[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Source : https://www.linkedin.com/pulse/bangladesh-textile-industry-overview-thetextilenetwork

Bangladesh Textile Industry An Overview

The Bangladesh Textile Industry is a dynamic and rapidly growing sector with a rich history of textile production. With over 80% of its total exports attributed to the industry, it is no surprise that Bangladesh has become a significant player in the global textile market.

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Bangladesh Textile Industry An Overview​

Published May 11, 2023

The Bangladesh Textile Industry is a dynamic and rapidly growing sector with a rich history of textile production. With over 80% of its total exports attributed to the industry, it is no surprise that Bangladesh has become a significant player in the global textile market.

This article will take a comprehensive look at the Bangladesh Textile Industry and explore its strengths, challenges, and prospects. From the diverse range of products it offers to the skilled labor force and supportive government policies, we will delve into the details of what makes the Bangladesh Textile Industry unique and successful.

Whether you are an industry professional, a curious observer, or just looking for information on the topic, this article will provide an in-depth overview of the Bangladesh Textile Industry. Let’s learn more about Bangladesh’s Textile Industry.

Bangladesh’s Global Chain and Garment Industry​

Bangladesh’s garment sector significantly contributes to its economy, accounting for over 80% of its total exports. The country has become a hub for global fashion brands’ low-cost, labor-intensive garment production due to its cheap labor costs, duty-free access to major markets, and growing pool of skilled workers.

In recent years, Bangladesh has faced challenges in maintaining its competitiveness in the global garment market. The rise of new low-cost production centers, such as Vietnam and Cambodia, has pressured Bangladesh to improve its working conditions, wages, and efficiency.

Despite these challenges, Bangladesh’s garment sector continues to grow and remains an essential part of the global supply chain. Many multinational corporations have established a presence in Bangladesh to take advantage of its low labor costs and proximity to major markets. These companies have invested in improving working conditions and environmental standards in their Bangladesh-based operations, helping to raise the country’s garment industry profile.

However, the Bangladesh garment sector has challenges. The Rana Plaza disaster of 2013, in which over 1,100 garment workers died, highlighted the need for better working conditions and safety standards in the industry. In response, many international organizations and brands have introduced initiatives to improve working conditions and raise standards in the industry, such as the Accord on Fire and Building Safety in Bangladesh.

Bangladesh’s garment sector is a critical component of the global fashion supply chain, providing low-cost labor to multinational corporations while facing challenges related to working conditions and competitiveness. Nevertheless, the industry continues to grow and evolve, with international corporations and organizations working to improve standards and ensure workers’ well-being.

Bangladesh Textile Manufacturing Market Analysis​

The Bangladesh Textile Industry is a crucial component of the country’s economy, generating over 80% of its total exports and employing millions of workers. The industry is well known for producing a wide range of textiles, including cotton and synthetic fabrics, readymade garments, and home textiles. An extensive overview of the Bangladesh Textile Manufacturing Market is provided below:

Market Size and Growth: ​

In recent years, the Bangladesh Textile Industry has experienced substantial growth, estimated at $40 billion in 2021. The industry has grown at around 10% per year, driven by increasing demand for Bangladesh’s textiles in domestic and international markets.

Skilled Labor Force: ​

Bangladesh has a large pool of skilled and unskilled workers who play a vital role in the country’s textile industry. The government has significantly invested in vocational training and education, ensuring the industry has access to a well-trained workforce.

Government Support:​

Bangladesh’s government has supported the textile industry, implementing favorable trade policies and providing incentives for investment. The Bangladesh Investment Development Authority (BIDA) has been instrumental in attracting foreign investment to the sector.

Product Range: ​

Bangladesh is well known for producing a wide range of textiles, including cotton and synthetic fabrics, readymade garments, and home textiles. The country has a strong tradition of textile production, with a rich history that dates back several centuries.

Challenges: ​

Despite its growth and success, the Bangladesh Textile Industry faces several challenges, including power outages, inadequate infrastructure, and low productivity. The industry is also subject to intense competition from other textile-producing countries, and manufacturers must continuously innovate to remain competitive.

Future Prospects: ​

Despite the challenges, the future of the Bangladesh Textile Industry looks bright, with the government and industry leaders investing in modernizing the sector. The country’s favorable location and well-developed transportation network make it an attractive destination for investment. Additionally, the increasing demand for sustainable and ethical clothing is expected to drive further growth in the industry.

The Bangladesh Textile Industry is a dynamic and rapidly growing sector that plays a vital role in the country’s economy. With a well-trained workforce, supportive government policies, and a diverse range of products, The sector is in a strong position to experience more success and expansion in the years to come.the industry.

Bangladesh Textile Manufacturing Market Competitor Analysis​

Bangladesh’s textile manufacturing market faces competition from other low-cost production centers, such as China, Vietnam, and Cambodia. The competitiveness of the Bangladesh market is affected by several factors, including labor costs, infrastructure, and production efficiency.

Bangladesh has an advantage over other nations in the region regarding labor expenses because of its low wages. However, there have been efforts in recent years to increase the minimum wage for workers, which could affect the country’s competitiveness in the future. Additionally, Bangladesh’s infrastructure is still developing, with some challenges related to transportation, power supply, and port facilities.

Despite these challenges, Bangladesh has several strengths that help it compete in the global textile market. For example, the country has a large pool of skilled workers and a growing middle class, which provides an increasing demand for the domestic consumption of textiles. Additionally, Bangladesh has favorable duty-free access to major markets, such as the European Union, which helps to reduce the cost of exports and increase competitiveness.

Bangladesh’s textile manufacturing market faces competition from other low-cost production centers but has several strengths that help it maintain its competitiveness. To continue to grow and succeed in the global market, Bangladesh will need to focus on improving its infrastructure and efficiency while also addressing challenges related to labor costs and working conditions.

The top 5 competitors of Bangladesh’s textile manufacturing market are:​

1. China
2. India
3. Vietnam
4. Cambodia
5. Turkey

These countries are competing with Bangladesh in terms of low labor costs, favorable trade agreements, and access to global markets. They also offer similar advantages regarding skilled labor and a growing domestic market.

The top players in Bangladesh’s textile manufacturing market are:​

1. Grameen Knitwear
2. BEXIMCO
3. Ananta Group
4. Ha-Meem Group
5. Square Textiles

These companies are among the largest and most influential players in the Bangladesh textile manufacturing market, with a significant domestic and growing international presence. They have established a reputation for quality and reliability and have invested in improving working conditions, environmental standards, and production efficiency.

Along with raising Bangladesh’s textile industry’s image and establishing the country as a significant player in the global supply chain, these businesses have formed alliances with key international fashion brands.

 

[Bilal9]

Automation technology is rampant at DTG exhibition happening in Dhaka​

Exhibition of automation and eco-friendly machinery in garment industry is going on at Bashundhara International Convention City. Thousands of organizations from 32 countries participated in it. Those related to the sector say that in order to maintain the international position, it is necessary to move towards the use of environment-friendly technology.

 

[Bilal9]

Indian ministry claims Tangail saree originated in West Bengal, sparking outrage among netizens​

Hand-woven Tangail Sarees. Photo: Collected

India's Ministry of Culture has claimed that the 'Tangail saree' originated in West Bengal, sparking outrage from netizens as the traditional tant saree is widely considered to have originated from Bangladesh's Tangail district.

"The Tangail saree, originating from West Bengal, is a traditional handwoven masterpiece. Renowned for its fine texture, vibrant colours, and intricate Jamdani motifs, it epitomises the region's rich cultural heritage," the ministry wrote in a post on Facebook on Thursday (1 February).
"Each Tangail saree is a testament to skilled craftsmanship, seamlessly weaving together tradition and elegance," it added.

The India's ministry's Facebook post on Friday stoked outrage among Bangladeshi netizens.

Some of them commented on the post that the fact that the word 'Tangail' itself originates from the name of the Tangail district of Bangladesh.

Some others commented that the Indian ministry might have got the saree's name wrong.

The Indian ministry's facebook post comes weeks after West Bengal Chief Minister Mamata Banerjee, in an X post, wrote,"Three handloom saree items of West Bengal, namely Tangail of Nadia and Purba Bardhaman, and Korial & Garad of Murshidabad and Birbhum, have been registered and recognized as GI products."

"I congratulate the artisans for their skills and achievements. We are proud of them. Our congratulations to them!!" she added.

Gazi Md Rezaul Karim, member (O&M) of the Bangladesh Handloom Board, told The Business Standard that Tangail saree is a Bangladeshi product. Claiming it originated in West Bengal is false.

However, he could not confirm if the board is aware of India's claim or the GI tag for the Tangail saree.

He added that there is an option to object against India's GI tag for the saree.

Bangladesh Handloom Board Chairman Md Mahmud Hossain and Md Ayub Ali, planning and implementation chief of the board, could not be reached over the phone for a comment on the matter.

The Tangail saree has a rich tradition and history, representing one of the oldest cottage industries in Bangladesh. Its weaving heritage can be traced back to the British period, with significant expansion occurring in the late nineteenth century.

Multiple communities in Bangladesh participate in the production of Tangail sarees, with the Basak community of Pathrail in Tangail being the oldest.

A large number of handloom artisans migrated from Bangladesh to India during the partition and the 1971 Liberation War. They settled in West Bengal, where they popularised this specific type of saree.


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Tangail citizens, businessmen protest India acquiring GI for Tangail saree​

Local businessmen and citizens of Tangail formed a human chain in the district today to protest against India's acquisition of Geographical Indication (GI) for Tangail saree. Photo: TBS

Citizens and businessmen of Tangail organised various programmes today, demanding that the Geographical Indication (GI) of Tangail saree be recognised as a Bangladeshi product instead of an Indian one.

During a human chain event in the district today, the speakers said the Tangail saree has a rich tradition and history, representing one of the oldest cottage industries in Bangladesh.

Raghunath Basak, president of the Tangail Saree Traders Association, said, "Tangail Saree is related to the Tangail region. If someone claims the Tangail saree as their own and manages to obtain the GI tag, it is disheartening for us."

Tangail Deputy Commissioner Kaisarul Islam said the application process has already started for the GI for Tangail saree, pineapple from Madhupur, and sandesh from Jamurki to be recognised as Bangladeshi products.

"A history of 50 years is required to submit for the GI recognition of a product. Tangail's woven sari is 250 years old. We are optimistic that we will receive recognition for this GI product," added the DC.

India's foreign ministry posted on Facebook on Thursday (1 February), stating, "The Tangail saree, originating from West Bengal, is a traditional handwoven masterpiece. Renowned for its fine texture, vibrant colours, and intricate Jamdani motifs, it epitomises the region's rich cultural heritage."

This post on India's ministry's Facebook page on Friday sparked outrage among Bangladeshi netizens.

The weaving heritage of the Tangail saree can be traced back to the British period, with significant expansion occurring in the late nineteenth century.

Multiple communities in Bangladesh participate in the production of Tangail sarees, with the Basak community of Pathrail in Tangail being the oldest.

A large number of handloom artisans migrated from Bangladesh to India during the partition and the 1971 Liberation War. They settled in West Bengal, where they popularised this specific type of saree.

 

[Bilal9]

Bangladesh mulls protest against India’s GI recognition of Tangail saree​

The government calls an emergency meeting after India’s claim that the product originates from West Bengal​

Senior Correspondentbdnews24.com
Published : 3 Feb 2024, 12:28 PM
Updated : 3 Feb 2024, 12:28 PM

Amid demonstrations against the Geographical Indication recognition of Tangail saree as an India-origin product, the Department of Patents, Designs and Trademarks has called a meeting to discuss the issue.

Besides setting a course of action, the meeting on Sunday will consider lodging a protest against India’s claim, the department’s Assistant Director Md Belal Hossain said on Saturday.

"Tangail is not a part of India, nor does the Tangail saree belong to India," he said.

The department’s Director (Trademarks) Md Zillur Rahman said they could not respond earlier because Friday was the weekend.

“But we’ve called an emergency meeting now. We’ll inform the director general and the secretary after taking necessary steps,” he said.

The controversy ignited when the Indian Ministry of Culture, in a Facebook post on Thursday, asserted that the Tangail saree originated from West Bengal, a claim that contradicts the saree's deep-rooted association with Bangladesh.

This assertion came after Nadia, a district in West Bengal, was awarded the GI tag a month earlier for this textile, traditionally known for its distinctive weave and design, attributed to Bangladesh.

The World Intellectual Property Organization defines Geographical Indications as markers on goods indicating a specific geographical origin, signifying qualities, reputation, or characteristics inherent to that locale.

A group of citizens on Saturday demonstrated in Tangail against the Geographical Indication tag of handloom sarees native to this central region of Bangladesh, but claimed by India.

The demonstrators wielding placards demanded urgent government intervention to secure the GI status for Tangail sarees, a matter of national cultural heritage.

 

[Saif]

What else can be expected from cheap and shameless Indians. Tangail saree has originated from Tangail of Bangladesh not West Bengal of India.

 

[Bilal9]

What else can be expected from cheap and shameless Indians. Tangail saree has originated from Tangail of Bangladesh not West Bengal of India.

To be fair - it was a limited number of people in their govt. who took this shameless step. But I guess any shameless step to score a point, before it's inevitably lost.
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Immediate action to be taken to get Tangail saree GI in Bangladesh: Textile minister​

File photo of Jahangir Kabir Nanak. Photo: Collected

Urgent and effective measures will be taken to get the patent – the Geographical Indication (GI) – of Tangail saree in Bangladesh, Textiles and Jute Minister Jahangir Kabir Nanak said today (4 February).

"We have urgently met with all concerned in the ministry and instructions have been given," the minister told reporters after visiting the Jute Directorate in the capital's Motijheel.

Earlier on 2 February, India's Ministry of Culture claimed that the Tangail saree originated in West Bengal, sparking outrage from netizens as the traditional saree is widely considered to have originated from Bangladesh's Tangail district.

"The Tangail saree, originating from West Bengal, is a traditional handwoven masterpiece. Renowned for its fine texture, vibrant colours, and intricate Jamdani motifs, it epitomises the region's rich cultural heritage," the ministry wrote in a post on Facebook on Thursday (1 February).

Later, on 3 February, citizens and businessmen of Tangail organised various programmes demanding that the Geographical Indication (GI) of Tangail saree be recognised as a Bangladeshi product instead of an Indian one.



Tangail citizens, businessmen protest India acquiring GI for Tangail saree

At the event today, the minister directed officials concerned to take effective measures to stop using middlemen for ensuring reasonable raw jute prices to farmers.

Noting that the use of jute bags is mandatory for 19 products as per the Mandatory Jute Packaging Act, 2010, the minister said, "If someone uses plastic for these products, then strict legal actions will be taken.

"Although the campaign is ongoing throughout the country, a special campaign has to be conducted in the current context."

Jahangir, also an Awami League presidium member, said the production of jute has increased manifold in recent years due to proper supply of seeds to ensure jute cultivation besides providing other inputs to the farmers.

"In order to ensure the supply of raw jute required in the country and to speed up the export of jute and jute products, the market price of jute is always being monitored… which is playing an important role in export earnings," he said.

He further said the government's consistent and timely support continues to enrich and modernise the jute sector of Bangladesh.

"At present, policy support is being provided to the jute sector stakeholders besides providing cash assistance to the export of versatile jute products.

"In the current era of sustainable development, there has been a huge demand for eco-friendly jute and jute products worldwide. Everyone must work together to increase the export of eco-friendly jute products." he said.

Secretary of the textile and jute ministry Abdur Rauf, Director General of the Jute Directorate Selina Hossain and other senior officials were present on the occasion among others.

 

[Saif]

When has Nanak become so brave to go against Indian interest?😛

 

[Saif]

Ten biggest textile mills of Bangladesh.

 

[Saif]

How Bangladesh Became a Global Textile Hub

 

[Saif]

10 Key Statistics on Bangladesh's Growing Textile and Clothing

In this article, we will discuss about 10 key statistics that support Bangladesh textile and garment industry is forecasted to continue growing.

www.worldfashionexchange.com

The Rise of Bangladesh’s Textile and Garment Industry: 10 Key Statistics​

June 2, 2023.4 mins read

Introduction​

Bangladesh’s textile and garment industry is a major contributor to the country’s economy, and it is a vital player in the global textile and apparel market. In the fiscal year 2021-2022, Bangladesh exported garments worth US $42.613 billion, making it the second-largest apparel exporter in the world (Export Promotion Bureau data).

In addition, the garment industry is also a significant source of employment and income for Bangladesh, with more than 4 million people (about twice the population of New Mexico) working in the sector.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that in the first eight months of 2022, BD ready-made garment (RMG) exports totaled $29.825 billion, up by 38.39% compared to the same period in the previous year.

The United States is the largest export destination for Bangladeshi garments, accounting for around 21.50% of total exports. The European Union (namely Spain, Germany, Italy, France, Belgium and Netherlands) is the second-largest export destination for BD apparel, followed by UK and Canada.

Here are 10 key statistics about Bangladesh's garment industry:

1. In 2021-2022, Bangladesh RMG exports reached $42.613 billion.

1. RMG exports saw a 35.47% year-on-year growth in the fiscal year of 2021-22.

1. Bangladesh is the second-largest cotton yarn exporter worldwide.

1. Knitwear is the largest export contributor at 41.8% in Bangladesh’s national export earnings.

1. Bangladesh is the world’s fifth-largest exporter of home textiles crossing $1 billion in 2020-21.

1. Bangladesh’s textile and garment industry employs around 4.4 million people, mostly women.

1. In 2021, Bangladesh’s textile and garment industry attracted $3.5 billion in foreign direct investment

1. Bangladesh’s garment exports to India surged 69.58% to $715.41 million in 2021-2022.

1. BD garment manufacturers aim to hit $100 billion in export earnings by 2030 (BGMEA).

1. DTG is the largest garment machinery, home textile and accessories expo in Bangladesh.​

Conclusion​

Bangladesh’s textile and garment industry is forecasted to continue growing, and it is expected to account for more than 10% of the global market by 2025, according to BGMEA. The industry is also set to benefit from the ongoing shift in global sourcing patterns as more and more countries look to diversify their supply chains.

As per Sri Lankan financial services firm CAL Bangladesh, Bangladesh’s apparel sector will see a short-term dip in 2023 but a strong rebound is expected in 2024 which will help the sector’s exports reach US $56 billion by 2026.

 

[Saif]

https://www.ids.trade/files/actif_report_on_bangladesh_textile_and_garment_industry.pdf

Report on Bangladesh Textile and Garment Industry

 

[Bilal9]

 

[Saif]

Bangladesh’s Garment Industry: Future growth in a changing world

Bangladesh has emerged as a significant player in the global garment industry, securing its position as the second-largest garment exporter worldwide. The country’s remarkable journey from economic struggles to becoming a key player in the textile and apparel sector is a testament to its...

www.thedailystar.net

Bangladesh’s Garment Industry: Future growth in a changing world​

Bangladesh has emerged as a significant player in the global garment industry, securing its position as the second-largest garment exporter worldwide. PHOTO: COLLECTED

Bangladesh has emerged as a significant player in the global garment industry, securing its position as the second-largest garment exporter worldwide. The country's remarkable journey from economic struggles to becoming a key player in the textile and apparel sector is a testament to its resilience and adaptability.

The roots of Bangladesh's garment industry can be traced back to the 1970s, a period when the country was grappling with the aftermath of its Liberation War and the challenges of establishing a stable economy. In the early stages, the industry was primarily focused on meeting domestic demand, with limited international exposure. However, a series of economic reforms and strategic decisions paved the way for Bangladesh to enter the global market.​

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Policy initiatives

The economic reforms initiated in the 1980s played a pivotal role in shaping Bangladesh's garment industry. The government, recognising the potential of the sector, implemented policies aimed at attracting foreign investment and fostering a conducive business environment. Incentives such as tax breaks, the duty-free import of machinery, and streamlined export procedures helped create a favourable climate for the growth of the garment industry.

Labour force

One of the key factors that propelled Bangladesh's garment industry onto the global stage is its abundant and cost-effective labour force. The country's population density and low wage rates attracted international apparel brands and manufacturers seeking to optimise production costs. This competitive advantage allowed Bangladesh to offer affordable clothing to consumers worldwide, fostering sustained demand for its products.
Participation in international trade agreements and preferential market access further boosted Bangladesh's garment exports. Agreements like the Generalized System of Preferences (GSP) provided the country with tariff advantages in key markets, facilitating increased export volumes. The strategic positioning of Bangladesh in proximity to major consumer markets, such as Europe and North America, also contributed to its accessibility to global supply chains.

While the growth of Bangladesh's garment industry has been remarkable, it has not been without challenges. The sector has faced criticism and scrutiny over issues such as labour rights, workplace safety, and environmental sustainability.

The rapid expansion of the garment industry in Bangladesh has raised concerns about working conditions and labour rights. Incidents such as the Rana Plaza collapse in 2013, which claimed the lives of over 1,000 garment workers, highlighted the need for improved safety standards and worker welfare. International pressure and advocacy have since led to increased awareness and efforts to address these issues.

In response to growing environmental awareness, there is a notable shift towards sustainable practices in the garment industry. VISUAL: STAR

Environmental sustainability

The textile and apparel industry is notorious for its environmental impact, and Bangladesh's garment sector is no exception. The excessive use of water, chemicals, and energy in the production process has raised environmental concerns. Efforts are being made to adopt sustainable practices, with some manufacturers investing in eco-friendly technologies and processes to reduce their carbon footprint.

Global economic uncertainties

The garment industry is sensitive to global economic fluctuations and uncertainties. External factors such as economic recessions, trade tensions, and the impact of unforeseen events such as the Covid-19 pandemic can disrupt supply chains and affect demand for apparel. Navigating through these uncertainties requires resilience and adaptability.

Future prospects for growth

Despite the challenges, Bangladesh's garment industry continues to exhibit resilience and adaptability. The sector's prospects for future growth are shaped by a combination of factors, including technological advancements, sustainability initiatives, and changing consumer preferences.

The adoption of Industry 4.0 technologies is poised to revolutionise the garment manufacturing process in Bangladesh. Automation, artificial intelligence, and data analytics are being integrated into production systems to enhance efficiency, reduce costs, and improve quality. Embracing these technological advancements will not only boost productivity but also position Bangladesh as a competitive player in the evolving landscape of smart manufacturing.

The demand for environmentally friendly and socially responsible fashion is on the rise, and Bangladesh’s garment industry can tap into this trend by aligning its practices with consumer expectations. VISUAL: STAR

Sustainable practices and ethical manufacturing

In response to growing environmental awareness, there is a notable shift towards sustainable practices in the garment industry. Bangladesh has started to embrace eco-friendly initiatives, such as using recycled materials, reducing water consumption, and implementing waste management strategies. Adopting fairer manufacturing practices is not only an ethical imperative but also a strategic move to meet the demands of environmentally conscious consumers and comply with international standards.

The environmental impact of the garment industry is a global concern, and sustainable practices are crucial in mitigating this impact. Ethical manufacturing entails adopting eco-friendly production processes, reducing water and energy consumption, and minimising waste. By embracing sustainable practices, Bangladesh's garment industry can contribute to global efforts to address climate change and environmental degradation, showcasing a commitment to responsible business practices.

Consumer preferences are also shifting towards sustainable and ethically produced products. The demand for environmentally friendly and socially responsible fashion is on the rise, and Bangladesh's garment industry can tap into this trend by aligning its practices with consumer expectations. Sustainable and ethical manufacturing not only attracts conscious consumers but also opens up new market opportunities and strengthens brand loyalty.

Compliance with international standards

Many global retailers and consumers scrutinise the practices of suppliers, and compliance with internationally recognised standards ensures market access and fosters trust. Bangladesh's garment industry, by prioritising sustainability and ethics, can position itself as a responsible participant in the global supply chain.

In fact, sustainable practices and ethical manufacturing contribute to the resilience of Bangladesh's garment industry. Addressing labour rights issues and ensuring workplace safety can prevent disruptions due to strikes or accidents. Environmentally sustainable practices reduce exposure to regulatory risks and enhance the industry's adaptability in the face of changing environmental regulations and consumer expectations.

The sector’s prospects for future growth are shaped by a combination of factors, including technological advancements, sustainability initiatives, and changing consumer preferences. ILLUSTRATION: AFIA JAHIN

Innovation and technological advancements

Embracing sustainability often involves adopting innovative technologies and processes. Sustainable practices can drive technological advancements in the industry, enhancing efficiency and reducing environmental impact. By investing in research and development of eco-friendly materials and production methods, Bangladesh's garment industry can position itself as a hub for innovation and sustainable manufacturing.

Diversification and value addition

To mitigate risks associated with overreliance on a single sector, Bangladesh's garment industry is exploring diversification and value addition. Rather than solely focusing on low-cost mass production, manufacturers are venturing into high-value segments, including customised and niche products. This strategic shift allows Bangladesh to cater to diverse market demands and create a more sustainable and resilient industry.

Bangladesh's garment industry has historically been focused on mass production of basic apparel items. Diversification involves expanding product lines to include a wider array of garments, from high-end fashion to niche markets such as sportswear, athleisure, and sustainable fashion. This strategy helps mitigate risks associated with dependence on a single market or product, making the industry more resilient to economic fluctuations and shifts in consumer preferences.

By diversifying product offerings, Bangladesh's garment industry can tap into niche markets that offer higher profit margins and sustained demand. Customised and specialised garments catered to specific consumer segments can create a competitive edge, allowing manufacturers to differentiate themselves in a crowded global marketplace.

Consumer preferences are dynamic, driven by factors such as sustainability, innovation, and individuality. Diversification enables Bangladesh's garment industry to adapt to these changing preferences. By offering a variety of products that align with diverse consumer needs, manufacturers can stay ahead of trends and maintain relevance in the highly competitive fashion landscape.

E-commerce and digital transformation

The rise of e-commerce and digital platforms has transformed the retail landscape, presenting new opportunities for the garment industry. Bangladesh's manufacturers are increasingly embracing digital transformation, from online sales channels to digital design and production processes. This shift not only facilitates direct access to consumers but also enables greater agility in responding to changing market trends.

E-commerce has dismantled geographical barriers, allowing Bangladesh's garment industry to reach a global audience with unprecedented ease. Online platforms provide manufacturers and exporters the opportunity to showcase their products to customers around the world, enabling them to tap into previously untapped markets. This newfound global reach has become instrumental in reducing dependence on traditional brick-and-mortar retail channels.

E-commerce platforms empower Bangladesh's garment industry to adopt a direct-to-consumer (DTC) model, eliminating intermediaries and establishing a more direct connection with end consumers. This shift allows manufacturers to gain better control over branding, pricing, and customer relationships. By cutting out middlemen, businesses can enhance profit margins and adapt more swiftly to changing consumer preferences.

Online presence through e-commerce platforms enhances the visibility and branding of Bangladesh's garment industry. Through digital marketing strategies, manufacturers can showcase their products to a vast and diverse audience. Social media, search engine optimisation, and other online marketing tools enable companies to build a strong brand image, fostering consumer trust and loyalty.

E-commerce facilitates real-time communication and collaboration across the entire supply chain, from manufacturers to retailers and end consumers. This enhanced connectivity optimises inventory management, reduces lead times, and minimises the risk of overstock or stockouts. The efficient flow of information ensures that products are delivered to consumers in a timely manner, contributing to customer satisfaction and loyalty.

The digital nature of e-commerce transactions generates vast amount of data that can be leveraged for insightful analytics. Bangladesh's garment industry can use this data to understand consumer behaviour, preferences, and market trends. By analysing this information, businesses can make data-driven decisions, refine their product offerings, and tailor marketing strategies to better align with the needs and desires of their target audience.

E-commerce platforms enable the garment industry to offer customised and personalised products, catering to individual preferences. Through user-friendly interfaces, consumers can personalise garment specifications, choose colours, and select sizes according to their preferences. This level of customisation enhances the overall shopping experience, fostering a sense of individuality and exclusivity.

Challenges

Despite the positives, challenges lie ahead for Bangladesh's garment industry. The first of these is sustainability. While this represents an opportunity in some ways, it also is a threat. We are seeing global concerns about clothing over production and mass production centres such as Bangladesh could find themselves in the cross-hairs of these discussions.

There are also issues around climate change. Many buyers from Bangladesh now require their manufacturers to meet strict climate targets around energy use. Can garment makers meet these requirements? To do this, a coordinated approach is needed involving industry, government, and the national energy infrastructure. This issue will become parament over the next five years as buyers seek to hit 2030 climate targets.

Competition is also a challenge. Fast growing rivals such as Vietnam and Turkey are capable of stealing market share from Bangladesh. The latter has the benefit of close proximity to Western customers. The former is ahead of Bangladesh in terms of its technical textile capabilities. Africa is also viewed by many as the next big thing in textile production, although progress in countries such as Ethiopia has been stop-start over the years.

Likewise, talk of near-shoring is an issue Bangladesh should keep a close eye on. There have for many years been discussions around textile near-shoring in countries such as the US and the UK. The benefits of this include speed to market and a reduced environmental footprint.

Near-shoring has yet to take off in any significant form due to numerous reasons—labour costs in the West, lack of skills base and so on—but it cannot be ruled out as a medium- to long-term threat to domestic garment makers.

Bangladesh's garment industry has come a long way since its inception, evolving into a key player on the global stage. The historical development of the sector reflects the resilience of the country in overcoming economic challenges and leveraging its strengths. As the industry faces ongoing challenges related to labour rights, environmental sustainability, and global economic uncertainties, its future growth prospects hinge on embracing technological advancements, sustainable practices, and diversification strategies.

By addressing the challenges and capitalising on emerging opportunities, Bangladesh's garment industry can navigate the complexities of a changing world. As the country continues to evolve, the industry's ability to balance economic growth with social and environmental responsibility will be crucial in shaping its role in the global garment market.​

 

[Bilal9]

 

[Saif]

Garment makers seek policy on virtual marketplaces

Garment manufacturers have sought a policy from the government on virtual marketplaces, saying they cannot enter into deals with international clothing retailers and traders in absence of dedicated international payment gateways for them.

www.thedailystar.net

Garment makers seek policy on virtual marketplaces​

Garment manufacturers have sought a policy from the government on virtual marketplaces, saying they cannot enter into deals with international clothing retailers and traders in absence of dedicated international payment gateways for them.

The existing policy on online marketplaces is limited to only domestic markets, although e-commerce platforms are the main tool for sales of goods both at home and abroad, they said.

In this age of virtual connectivity, people of all ages are spending more time in the virtual world, said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in a statement yesterday.

For the fashion industry, it has created new opportunities since consumers are increasingly becoming inclined towards digital shopping, he said.

The disruption in global fashion retailing and distribution caused by digital technologies and applications is both a challenge and opportunity, he added.

"In fact, we have well realised the significance of the virtual marketplace during the lockdown periods," Hassan said.

Limitations arising from the regulatory framework, particularly in the realm of cross-border transactions and foreign currency policies, serve as an impediment for the apparel industry to tap into the burgeoning global e-commerce market, he said.


The National Digital Commerce Policy of 2018 only governs the domestic market, and does not make any explicit policy framework addressing international e-commerce, he said.

The absence of global payment gateways, challenges in securing working capital financing, cumbersome export processing for small orders, and an impractical return policy, where returns are categorised as imports, constitute substantial impediments to establishing a robust digital marketplace, said Hassan.

It also underscores the virtual marketplace's potential to serve as a central hub for stock lots, streamlining connections among local producers, traders, and international buyers in emerging markets, he said.

"I hope the policymakers and entrepreneurs will make the most of it to get to the next step, and it may require further studies on specific issues including logistics and distribution, branding, and foreign exchange and revenue policies," he added.

"If we want to maintain our position in the global competition, we need to develop a comprehensive business model," said Hassan.

Earlier, at a press conference on January 25, the BGMEA unveiled the findings of a study on virtual marketplaces. Hassan called on the government to take steps focusing on the study's findings.

The study said the idea of fast fashion is to very quickly design, manufacture, and produce high volumes of clothing, replicating any ongoing trend and constantly updating the shelves of retail stores.

Across most apparel categories, consumers are now wearing each clothing article for only half the duration they did 20 years ago, it said.

Now, fast fashion clothing items are updated weekly by brands such as Zara, H&M, and Topshop, among others, it added.

Before the widespread adoption of fast fashion, clothing was produced on a seasonal basis. New clothes were released in fall, winter, spring and summer, said the study.

In contrast to fast fashion, seasonal clothing takes about a year to go from a concept to the hands of a customer. It takes about 6 to 8 months to conceptualise a design and prepare the clothing articles for production, it said.

Then, it takes another 2 to 3 months for the finished clothing to reach the hands of a customer. This one-year lead time is inefficient for today's consumers, as fast fashion requires trendy clothes to reach customers within weeks, it added.

Hence, cost-efficiency is not the only requirement anymore. Faster production and shorter lead times are needed to stay competitive in the industry, said the study.​