2.0 MARKETING OVERVIEW

2.1 POTENTIAL CUSTOMER:
 
The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products produced in Square Fashion Ltd. is Europe and U.S.A. Square Textiles does not direct sales in overseas market but sometimes India, Pakistan & other countries take their yarn.


2.2 SIZE & GROWTH OF MARKET:

The Company’s marketing operations continued its emphasis on export sales over the years as depicted below:

 

Year - 2006

Year - 2005

Year - 2004

(a) Quality sold (Kg)

 

 

 

  • Local sales

99,800

(0.7%)

527,903

(3.7%)

539,417

(3.9%)

  • Export Sales

14,554,342

(99.3%)

13,817,314

(96.3%)

13,129,599

(96.1%)

  • Total Sales

14,654,142

(100%)

14,345,217

(100%)

13,669,016

(100%)

 

 

 

 

(b) Sales Revenue  ( Taka )

 

 

 

  • Local Sales

9,455,588

(0.4%)

32,576,936

(1.8%)

46,956,494

(2.3%)

  • Export Sales

2,093,214,675

(99.6%)

1,756,441,450

(98.2%)

2,029,968,545

(97.7%)

  • Total Sales

2,102,670,263

(100%)

1,789,018,386

(100%)

2,076,925,039

(100%)

The above figures show that the export sales increased by 19% in 2006over the previous year with greater exposure to international market scenario and risk.

2.3 COMPETITOR ANALYSIS:

Only in few years back textile sector in Bangladesh was left behind but current scenarios is different.  In recent years a mentionable figure of money has been invested in this industry. Government is also encouraging this sector. Government is making some favorable policies and minimizing the regulations, so that this sector can be grown up.

Among the domestic companies Square is one of the leading one. The other potential competitors are Padma Textiles, Shamim Textile etc. Competition will be severe after 2005, that is, during the post multifiber agreement period. World market will be Quota free at that time. So Bangladesh will have to compete with countries like Srilanka, China, Pakistan, Vietnam etc.