AWARENESS REGARDING SUSTAINABLE MARKETING AND ITS IMPLICATIONS: A STUDY ON RMG SECTOR IN BANGLADESH

Salma Honey ¹

¹ Assistant Professor, Department of Business Administration, Royal University of Dhaka, Bangladesh. E-mail: honey.salma@royal.edu.bd

ABSTRACT

Keywords: Awareness; Sustainable; Marketing; Implication; RMG;

The business world is changing ordinary by the effect of innovative, natural and social changes. These progressions impact the business procedures and influence the acts of the makers. For meeting these changes, producers must concern in regards to maintainable issues and give their focus on these. As of late, Bangladeshi RMG (Ready Made Garments) makers give their worry with respect to manageable issues and need to develop their mindfulness on reasonable promoting rehearses. The present examination is an endeavor to analyze the general comprehension in regards to the consciousness of the sustainable marketing in RMG division in Bangladesh and need to build up its suggestion in their business operations. Ready-made sector are the most fare acquiring and potential division in BD. The purpose of this study is to identify the present scenarios regarding the awareness of sustainable marketing practices in BD and its implications in this regard. The findings of the study are based on both primary and secondary data. The primary data was collected from 50 garments industries from both Dhaka and Gazipur districts. The samples were collected according to the convenience of the researcher. The data were analyzed using some qualitative tools of statistical data analysis. Finally, the study will suggest some guidelines which will be beneficial to our Bangladeshi manufacturers for building the awareness regarding sustainable marketing practices, which are the most emerging issues in the global context. Publisher All rights reserved.

INTRODUCTION

Ready – Made Garments (RMG) businesses in Bangladesh are essential segment in respects of fare winning and financial advancement. Over 80% of aggregate fare has been earned from this billion-dollar industry in Bangladesh in the course of the most recent couple of years (Export Promotion Bureau, 2017-18). Bangladesh is the second biggest RMG sending out nation on the planet and has the upper hands contrasted with its rivals (Berg et al., 2011). There are in excess of 4 million workforces are occupied with in excess of 5000 manufacturing plants (BGMEA, 2017a; BGMEA, 2017b; BKMEA, 2017; Department of Inspection for processing plants and Establishments, 2017). These production lines are differed in size, encounters and business tasks. For these organizations reception of reasonable promoting rehearses is an essential need. By concentrating on better advertising practices, the associations can play out their exercises increasingly powerful and productively.

A noteworthy drive of our nation's amazing economy development is its RMG division which wins its notoriety for being a worldwide brand by its minimal effort work and high caliber of assembling limit. Alternate contenders, for example, China, Vietnam, Cambodia and Myanmar confronted high work cost and limits limitations. So Bangladeshi pieces of clothing businesses will confront a test of accomplish The 50 billion USD by 2021. This examination attempts to center the issues that are important for enhancing the consciousness of the producers in regards to sustainable marketing and its suggestion towards their practices and need to make a course which will be useful for the future specialist for further research and investigation.

OBJECTIVES OF THE STUDY

This study has set a few questions for analysis and the result will be the findings of the study. These questions are divided into one broad question and one specific question.

Broad question: How much manufacturers are aware regarding sustainable marketing practices in RMG sectors?

Specific questions: What are the implications of this awareness in RMG sectors?

LITERATURE REVIEW

By and large terms, sustainability marketing includes constructing and keeping up economical associations with clients, the social condition and the common habitat (Belz 2006).Sustainable showcasing is another example of concentrate in RMG part of Bangladesh. As indicated by Ovi (2014), Bangladesh's readymade article of clothing (RMG) part has ventured into making processing plants eco-accommodating as interest for green items has been on the ascent from the worldwide purchasers. To actualize sustainable practices, a few makers have so far presented green manufacturing plants decreasing hurtful discharges, enhancing vitality productivity, reusing results and better waste administration. Syed (2016) contended that Bangladesh has the potential for accomplishing higher offer from the worldwide market which will cross the $ 2 trillion check by 2025 from the present estimation of $1.1 trillion. He likewise contended that notwithstanding tending to specialist security issues, the RMG area ought to set itself up to address the natural outcomes of a quickly growing the business.

For advancing ecologically neighborly advancements and spurring, a few business visionaries embrace vitality and proficient creation innovation. One of the activities of this development is Bangladesh Garment Manufacturers and Exporters Association (BGMEA) who in organization with GIZ Bangladesh started another program in 2014, Towards Resource Efficient and Environmental Sustainability (TREES). The program fundamentally utilizes a bunch based methodology for enhancing natural execution of non-wet preparing individuals from BGMEA, and later it will stretch out its exercises to wet-handling businesses (Syed, 2016).

As indicated by Professor Nurul Amin (2015), there is no uncertainty about the new chances of RMG development filled by ongoing expanding rate of processing plant terminations in the article of clothing industry of China. The two key explanations behind some manufacturing plant terminations in China are increment of work wages and better creation process creating high efficiency with fewer requirements for work hours. Be that as it may, so as to accept this new open door of near preferred standpoint of lower work costs than in China or Vietnam, the RMG division must take an altogether different technique than it has been improving the situation the most recent three decades. This new key methodology can be named as RMG Version II. The key explanations behind critical difference in current procedure are: the quick increment of worldwide rivalry with increasing current standards of value and form plan of clothing items; institutionalization of word related wellbeing and fire code at worldwide scale; reasonableness of work wages and working environment security standard; rights for unionization for aggregate haggling; and significant move in physical foundation in plants and inventory network.

Syed (2016) argued that the major motivation for the factories to adopt more environmentally friendly practices and policies has been create a global market niche for meeting higher environmental standards. For adopting these policies, the major challenge is incurring extra costs for fulfilling environmental issues. So, the top of the executives have to concern regarding going green otherwise this would not implement at all.

METHODOLOGY

This study is conducted mainly by the analysis of primary data. For gathering the preliminary knowledge regarding the subject matter, some information is collected from secondary data. A range of information sources such as research reports, journals, local and international organizations and company’s published green procurement regulations were searched for analyzing the subject matter and develop the literature review. The primary data was collected by a questionnaire. All over the country’s garments factories was not focused in this study, only the factories of Dhaka and Gazipur cities were targeted as a sample frame. Due to time limitation, 50 companies were selected as a sample. Here, a combination of convenience sampling and snowball approaches were used for collecting samples. This implies that the samples of this study were selected according to the conveniences and ease of access to the managers. Also, a string of references were used to collect the samples and peruse them for interview and discussion. The data were analyzed using descriptive statistics and presented in the form of percentages and bar charts, pie charts generated using Microsoft Excel and build a relationship regarding the awareness of sustainable marketing and practices on their business activities based on this awareness.

RESULT

Awareness regarding Sustainable Marketing Practices in RMG industries

In this study, 50 RMG companies are selected as a sample for evaluating their marketing activities and want to develop a general understanding regarding these issues. For evaluating this issue, the study was use a predetermined questionnaire. The collected data from the questionnaire and data from other sources are analyzed for evaluations. The analyses of these studies are shown here:

Awareness regarding Sustainable marketing
	Observed N	Expected N	Residual
Highly aware	15	16.7	-1.7
Moderately aware	32	16.7	15.3
Somewhat aware	3	16.7	-13.7
Total	50

Table 1.1: Awareness regarding Sustainable Marketing

Overall Correlations Table

		Awareness about Sustainable marketing	Initiative to reduce energy consumption	Implementation of waste management system	Use of Renewable energy	Type of Renewable energy	Initiative to Reduce water usage	Use of sustainable raw materials	Use of recyclable products materials	Use of harmful chemicals	Use of harmful packaging
Awareness about Sustainable marketing	Pearson Correlation	1	.655^**	.454^**	.655^**	.655^**	.673^**	.062	.062	.^b	.513^**
	Sig. (2-tailed)		.000	.001	.000	.000	.000	.667	.667		.000
	N	50	50	50	50	50	50	50	50	50	50
Initiative to reduce energy consumption	Pearson Correlation	.655^**	1	.721^**	1.000^**	1.000^**	.961^**	-.143	-.143	.^b	.689^**
	Sig. (2-tailed)	.000		.000	0.000	0.000	.000	.322	.322		.000
	N	50	50	50	50	50	50	50	50	50	50
Implementation of waste management system	Pearson Correlation	.454^**	.721^**	1	.721^**	.721^**	.760^**	.137	.137	.^b	.642^**
	Sig. (2-tailed)	.001	.000		.000	.000	.000	.342	.342		.000
	N	50	50	50	50	50	50	50	50	50	50
Use of Renewable energy	Pearson Correlation	.655^**	1.000^**	.721^**	1	1.000^**	.961^**	-.143	-.143	.^b	.689^**
	Sig. (2-tailed)	.000	0.000	.000		0.000	.000	.322	.322		.000
	N	50	50	50	50	50	50	50	50	50	50
Type of Renewable energy	Pearson Correlation	.655^**	1.000^**	.721^**	1.000^**	1	.961^**	-.143	-.143	.^b	.689^**
	Sig. (2-tailed)	.000	0.000	.000	0.000		.000	.322	.322		.000
	N	50	50	50	50	50	50	50	50	50	50
Initiative to Reduce water usage	Pearson Correlation	.673^**	.961^**	.760^**	.961^**	.961^**	1	.137	.137	.^b	.642^**
	Sig. (2-tailed)	.000	.000	.000	.000	.000		.342	.342		.000
	N	50	50	50	50	50	50	50	50	50	50
Use of sustainable raw materials	Pearson Correlation	.062	-.143	.137	-.143	-.143	.137	1	1.000^**	.^b	-.168
	Sig. (2-tailed)	.667	.322	.342	.322	.322	.342		0.000		.244
	N	50	50	50	50	50	50	50	50	50	50
Use of recyclable products materials	Pearson Correlation	.062	-.143	.137	-.143	-.143	.137	1.000^**	1	.^b	-.168
	Sig. (2-tailed)	.667	.322	.342	.322	.322	.342	0.000			.244
	N	50	50	50	50	50	50	50	50	50	50
Use of harmful chemicals	Pearson Correlation	.^b	.^b	.^b	.^b	.^b	.^b	.^b	.^b	.^b	.^b
	Sig. (2-tailed)
	N	50	50	50	50	50	50	50	50	50	50
Use of harmful packaging	Pearson Correlation	.513^**	.689^**	.642^**	.689^**	.689^**	.642^**	-.168	-.168	.^b	1
	Sig. (2-tailed)	.000	.000	.000	.000	.000	.000	.244	.244
	N	50	50	50	50	50	50	50	50	50	50
**. Correlation is significant at the 0.01 level (2-tailed).
b. Cannot be computed because at least one of the variables is constant.

Table 1.2: Overall Correlations Table

For analyzing the broad question, this study highlights how many organizations are fully aware regarding sustainable marketing practices of RMG industries and what types of activities are performed by these organizations in terms of sustainability. The issues that are covered by this study are: use of recycling water, use of renewable energy, use of harmful materials, and the elements of marketing mix i.e., product, price, place and promotion. By the analyzing of table 1.1, this study highlight that 15 companies out of 50 companies are highly aware regarding sustainable marketing and 32 companies out of 50 companies are moderately aware regarding this concept and only 3 companies are somewhat aware regarding this. This study also highlights that the organizations that are highly aware and moderately aware are mainly practicing sustainable marketing practices and there had a positive correlations among the variables that are highlighting in this study.

DISCUSSION

This study also highlight that, there are a positive correlations among the variables (table 1.2). From the analysis, the respondent claimed that they followed sustainable manufacturing and marketing practices if they are properly aware regarding sustainable marketing concept and its principles. For breaking down the specific goal, this examination investigates a few articles and research papers and different archives which are accessible from web for finding the issue with respect to the need of mindfulness in regards to reasonable advertising. The RMG division of Bangladesh and material industry has an objective of expanding RMG fare to 50 billion USD by 2021 set by Bangladesh Garments Manufacturing and Exporters Association (BGMEA) and the administration in 2014, which appeared to be possible when the objective was set. Be that as it may, presently it seems to be that, this objective is by all accounts hard to accomplish. In financial year 2016-17, the attire send out was 28.15 billion USD which is just 0.2 percent expansion from the development rate of earlier year. Accordingly, the pioneers of Bangladeshi material and proprietors are constantly talking about, considering and endeavoring to discover the conceivable way out over the issue and need to make fruitful of their vision 2021. As the material area is our development motor for our industry and lately, it is giving 28 billion USD fares to our economy however the producers and proprietors need to take it to 50 billion USD. For this accomplishment, at the present time the RMG producers must be concern manageable advertising issues and pursue these practices for meeting their future target.

For practicing sustainable marketing, the manufacturers of RMG sector must follow some measures that help them for successful achievement of their goals. These measures are given below:

Ø Keeping up the job of advancement, following green innovation, proficient utilization of water and recourses and keep up economical business rehearses.

Ø Produces and Government should assume a positive job in guaranteeing straightforwardness and viability in the territories of work environment wellbeing and working states of RMG divisions.

Ø Following reasonable exchange and speculation participation for keeping up specialists’ rights and security issues which develop our pictures in universal markets.

Ø Investigating fitting plan of action and effective assignment of assets which help the makers for executing great working condition, fire and building wellbeing challenges.

Ø Investigating dependable and economical sourcing which help Bangladeshi providers for recognizing and evaluating danger and make production network process increasingly straightforward and deal with the accepted dangers.

Ø Upgrading the business association with the global advancement accomplices for keeping up feasible exchange relations to enhance the present structure of reasonable wage approaches, specialists benefits, keep up word related wellbeing, wellbeing and protection issues and the issues employer stability and legitimate preparing to the pieces of clothing laborers.

CONCLUSION

The ready garments sector is the life blood of our Bangladeshi economy as greater part send out gaining originates from this segment. Without building up their awareness about supportable marketing, it is unthinkable for the producers to achieve its objective. For confronting the worldwide rivalry in these rising economy and actualizing the aggressive business technique, government approach producer, processing plant proprietors of RMG, representative exchange associations and global accomplices have being giving working capital, laborers security, fire wellbeing, foundation advancement, and vitality effectiveness. For sustainable development of RMG area, the universal associations, for example, IFC (International Finance Corporation), the ILO, the Alliance and the ACCORD, BGMEA, BKMEA, Govt. also, different speculators ought to give their profitable help and help this part to push ahead the correct way.

This examination just speak to an endeavor to explore the subject of reasonable promoting mindfulness in RMG area and its need and further research is require for social event more top to bottom audit. This investigation gave a predefined articulation with respect to the topic and further examinations may break down the viability of the activities that are recommended in this examination. Further research may be led in regards to the activities of these mindfulness improvement exercises and the methodologies of RMG areas. The heading and consequence of this investigation may be useful for the directors of RMG for their examination and usage their business procedures that may prompt sustainability.

ACKNOWLEDGEMENT

This study has been conducted under the guidance, continuous support and valuable suggestions of many expertises. So, I would like to express my heartfelt gratitude and respect to all the experts who directly and indirectly have contributed their support to this work. I find my words inadequate to express my heartfelt gratitude to my family members and my respected colleagues for their helpful support and continuous encouragement in each step of this work. At last but not the least I am grateful to all my participants who were very kind enough to spend their valuable time in providing data for this study.

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