[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Poor pay, long work hours making them quit jobs: study

Disruption to work-life balance due to extended working hours alongside family responsibilities is compelling many female ready-made garments workers to leave their jobs, according to a study.

www.thedailystar.net

Poor pay, long work hours making them quit jobs: study​

Disruption to work-life balance due to extended working hours alongside family responsibilities is compelling many female ready-made garments workers to leave their jobs, according to a study.

The findings of the study, "Unpaid Care Work: Perspective of Employers and Workers in RMG Sector," were revealed at a seminar at Dhaka's CIRDAP auditorium yesterday.​

​

Aimed at investigating the current challenges being faced by female RMG workers, the study was conducted during February-March this year, by Oxfam with support of Karmojibi Nari and Creative Pathways Bangladesh.
Around 79 percent of female RMG workers who quit cited family responsibilities as the prime reason, said the study.

Meanwhile, 31 percent of respondents said they were unable to take care of their children due to long work hours, and thus, had to leave their jobs.

Additionally, 29 percent said they quit due to inadequate salary and benefits, 18 percent cited harassment and discrimination, while 17 percent blamed poor working conditions.

"Daycare centre facilities should be arranged by factory owners," said Shah Mohammad Abu Zafar, president of Bangladesh Labour Federation.

"The government and factory owners must ensure all the required benefits within the industrial areas," he mentioned, stressing on the prevalence of malnourishment in female RMG workers and the need to address it immediately as it hampers productivity.

The wages have increased but their (workers') standard of living did not improve, said Meher Afroz Chumki, former state minister of women and children affairs ministry. Alongside highlighting the gap between workers' income and personal expenditure, she also stressed the need for daycare facilities at factories, emphasising on existing laws that are in place in this regard but are seldom adhered to.

"We need to practically implement the research findings and recommendations. Only then will laws be created and accountability be ensured," said Shirin Akhter, founder of Karmojibi Nari.

She also called for collaborative research and initiatives by the government and private stakeholders to improve sectors that employ more women.​

 

[Saif]

RMG diversification is imperative

For quite sometime now experts have been putting forward unambiguous suggestions for diversifying the product portfolio of Bangladesh's apparel industry (RMG). Its rival countries such as China and Vietnam have already taken the effort to seriously diversify their baskets of apparel export, whereas

thefinancialexpress.com.bd

RMG diversification is imperative​

SYED MANSUR HASHIM

Published :​

Mar 15, 2024 22:07

Updated :​

Mar 16, 2024 21:45

FE file photo

For quite sometime now experts have been putting forward unambiguous suggestions for diversifying the product portfolio of Bangladesh's apparel industry (RMG). Its rival countries such as China and Vietnam have already taken the effort to seriously diversify their baskets of apparel export, whereas Bangladesh still remains indifferent. Even India and Indonesia fall into the category of 'diverse'.While Bangladesh is one notch above Pakistan, that is hardly of any consequence because Bangladesh is number two in global apparel trade, and the time has arrived to start diversifying. The faster it is the better. A glimpse into the US market – very important for Bangladesh RMG – reveals the exporting country's overwhelming reliance on cotton products.

According to a report published in this newspaper recently, government data show "over 80 per cent of Bangladesh's apparel export earnings in the last fiscal year came from shipping basic items like tee shirts, trousers, shirts, sweaters and underwear to the Western market. Local apparel manufacturers acknowledge that diversification does not happen overnight: it requires investment, infrastructure support, consistent energy and raw material supplies and, of course, time." These were findings by Dr. Sheng Lu, who is an Associate Professor and Director of Graduate Studies in the Department of Fashion and Apparel Studies at the University of Delaware, USA. His study tells us that China remains number one exporter primarily because of the wide selection of clothing styles it offers its customers.

Given the geopolitical situation, it is clear that the US policymakers are keen to diversify its sourcing of apparels away from China. Some countries like Vietnam and India are looking forward to taking a share of that pie.

In the past, the RMG industry was more than confident that it would be able to grab a large percentage of that pie, now it is hamstrung with its concentrated outlook on its product base. Hence, Vietnam is stepping into this game better equipped than Bangladesh as it can offer a wider selection of products to choose from (from a buyers' perspective) that include outerwear, under garments and swimwear. India is doing well in dresses whereas Bangladesh is still a major buyer destination for basic knitwear items. Basic, i.e. Bangladesh is very good at producing items that also carry a lower price tag.

One of the areas that the apparel industry association, the BGMEA has been looking into is value-added products, particularly non-cotton materials that include polyester and manmade fibres (MMF). This is an effort to shift away from cotton and for obvious reasons. For Bangladesh to attain the target of US$100 billion in export earnings by 2030, something fundamental needs to change in the industry. A move away from over-dependence on cotton-based apparels to the MMF!

In a recently unveiled BGMEA study titled 'Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh Apparel Industry', the potential of Fibre diversification of non-cotton textile and apparel for Bangladesh in the global apparel market has been explored. Global trade (cotton and non-cotton) has increased marginally from 1.0 per cent from 2018 to 2022. Indeed, wool fibre, yarn, and fabric trade have declined notably over the last five years, while over the same period, acrylic fabric exports have increased since 2018.The study reveals that non-cotton apparel exports by China, Vietnam, Italy and Spain have dominated that particular garment export scene where it accounts for more than 50 per cent of total exports. "The fastest-growing non-cotton categories globally, Jerseys and Pullovers of Man-Made Fibres (MMF) lead the way, and women's wear categories (outerwear, dresses, and trousers dominate the list."

So, what will Bangladesh do? It holds 2nd position in production and is squarely aligned with current market demands of international markets. To be able to catch up and compete with its closest rivals in the MMF and non-cotton segments, some problems remain. There is the challenge of a shortage of technical manpower, the overall reliance on imported raw materials, high manufacturing cost, and significant capital expenditure requirements.

What the industry is looking for is greater understanding of the problems facing it at policy level. The capital-intensive nature of investments requires a rethinking of high interest rates charged by financial institutions and more non-cotton-focused government policies. There is a huge demand for vocational training institutes that would go a long way to address the technical competences of Bangladeshi workers and of course, the availability of consistent power supply. Diversification won't happen magically, it requires an enabling environment whereby decision makers work with the industry to find solutions rather than simply adopting a top-down approach. These are serious issues and as RMG remains the top foreign exchange earner in annual exports, these issues need to be tackled head on if Bangladesh is to remain a dominant player in the global apparel trade.​

 

[Saif]

Garment export to USA falls 2.58%

However, apparel shipment to the EU rose 3.27% in Jul-Feb

www.thedailystar.net

Garment export to USA falls 2.58%​

However, apparel shipment to the EU rose 3.27% in Jul-Feb

Garment exports to the USA, the single largest export destination for Bangladesh, fell by 2.58 percent year-on-year to $5.46 billion in the July-February period of the current fiscal year.

American retailers and brands imported 23 percent lower amount of clothing items last year compared to the previous year because of high inflationary pressure, which impacted Bangladesh's shipment to the US markets.

Thanks to the presence of competitive pricing and long-time trade relations, Bangladesh is the third largest garment supplier to the USA after China and Vietnam.

Bangladesh's performance has been strong compared to its peers in case of garment export to the USA despite being slapped with a 15.62 percent tariff, the highest in the world in this particular market.

However, clothing sales have started increasing in the US economy thanks to the recent recovery of the market.

The National Retail Federation (NRF), the largest retailers' platform in the USA, said sales in the clothing and accessories stores were up 0.51 percent month-over-month and up 8.05 percent year-on-year in February.

"February retail sales indicate continued momentum from consumers," NRF President and CEO Matthew Shay said.

"While the future direction of interest rates and inflation remains uncertain, it's clear that a strong job market and increases in real wages are continuing to support spending."

In the July-February period of 2023-24 fiscal year, garment export to the European Union, the biggest trade block for Bangladesh, reached $16.23 billion, posting a 3.27 percent year-on-year jump, according to data compiled by the Export Promotion Bureau and Bangladesh Garment Manufacturers and Exporters Association.

Apparel shipment to Spain, France, Netherlands, Poland and Denmark showed 8.68 percent, 4.72 percent, 14.55 percent, 21.82 percent and 32.81 percent growth respectively.

However, the apparel export to Italy declined by 0.93 percent year-on-year in the July-February period.

On the other hand, RMG export to Germany, the largest market in the EU, declined by 11.63 percent year-on-year to $4.09 billion.

At the same time, the garment export to the UK and Canada reached $3.85 billion and $998.77 million, posting a 14.64 percent and 1.81 percent year-on-year growth respectively.

Meanwhile, apparel export to the non-traditional markets grew by 10.83 percent year-on-year to $6.30 billion.

Among the major non-traditional markets, exports to Japan, Australia and South Korea increased by 7.12 percent, 21.29 percent and 17.16 percent respectively.

However, apparel export to India declined by 22.99 percent year-on-year in the July-February period.​

 

[Amata]

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

Such comments perpetuate harmful stereotypes and undermine the rich cultural heritage shared between India and Bangladesh. Appreciation of cultural origins should unite, not divide.

 

[Saif]

Such comments perpetuate harmful stereotypes and undermine the rich cultural heritage shared between India and Bangladesh. Appreciation of cultural origins should unite, not divide.

Stealing our invention by India in the name of shared cultural heritage is unacceptable.

 

[Saif]

Govt initiates step to enlist reputed int'l suppliers

The government has made a move to prepare a list of renowned international suppliers for ensuring smooth supply of key essential products in the market to face any crisis or price spiral in future. To this effect, the commerce ministry is working on the issue at the request of the Trading Corporat

thefinancialexpress.com.bd

Bangladesh making effort to diversify high-end products and explore new markets: BGMEA President​

UNB

Published :​

Mar 21, 2024 22:49

Updated :​

Mar 21, 2024 22:49

President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan on Thursday said that Bangladesh is emphasising more on diversifying into high-end products and exploring new export markets.

He said this while the newly elected Executive Committee of the Bangladesh Garments Buying House Association (BGBA), led by its President Mohammad Mofazzal Hossain Pavel made a courtesy call on the BGMEA President at his office in Uttara.

During the meeting, a wide array of issues concerning the ready-made garment industry of Bangladesh was discussed, including its current status, vision, and potential avenues for growth and development.

BGMEA President Faruque Hassan extended his warm congratulations to the newly elected committee of BGBA (elected for the tenure of 2024-26), expressing optimism that under their leadership, BGBA would emerge stronger and play a more important role in the development of the apparel industry.

Faruque Hassan called on BGBA leadership to develop connections with new buyers who do not currently source from Bangladesh.

Both parties acknowledged the pivotal role played by the RMG sector in driving the economic progress of Bangladesh.

Emphasising the significance of collective endeavours, they underscored the importance of unity in addressing the challenges confronting the industry and enhancing its competitiveness amidst a dynamic business environment.

Both sides asserted commitment to working hand in hand towards building a sustainable garment industry in Bangladesh, one that is resilient, socially responsible, and globally competitive.

Other members of the Executive Committee include Md Abdul Hamid Pintu, Senior Vice-President, Mohammed Morshed Alam, A K M Saifur Rahman, Vice-Presidents, Zakir Hossain Secretary General, Emdad Ul Haque Miazi, Md Roman Mia, Joint Secretaries, and Fazlul Haque, Treasurer.​

 

[Saif]

BGMEA emphasises shift towards high-end apparels

Breaking News, International News & Multimedia

thedailynewnation.com

BGMEA emphasises shift towards high-end apparels​

26 Mar 2024, 12:00 am0

Economic Reporter :

As Bangladesh’s ready-made garment (RMG) industry continues to strive towards achieving the ambitious target of $100 billion from garment exports by 2030, a significant shift towards value-added, high-end apparel items is underway in the sector.

To move up the value chain, apparel exporters in Bangladesh are increasingly focusing on product diversification, with a particular emphasis on complex and high-end non-cotton garments such as jacket, lingerie, sportswear, suit, uniform, technical apparels.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex trade body representing the apparel sector, is spearheading initiatives to facilitate this transition towards high-value items, read a press release issued Monday.

BGMEA President Faruque Hassan made visits to several garment factories in Adamjee EPZ in Narayanganj to see the production of high-end apparel items.​

 

[Saif]

A timeless tradition

Ahead of every festival, demand for traditional dresses increases all across the country as everyone desires to join the festivities by draping themselves in beautiful clothing.

www.thedailystar.net

A timeless tradition​

Tangail saree weavers busy ahead of Eid, Pahela Baishakh

Ahead of every festival, demand for traditional dresses increases all across the country as everyone desires to join the festivities by draping themselves in beautiful clothing.

Of all kinds of traditional clothes, Tangail sarees hold a special place in the hearts of the country's people due to their long-standing tradition and history.

To a saree aficionado, any festival seems dull if they fail to get Tangail sarees for themselves or their close ones, and the tradition continues year after year.

With that in mind, weavers in Tagail have immersed themselves in weaving the traditional sarees with their hand-looms, as both the Eid-ul-Fitr and Pahela Baishakh draw near.

While there have been recent debacles regarding the GI tag of Tangail sarees, it was of little to no concern to these weavers. Like every year, they are working to come up with an array of variations in colours and designs in tune with the ongoing trends and festivities.

While Tangail sarees are produced across all upazilas of the district, Delduar upazila is known as the main hub for Tangail sarees.

Thousands of weavers in Bajitpur, Dhulutia, Suruj, Bertha, Bamankushia, Gosaijoyair, Taratia, Enayetpur, Belta, Santosh, Kagmari in Sadar upazila, Patrail, Chandi, Nalshodha, Barotia, Chinakhola, Mangalhor, Nalua, Bishnupur, and Deojan areas of Delduar upazila are engaged in weaving these traditional hand-loom sarees .

Also, there are many weavers from different areas in Kalihati Basail upazilas.

While others try to replicate the style of weavers from Tangail and even claim Tangail sarees as their own, the truth is that authentic Tangail sarees, which are unmatched in quality and variety, are traditionally woven in Tangail.

Speaking to this correspondent, weavers said they have already supplied several lakh sarees at shopping malls and shops across the country and even abroad.

After a few years of turmoil due to the pandemic, the weavers said they are expecting a turnaround this year by selling their sarees to women of all ages and professions, with their products ranging in price from Tk 400 to Tk 20,000 and higher.

Apart from traditional Tangail Sarees, the weavers also produce various other sarees -- including hand-loom cotton, Jamdani, Silk, Baluchari silk, half silk, soft silk, Dotari silk, jute silk, Khaddar, Benarasi, Katan, Tasar, Anarkali, Dhansidi, Resham, Manpura, Suti Kuchi, etc.

The sarees produced across the district are mainly sold wholesale during weekly haat (market) days in Karatia and Bajitpur of Sadar upazila and Salla of Kalihati upazila.

Wholesalers from all over the country come to these markets to buy sarees directly from local weavers. Sarees worth several crores of taka are purchased in these markets ahead of Eid, according to market sources.

Raghunath Basak, president of Pathrail Saree Traders Association, said the wholesale of sarees produced here is usually completed within 15 days of Ramadan, while retail sales continue till Eid.

The price of sarees from other places, including those from India, is cheap, but the quality is inferior compared to the traditional sarees weaved in Tangail, he added.

"There are many things that need to be done for the industry, including publicity. India wrongly took the GI rights of our Tangail saree," Raghu noted.

Kaiserul Islam, deputy commissioner of Tangail, said, "The rectification application with the Indian court regarding the GI rights for Tangail sarees is under process through a lawyer. The foreign ministry has been entrusted with this end. The process will be completed by April 1."​

 

[Saif]

Jamdani to be branded internationally: industries secy

Senior secretary of the industries ministry Zakia Sultana on Sunday said that Jamdani, the most artistic textile of Bangladeshi weavers...

www.newagebd.net

Jamdani to be branded internationally: industries secy
Bangladesh Sangbad Sangstha . Dhaka | Published: 22:31, Mar 31,2024

Industries ministry senior secretary Zakia Sultana looks at a Jamdani sari at the Jamdani Fair-2024 jointly organised by Bangladesh Small and Cottage Industries Corporation and Bangladesh National Museum in the capital Dhaka on Sunday. BSCIC chairman Sanjay Kumar Bhowmik, cultural secretary Khalil Ahmed and Bangladesh National Museum director general M Kamruzzaman, among others, were present. — Focusbangla photo

Senior secretary of the industries ministry Zakia Sultana on Sunday said that Jamdani, the most artistic textile of Bangladeshi weavers, would be branded internationally as its alternative was now rare in the contemporary world.

'Jamdani is unparalleled due to its quality weaving technique and beautiful design ... and now it is time to branding the fabric across the world as an alternative of Muslin,' she said.

The industries secretary came up with this remark while inaugurating 'Jamdani Fair-2024', jointly organised by Bangladesh Small and Cottage Industries Corporation and Bangladesh National Museum at Poet Sufia Kamal auditorium of National Museum in the capital Dhaka.

To this end, she said that necessary initiatives had already been taken on behalf of the concerned ministry.

The initiatives include imparting training to the entrepreneurs engaged with this industry, manufacturing of international standard packing, providing incentives for export and arrangement of showcasing at all Bangladeshi foreign missions.

As the fabrics are very much comfortable, so it is very much preferred by foreigners across the world, Zakia Sultana said, adding: 'A training programme has begun for the young weavers on March 11, as they are not expert at all about the design of the saris.'

In 2013, the traditional art of weaving Jamdani was declared a UNESCO Intangible Cultural Heritage of Humanity.

Though mostly used for saris, Jamdani is also used for scarves and handkerchiefs. Jamdani is believed to be a fusion of the ancient cloth-making techniques of Bengal, possibly 2,000 years old, with the muslins produced by Bengali Muslims since the 14th century.

Jamdani is the most expensive product of Dhaka looms since it requires the most lengthy and dedicated work.

Chaired by BSCIC's chairman Sanjay Kumar Bhowmik, the programme was also attended, among others, by cultural secretary Khalil Ahmed and director general of Bangladesh National Museum M Kamruzzaman.​

 

[Saif]

Bangladesh needs to develop MMF-based garments: study

Bangladesh should develop manmade fibre-based value chain and produce new product categories to gain the global market share as...

www.newagebd.net

Bangladesh needs to develop MMF-based garments: study
Staff Correspondent | Published: 23:13, Apr 04,2024

Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan, vice-president-elect Abdullah Hil Rakib, directors-elect Shovon Islam, Nusrat Bari Asha and Md Nurul Islam, PricewaterhouseCoopers managing director Shalini Shrivastava and director Arindam Saha, among others, are present at a report launching event at BGMEA headquarters in the capital Dhaka on Thursday. — New Age photo

Bangladesh should develop manmade fibre-based value chain and produce new product categories to gain the global market share as the exports of such apparel would increase to 60 per cent by 2030 from the existing 50 per cent in the world, according to a study.


The report titled 'From shirts to shores: blueprint for Bangladesh RMG industry' projected that the global export of readymade garment would grow to $1,121 billion, which was $953 billion in 2022.


It said that of the projected $1,121 billion global apparel exports, 60 per cent would be MMF-based garments.

In a bid to navigate the challenges and seize opportunities ahead, Bangladesh Garment Manufacturers and Exporters Association commissioned PricewaterhouseCoopers, a research farm, to conduct the study.

The study said that 50 per cent of $953 billion global garment exports in 2022 was MMF based, 37 per cent cotton-based and 13 per cent others.

It showed that China was the leader for MMF-based garment exports with 62 per cent of the market share in 2022 followed by Vietnam, Italy and Turkey.

The BGMEA on Thursday published the report at an event held at the headquarters of the trade body at Uttara in the capital Dhaka.

The report mentioned that Bangladesh should develop the ecosystem for being competitive in manufacturing of select products as the story of MMF would remain strong in global sourcing.

The report showed that the total global trade of four promising products — jackets/suits/blazers, activewears/swimwears, technical garments and brassieres — accounted for $100 billion and 73 per cent of them was MMF based.

It said that focused strategy was required for each promising product – market mix prioritising the high value-added products.

The study also suggested positioning Bangladesh as supplier of value-added MMF-based products in the European Union countries, the United States and the United Kingdom.

It also recommended continued efforts in penetrating new markets, including Japan and South Korea.

The report proposed making investments in automation, digitalisation and resource efficient technologies.


BGMEA president Faruque Hassan emphasised the significance of research-driven strategies in sustaining competitiveness amidst evolving global dynamics.

He said that the report offered vital insights and actionable recommendations aimed at building a more prosperous future for Bangladesh's apparel sector.

'These strategies outlined in the report will serve as guidelines for us to navigate challenges and capitalise on opportunities, thus maintaining our competitiveness in the global market,' BGMEA president said.

BGMEA vice-president-elect Abdullah Hil Rakib, and directors-elect Shovon Islam, Nusrat Bari Asha and Md Nurul Islam were present at the report launching event.

PwC managing director Shalini Shrivastava and director Arindam Saha, among others, attended the programme.​

 

[Saif]

Three priorities for a smart RMG industry

Bangladesh's Ready-Made Garment (RMG) industry stands as a cornerstone of the nation's economy, driving growth and employment while commanding a significant presence in the global fashion market. However, the industry faces pressing challenges in an era of rapid technological advancement and shifti

thefinancialexpress.com.bd

Three priorities for a smart RMG industry​

MOHIUDDIN RUBEL

Published :​

Mar 31, 2024 21:24

Updated :​

Mar 31, 2024 21:24

Bangladesh's Ready-Made Garment (RMG) industry stands as a cornerstone of the nation's economy, driving growth and employment while commanding a significant presence in the global fashion market. However, the industry faces pressing challenges in an era of rapid technological advancement and shifting consumer demands. To sustain its leadership position and embrace the future of fashion, Bangladesh's RMG sector must undergo a transformative journey, leveraging strategic technological interventions.


To sustain its position as a global leader in garment manufacturing and to ensure its continued relevance in an increasingly interconnected world, the RMG sector must embrace innovation and technological integration. This narrative delves into three paramount priorities that, when seamlessly integrated, can weave together a fabric of a smarter, more sustainable, and ethically conscientious RMG sector.

CAPACITY DATABASE—CHARTING THE INDUSTRY'S LANDSCAPE IN REAL-TIME: Imagine a real-time map of the industry's capacity, pulsating with data that reveals production strengths, limitations, and potential bottlenecks. This is the power of a capacity database, a comprehensive repository of information that empowers proactive decision-making.

This foresight enables the prevention of over-capacity, anticipation of shortages, and optimisation of production efficiency. Such transparency and unified data empower businesses to adapt swiftly, customise offerings, and forecast future demands, ensuring continued success on the global stage. This transparent and unified data landscape empowers businesses to adapt with agility, personalise offerings, and anticipate future needs, ensuring continued relevance and success in the global market.

ALL-DATA PORTAL CONNECTIVITY: THE SYMPHONY OF INFORMATION FLOW: Imagine an interconnected ecosystem where stakeholders in the RMG industry seamlessly exchange information, akin to a symphony orchestra playing in perfect harmony. All-data portal connectivity achieves this by facilitating real-time data exchange through cloud-based platforms.

This enhanced visibility enables agile decision-making, streamlines supply chain management, and fosters collaboration across the industry. By embracing standardized data formats and secure platforms, Bangladesh's RMG sector can establish a unified data infrastructure that catalyzes innovation and resilience.By fostering collaboration and establishing standardized data formats and secure platforms, we can create a unified data infrastructure that serves as the bedrock for a smarter and more resilient RMG sector.

SUPPLY CHAIN SMARTNESS: WEAVING INTELLIGENCE INTO THE FABRIC OF PRODUCTION: The concept of supply chain smartness revolutionises traditional production processes, integrating technologies like IoT, AI, and blockchain to optimise efficiency and sustainability.

Imagine a supply chain infused with intelligence, where every step - from raw material sourcing to finished product delivery - is optimised for efficiency and sustainability. This is the essence of supply chain smartness, achieved through leveraging sensors, AI-powered tools, and blockchain's transparency. From streamlining production schedules to identifying quality issues early and promoting sustainable sourcing, supply chain smartness can equip Bangladesh's RMG sector to thrive in a rapidly evolving market landscape.

By strategically weaving these technological threads into the fabric of the Bangladeshi RMG industry, we can create a tapestry not just of efficiency and profitability, but of sustainability, ethical practices, and a future where technology empowers both businesses and workers. This transformation marks not only the sustained global leadership of the Bangladesh RMG industry but also the birth of a new standard for a smart, sustainable, and ethical fashion landscape. With the government's support and industry-wide collaboration, Bangladeshi RMG industry can continue to flourish, woven with threads of innovation, sustainability, and global leadership.

Mohiuddin Rubel, Director, BGMEA and Additional Managing Director, Denim Expert Limited.​

 

[Saif]

Time for fashion brands, retailers to rethink green strategies

Over the past two or three years, we have seen a huge backlash against sustainability marketing in the West.

www.thedailystar.net

Time for fashion brands, retailers to rethink green strategies

Fashion brands have spent almost two decades attempting to use sustainability as a marketing tool, with varying degrees of success. For many, launching any new product will have a "green" angle to it. Sustainability sells—at least that is what we have always been led to believe. But does it, really? My guess is that most consumers still value qualities such as style, fit, value for money and choice above all else. They also have their favourite brands that they stay loyal to through thick and thin. Take, for instance, the remarkable success of sports giants Adidas and Nike in dominating the global market for sporting apparel for so long. Building a strong brand is critical to business success.

However, over the past two or three years, we have seen a huge backlash against sustainability marketing in the West. The word "greenwashing" has become commonplace, and there is a growing lack of trust around brands and the claims they are making about their apparel products. Some brands have been reported for making misleading or false claims about their clothing collections. Some are facing potential fines. All are now considering how to approach this subject. Is it worth making green claims if the risk is accusations of greenwashing, bad publicity and reputational damage? At what point will brands begin to think that the drawbacks outweigh the positives? Might we see more "greenhushing" moving forward?

The problem they all face is that, as their output grows, their supply chain emissions increase. In the absence of a rapid shift to renewable energy in supply chains, it is a thankless task. The net result of all this is that in about five years or so, the fashion industry will have to make radical changes in supply chains in order to reduce carbon intensity in line with protocols such as the Paris Agreement. If they cannot do this, the backlash from consumers, regulators and investors alike will be huge.

I think we may already be reaching that stage already. Aside from the fact that the benefits of green marketing are negligible anyway, there is another issue to consider: supply chains. Most major fashion brands have now set targets to reduce carbon emissions in their supply chains (tier 3). Many have set science-based targets on these issues, and this is an area which investors and regulators alike are watching closely. Brands are under a huge—and growing—level of scrutiny on this topic.

While fashion brands are often criticised for not financially supporting the green transition in supply chains, major brands are committing time to reduce the carbon impact of their supply chains. This is logical because if they fail on this issue, there will be serious questions to answer when we hit key milestones related to sustainability and green transition.

I closely follow the sustainability reporting of fashion brands and retailers. Most are now reporting in great detail their progress around reducing CO2 emissions. In some cases, they are achieving great success in this area, but mainly this is in their own operations, such as retail stores. These emissions are a tiny part of a brand's total emissions—often less than 10 percent.

When it comes to reducing emissions in supply chains, brands have not been quite so successful. Some are making progress in this area but, for most, it is a case of two steps forward, three steps back. Many major brands set CO2 reduction targets before the pandemic. Since then, their supply chain emissions have gone up.

The problem they all face is that, as their output grows, their supply chain emissions increase. In the absence of a rapid shift to renewable energy in supply chains, it is a thankless task. The net result of all this is that in about five years or so, the fashion industry will have to make radical changes in supply chains in order to reduce carbon intensity in line with protocols such as the Paris Agreement. If they cannot do this, the backlash from consumers, regulators and investors alike will be huge.

So many fashion brands are now playing catch-up because they have been unable to move the needle on supply chain emissions in the past five years. It would not be a surprise to see some of the relevant goals getting an extended deadline, but I am not sure this will go down well with investors and consumers.

I believe that while consumers may not care too greatly for products packaged in a "green" way, they do take notice of broader climate issues. There will come a point when the public at large will begin to look for people to blame, and large retailers with carbon-intensive supply chains will be high on the list. So brands need to be ready; they need to be seen doing all they can to cut their carbon footprint, and woe betide those who miss the critical 2030 targets.

So perhaps it is time to forget eco fashion and green claims by brands and retailers. As we move forward, green marketing could be less about products and more about the energy and emissions used in the production of clothing. This could spell opportunities for progressive suppliers.

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Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE)..​