China continues to dominate the world’s lingerie exports, although the lingerie business is shifting from China for various reasons. Which gives Bangladesh a golden chance to capture this high-end product segment and brighten the country’s apparel product diversification.
However, setting up a lingerie manufacturing factory requires a little more investment than a normal knit factory. According to Zion Market Research, a US-based think tank, the global lingerie market was worth $48 billion last year. It will grow by $69 billion in 2024.
Bangladesh can be an irresistible name in the world market if it can increase the production and export of lingerie.
Since the inception of Bangladesh’s readymade garment (RMG) industry, mostly it has been exporting only simple, plain shirts, t-shirts. In contrast, value-added apparel manufacturing has not flourished as expected.
Without, high-end apparel making apparel makers cannot fetch better prices. This is why lingerie can be the next door of opportunity.
The country’s RMG industry can pay close attention to this sector. With the extra investment, it can earn a lot of foreign exchange from this sector.
Here are some essential steps that can make Bangladesh the next powerhouse in lingerie manufacturing.
- Banks must come forward and lower interest rates. As the lingerie needs higher investment. If an entrepreneur invests in lingerie, he has to invest less than a 6% interest rate. Investors will be encouraged.
- The government may announce special cash benefits at a rate of at least 15% for lingerie exporters.
- The government can announce special benefits for lingerie investors to collect taxes and VAT. In this case, the advance tax can be reduced. 5% VAT can declare to boost investment in the sector.
- The government may allocate land exclusively in special industrial zones for investors in the lingerie industry. In that case, these industrial entrepreneurs can get land at a reduced rate of at least a 10% discount. The new investment will increase exports, new jobs.
- If Bangladesh RMG wants to grab a large part of this market, government and private entrepreneurs must come forward with initiatives and plans from now to capitalize it.
Lingerie is certainly a potential segment for the garment industry. When the number of lingerie factories in the country increases, it will boost the confidence of foreign buyers to procure these value-added items from Bangladesh.