The global apparel or readymade (RMG) industry in 2023 is expecting a mixed environment as a whole. As leading market analytics McKinsey’s report ‘The State of Fashion 2023’ highlights that in 2023 leading markets like the USA will observe a 5% to 10% growth, while the European market fashion sale will remain as it is or see around 3% growth due to the conflict in Ukraine. Most impressive is that the growth in Asia, the Middle East and parts of the Asia Pacific fashion market will log a tremendous boost in 2023.
This positive mixed with caution vibe is depicting an optimistic yet cautious reaction among the apparel manufacturing hubs – especially the world’s second biggest apparel sourcing country – Bangladesh.
Textile Today – a leading RMG and textile industry-focused innovation platform – has talked to leaders from various layers of the apparel value-chain to depict a holistic scenario. Here you will get the essence from the captains.
Faruque Hassan, President, BGMEA
In 2022, the Russia-Ukraine war has left its global mark – thus we are perceiving a global crisis. High inflation, rise in bank interest rates, raw material scarcity and high-price have led to a reduced buying capacity and we have witnessed a downward trend in fashion purchases. Consequently, we observed a falloff in orders. Still, I will say that Bangladesh RMG export has done well in October, November and December because our entrepreneurs have invested tremendously in the textile backward linkage industry. Which boosted our value-added garment manufacturing capacity and we started to get high-end fashionable items orders. At the same time, we have worked on building supply chain efficiency.
In 2023, I perceive that the first six months will be challenging for our apparel industry due to global unrest. IMF also forecasted that one-third of the globe will go into recession. And the countries which will not go into recession will witness recession impacts. From my point of view, as we have invested heavily in backward linkage, as well as, in technology, process optimization, innovation new emerging market penetration – and BGMEA has been working comprehensively in innovation through its innovation center – will be given us the edge to weather the global economic storm.
Dr. Rubana Huq, Ex-president, BGMEA and Managing Director of Mohammadi Group
Exports may see a better turn after summer but the lack of value addition continues to be our challenge.
Product development supported by intense R&D is the only way for Bangladeshi manufacturers.
Mohammad Moazzem Hossain Moti, President, BGAPMEA
In the last FY2020-23, Bangladesh RMG exported more than $43 billion and the accessories and packaging sector made $7 billion worth of products as a deemed exporter to the apparel industry.
Our RMG is targeting to achieve $100 billion by 2030 – meaning accessories, trims and packaging sector capability will play a critical role – as the sector produces almost 100% of the accessories and packaging goods for the apparel industry – in achieving this target.
Not only that, we have some world’s top accessories and packaging players who are playing a critical role in the growth of the sector and at the same time, they invested aggressively in capacity expansion – which will soon reap better output for our overall capability.
In addition, our BGAPMEA members are now focusing on export after meeting the domestic demand of the RMG industry. Fashion is a global necessity item and accessories and packaging provide ornament to it. I believe that just like our apparel is a sought-out among brands – our accessories and packaging will also be as demanding among other apparel-sourcing countries due to our competitive price, quality, on time shipment.
So, I am seeing a shining future ahead and Bangladesh’s apparel value chain industry as a whole will more and more move up the value chain in the coming future.
Anisul Hoque Ansari, President, SUST IPE Alumni Association and Head of ELS, Avery Dennison Bangladesh Ltd.
Bangladesh textile and garment industry achieved a couple of giant milestones till today, including market domination, footprint in eco-friendly manufacturing, commitment towards SDG and so on. Thus it became the largest contributor in GDP.
A disruptive paradigm shift has rolled out for a decade and this change became most prominent just after the Covid outbreak and post Covid Geo Political situations. As a result, speed, customized fashion, online purchasing, made to measure – are the main drivers in the apparel business nowadays.
Bangladesh for the next 5-10 years, should focus on adapting data visibility, traceability and automation. One of the biggest challenges is to re-skill the people. BGMEA, BKMEA, and BTMC together should come out with a long-term strategy to re-skill the people to survive with today’s needs like AI, Blockchain, traceability and forecast modeling, real-time manufacturing tracking, etc. and get ready for $100B export target by 2030.
Yamin Chowdury, General Manager, Denimach Washing Ltd.
Since 2022 was the transition time for the textile and apparel industry with the big challenges to comply with the order flow, sustainability, adopting extreme fashion & trends, cost management, etc. We would like to streamline the following expectations in 2023:
- Accommodating and equipping production facilities with sustainable technologies and machinery.
- Moreover, besides the brands’ design and techniques, we must create our own innovations, fashions and techniques for branding ourselves in the fashion markets.
- We should have the versatile, sustainable and safer raw material sourcing
- Should adopt process automation and sustainable process development techniques to reduce the workforce and the cost as well.
- Putting more focus on process integration and increasing productivity to minimize the production overheads and overall castings.
- We must create alternative sources for all the raw materials and machinery to avoid monopoly business policies.
- Also to find out the alternative & Renewable Energy sourcing as there is the global Crisis in the international power and fuel Markets.
- We must focus on increasing the vertical setup here to minimize the cost and the production lead time as well.
- authority should take a policy and set up a benchmark for all the process-wise costing to stop the unethical costing negotiations for what we are struggling to sustain in the industry with the commitments and the business ethics.
- Instead of working with multiple Brands with multiple sustainable requirements, we must ask them to come under one umbrella with the unique Benchmark.