Transforming a Bangladesh Apparel Company’s Market Share Loss into a 200% Revenue Growth: A Countertrade Success Story!
Here's What We Do Better
Background
Our client is a well-established apparel and textiles company based in Bangladesh, specializing in the production of garments for export to international markets. The company has a diverse range of products catering to a broad customer base, including casual wear, formal wear, and sportswear for men, women, and children. However, they were struggling with loss of market share due to increasing competition from other low-cost manufacturing countries.
Problem
The client approached us with the problem of a decreasing market share, which was negatively affecting their revenues and overall profitability. They were facing challenges in attracting new customers and retaining existing ones, as well as exploring new markets and expanding their global presence.
COUNTERTRADE SOLUTIONS
SOLUTION
As countertrade experts, we proposed a multi-faceted countertrade strategy to help the client overcome their challenges and achieve the desired results. Our strategy involved the following mechanisms:
Solution #1
Counter-Purchase: We facilitated counter-purchase agreements with several international buyers, allowing the client to sell their products in exchange for buying goods or services from those buyers.
Solution #2
Offsets (Direct and Indirect): We negotiated offset agreements with suppliers in various countries, enabling the client to invest in the local economy and create jobs in exchange for purchasing their products.
Solution #3
Joint Ventures (JVs): We helped the client establish joint ventures with foreign companies to expand their product offerings and increase their market presence.
Solution #4
Co-production: We facilitated co-production agreements with other apparel and textile manufacturers, enabling the client to share technology and expertise to improve their competitiveness.
Solution #5
Bilateral Trade Protocols: We negotiated bilateral trade protocols with target countries to secure preferential treatment for the client’s products, reducing tariffs and other trade barriers.
Implementation
Our team worked closely with the client to implement the proposed countertrade mechanisms. This involved:
-
Identifying potential buyers and suppliers for counter-purchase and offset agreements.
-
Negotiating and drafting agreements with the selected buyers and suppliers.
-
Assisting the client in setting up joint ventures and co-production arrangements.
-
Providing ongoing support and guidance throughout the implementation process.
Result
RESULT
As a result of our countertrade strategy, the client experienced:
-
A 200% increase in revenue within 12 months.
-
A 35% increase in market share.
-
Expansion into 15 new countries, with a strong presence in their target markets.
-
A 50% reduction in production costs through co-production and joint venture agreements.
-
Enhanced brand reputation and stronger competitive advantage.
CONCLUSION
Through the implementation of multiple countertrade mechanisms, our client successfully transformed their loss of market share into increased revenue, profitability, and global presence. The success of this strategy has led to long-term sustainability, greater customer loyalty, and a stronger financial performance. Our expertise in countertrade allowed the client to navigate the challenges of the global apparel and textile industry and achieve their desired results.
What YOU CAN DO TO
ACHIEVE SIMILAR RESULTS
For organizations grappling with challenges similar to those faced by our client and seeking to accomplish analogous success in their businesses, consider taking the following steps:
-
Collaborate with a countertrade consultant and expert: Engaging the services of an experienced countertrade professional is crucial in providing valuable guidance, support, and tailored solutions that address your unique challenges and goals.
-
Analyze your current situation and potential markets: Perform a thorough evaluation of your organization’s existing challenges, strengths, and objectives to identify potential markets and partners that align with your growth strategy.
-
Develop and execute a tailored countertrade strategy: Select and implement the most suitable countertrade mechanisms, such as counter-purchases, offsets, joint ventures, co-production, or bilateral trade protocols, to tackle your specific challenges and help achieve your desired outcomes.
-
Continuously monitor and adjust your strategy: Establish a process to track the progress and performance of your countertrade agreements and partnerships, making necessary adjustments to ensure ongoing success and growth.
HOW WE CAN HELP YOU
ACHIEVE SIMILAR RESULTS
By partnering with our team of countertrade experts, you can expect the following benefits:
-
Customized countertrade strategy development: We will work closely with you to create a tailored countertrade strategy that addresses your organization’s unique challenges and goals, maximizing impact and results.
-
Comprehensive support throughout the implementation process: Our team will provide end-to-end support, from identifying potential partners and negotiating agreements to monitoring progress and providing ongoing guidance.
-
Access to a global network of resources and contacts: As a leading countertrade consultancy, we have an extensive network of industry professionals and resources worldwide, enabling us to connect you with the right partners and suppliers to help you achieve your objectives.
-
Ongoing monitoring and optimization: We will consistently evaluate the performance of your countertrade agreements and partnerships, making necessary adjustments to ensure long-term success and growth.
CASE STUDY SUMMARY
This case study showcases how our expert countertrade strategies enabled a struggling Bangladesh apparel company to transform their loss of market share into a 200% revenue growth and a 35% increase in market share. By implementing various countertrade mechanisms such as counter-purchases, offsets, joint ventures, co-production, and bilateral trade protocols, the client was able to overcome their challenges and achieve significant growth. Our expertise and customized approach allowed the client to secure long-term sustainability, increased customer loyalty, and a stronger financial performance in the competitive global apparel and textile industry.