2012 Oct DR Lynne Hammond

RESTRICTED
October 2012
Original: English
SUPPORT TO BEST PROGRAMME

BANGLADESH
Better Work and Standards EEBGD10002/10A02/10B02
Technical report: Mission 3 of the LCF Experts

National Performance Cluster Development
Prepared for the BGMEA/BUFT/EPB/MOC
By the United Nations Industrial Development Organization
Acting as executing agency for the United Nations Development
Programme
Based on the work of Dr Lynne Hammond
Project Manager: David Yuen-Hoi Lee

United Nations Industrial Development Organization -Vienna
__________________
*This document has not been edited
Contents of Report
Chapter 1 Summary and introduction to BEST

Chapter 2 Introduction to Mission 3
Chapter 3 Consultancy activities during Mission 3
Chapter 4 Recommendations and Actions Ways forward for NPC
Appendices
Appendix 1 List of Powerpoints developed

Appendix 2 Notes from the Cluster Forum
Appendix 3 Assessment of the three technical centres
All documents uploaded to Shared DropBox
Power points developed for this mission:
1. Cluster Forum
2. Introduction to Clustering, Definitions, Concepts and Principles
3. Fashion and Textile Cluster Case Study Turkey
4. Apparel Production Clusters China
5. M.J.Porters Diamond Analysis
BEST Better Work and Standards Programme October 2012 Mission 3 Report Dr Lynne Hammond
Abbreviation
BATC
BEST
BGMEA
BKMEA
BTMA
BUFT
BUT
BWTG
CEPD
GOB
iART
LCF
MBA
MOC
MOT&J
NITTRAD
NPC
RMG
SME
UNIDO
Bangladesh Apparel and Textile Cluster

Better Work and Standards Programme
Bangladesh Garment Manufacturers & Exporters Association
Bangladesh Knitwear Manufacturers & Exporters Association
Bangladesh Textile Mills Association
BGMEA University of Fashion & Technology
Bangladesh University of Textiles
Better Work in Textiles and Garments
Centre for Export and Product Development
Government of Bangladesh
Institute of Apparel Research & Technology
London College of Fashion
Masters of Business Administration
Ministry of Commerce
Ministry of Textile and Jute
National Institute of Textile Training Research and Design
National Performance Cluster
Ready Made Garment
Small & Medium Enterprise
United Nations Industrial Development Organization
Chapter 1 Summary Explanatory Notes

1
BGMEA
BUFT
RMG
BLOG
WIKI
CEPD
BEST
130.34 TAKA (31st October 2012)

Bangladesh Garment Manufacturers & Exporters Association
BGMEA University of Fashion & Technology
Ready Made Garment
Web log and a web page with chronological entries
Webpage that can be edited by its members
Centre for Export Product Development
Better Work and Standards Programme
Title of the Project: BWTG- Better Work in Textiles and Garments- Component 3
Objective and Duration of the Activity
The duration of the activity is between October 2012 and November 2012. This included 7 days home based
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and 6 days based in Dhaka. The field trip took place from Saturday 13 October to Friday 19 October 2012.
This the third mission to Dhaka under the new BEST Programme. The BEST programme objectives are to:
1. Develop a National Performance Cluster (the focus of this mission)
2. Develop international strategic alliances
3. Develop Education and Training for the Cluster/Sector
4. Develop capabilities of the Cluster Trade Associations and Ministries
The BEST Baseline Study and the Inception Report have guided our Mission objectives and training
programmes to be delivered.
Introduction to the LCF Expert Report
The LCF consultancy report has been produced that communicates the actions, findings and outputs. In
addition, in order to reduce the use/quantity of paper we have produced a dropbox to upload all of the
resources and powerpoints that have been developed for Mission 3. It is aimed at knowledge transfer and
sharing so that it will benefit that all the relevant associations, students and staff.
Mission 3 October 2012
This is the third mission under the BEST programme. One LCF experts have been to Dhaka to deliver the
following short courses to CEPD companies.
Expert in Garment Cluster Development
The priority of this mission was to develop shared understanding of why, what and how Clustering
Strategies can improve the competitiveness and innovation of the Bangladesh Apparel and Textile Sector.
The priority of this mission was:
To develop a create a cluster of competent technical research and development involving
BUFT/CEPD and iART;
Propose a road map to develop a National Performance Cluster, and conduct a strategic study to
develop a five year business plan for NPC;
Deliver cluster forums to build the alliances and links between the different sectors for mutual
benefits;
Explore these centres to provide co-ordinated cost effective demand driven services to the industry
which includes market studies, training and R&D, PD&D, market analysis, industry, business
planning, information consultancy and bureau services to industry
Main duties
Expected
Location
Expected Results
Home
Mission Preparation
Duration
1. Assess the two technical centers
BUFT/CEPD, iART launched by BGMEA
and BKMEA respectively to provide
2.0
training and technical services to the

garment and knitwear sectors
2. Proposing a road map for three years for
developing National Performance Cluster
(NPC)
based
2.0
Home
Develop a report on activities that have been
based
undertaken in different other countries for

developing National Performance cluster
3. Deliver cluster forums to build the

alliances/links between the different
sectors for mutual benefits.
2.0
4. Explore these centers to provide

coordinated cost effective demand driven
services to the industry which include
market studies, training, R&D. PD&D,
market analysis, business planning,
information consultancy and bureau
services to industry
5. Hold relevant progress meetings with
BUFT, iART and UNIDO and present
recommendations from the mission
3.0
6. Write up report for Mission and conduct

web conference session with UNIDO to
discuss report and recommendations
Dhaka
Review and reflection on achievements and how

clustering is improving business growth
Dhaka
Workshop delivered and handouts distributed

and uploaded to the website of CEPD
2.0
Dhaka
Minutes of meetings and list of

recommendations
2.0
Home
Report submitted to Vienna
based
Meeting conducted and actions and

recommendations agreed
Total days
13 days
Chapter 2 - Introduction to the Mission 3

Expert in Garment Cluster Development
The report has been written by Dr Lynne Hammond as a result of a one week mission to Dhaka from Friday 12
October 2012(see Job Description). The activity began in mid-September 2012 with 4 days work in the UK.
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Outputs of the days in the UK 4 days
Technical Centres Assessment
Questionnaire for assessing iART/CEPD and NITTRAD

Desk research into their websites to assess their communication strategies
Research/Presentations for Cluster Workshop
Introduction to Clustering; Definitions, Concepts and Principles

Introduction to Porters Diamond Model
Case Study 1: Fashion and Textile Cluster in Turkey
Case Study 2: China Apparel Clusters
Presentations for Cluster Forum

Cluster Forum Rationale
PP that outlines the half-day objectives and goals
Outputs for the 6 days in Dhaka
Faculty /UNIDO meetings
Reading Lists for Clustering
Meeting with Chairman of BUFT to discuss recommendations
Meeting with Vice President/Member of BUFT to discuss quality management and staff development
Meetings with iART/CEPD/NITTRAD to explore their current business offerings
New networks being developed and invited to the Cluster Forum: Aarong, Small Business
Foundation, Mohammidi Group, Better Stories Asia
Final Outputs
Final Report; Objectives achieved
Overall the objectives were achieved. However more work needs to be undertaken to fully understand the
business operations of the three technical centres in more detail. There are no business plans in place to inform
the technical centres future thinking and limited measuring of their effectiveness in industrial developments. A set
of key performance indicators need to be put in place to inform This must be a priority for the next twelve months
to put in place business objectives and goals if the NPC is to be successful. This needs more follow-up work to
gain a comprehensive view of the potential of the centres, and how they create new business opportunities for
the sector.
Chapter 3 - Consultancy activities conducted by the international

experts at BUFT during the Mission 3 visit
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Saturday 13 October 2012

Meeting with John Smith and Munira Rahman to go through the weeks timetable and discuss in detail the
different activities and the invited audiences.
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Sunday 14 October 2012 Cluster Workshops

AM Cluster Workshop: Introduction to Clustering: Definitions, Concepts and Principles
Attendees: Representatives from NITTRAD, iART, CEPD, and other BUFT faculty academics see
Appendix 1 Brainstorming/Interactive session/SWOT
PM One to one sessions with iART/CEPD to assess the technical centres for their current business offers
and identify new cluster services for demand driven business environments
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Monday 15 October 2012 Cluster Workships

AM Cluster Workshop to the MBA students and BUFT academics
Porters Diamond Model and SWOT/PESTEL of Bangladesh Apparel and Textile Industry
PM Develop the Cluster diagrams and tools for communicating the initial proposals for developing the NPC.
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Tuesday 16 October 2012

Prepare for the Cluster Forum Develop initial ideas and proposals for the NPC
Powerpoint presentation on Wednesday
PM Preparing the cluster forum handouts/room/discussion on the group sessions/update meeting with
CEPD staff Rezwana and Sunny
Meeting with Muzzafar Siddique/Reaz Bin Mohammed to review progress/follow-up since last mission in
January 2012 Tina Fox/Lynne Hammond
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Wednesday 17 October 2012 Cluster Forum

AM Pre meet and greets with new contacts and networks. Better Stories Asia working on mapping the
Fashion industries/Bangladesh with British Council, and LCF to explore the start-up/SME business
environment
Best program of BWTG, UNIDO, organized a workshop on Cluster for RMG sector; in association with Centre
For Export and Product Development, BUFT. The focus was to discuss the prospects and of applying Cluster
method and its implementation in RMG sector of Bangladesh. There were forty seven participants at the forum.
Those who participated at the forum were from the Ministry of Commerce, BUFT, Ministry of Textiles and Jute,
UNIDO, Aarong, Bizcube, iART, NITTRAD, Muhammadi group of industries etc.
The forum was chaired by Mr. Muzaffar U.Siddique, Chairman, Board of Trustees, BUFT.
PM Hold meetings with Principal of BUFT to review Fashion Design Curriculum and meet with staff to
identify what has been implemented into the classroom. Review the CAD/CAM laboratory and the
relationship to the fashion design process.
Development of the press release for the Cluster Forum for newspapers
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Thursday 18 October 2012

AM Meeting with the British Council briefing on the Cluster Development
Discussion on possible EU Funded projects with UNIDO/BC and LCF
PM
Working at the UNIDO office to review the evidence and data from the cluster workshops and forum
Business Cards for Cluster Network Lists
Attendees at the Workshops/Forum
Uploading of Powerpoints that have been used during the week onto Dropbox
Mentoring for using Dropbox as a sharing documents between UNIDO/BUFT/OTHERS
Evening: Meeting with Purple Magazine CEO/Mishu Rahman Style Guru TV Reality show being
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Friday 19 October 2012 Fly back to UK
Chapter 4 Recommendations and Actions from Mission 3

This section explores the following areas:
1. Why Clustering matters?
1.1
Cluster Definitions
1.2
Cluster Stakeholders
1.3
Cluster Lifecycle
1.4
Cluster Benefits for Companies
1.5
Cluster Strategies for success
2. Bangladesh National Performance Cluster for Apparel and Textiles
2.1
Key challenges for the Sector/SWOT
2.2
Key opportunities for the Sector
3. What lessons can be learnt from other countries Apparel and Textile Clusters?
3.1
Turkey Fashion and Textile Cluster 2006-2008
3.2
China Apparel production Clusters
4. What management structures need to be established to drive and co-ordinate a Bangladesh NPC?
4.1 Cluster Benefit Analysis - Mapping the key stakeholders in the Bangladesh Apparel and Textile
Cluster (Cluster workshops)
4.2 Cluster Value Analysis creating dialogue and discuss to develop shared values (Cluster
Forum)
4.3 Cluster Co-ordination/Link Analysis Assessment of the 3 Technical Centres
5. The Proposed BATC Cluster Road Map Ways Forward
5.1
Short Term Action with Quarter Milestones
5.2
Cluster Management Model
5.3
Cluster Marketing Strategy
5.4
Long Term Vision and Investment
Reading List
1. Why Clustering matters?
The purpose of this mission was to explore how clustering strategies could be used to improve competitive
advantage and drive innovation. Clustering is seen as a way of economic growth development through using
collective efficiencies and joint actions between a number of partnerships and networks. Clustering is
expected to provide better value chain efficiencies, foster co-operation and collaboration among different
players in the industry. Filling in the gaps in the value chain improves the technical and technological
capacity of a cluster. Fostering co-operation and collaboration among the cluster players improves the social
capacity of the cluster.
Clusters are geographically proximate groups of interconnected companies and associated institutions in a
particular field linked by commonalities and complementariness. Clusters encompass an array of linked
industries and other entities important to competition which includes governmental and other institutions
such as universities, standard setting agencies, think tanks, vocational training providers and trade
associations (Porter 1998)
Cluster theory puts forward the argument that the rationale for active cluster promotion is needed because of
changing markets, policy and system failures. Practice shows that cluster formation almost always increases
value added production and competitiveness of the business operating in the cluster. A study from 2003 of
260 cluster initiatives around the world shows that as many as 85% of cluster initiatives were rated as having
increased the competitiveness of businesses within the cluster (The Cluster Initiative Greenbook, Solvell,
Lindqvist, and Ketels) http://ictcluster.bg/en/eu-cluster-initiative. The rationale for promoting clusters and
catalyze cluster formation and development of clusters because they generate innovation and thereby
competitiveness and innovation which leads to profits, income, and jobs.
1.1 Cluster Definitions

Porter defines clustering as Geographic concentration of interconnected companies, specialised suppliers,
service providers, firms in the related industries and associated institutions (example universities, standard
agencies and trade associations) in particular fields that compete but also co-operate. (1998)
Department of Trade and Industry UK defines clusters as groups of inter-related industries. They have two
elements; firstly firms in the cluster must be linked. Secondly, groups of inter-linked companies locate in
close proximity to one another. The links between firms are both vertical, through buying and selling chains
for example and horizontal through complementary products and services, the use of similar specialised
inputs, technology or institutions for example. ( 2004 A practical Guide to Cluster Development DTI)
http://ebookbrowse.com/2004-a-practical-guide-to-cluster-development-uk-dti-pdf-d215902753
Forti (2006) explores the economic advantage of clustering: Collective Efficiency (CE) stem from a series of
factors, which can be traced, back to external economies and joint action. External Economies are
advantages that accrue to firms as an unpaid side effect of the presence and activities of other firms and
entities, due to factors such as availability of skilled workers, networks of specialist suppliers of goods and
services, traders linking the cluster to external markets, professional associations and so on. JA is a vertical
when it links producers, their suppliers and subcontractors, traders and buyers. Forti identifies four types of
updating strategies: process upgrading, product upgrading; functional upgrading and intersectoral upgrading.
The upgrading process depends on the ability to innovate, and innovation occurs when firms are capable of
accumulating new knowledge that is capable of learning. (http://213.232.21.103/en/programme.html)
1.2 Cluster key actors/stakeholders
Businesses and the business organizations because new ideas/innovations are commercialized by
businesses
Research, knowledge and training institutions by providing and developing knowledge, science
and technology for commercial exploitation
Government and government agencies because policy incentives impacts on the environment for
clustering and competitive upgrading.
Clusters are most effective when the initiatives build upon and add value to existing linkages among
companies, knowledge institutions and governments.
The roles of stakeholders in a cluster
The different actors in a cluster become stakeholders when their presence and activities impacts on the
conditions of other actors in the cluster.
Businesses are the core of the clusters and their competitiveness. Business champions, networks, groups
and associations all play important roles in cluster initiatives by providing linkages between individual
businesses, showcasing good/effective practices, information on challenges/opportunities and information on
impact and results of various incentives.
Research, knowledge and training institutions impact on businesses competitiveness by developing new
knowledge; dissemination of existing knowledge for commercial exploitation, provision of intelligence on
markets and trends, and the provision of skilled labour.
Governments impact on business competitiveness through providing dialogue and policies; training policies,
promotion of international linkages, developing of the general enabling business environment
1.3 Cluster lifecycle
Clusters pass through different phases and these will differ depending on the specific context and the pace
of transformation. Waelbroek-Rocha and SRI International 2001
Elizabeth Waelbroeck Rocha examines why do companies cluster and she explores the benefits of cluster
for companies. (see weblink http://www.tci-network.org/activities/delhi_presentations_introductoryday)
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1.5 Cluster Strategies for Success
More research into clustering success stories needs to be undertaken to develop deeper understanding of
the critical factors that influence and affect the performance of clusters. More work to be undertaken to
explore in more detail success stories.
2. Bangladesh National Performance Cluster in Apparel and Textiles
The Bangladesh Ready Made Garment Sector has undergone dramatic changes over the last three years
due to the global business trends that require fast fashion and agility supply chains and suppliers having to
manage difficult global business conditions to be able to offer added value products. The collective strength
of the trade bodies and industrial associations associated with the Bangladesh Apparel and Textile Sectors,
could position Bangladesh as a sourcing destination that will be able to compete with other manufacturing
economies not just based on low costs but on added value products.
Recent shifts in manufacturing destinations away from China to lower cost countries have enabled
Bangladesh to take advantage of new business opportunities. However, to sustainable these new business
opportunities the RMG sectors face a number of challenges to maintaining new customers and retain their
growth position through innovation. Despite the increasing importance of Bangladesh as a manufacturing
hub, more research has to be undertaken to understand how clustering can be used as a tool to positioning
Bangladesh as a world-class manufacturing destination.
2.1 Key challenges to the Apparel and Textile Industry
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The McKinsey report outlines the key challenges for growth with particular emphasis on the nature of
retailer/manufacturer business. The report identifies 5 areas:
1. Infrastructures transport and utilities supply, congested roads
2. Compliance achieving ethical labour standards, higher levels of transparency, environmental
compliance
3. Supplier performance and workforce supply buyers looking for fashionable and sophisticated
products need for skilled workers/managers
4. Raw materials improvements in verticalization
5. Economy and political stability unrest and strikes, corruption
The report also suggests ways to overcome these challenges, through government needs to plan ahead and
address the infrastructure challenges, suppliers need to think beyond basic production offer to improve better
compliance and management know- how, and buyers to support suppliers through better interfaces, and
building closer supplier relationships.
2.2 Key opportunities for the Sector through Clustering
More research needs to be undertaken to explore the opportunities for business growth. It has been
outside of this mission to undertaken a comprehensive opportunity analysis.
3. What lessons can be learnt from other countries Apparel and Textile Clusters?
Two countries have been explored to identify the clustering approaches and how clustering has influenced
the economic growth of the sectors. The Turkey case study is based on experience, and the China case
study has been developed from secondary/desk research.
3.1 Turkey Fashion and Textile Cluster (This text has been taken from website)
27.01.12
http://www.avrupa.info.tr/funding-opportunities/eu-funded-programmes/success-stories/success-storiessingle-view/article/fashion-and-textile-cluster-project-will-boost-textile-sector-in-turkey.html
The Fashion and Textile Cluster Project aims to increase international competitiveness of SMEs in the
fashion and clothing sector. The project, financed by the European Union, is crucial to enhance the export
capacity of the sector. Cluster strategy provides the ground for firms to share expertise with their
counterparts, as well as to enhance their employment, income and export capacities. The project is the first
of its kind in Turkey, and has inspired larger projects. There are already 20 other sectors waiting clustering.
Budget: 13 Million
Beneficiary: Istanbul Textile and Apparel Exporter Associations (ITKIB)
Project Length: 2005-2007
The Fashion and Textile Cluster Project, financed by the pre-accession funds of the EU, aims to increase
international competitiveness of SMEs in the Turkish textile and clothing sector. This is one of the engines
driving the Turkish economy. The project aims to minimize costs in the Turkish textile sector, a highly
competitive environment since the elimination of textile quotas in 2005. The necessary elements for the
textile and clothing industry to maintain its high performance standards are: investment in research and
development, high quality production, and development of fashion designs and trademarks. The Fashion and
Textile Cluster Project is designed to respond to these needs and increase networking among SMEs at local,
national and European levels.
The project has made significant steps to try and overcome difficulties in the sector, namely financial
difficulties and lack of research and development activities. Beneficiaries of the 13 million budget project
include SMEs in the textile and clothing sector, who are represented by Istanbul Textile and Apparel
Exporter Associations (ITKIB). Besides its contributions to the sector, the project is expected to ease the
process of adaptation to the European Charter for Small Enterprises.
According to the clustering method, SMEs in the textile and clothing sector work within an environment
where they interact with each other and develop new strategies. Clustering is essential for the textile and
clothing sector to enhance its competitiveness and quality, especially important because it is a major pillar of
Turkish exports. In addition, certain institutions are established to enhance the capacity of the sector. These
institutions provide technical assistance and consulting services to SMEs and support them in tackling issues
like improvement of product quality and offer.
What is Clustering?
Clustering refers to the regional concentration of firms operating in the same sector with suppliers of raw
materials and services. Cluster strategies provide the ground for firms to share expertise with their
counterparts as well as to enhance their employment, income and export capacities.
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Three institutions have been established within the scope of the project, directed by the Cluster Coordination
Agency.
Fashion Institute
Research and Development Centre
Consultancy Centre
Like the firms in the textile and clothing sector, these three institutions work in coordination as parts of a
cluster. For example, the Fashion Institute provides qualified labour to the Research and Development
Centre and Consultancy Centre, while the students of the Fashion Institute can enjoy the services of R&D
and consultancy.
The project involves two phases. In the first phase the needs of SMEs were identified through the clustering
analysis of the textile and clothing sector. Following this process, establishment of institutions that would
support the textile and clothing sector was completed. As listed above, these institutions are the Fashion
Institute, Research and Development Centre and Consultancy Centre and lastly the Cluster Coordination
Agency who coordinates these three institutions. The second phase of the project is about providing
investment support to these institutions, and it is . almost completed. Project leaders have confirmed that
investments are almost complete and SMEs are waiting for the equipment ordered in accordance with their
needs.
Other Sectors will also Work in Clusters
The Fashion and Textile Cluster Project is the first clustering project undertaken in Turkey. Cooperation of
SMEs with each other and with related professional organisations leads them to create value added and
develop strategies for the future of the sector, thus enhancing their competitiveness. Following the
achievements in the Fashion and Textile Cluster Project, other sectors are expected to form clusters
benefiting from the experiences of this project. The Undersecretariat for Foreign Trade (DTM) has initiated a
larger project which will begin after identification of 20 suitable sectors for clustering following a cluster
analysis in each sector.
Impact of the Project will be Considerable
Sector Manager Mustafa Fazlolu, from the Delegation of the European Commission to Turkey,
emphasises that the project is the first clustering experience in Turkey. He continues, In spite of this, goals
have been achieved after a successful training process. According to Fazlolu, another significant point
about the project is that it has been conducted directly with the sector without state intervention and it will
have a significant impact on the textile sector as well as other sectors. After underlining the significance of
the textile sector in terms of employment, income and exports, Fazlolu states that the timing of the project
is very appropriate in the sense that the need for restructuring the Turkish textile sector emerged after the
elimination of textile quotas in 2005. For Fazlolu, there are three reasons why the project has become very
successful: large-scale interest for the project, allocation of sufficient labour and resources and finally, a high
level of participation. For him, these reasons indicate that ITKIB will continue working on the project
successfully. Lastly, Fazlolu reminds us about the initiation of new projects by DTM and argues that
clustering is becoming widespread and has already become a state policy.
Largest Project Conducted in the Sector
ITKIB Project Coordination Unit Director Ece Narcy says The project is the largest project conducted in
textile and clothing industry and it would boost the sector. For Narcy, there is no future for the textile
industry without innovation and design. According to Narcy, the main reason behind the success of the
project is that it is conducted in accordance with the needs of the sector unlike other on-the-desk projects.
Detailed analyses have been made to identify necessary instruments for SMEs and necessary institutions for
improvement of the sector. Narcy then argues that the project will be a good example of clustering for other
sectors.
Everyone is Content with the Result
Representatives of the textile and clothing industry are also happy with the outcomes of the project. One
example is the owner of the Sunset Swimwear Kemalettin Gne. He believes the Turkish textile sector will
supersede leaders in countries such as Italy and England. Gne states that the project has already
produced concrete results and he is hopeful about future graduates of MA.
Another sector representative, Cevdet Karahasanolu, is the owner of the Pameks Textile Company and
also vice-president of Turkish Clothing Manufacturers Association. Karahasanolu thinks that designers who
would be trained by the opportunities established as part of this project would be close to the textile industry
unlike graduates of other fashion schools. He suggests that broadening cluster activities to involve
production processes rather than focusing solely on design-sale-marketing would be greatly beneficial for the
sector.
Although the 3 centres where established and resourced one observation of the this FTC project has been
that the R&D Centre has been closed down, as companies did want to share their innovation/IP through this
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collective body. IMA is thriving and is providing international fashion education that aims to ensure that they
will develop world-class fashion designers of the future.
3.2 Apparel Production Clusters in China (Desk Research)
According to LI & Fung Research Centre Industry Series 2007 China are the worlds largest producer and
exporter of textile and apparel. With its abundant supply of low-cost and skilled labour, the country has
attracted textile and apparel manufacturers from around the world to set up production bases. The textile and
apparel clusters are primarily located
in the coastal regions. Since raw materials and other processed apparel products are much cheaper in China
and their qualities are increasingly up to the global standards; the textile and apparel clusters in China have
become principal sourcing bases for textile and apparel products. However, the current development status
of the apparel industry, like many other industries, is characterized by surging operational costs, increasing
competition and reducing profit margin. As a result, more apparel manufacturers are moving out from the
relatively high-cost coastal areas to the inland regions. Relocation of the apparel industry/clusters is being
observed.
There are three key characteristics of the T&A Clusters in China:
(1) Geographically concentrated along coastal regions
The majority of textile and apparel clusters are located in the cities along the coastal provinces of Zhejiang,
Guangdong, Jiangsu, Fujian, Shangdong and Hebei. Exhibit 6 shows the major textile and apparel clusters
in China. As shown in the diagram, most of the apparel clusters are located in Zhejiang and Guangdong; as
for the textile clusters, most of them are concentrated in Zhejiang and Jiangsu. The coastal regions have
well-established intra-regional logistic infrastructures and strong linkage with the outside world. These
facilitate the movement of apparel products within China as well as to other countries.
(2) High degree of specialization
Most of these textile and apparel clusters demonstrate high degree of specialization and has emerged as
leading centre for certain products. Some prominent examples include the leisurewear cluster in Shaxi town
in Zhongshan, Guangdong, the childrens wear cluster in Zhili town in Huzhou, Zhejiang, the light textile
cluster in Shaoxing, Zhejiang, etc.
(3) Commodity markets located in or near the clusters
Today, wholesale markets or commodity exchange markets mostly located in major apparel clusters. They
act as major distribution channels for mass apparel products produced in the cluster. The majority of the
products sold in these markets are low-and-mid-range unbranded garment and clothing. Prices of these
products usually range from a few yuan to hundreds of yuan. According to the Statistical Yearbook of China
Commodity Exchange Market, in 2005, there were 2,525 textile, apparel, shoes and headgear commodity
exchange markets with an annual turnover exceeding 100 million yuan in China. Within these markets, there
were over 1.4 million stores selling various types of apparel, shoes and headgear products; the total turnover
of these commodity exchange markets amounted to 2,628 billion yuan.
4.What management structures need to be established to drive and co-ordinate a Bangladesh NPC?
To arrive at the a Proposed Road Map; a number of workshop/ forums, interviews where held with
representatives from a wide range of different trade assoications/bodies to shape this development of the
NPC. This methodology has informed the 12 month action plan suggested in this report.
One workshops was conducted on Introduction to Clustering NITTRAD

One workshop was conducted to MBA students - Diamond Analysis
Cluster Forum was held to explore what are the ways forward
Questionnaires sent to the three technical centres
4.1 Cluster Benefit Analysis and Mapping the BATC

During the Clustering Workshop with iART/CEPD and NITTRAD representatives the participants used a
SWOT to begin to identify the challenges/opportunites that Bangladesh would face in the future.
In addition the group started to map out the different stakeholders in the cluster and began to explore the
benefits to these three stakeholder groups. A cluster mapping diagram was produced from this workshop.
14
From this workshop the Mapping Diagram was created:
4.2
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Cluster Shared Value Analysis - Cluster Forum Wednesday 17 October - See

appendix 2 for the minutes
Over 47 participants attend the half day workshop to explore how to develop the cluster to support
the apparel and textile industry.
The aims of the cluster forum was to create a dialogue and explore ways forward on how this
development could be of benefit for the industry and what are the shared values between the
different stakeholders.
What management structure is needed to achieve the goals and objectives of clustering to drive
competitiveness?
Who will manage the operational strategy for developing the cluster?
Who will oversee the strategic development and goals of the cluster?
What role will technical centres play CEPD, iART and NITTRAD play in achieving the clustering
objectives?
15
What type of marketing channels will be developed and who will manage these activities? Cluster
Brochure, Cluster Website,
What role will education, companies and government play in achieving the clustering goals?
What role will UNIDO play in NPC developments?
Who will measure the impact of the cluster performance and achievements?
How will new skills set/capabilities be identified that can result in better innovation, R&D and
advanced supply chain management?
4.3 Cluster Co-ordination/Link Analysis - Assessment of the three technical Centres See appendix
3
See appendice 3 for the overview of the services and how they are managed. More work needs to be
undertaken to explore in more detail how the centres could be managed through the cluster
development and each centre needs to have a business plan in place to see the potential benefits
and opportunities for growth. However from the questionnaire, there is no sharing of resources and
knowledge to drive cost effeciences and respond to demand led changes to the industry. Through the
clustering development it is proposed that there is 3 Cluster Pilot projects that begin to share common
challenges. It is suggested that the three themes below are a starting point for bringing together the three
centres and engaging in research to explore these trends:
1. New technologies for product development (Rapid Prototyping, Digital Fashion Tools and Body
Scanning/3D Visualisation)
2. Using market intelligence to drive new business opportunities (Exploring the new business models
that are influencing consumer choice and lifestyles, etailing, online shopping, handmade/limited
editions, mass customisation)
3. Sustainability challenges for the Bangladesh Apparel and Textile Industries what are the ways
forward.(exploring common challenges, water, waste, energy efficiencies, fair trade, and other
ethical/environmental projects)
5.Recommended Actions and Ways forward

5.1 Short Term Action Plan with Milestones
Nov, Dec, Jan
Cluster Website
Linked to UNIDO BEST
site
Cluster Brochure
Cluster Research
reports
Cluster Network List
Cluster Co-ordination
Group
Write content
Write
content/Design
brochure
MBA Diamond
Analysis
Produce Excel
spreadsheet
for mail outs
and
information
Monthly
meetings to
kick start new
cluster
projects
Cluster Executive
Board
Define
membership
and steering
group
Cluster Pilot Projects
Explore
funding and
Feb, March,
April
Promote and
launch
website
E-brochure
May,
June, July
Update
with news
Aug, Sept,
Oct
Update with
news
Who
Circulate
Circulate
UNIDO/JS/Munira
MBA
Dissertations
on
Clustering
Update
Write joint
papers
Deliver
papers at
conferences
BUFT/MBA Students
Update
Update
Group/Cluster
Manager
Monthly
agendas
and minutes
circulated to
Executive
Board
Cluster
RoadMap
investment
Monthly
Monthly
Membership to be
defined/UNIDO/BUFT
Cluster
RoadMap
staffing
and
resources
Deliver
Pilot
End of Year
Report
Membership to be
defined David
Holbourne/John
Smith/Muzzafar
Siddique
Group and Cluster
Write
Proposals
Evaluate
the benefits
JS/MR and Shaheen
16
Cluster
Conference/Workshops
potential areas
of R&D
Plan event,
topics and
speakers
Projects
Finalise
topics and
send out
invites
Hold
cluster
conference
large scale
event
of
Clustering
Followup
reports and
actions for
year 2 of
Cluster
Teams
TBC
5.2 Suggested Cluster Management System to drive and support the establishment of the NPC
Based on Cluster Forum Dialogue
To drive the cluster development and achieve the year 1 objectives it is recommended that the
following 3 key management groups are established:
Executive Cluster Board Managing the Vision BGMEA/BKMEA/BTMA (10-12 champions) meet
every 3 months to receive the report from the Cluster Co-ordination Group.
Cluster Co-ordination Group Membership: BUFT, NITTRAD and iART representatives plus the
technical centres (CEPD/iART/NITTRAD) training managers. In the first year of creating the cluster
development, it is recommend that a Cluster Manager is identified and that person is responsible for
working with the Cluster Project teams to ensure staff are available and are supported during the
first 6 months to get off the ground. It is also important for information flows between Executive
Cluster Board and the Cluster Project Teams on the ground. Recommend that Munira Rahman
takes up this position for 12 months to kick start the clustering strategy, supported by a CEPD
Manager (this could be the Rezwana who is the newly appointed Manager at BUFT) This could be 2
days a week to co-ordinate and support the Cluster Manager.
Cluster Project Teams Team leader allocated to each of the three centres to communicate to the
CCG new projects, R&D development and evaluate the benefits to companies.
Role of education/universities create collaborations with International Universities to drive new research
projects knowledge and product topics. Develop short course programmes, and training programmes that
are relevant and address future skills gaps.
Role of Companies to engage with education to inform and collaborate with new products/services
Role of Governments to support companies/training incentives and provide grants for R&D projects.
More work needs to be undertaken to fully explore and define roles and responsibilities

17
Overview of the Cluster Management Decision Making/Vision Management

BATC Recommendations for Cluster Management Teams
Cluster Executive Board
Organisation
BUFT Chairman
Name
Muzaffar Siddique
BUFT Vice Chancellor/

BUFT Principal
NITTRAD
Principal
iART/BKMEA
UNIDO
UNIDO
BTMA
BGMEA
TBC
Nabi Khan
Dr Engr. Md. Humaun Kabir
BKMEA
Head/VP
Responsibilities
Chair of the Cluster
Executive Board
Rupali Biswas
David Holbourne
John Smith
Head/VP
Head/VP
Cluster Co-ordination Group (CCG)
Organisation
Name
UNIDO
CEPD/BUFT
iART
Munira Rahman
Rezwana Ahmed
Project Manager/Rupali
Responsibilities/To be
discussed during first
meeting
Co-chair for CCG
18
BTMA
BUFT
NITTRAD
Companies Textile,
Apparel, Knitwear
Project Manager
Academic
Project Manager
Representatives from 3 companies
from each sector
Cluster Teams/Pilot Projects

Organisation
Name
Cluster Team 1
BUFT Fashion Academic

BUFT CAD/CAM Academic
iART Trainer
NITTRAD Trainer
Company Representative
BUFT Marketing/Business Academic
iART Trainer
NITTRAD Trainer
SME Foundation
BUFT Sustainable Academic
iART Trainer
NITTRAD Trainer
Company Representatives
Cluster Team 2
Cluster Team 3
Responsibilities To be
discussed during first
meeting
Research into New
Technologies for Product
Development Rapid
Prototyping/Sampling
Innovations
Market Intelligence to drive
new business opportunities
Sustainable Apparel/Textile
Challenges for the
Bangladesh Industry
5.3 Cluster marketing strategy Digital and F2F

Over the next twelve months, a cluster digital and F2F marketing strategy needs to be developed with a
team of experts who can drive the communication objectives. Showcasing and online/off line platforms
must be created to present the Clustering Vision and Strategy. All marketing materials must be
produced in digital/printed formats (e-flyers/brochures) and the use of social media channels such as
Twitter, FaceBook, Linkedin must be used to trigger and tease new networks and partnerships that are
the essential for driving business opportunities. In addition, there must be an International Strategy
underpinning the Local Cluster Strategy to stimulate new markets, new products, new partnerships, and
new networks. The international dimension is critical for global business environments, using digital and
virtual formats. More work needs to be undertaken to develop a cluster marketing strategy.
To manage the cluster marketing strategy it is recommended that UNIDO play an important part in the
first stage of cluster communication development to oversee and ensure that various marketing tools
are produced to the right standards for international markets/networks.
In addition, there has to be a commitment to communicating internally and externally cluster success
stories to showcase how clustering has made an impact on profit and jobs. A website needs to be
established or a sub site linked to UNIDO or BGMEA or BUFT and managed regularly to keep news up
to date and to digitally communicate to the different players/links/networks on what is
Cluster Website/Cluster Brochure

Cluster Network and Contact Lists New people/networks establish
Clustering Conference May 2013
Articles/success stories to feed to press/newspapers
5.4 Long Term Planning for the BATC Building the Brand Strategy
The long term goals must be to build a strong brand identity that communicates the values and strengths of
the Bangladesh Apparel and Textile Industry as a pioneering manufacturing hub servicing global retailers
needs and requirements. The BATC has to demonstrate that is able to integrate R&D into its business
19
strategies and is innovating and researching virtual and rapid prototyping, innovating new materials and
products, and using digital technologies to improve speed to market, product quality and affordable price
points. Bangladesh Apparel and Textile industry Unique Selling Point (USP) has to be the capacity and
capabilities to offer fast fashion/agile supply chains, with sustainable/ethical and environmental processes
and products, and offer design solutions for fashion ranges/collections. (See Sri lankas Garments with Guilt
Promotional Strategy)
More work needs to be undertaken to establish a new brand identity that communicates the USP and
differentiation strategy of the cluster.
Cluster Reading/Resource List

KyeongAe, C, et al (2011) A Comparative Analysis of the competitiveness of the Readymade Garment
Industry Clusters in Delhi, Dhaka and Colombo, Journal of Competiveness, January pp
UKDTI (2010) A Practical Guide to Cluster Development
Zhang, Z et al (2004) How do Industry Clusters Success: A case study in Chinas Textiles and Apparel
industries, Journal of Textile and Apparel, Technology and Management, Vol 4, Issue 2, Fall 2004
Kutluksama, M et al (2012) Turkeys Textiles and Apparel Cluster; Microeconomics of Competitiveness,
www.
Forti, A, (2006) Istanbul Clustering Conference 2006 download
213.232.21.103/pdf/KeyNote/Mr_Andrea_Forti.pdf
McKinsey Report (2011): Bangladeshs ready-made garments landscape: The challenge of growth:
download from:
http://www.mckinseyquarterly.com/Bangladesh_The_next_hot_spot_in_apparel_sourcing_2948
Drapers Record July 2012: Savings at Source: Article Knowles James:
Lamson-Hall P 2012 The next frontier of sourcing: As china looks west, should sourcing executives follow?
Sourcing Journal March
Just-Style Management Briefing; Apparel Supply chain challenges in 2012 (www.juststyle.com/management-briefing/apparel-supply-chain-challenges-in-2012_id114214.aspx)
Knowles J. 2012 Spotlight on Turkey; Drapers Record July 4
th
Solvell, Lindqvist and Ketels (2003) The Cluster Initiative Green Book, http://www.clusterresearch.org/greenbook.htm
Books on clustering
Porter, E.M (2008) On Competition, Harvard Business Press
http://books.google.com.bd/books?id=zNmiOfV1XugC&dq=cluster+strategies+porter&sites
ec=reviews6 Reviews
Harvard Business Press, Sep 9, 2008 - 576 pages
For the past two decades, Michael Porter's work has towered over the field of competitive strategy.On Competition,
Updated Edition brings together more than a dozen of Porter's landmark articles from the Harvard Business Review.
Five are new to this edition, including the 2008 update to his classic "The Five Competitive Forces That Shape
Strategy," as well as new work on health care, philanthropy, corporate social responsibility, and CEO leadership.This
collection captures Porter's unique ability to bridge theory and practice. Each of the articles has not only shaped
thinking, but also redefined the work of practitioners in its respective field. In an insightful new introduction, Porter
relates each article to the whole of his thinking about competition and value creation, and traces how that thinking has
deepened over time.This collection is organized by topic, allowing the reader easy access to the wide range of Porter's
work. Parts I and II present the frameworks for which Porter is best known frameworks that address how companies, as
well as nations and regions, gain and sustain competitive advantage. Part III shows how strategic thinking can address
society's most pressing challenges, from environmental sustainability to improving health-care delivery. Part IV
20
explores how both nonprofits and corporations can create value for society more effeapplying strategy principles to
philanthropy. Part V explores the link between Strategy and Leadership
Handbook of Research on Cluster Theory

Charlie Karlsson
http://books.google.com.bd/books?id=cnwhCIIp2IoC&dq=cluster+strategies+porter&sitese
c=reviews0 Reviews
Edward Elgar Publishing, Sep 30, 2008 - 316 pages
Karlsson has assembled a strong mix of papers that collectively provide a good sense of some of the latest research in
the field. Edward Feser, Review of Regional Studies This is a book every regional scientist and spatial analyst should
have on their bookshelf. Like most Handbook type publications it provides depth and breadth on the basics of the
industrial clustering concept. However, unlike most of these type of collections, it goes beyond the foundation material
to identify and speculate on questions that are emerging on the research frontiers such as at the intersection of cluster
theory and agglomeration processes, knowledge spillovers and technology transfer not to mention the obvious link to
economic development theory, policy and practice. Roger R. Stough, George Mason University, US This eclectic
volume presents a host of methods to describe tendencies for the joint location of economic agents in space. And it
illustrates useful applications of these concepts in diverse fields financial services, culture, tourism, and industry, to
name just a few. John M. Quigley, University of California, US Clusters have increasingly dominated local and regional
development policies in recent decades and the growing intellectual and political interest for clusters and clustering is
the prime motivation for this Handbook. Charlie Karlsson unites leading experts to present a thorough overview of
economic cluster research. Topics explored include agglomeration and cluster theory, methods for analysing clusters,
clustering in different spatial contexts and clustering in service industries. Encompassing the developed economies of
Europe and North America, the Handbook provides a basis for improving cluster policy formulation, interpretation and
analyses. This comprehensive overview of research on economic clusters will be of interest to scholars and PhD
students in (regional) economics, economic geography, regional planning and management as well as practitioners and
policymakers at the national, regional and local levels involved in cluster formation and cluster management.
Handbook of Research on Innovation and Clusters:

Charlie Karlsson
http://books.google.com.bd/books?id=CmfV4_a8t90C&dq=cluster+strategies+porter&sites
ec=reviews0 Reviews
Edward Elgar Publishing, 2008 - 461 pages
This volume is an important step in furthering the discussion about how cluster strategies work and the implications for
theory and policy. Jennifer Clark, Review of Regional Studies The role of innovations and clusters has increasingly
dominated local and regional development policies in recent decades. This authoritative and accessible Handbook
considers important aspects of high-tech clusters, analyses insightful cluster case studies, and provides a number of
recommendations for cluster policies. The chapters in this Handbook are written by international experts in the field and
present evidence of the scope, effects, and potential of clusters as concentrations of innovative activities. The authors
emphasize that cluster development is not the only option for local and regional development and argue that for cluster
policies to be worthwhile, supporting policies in fields such as education, R&D, transportation, and communication
infrastructure must accompany most cluster policies. Furthermore, several contributions stress that clusters often
develop along a life cycle that may end with decline and even the disappearance of clusters. Consequently, this
Handbook provides the basis for improving both research on innovation and clusters and the formulation and
implementation of cluster policies. Furnishing the reader with rich, comprehensive discussion of innovations and
clusters, this Handbook will be an essential source for researchers and academics in the field, as well as policymakers,
planners and specialists, development experts and agencies, and consultants.
21
Competition, Competitive Advantage, and Clusters:

The Ideas of Michael Porter
Robert Huggins, Hiro Izushi
http://books.google.com.bd/books?id=6H3Ls_7NxVAC&dq=cluster+strategies+porter&site
sec=reviews0 Reviews
OUP Oxford, Mar 31, 2011 - 336 pages
Harvard professor, Michael Porter has been one of the most influential figures in strategic management research over
the last three decades. He infused a rigorous theoretical framework of industrial organization economics with the then
still embryonic field of strategic management and elevated it to its current status as an academic discipline. Porter's
outstanding career is also characterized by its cross-disciplinary nature. Following his most important work on strategic
management, he then made a leap to the policy side and dealt with a completely different set of analytical units. More
recently he has made a foray into inner city development, environmental regulations, and health care services.
Throughout these explorations Porter has maintained his integrative approach, seeking a road that links management
case studies and the general model building of mainstream economics. With expert contributors from a range of
disciplines including strategic management, economic development, economic geography, and planning, this book
assesses the contribution Michael Porter has made to these respective disciplines. It clarifies the sources of tension and
controversy relating to all the major strands of Porter's work, and provides academics, students, and practitioners with a
critical guide for the application of Porter's models. The book highlights that while many of the criticisms of Porter's
ideas are valid, they are almost an inevitable outcome for a scholar who has sought to build bridges across wide
disciplinary valleys. His work has provided others with a set of frameworks to explore in more depth the nature of
competition, competitive advantage, and clusters from a range of vantage points.
Clusters, Networks, and Innovation

Stefano Breschi, Franco Malerba
http://books.google.com.bd/books?id=s9RIa_JgUlMC&dq=cluster+strategies+porter&sites
ec=reviews0 Reviews
Oxford University Press, Feb 16, 2006 - 524 pages
Governments and regional authorities often express the belief that the key to prosperity and economic expansion is
related to the ability of countries to sustain regional clusters of competitiveness and innovation. The book reviews the
most important conceptual approaches to the analysis of the emergence, growth and evolution of clusters of innovation.
Drawing from the different experiences of industrial districts and high-tech regions such as Silicon Valley, Boston's
biotech region and Hsinchu-Taipei, the contributions in this book offer a broad interpretative framework and policy
implications for the creations and strengthening of competitive clusters.
Themes include:
q The wide variety of existing clusters and the diversity on their emergence and growth
q The international mobility of factors and demand linkages
q The role of different network types and the social setting
q The accumulation of capabilities on key large actors and the importance of spinoffs and new firm formation
q The role of different learning regimes and sectoral specificities
q The importance of social networks, labor mobility and face to face contacts as vehicles of knowledge spillovers
Broad implications are drawn for the design of policies to encourage successful economic clusters in developed and
developing clusters.
22
Competitive Advantage of Nations

Michael E. Porter
http://books.google.com.bd/books?id=CqZzxAxBpfEC&dq=competitive+advantage+nation
s+s+porter&sitesec=reviews15 Reviews
Simon & Schuster, Jun 1, 1998 - 896 pages
Now beyond its 11th printing and translated into twelve languages, Michael Porter's The Competitive Advantage of
Nations has changed completely our conception of how prosperity is created and sustained in the modern global
economy. Porter's groundbreaking study of international competitiveness has shaped national policy in countries around
the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as
Central America.
Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of
competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional
comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and
how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter's "diamond," a
whole new way to understand the competitive position of a nation (or other locations) in global competition that is now
an integral part of international business thinking. Porter's concept of "clusters," or groups of interconnected firms,
suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and
governments to think about economies, assess the competitive advantage of locations, and set public policy.
The competitive advantage of nations:

The case of Turkey : assessing Porter's framework for national advantage
zlem z
http://books.google.com.bd/books?id=9lK4AAAAIAAJ&dq=competitive+advantage+nation
s+s+porter&sitesec=reviews0 Reviews
Ashgate, 1999 - Business & Economics - 214 pages
The book applies Professor Michael Porter's diamond framework to Turkey, a middle-income developing country. By
so doing, the author seeks to contribute towards a better understanding of the sources of international competitive
advantage. Her research also presents a new approach to evaluate the competitiveness of the Turkish economy, given
that alternative studies usually focus on factors like exchange rates and the cost of labour and raw materials as the
determinants of competitive advantage. The author begins her book by providing an evaluation of the diamond
framework linked to the debate created by the publication of The Competitive Advantage of Nations. She then identifies
the pattern of advantage in Turkey by specifying the internationally competitive industries and clusters. This is followed
by a detailed examination of the five Turkish industry case studies - glass, construction, leather clothes, automobile and
flat steel industries. The findings are generally supportive of Porter. The results suggest, however, several major areas
in the framework - especially domestic rivalry and the role of government - where one or more of the Turkish cases
question Porter's hypothesises. The book ends with the implications of the study for the sources of competitive
advantage in general and for the Turkish economy in particular.
23
Competition in Global Industries

M. E. Porter
http://books.google.com.bd/books?id=vhzv3Dfb8MIC&dq=competitive+advantage+nations
+s+porter&sitesec=reviews1 Review
Harvard Business Press, Nov 1, 1986 - 250 pages
This collection provides a framework for understanding the nature of international competition in industries & its
strategic implications for firms. It addresses the organizational challenges--marketing, production, government
relations, & finance--involved in implementing new global strategies & illustrates, through case studies, the interplay of
these factors in today's industries.
4. APPENDICES
Appendix 1 - List of powerpoints delivered during the 6-day mission
Introduction to Clustering, Definitions, Concepts and Principles
Porters Diamond Model
Cluster Forum Powerpoint
Turkey Case Study Fashion and Textile Cluster
China Case Study Apparel Production Clusters
24
Appendix 2
Minutes of the 1st Cluster forum

Date: 17th October12, Venue: CEPD, BUFT.
Best program of BWTG, UNIDO, organized a workshop on Cluster for RMG sector; in association with Centre
For Export and Product Development, BUFT. The focus was to discuss the prospects and of applying Cluster
method and its implementation in RMG sector of Bangladesh. There were forty seven participants at the forum.
Those who participated at the forum were from the Ministry of Commerce, BUFT, Ministry of Textiles and Jute,
UNIDO, Aarong, Bizcube, iART, NITTRAD, Muhammadi group of industries etc.
The forum was chaired by Mr. Muzaffar U.Siddique, Chairman, Board of Trustees, BUFT.
Key note speaker of the forum was Dr. Lynne Hammond, Director of International partnership & development;
London college of fashion, university of Arts, London.
Among forty seven participants we had,
Prof. Dr. Engr. Ayub Nabi khan, Pro Vice Chancellor, BUFT
Mr. ANM Rafiqul Alam, Registrar, BUFT
Ms. Muira Rahman,National project coordinator, UNIDO
Mr. Shamim Ahmed, Vice President, BKMEA
Mr.David Holbourne, ChiefTechnicalAdviser, BEST/UNIDO
Mr. John T. Smith, International coordinator, long term adviser, UNIDO
Mr. Maqbul Ahmed, NPC (Textile) Ministry of Textiles and jute, GOB
Md. Moslem Uddin Ahmed, Deputy Chief, Ministry of Commerce, GOB
Initially Dr. Lynne Hammond defined the concept of clustering, explained its significance with example of
success in two countries like Turkey and China, through a power point presentation. Later, the participants were
divided into three groups;
1. Education
2. Industry
3. Government
Within the groups they discussed the challenges and remedies for each sector. To diagnose the challenges the
groups have used SWOT and PESTEL analysis.
Diagnosed challenges and remedies are given below:
Group 1: Education
Challenges: 1.Inadequate link among institutions 2. Lack of R& D 3.Inadequate specialized people
4.Dissimilation between education and practical field.
Remedies: 1.To start networking 2. Need based curriculum/ syllabus appropriate for practical field. 3. Develope
channels to familiarize students with the industry 4.provide more specialized teaching 5.Encourage exchange
programs among institutions both domestic and internationally 6. For value added products we need to introduce
new courses and curriculum.
Group 2: Industry
Challenges: 1.Lack of technical skills 2.Low productivity 3. Supply chain problem
4. Poor communication skills 5.lacking industrial support to produce value added products. 5. Labor unrest
6.Dishonest and insincere labor leader 7.Too low labor wages/cost 8.Unfair worker & employer relationship.
Remedies: 1. More collaboration among government educational and industrial sectors. 2. To establish Human
resource management for building and growth of capacity.
3. Communicate more actively with the foreign stake holders. 4. Introduce automation to develop production
system 6. Develop backward and forward linkage 7.Donor agencies must come forward as well as government to
help the smaller industries 8.Emphasize more on Branding (make partnership with Bangladesh Branding Forum)
8.Cross clustering group to be made
9. Develop a dialogue to improve worker-employer relationship 10. Labor cost must raise 11.labor leaders must
go through professional training 12.Initiate more market research 13. Develop utilization of traditional textiles to
build samples for the market; for example, how Prada is drawn to Indian traditional textiles.
Group 3: Government
Challenges: 1. Instable political situation 2.Too much beaurocracy 3.Lack unity with the private sector 4.Need to
provide help to smaller industries
Remedies: 1. Collaborate private sector with the government 2.Licensing is a policy matter, must come with
coherent long term plans 3.Introduce and implement more joint venture projects 4. More consistent and strategic
policy making is required. 5. Joint consultation between panels is needed 6.Cross Clustering groups need to be
25
made between Education, government, industry and buyers 7. Provide practical and technical support for new
industries 8.Provide training on consultants (keep an objective data).
Some grey areas were detected, where either all the sectors collide or they actually have common issues! For
example, all three sectors complained about 1.Bad infrastructure
2. The necessity of shared resources 3.The necessity of specialized trainings 4. To start cluster training
A lively group discussion took place at the end of the forum. Mr. Muzaffar U. Siddique, Chairman, BUFT
expressed his deep concern about the operation and stability of the Cluster program for effective implementation
in Bangladesh. He said that it is important to identify and finalize the mode of operands. Whether cluster will be
formed and operated under one umbrella? He further pointed out that a larger number of audiences are required
to familiarize this concept to respective industries/organizations.
Mr. Muzaffar U. siddique suggested about building a Cluster Board of Executives; he also mentioned an action
plan, where he proposed to set up a Cluster Coordination Team to steer both the cluster board of executives and
the cluster team at root level. Mr. David Holbourne accepted this idea with rather admiration, Mr. Shamim
Ahmed, Vice President, BKMEA also supported the idea.
In the discussion it was proposed for Mr. Muzaffar U. Siddique to Head the Cluster board of executives. It was
decided that a rather large conference will take place in May13, organized by BUFT. Meanwhile, Dr. Lynne
Hammond will write a proposal of the road map for clustering.
The participant MBA students (BUFT) were given an assignment to do a research paper on Clustering. All the
participant organizations were asked to come up with joint pilot projects to try out the clustering method, and to
introduce knowledge transfer programs both domestic and internationally. Prof. Dr. Engr. Ayub Nabi Khan, Pro
Vice Chancellor, BUFT referred to Green technology as an experimental pilot project.
Dr Lynne Hammond highly recommended that a Rapid prototyping Centre need to be built at CEPD, BUFT.
At the end Mr. Muzaffar U. Siddique, Chairman, BUFT expressed his thanks to the participants for their
enthusiastic participation and valuable opinions. He also expressed his gratitude to UNIDO to have organized
this workshop on a very important subject Clustering through which country like Bangladesh can be benefitted.
26
Appendix 3 Technical Centres Assessment

An assessment of the industrial training services/products of the three centres supporting the development of
Garments, Knitwear and Textiles was undertaken. A questionnaire was given to the managers of each centre to
outline the key areas that they are operating and offering training/support to these industrial sectors.
iART/BKMEA; NITTRAD/BTMA; BUFT/CEPD.

NITTRAD
iART
CEPD/BUFT
Services

Consultancy in Productivity and Quality Career Development Centre
Short courses in Textiles
Enhancement
student placements and
One stop shop service
3 month course Industrial Engineering internships
(Consulting, advising, training and Manufacturing

and long term courses and
6 month course Apparel
International
research)
Merchandising
Competitions/Awards Co-
2 month course Strategic Production
ordination
Planning

2 week course Training for university Industrial training programmes
graduates (Industrial Engineer)
delivered by International
Various management courses for three
Experts/UNIDO
levels, workers, supervisors and

managers.
Research

Staffing/R We have a core team with
Has a core team managing the centre.
CEPD manager has been
esources
faculty members, Assistant
Industrial Engineers, Textile Engineers
recruited by the board of
Core
Technical Officers for specific and executives
Trustees
Team
and different departments
Have been recruited by written and viva
such as Yarn Manufacturing,
test
Two administration assistants
Fabric Manufacturing, Wet
Does have staff development plans in
also support the centre, plus
Processing and Apparel
place through TOT programmes, field
one designer
Manufacturing. The
visits
responsibility of a particular
Observing demonstrations class
team member is defined by
performance and considering factor
the service offered by the
experience
respective department.
No sharing of resources between other
centres
Team recruited and selected
through
newspapers/websites and
interviewed by Governing
Body of NITTRAD.
Staff Development is
encouraged.
Products
Offer three month courses

Price points 15000 BDT to
30,000

Close contact with
factories/collect
feedback

Marketing
Through newspapers, website,
prospectus and email
Own Face book Fan Page
Corporate membership of
Textile Institute, Full Length
Textile Laboratories
Managing Run as a non-profit
the
organisation
Offer 4 types of training per month

Charges depend on duration of the
course
12,000 BDT to 30,000 BDT
Collect feedback from trainees and
feedback from the factories about
training. According to feedback modify
the services on offer
Use newspaper, circulars, website.
Use posters, banner, booklet and
publications
Awareness raising seminars and
workshops
Have website and face book page
Different types of training is

delivered to the industry
This could short
courses/upskilling or for long
PT specialist training
No business plan in place. iART has a

standing committee and regular activity
The majority of the training has

been through international
Use webstie/blog to
communicate the training
services on offer
27
centres
Investment to make centre of

excellence
Six monthly reporting system
Links with University of
Bolton and Niederrhein
University
Follow guidelines for
University of Dhaka for
fulltime courses follow
market demand for short
courses
Collect feedback and monitor
quality to define future
planning
report are updated

Collaborate with GIZ, UNIDO, IGC and
IOM
Constantly reviewing services and
trying to keep up to date with global
industry trends.
experts from Niederrhein

University, London College of
Fashion, and other UNIDO
experts
The three centres are all offering professional training to the industry. They are all working closely with
the industry to inform content and market demand.
There are no business plans in place to inform objectives and strategy
Professional bodies do not accredit the training although NITTRAD was working with the Textile
Institute.
iART and NITTRAD are using local trainers to deliver their programmes, but he majority of the training
offered at CEPD was delivered by international experts. The reasons for this are that BUFT is now has
University status and is offering part time courses to students.
There is no sharing of resources, knowledge or ideas to benefit the apparel and textile companies.
The three centres would benefit from research and development projects that encouraged collaborative
thinking and management to drive innovation of new products.
28

2012 Oct DR Lynne Hammond

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SUPPORT TO BEST PROGRAMME

Technical report: Mission 3 of the LCF Experts

Based on the work of Dr Lynne Hammond

Project Manager: David Yuen-Hoi Lee

Chapter 1 Summary and introduction to BEST

Appendix 1 List of Powerpoints developed

Bangladesh Apparel and Textile Cluster

Chapter 1 Summary Explanatory Notes

130.34 TAKA (31st October 2012)

training and technical services to the

Develop a report on activities that have been

undertaken in different other countries for

3. Deliver cluster forums to build the

4. Explore these centers to provide

6. Write up report for Mission and conduct

Review and reflection on achievements and how

Workshop delivered and handouts distributed

Minutes of meetings and list of

Report submitted to Vienna

Meeting conducted and actions and

Chapter 2 - Introduction to the Mission 3

Outputs of the days in the UK 4 days

Technical Centres Assessment

Questionnaire for assessing iART/CEPD and NITTRAD

Research/Presentations for Cluster Workshop

Introduction to Clustering; Definitions, Concepts and Principles

Presentations for Cluster Forum

Chapter 3 - Consultancy activities conducted by the international

Saturday 13 October 2012

Sunday 14 October 2012 Cluster Workshops

Monday 15 October 2012 Cluster Workships

Tuesday 16 October 2012

Wednesday 17 October 2012 Cluster Forum

Thursday 18 October 2012

Friday 19 October 2012 Fly back to UK

Chapter 4 Recommendations and Actions from Mission 3

1.1 Cluster Definitions

1.5 Cluster Strategies for Success

2.1 Key challenges to the Apparel and Textile Industry

One workshops was conducted on Introduction to Clustering NITTRAD

4.1 Cluster Benefit Analysis and Mapping the BATC

From this workshop the Mapping Diagram was created:

Cluster Shared Value Analysis - Cluster Forum Wednesday 17 October - See

5.Recommended Actions and Ways forward

Cluster Pilot Projects

JS/MR and Shaheen

Overview of the Cluster Management Decision Making/Vision Management

BUFT Vice Chancellor/

Cluster Co-ordination Group (CCG)

Cluster Teams/Pilot Projects

BUFT Fashion Academic

5.3 Cluster marketing strategy Digital and F2F

Cluster Website/Cluster Brochure

Cluster Reading/Resource List

Handbook of Research on Cluster Theory

Handbook of Research on Innovation and Clusters:

Competition, Competitive Advantage, and Clusters:

Robert Huggins, Hiro Izushi

Clusters, Networks, and Innovation

Competitive Advantage of Nations

The competitive advantage of nations:

Competition in Global Industries