less competitive and favor YELLOW as it relies on domestically
produced fabric from Beximco Textiles.
2) Global Brand Recognition. YELLOW will cater to the sophisticated and highly aware clientele,
who seek the best quality products. In every high street level shops, three to four shelves are
filled with clothes manufactured in Bangladesh, said Mr. Ijlal Razi, Deputy General Manager of
YELLOW. Since international consumers are already buying clothes that are manufactured in
Bangladesh, they are aware of the quality of products to expect. As YELLOW produces high
quality products, entering an international market should not be too problematic, also, there may
already be a potential customer base present.
3) Business Buyers. Institutional selling can be another prospect for YELLOW. Offices all over
country are now opting for a more relaxed outfit for employees a concept known as Smart
Casuals. The overwhelming volume of requests from the financial institutions of Bangladesh is
an indicator of the markets YELLOW can expand to in the future.
Threats
1) Threats from Competitors. One of the most popular products of YELLOW is their iconic panjabi
line. Their panjabis are simple, comfortable and attractive to the youth. If similar trends are
followed by existing competitors, product saturation might occur, depriving YELLOW of their
exclusivity. Furthermore, YELLOWs exclusive designs might be replicated by fake brands.
2) International Outcry over Working Conditions. The recent fire at Tajreen Garments and the
lamentable loss of human life was not the first of its kind in the history of Bangladeshs garments
industry. Considering Yellows future plans to expand their business internationally, the
company should keep in mind the international outrage over worker safety concerns and take
their decisions accordingly.
YELLOWs strengths and opportunities far outweigh its weaknesses and threats. This should pave
the way for a flourishing future.
A Promising Future
With its current nine domestic store and four international stores, YELLOW seeks to expand as much
as possible in the next four to five years. They are planning to open seven or eight stores in different
cities of Bangladesh. But first, YELLOW wants to take advantage of the low hanging fruit, that is,
Dhaka. So in Dhaka, they are planning at least four new stores. A huge seven-thousand-square-foot
YELLOW store is due to open in Jamuna Future Park on the malls inauguration, expected to be near
January 2013.
11

Marketing Report on Yellow

As a result of the continual requests of Sri Lankan expatriates in Bangladesh, YELLOW is planning
to set up a store in Sri Lanka. It has projects in the pipeline to open stores in U.A.E. India is also
another lucrative location for YELLOW, but it is experiencing difficulty in entering the market.
YELLOW also wants to increase its expected sales as much as possible while maintaining its
international vision. It wants to refrain from short-term opportunities which might not match with its
brand image. Rather, YELLOW wants to capitalize on its image as fusion-wear high-street brand.
The garments industry too has a bright future. Its growing. Seven or eight years ago, it was a very
different scenario. Today, all the retailers are getting better.
Finally, YELLOWs philosophy of having a broader, beyond the border, international orientation is
further strengthened by its investment in intellectual capital. YELLOW believes that todays
investment is tomorrows returns.
YELLOW seems to be on the right path if its overall track record is compared. But it needs to be
more cautious as it ventures into new unknown markets.
Recommendations
Further investigation needs to be conducted as to why a large proportion of the respondents, despite
having a positive attitude towards the brand, have never shopped from YELLOW.

Figure 8 Frequency of Buying

18
16
14
12
10
8
6
4
2
0
Once

MoreThanOnce

Regularly

Never

The large proportion of potential customers who have never purchased a YELLOW product raises
concern.
As demonstrated by the study above, YELLOW has successfully built up its brand image among
buyers, but it has some work to do for encouraging and nurturing frequent purchase habits among
12

Marketing Report on Yellow

consumers and make sure that failures do not get repeated. The following recommendations could be
used by YELLOW:
Introduction of mass marketing tools in promotion. Currently, YELLOW employs only billboards as
regular means of reaching out to the mass target group. If the brand is to expand its customer base,
additional advertisements via television, more event sponsorship, newspapers, and fashion magazines
should be arranged. These applications need to be done on an international scale to catch the
attention of potential buyers in foreign markets.
Improvement of website. Given the brands reputation and general recognition, the website
www.yellowretailconcepts.com has a good outlook but should be improved in terms of content. It
should be updated on a regular basis, and the prices of products should be included as well.
Ascertain market feasibility before expansion. Yellows plans to open branches both home and
abroad are commendable, yet proper feasibility studies should be conducted to avoid losses in terms
of assets and brand equity. Lessons should be learned from the recent disappointment in Sylhet.

13

Bibliography
1. Mr.Ijlal Razi, Deputy General Manager, Brand, Yellow, Beximco Textiles Division.
2. Yardley, Jim, Ed. MADE IN BANGLADESH Export Powerhouse Feels Pangs of Labor
Strife.The New York Times, Asia Pacific. The New York Times, August 13 2012. Web. December 6
2012.
<http://www.nytimes.com/2012/08/24/world/asia/as-bangladesh-becomes-export-powerhouse-

labor-strife-erupts.html?pagewanted=all>
3. Local Bangladesh top exporter in European market, EU-Bangladesh trade update released.
Star Business Report. The Daily Star, April 6 2010. Web. December 6 2012.
<http://www.thedailystar.net/newDesign/news-details.php?nid=133187>
4. Rabby, Mir F, Ed. Local clothing brands make their mark.
The Daily Star Your Right to Know. The Daily Star, March 23 2011. Web. December 6 2012.
<http://www.thedailystar.net/newDesign/news-details.php?nid=178736>
5. Marketing Reports/Tariffs Textiles, Apparel, Footwear and Travel Goods Bangladesh. Office of
Textiles and Apparel (OTEXA). Department of Commerce, United States of America, International
Trade Administration, September 14 2012. Web. December 6 2012.
<http://web.ita.doc.gov/tacgi/overseasnew.nsf/alldata/Bangladesh>
6. Beximco Taking Bangladesh to the world. Beximco. n.p., Web. December 6 2012.
<http://www.beximco.com>
7. Bangladesh | Data. The World Bank Working for a World Free of Poverty. The World Bank.
Web. December 6 2012.
<http://data.worldbank.org/country/bangladesh>
8. Rashid, Mamun, Ed. Rising middle class in Bangladesh. The Financial Express. The Financial
Express Bangladesh, August 7 2012. Web. December 6 2012.
<http://www.thefinancialexpress-bd.com/more.php?news_id=139310&date=2012-08-07>
9. Yellow YELLOW. Facebook. Web. December 6 2012.
<http://www.facebook.com/YellowClothing>
10. YELLOW by Beximco. YELLOW. n.p., Web. December 6 2012.
<http://www.yellowretailconcepts.com>

14

Appendix

14

A3

Raw Survey Data

Response
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38

Age
17
19
21
16
16
22
23
27
19
20
19
20
21
22
21
28
20
19
24
20
20
21
19
21
20
19
20
21
21
19
18
20
20
20
20
20
18
20

Gender
Female
Male
Female
Female
Male
Female
Female
Female
Male
Male
Male
Male
Male
Male
Female
Male
Male
Male
Male
Female
Male
Female
Male
Male
Male
Female
Female
Female
Male
Male
Female
Female
Male
Male
Male
Male
Female
Female

1. Westecs
3
2
5
3
4
4
4
3
4
3
4
3
4
5
2
2
4
2
5
2
3
4
2
2
1
5
5
3
2
5
3
2
1
5
1
2
1
3

1. Artisti
2
3
4
1
1
2
3
5
3
4
1
3
3
4
5
2
5
3
3
2
2
3
1
1
2
3
4
4
1
5
4
4
1
4
3
1
1
4

1. Yellow
1
1
1
4
2
5
2
2
2
3
3
3
3
2
4
3
1
3
2
3
1
2
3
5
4
4
4
1
2
5
2
3
2
3
2
3
1
2

1. Ecstasy
4
5
3
2
3
4
5
1
5
3
2
4
5
1
4
2
4
2
1
4
4
1
4
1
3
3
2
2
2
5
1
5
5
2
4
4
1
1

1. Soul Dance
5
4
2
5
5
1
1
5
1
2
5
3
4
3
1
1
4
1
4
2
5
5
5
3
5
1
2
5
3
5
5
1
5
1
5
5
1
5

39

20

Male

40
41
42
43
44
45
46

19
18
22
20
20
19
19
15<Age<28

Male
Female
Male
Male
Male
Female
Male
Total

4
5
5
2
4
2
2
145

2
1
2
5
3
1
3
129

1
3
3
3
2
5
4
123

5
1
4
1
4
4
3
138

5
1
1
4
2
1
1
142

A3

Raw Survey Data

2. Feature
Product Quality
Price
Product Quality
Design
Product Quality, Design
Product Quality
Product Quality
Price, Design
Product Quality
Price, Design
Product Quality, Design
Design
price to quality ratio
Price, Design, Brand Name
Price, Product Quality, Design
Price, Design
Brand Name
Product Quality, Design
Design
Price, Product Quality, Design, Brand Name
Price, Product Quality, Design
Product Quality, Design
Product Quality
Design
Product Quality, Brand Name
Design
Product Quality
Price, Product Quality, Design, Brand Name
Design, Brand Name
Price, Product Quality
Price, Product Quality, Design
Design
Price, Product Quality, Design
Product Quality
Price, Product Quality
Price, Product Quality, Design
Price, Product Quality, Design
Price, Product Quality, Design

3. Impression
Premium Brand, High Quality Product, Trendy Designs
Affordable Prices, Premium Brand, High Quality Product
Premium Brand, Trendy Designs, Others
Premium Brand, Others
Premium Brand, High Quality Product, Trendy Designs
Premium Brand
Trendy Designs
High Quality Product
Affordable Prices
Affordable Prices, Trendy Designs
Premium Brand, High Quality Product, Trendy Designs
Trendy Designs
Trendy Designs
Premium Brand
Premium Brand, High Quality Product
High Quality Product
Others
High Quality Product, Others
Trendy Designs
Premium Brand
High Quality Product, Trendy Designs
Trendy Designs
Trendy Designs
Others
Premium Brand
Trendy Designs
Premium Brand
Trendy Designs
Premium Brand, High Quality Product, Trendy Designs
Trendy Designs
Premium Brand
Premium Brand
Premium Brand, Trendy Designs
Affordable Prices
Trendy Designs
Premium Brand
Premium Brand
Premium Brand, Trendy Designs

Price, Product Quality, Design, Brand Name

Premium Brand

Product Quality, Design, Brand Name

Price, Product Quality, Design
Price, Product Quality, Brand Name
Price, Design
Design
Design
Product Quality

High Quality Product, Trendy Designs

Trendy Designs
Others
Others
Premium Brand
High Quality Product
Others

Raw Survey Data

4. First Encounter
Word Of Mouth
Billboards
Outlet Stores
Others
Word Of Mouth
Word Of Mouth
Word Of Mouth
Outlet Stores
Word Of Mouth
Outlet Stores
Word Of Mouth
Word Of Mouth
Outlet Stores
Billboards
Outlet Stores
Outlet Stores
Word Of Mouth
Outlet Stores
Outlet Stores
Outlet Stores
Others
Billboards
Billboards
Billboards
Billboards
Newspaper Ads
Billboards
Billboards
Outlet Stores
Outlet Stores
Newspaper Ads
Outlet Stores
Outlet Stores
Outlet Stores
Outlet Stores
Outlet Stores
Outlet Stores
Outlet Stores

5. Frequency
More Than Once
Regularly
Once
Never
Never
More Than Once
Never
More Than Once
Never
Once
Never
Once
Once
More Than Once
Once
Regularly
Never
Never
More Than Once
Never
Regularly
More Than Once
Never
Once
Once
More Than Once
More Than Once
More Than Once
Once
Never
More Than Once
More Than Once
Once
Once
More Than Once
Never
Never
Never

Word Of Mouth

More Than Once

Outlet Stores
Billboards
Billboards
Outlet Stores
Billboards
Outlet Stores
Outlet Stores

More Than Once

Once
Never
Never
Once
More Than Once
More Than Once

A3

Transcription of Interview

A4-1

The report is based on an interview with Mr Ijlal Razi, Deputy General Manager, Brand, of
Beximco Textiles Division. The interview took place at the Beximco Industrial Park, Sarabo,
Kashimpur, Gazipur on Monday, 3 December, 2012. The team members present were: Ahamed
Najeeb, Ornila Khan, and Sayem Faruk.
The following is a transcription of the two-hour interview.
Sayem: We wanted to know about the company, Beximco, as a whole, and also about YELLOW, its
mission statement and its vision.
Mr Ijlal: Beximco is not a company. Its a conglomerate; it includes: Beximco Pharma, Beximco
textiles. Beximco has been producing garments for both fashion and core brands. Go to any store in
the world, 3-4 shelves are filled with BD clothes even in high street labels. Beximco supplies to
Calvin Klein, Tommy Hilfiger, JC Penney, Macys. Beximco follows European fashion standards
and it is the biggest producers for ZARA There was an extra 5% to 7% of fabric produced. So, we
thought that we have everything we needed to start our own retail label The first store of
YELLOW was in Bashundhara City, downstairs. Panjabis in Bangladesh have too much printing and
embroideries. In Pakistan, there are no long panjabis and they have very subtle embroideries. The
first hit product was panjabis. 300-400 pieces were produced and sold out in 2 days. We found that
people are not getting what they want because its not available in the market. They are sticking to
the traditional panjabis because they dont have substitutes. So we thought now is the time to expand.
Najeeb: What were your initial marketing strategies?
Mr Ijlal: Initially, to be honest, there was no marketing. The only features were properly-priced
products, products were different and exclusive, and the big name of Beximco was attached to it. So
there was credibility for quality. Good fabric, good stitching, good designing, influx of a certain elite
class who accepted YELLOW was a big source of motivation for us The second store was opened
in the ground floor of Pink City in Gulshan Retailing is not a rocket science - its good supply
chain management, updates about fashion facts. We cannot implement European Fashion trends here.
Ornila: How many stores have you opened till now?
Mr Ijlal: Three in Karachi, One in Lahore, eight in Dhaka, one in Chittagong We listen to
customers personally. We have a standing order that we have to replace product at once customers
when the customer comes in with for a replacement. And we will also provide feedback on the
solution. This personal contact multiplies your message We have put up a few billboards in
Dhaka. Our Marketing strategy is to open the store in the right location, in a prime location We
maintain credibility; we maintain brand equity and good customer relations One thing we
underestimated was the power of social media. Our page on Facebook currently has 257,000 hits and

Transcription of Interview

A4-2

almost 4000 people are always talking about it. This is a huge response We publish lookbooks,
which is available at stores free of cost. Anybody can grab a copy at a YELLOW store.
Sayem: Could you elaborate the rationale behind going global?
Mr Ijlal: You see the idea behind YELLOW is that everybody is connected to country, yet you need
a vision, you need to cross borders, compete internationally. You need to research the global markets.
Following international trends doesnt make you an outsider; rather it brings you closer to your own
values. Pakistanis are amazed to see a Bangladeshi brand Yes, heart will always be Bangladeshi.
But our scope of vision should be international. How long will you wear panjabis, jamdani for the
sake of culture? Now some designers are fusing jamdani with other fabrics Initially, it was a
learning curve. We learned that the menu we provide to the customer, it has to be innovative. At first,
store used to be quite empty. But we made sure as a part of the strategy, whatever we put up we will
make that with our heart in it. Dont you think Beximco was capable of buying products from
Thailand? But we didnt do that. That is why the brand equity of YELLOW is the best. People
associate us with international brands. Whenever in any forum you discuss fashion retailing in
Bangladesh, you will always find that YELLOW stands out. Today what you see is properly
designed, right from fabric to garments, except for neckties - we import them We have always
catered to all segments. Look at this German shirt, we exported the fabric from Germany and made it
here in Bangladesh. Nobody can think of importing from Europe, it is so expensive. It is all about
the fiber, yarn, accessories you use We try to cater to all segments but we target youth. Because
youth is our big customer my panjabis and everything you see here, you will see that YELLOW
touch in them. Some people think that I pull out fabric and make panjabis. But its wrong. There is
something special, some special elements. Every time you design the thing doesn't have to be gaudy,
I don't need to look like Nawab of a state. Having 500 flowers on a Punjabi won't make me... wont
declare me a Nawab. It should look smart. The idea is to look smart. This is the whole idea. At the
moment we are concentrating on social media. Secondly, we have started online selling in Pakistan.
There is a website called Daraz.com. Daraz is owned by a European company. The online sales
wows me. We are trying to hook up Bangladesh with some online retailers as well. There are
problems in terms of payment. A lot of people do pranks. People are still a bit reluctant. Were going
forward to the UAE , Dubai. Sri Lanka wants us. We are expanding. We want to get into India but
the entry in difficult there.
Ornila: Are you trying to expand into Bangladesh?
Mr Ijlal: We already opened a store in Chittagong.
Najeeb: How many stores are there in Bangladesh?
Mr Ijlal: Nine. We have closed our Sylhet store, so only in Dhaka and Chittagong In business

Transcription of Interview

A4-3

there is nothing called ego. If you did make a mistake, try to overcome that mistake. If you opened a
store in Sylhet and the people who visit this store during seasonal sale, also visit the store that's in
Dhaka. We were not confident from the beginning. It was more of a fun-fun thing. We thought it's
not viable, so we closed.
Sayem: Do you have any business buyers?
Mr Ijlal: Yes, a lot of them ask us to sell stuff to them. I supplied neckties to Eastern Bank. 1,200
pieces. We keep getting offers, but I cannot fulfill my local demand, which is my priority. I would
love to do institutional selling at a large level, but not at the moment, we are trying to organize
YELLOW in a way so it will look global Opening a shop is easy, but it's difficult to put the system
in place first especially the information system, your reports, your tracking formats. We have been
using a P.O.S. system, point of sale system for the past 5-6 years. We have tuned it to our
requirements. There is certain information required to improve yourself. What's selling, what's not
selling, looking at the past 15 days trend we can predict if it will be a failure or a huge success. Do
we need to replenish?... I invest on social media We are organizing fashion shows in universities.
It's not just about marketing; it's about having a connection with the youth. We have a lot of interns
here we will grow together We also get interns from Europe. Our head of design, Adelela is from
Spain. She worked in Zara before. Since were in retailing, I have limitations because there is a
limitation from the customers side. There is an optimum retail level that I cannot cross.
Sayem: Who do you consider as your key competitors?
Mr Ijlal: Aarong does not sell western wear, so its not our competitor. They mainly sell handmade
embroidered panjabis which is very different from what we sell Ecstasys most products are not
designed by them, they are imported. Plus, theyre not operating at the aggressive international like
us. Artisti is the REAL competitor, in terms of design. Soul Dance is also a competitor in terms of
creativity, design, merchandise, and marketing. But it is not in good shape Westecs is a confused
brand. In one side there is a 20000 taka suit, and on another a 300 taka shirt. I dont want to be
buying from such a store if Im fashion conscious Our tolerance level has gone up. But that
doesnt mean that Ill allow my daughter to go out wearing a mini-skirt. To be honest, Urban Truth
has something missing there.
Najeeb: How about the local brands like Cats Eye? They are making progress. What do you say
about that?
Mr Ijlal: Cats Eye is confined between a certain class of people. I want to follow international trend.
Ornila: What are the market shares?

Transcription of Interview

A4-4

Mr Ijlal: YELLOWs market share is good, its growing. People complain why we have no Sarees,
and Salwar Kameezes. I have my own market share so I focus on them. I am working on blocks now.
Theyll look like blocks but theyll not be done on blocks. Theyll be done in high-density printing.
But the feel would be as if youre wearing a block print... you know like Narshingdi blocks. Im
working on that.
Mr Ijlal: I want to be traditional. I dont want to be wearing some super tight panjabis and have
some shiny things on the chest. I want to be traditional. I try my level best to be traditional. A lot of
time I do fabric detailing. I play with my garment detailing. But I want subtle detailing. And my
claim to fame is my pattern, my fit. You wear my panjabi, youll feel youre slim.
Najeeb: and these panjabis these are very comfortable as well. The cloth is very comfortable.
Mr Ijlal: Yeah. And you see the utility. You wear this to your Friday namaz, right? You can wear it
in the evening when youre hanging out with your friends. You can wear to a holud. So you see the
utility. With those (embroidered) panjabis you cannot come out in the day wearing those. People
would laugh at you...
Sayem: I guess YELLOW would be considered an upscale brand in Bangladesh. Do you agree?
Mr Ijlal: It is. Yes. Of course it is.
Sayem: You mentioned that youre targeting a lot of segments at the same time. But then again,
when you segment it in terms of income, youre targeting the upper income levels, right?
Mr Ijlal: I would say middle-income group.
Sayem: In terms of age, that would be like 16 to ...?
Mr Ijlal: 16 to 25.
Ornila: No kids section?
Mr Ijlal: Yes. Kids were doing but still its half-done. Were trying to develop kids, but still were
not there.
Sayem: Okay. Could you give us an idea about the price range?
Najeeb: The price structure.
Mr Ijlal: Price structure? It depends. You want to know the range? From what to what?
Ornila: Yes.

Transcription of Interview

A4-5

Mr Ijlal: See I tell you, the cheapest is my boxers. This is the practical that the archive helps.
Otherwise, I would have to go through a lot of reports and stuff. I dont think youll find anything
cheaper than this. 545, this is a boxer which is as good a GAP boxer. So probably 550 to... probably
that formal shirt which is for 4000. This is our Prive range. See the box, cool?
Sayem: So thats around 4500?
Mr Ijlal: Approximately, yes.
Sayem: And the panjabis cost less than that?
Mr Ijlal: Yes.
Najeeb: The panjabis are around 1 and half thousand.
Mr Ijlal: My maximum panjabis are 1745 and some my were 2000. Thats it. They start from 1545,
the basic ones. And I have this white collection which I did for Hajjis. This is 2000. These were
expensive. I do little embroideries also.
Najeeb: Subtle embroideries.
Mr Ijlal: 1745 for the embroidery. Quite reasonable I would say.
Sayem: No t-shirts or anything?
Mr Ijlal: Yes we do make t-shirts and polo shirts as well. We did a nice collection of the
abbreviations which you use in Facebook LOL. My designer wanted to LMAO. I said no
dont. Too much for Bangladesh. So, we do t-shirts. 745. Our best are the polos. We are very proud
of them.
Ornila: Yeah, theyre very nice.
Mr Ijlal: Theyre of very international standard.
Najeeb: And these are all manufactured here?
Mr Ijlal: Yeah. Here, here. All. See this.
Sayem: But the fabric... where is the fabric from?
Mr Ijlal: Beximco.
Sayem: Oh, Beximco has its whole supply chain set up here?
Mr Ijlal: Yeah, yes yes. This is all one vertical complex.

Transcription of Interview

A4-6

Najeeb: I assumed that these were imported. But now I know its not.
Mr Ijlal: No No. Absolutely not. Well not import.
Ornila: Would you say you have some kind of specifically niche products, like some adibashi
(ethnic) products?
Mr Ijlal: No. We dont do ethnic products. Would you consider my panjabis to be ethnic?
Sayem: Something very niche.
Najeeb: Niche marketing, you dont go for niche marketing?
Mr Ijlal: No. niche I tell you, we did these. Would you like to call this niche?
Ornila: Yeah these are somewhat niche.
Mr Ijlal: These are in fashion. We just launched this and probably half of the models in Dhaka have
already got it. The reason I dont get into a lot of the traditional stuff is because I feel Im already
doing a lot of traditional stuff with a new flavor. Right?
Najeeb: Its more of a mix of traditional and modern.
Sayem: Just to be sure, you guys sell directly to the customers, right? No franchises, no dealers?
Mr Ijlal: No franchises. Its all company operated... Brand name, quality, fit. Guaranteed. See one
thing is that we stand by the product. Quality. Everything. We stand by that.
Najeeb: Do these, lets say fall-winter collection, do these repeat?
Mr Ijlal: No we try not to repeat. You see, the customers know whats in fashion. And we dont
mass produce in the sense that our collection is available only for a limited period of time. So, if you
want to buy, you have to buy it then and there.
Sayem: Initially, you talked about building a relationship with the customer, do you have some sort
of programs?
Mr Ijlal: Yes, we have a priority card.
Ornila: Do you personally call only those customers or normal customers?
Mr Ijlal: Anybody. The priority card has nothing to do with our customer relation.
Sayem: Do you build up a profile of a customer, of a patron?

Transcription of Interview

A4-7

Mr Ijlal: Yeah, we do. The priority cards that Im talking of, the club members, its not any normal
plastic card. You get points and you redeem points. The card is not even made here. We import the
card. We send the customer details to another country, and from there they send us the cards.
Sayem: Moving to some sensitive information...
Mr Ijlal: Sales?
Sayem; Yes. Sales, profits and stuff.
Mr Ijlal: You guys want figures? Let it go.
Sayem: Just give us some idea. You dont have to say the exact figure.
Mr Ijlal: My 2012 projection is around 47 crores. Maybe around 50 crores.
Sayem: About the pricing, what percent of that would say is your gross margin?
Mr Ijlal: I wont answer that but Ill tell you something thatll help you. See, in retailing there are a
lot of overhead costs involved so the net margin should not be less than 30% to 35%. So, now you
calculate.
Najeeb: Where do you see YELLOW in the next 4, 5 years?
Mr Ijlal: Frankly, I see YELLOW, specifically talking about Bangladesh, I see another 7 to 8 stores.
In probably different cities. But we want to catch the low hanging fruit first, that is, Dhaka. So in
Dhaka, I see another 4 stores. Im already opening in Jamuna Future Park in February or March.
Najeeb: Would that be a big store?
Mr Ijlal: Yes. 7000 square feet.
Sayem: What would be the expected sales and growth? Any specific target like you want achieve
20% growth in the next 4, 5 years.
Mr Ijlal: I want to achieve 100%!
Sayem: As much as can be done?
Mr Ijlal: As much as possible. Whatever business you get into, you have to make profits. Now there
are two ways to do it. Either you do the short-term thing like making lungis or sarees. Yes this will
help in generating cash but this will be a very short-term approach. Im a western-wear, or you can
call me a fusion-wear brand, I have to stick to it, right? So keeping that international vision in mind,
well see to what extent well grow. And In Sha Allah well grow, I know.

Transcription of Interview

A4-8

Ornila: Where do you see the industry, the clothing industry as a whole, in the future?
Mr Ijlal: Its growing. 7 or 8 years ago it was very different. Today, all the retailers are trying their
level best. Theyre getting better. The only problem is with the vision. The vision has to be broader.
It has to be beyond the border. It has to be international. And when you opt for the global vision, then
you have to invest in the intellectual capital. Intellectual capital means you need to hire good
people... Investing in the intellectual capital is very important. Were a big supporter of that. Big
time! I say that yes, you invest today, and youll get your returns. That is the whole idea. At
YELLOW, we go crazy with our people.
Sayem: Ok. These are the final few questions. Your market consists of casual suits, denim jeans.
What would say the scope of your market is?
Mr Ijlal: My market? In terms of the product category?
Sayem: Yes.
Mr Ijlal: Casual wear would suffice. You see, the reason behind it is that, all over the world, people
are opting for casuals. Even in offices. There is a new term called Smart Casual and you can wear
that to office. So, the maximum market share would be casuals.
Sayem: Considering all these products, what would say the total market size would be, in terms of
sales that you can capture, like a 20 billion taka market?
Mr Ijlal: That is a very difficult question. Frankly speaking, still the actual market size, of the
industry, has not been worked out. There is a lot of disparity between classes. If it had been like 60%
of your people are mid-level income group, then it wouldve possible. Here theres a lot of disparity.
One person comes to office in a helicopter, the other person doesnt even know whether hell be able
to have breakfast or not. So frankly speaking, I dont have an answer to that.
Ornila: There wasnt any study conducted?
Mr Ijlal: No. Its not feasible actually... Anything else?
Sayem: I believe weve covered everything. Thank you for your time.

A5-1

A5-2

A5-3

A5-4

A5-5