Apparel Insider’s Post

BANGLADESH MULLS VIRTUAL MARKET TO ALLOW GARMENT MAKERS TO SELL DIRECTLY TO WESTERN CONSUMERS: A major feasibility study looked at options for developing a digital platform to support Bangladesh ready-made garment (RMG) makers. Such a platform would, in theory, enable Bangladesh-based garment manufacturers to sell domestically branded clothing directly to Western consumers. The study – which ought to put #fashion brands on alert – was funded by IFC - International Finance Corporation's Partnership for Cleaner Textile (PaCT II) programme and supported by the government of Denmark via the Danish International Development Agency (DANIDA). There has long-since been talk in Bangladesh about how the country’s garment industry could improve its marketing and branding. To this end, Brand BGME recently launched the findings of a feasibility study which it described as a “precursor to developing a virtual marketplace tailored for Bangladesh’s Textile and Apparel Sector.” It identifies the market potential and sector readiness to digitise the apparel sector of Bangladesh. The objective of such a virtual marketplace would be to integrate the domestic textile industry into global value chains and capitalise on the shift toward online purchasing. The report looks at two strategic options for digitisation. The first is using online channels to expand current Business-to-Business (B2B) activities into emerging markets such as Asia and the Middle East. The second – and this is where things get interesting – is by establishing direct connections between Bangladeshi manufacturers and end customers (B2C), as a means of achieving superior profit margins and increased volumes of business. https://lnkd.in/erdTvCNA

In 2024, the prospects for the ready-made garments (RMG) industry in Bangladesh continue to be promising, despite some evolving dynamics and challenges. Here are some key factors shaping the viewpoint of the RMG sector: Recovery from the Pandemic: The RMG sector, like many industries, faced disruptions due to the COVID-19 pandemic. However, as global economies recover and consumer demand rebounds, the RMG industry in Bangladesh is likely to see a rise in orders and production. Changes in Consumer Preferences: Consumer preferences are constantly evolving, with a growing emphasis on sustainability, ethical sourcing, and transparency. Bangladeshi garment manufacturers that can adapt to these trends by incorporating sustainable practices and offering transparency in their supply chains may gain an upper hand. Digital Transformation: The industry is undergoing digital transformation, with advancements in technology impacting various aspects of the garment manufacturing process, from design to production to distribution. Companies that embrace digitalization and automation may enhance their efficiency and competitiveness. E-commerce Growth: The growth of e-commerce platforms has opened up new opportunities for RMG exporters in Bangladesh to reach global consumers directly. Leveraging e-commerce channels can enable manufacturers to diversify their customer base and reduce dependence on traditional retail channels. International Elements: Geopolitical factors, such as trade tensions between major economies and changes in trade policies, can impact the global supply chain and sourcing decisions of apparel brands. Bangladesh's RMG industry may need to navigate these geopolitical complexities to maintain its competitiveness. Labour Rights and Compliance: Ensuring compliance with labor rights standards, workplace safety regulations, and ethical practices remains a critical aspect for the RMG sector in Bangladesh. Continued efforts to improve working conditions and compliance will be essential for sustaining long-term growth and maintaining the industry's reputation. Infrastructure Development: Continued investments in infrastructure, including transportation, energy, and port facilities, are important for enhancing the efficiency and competitiveness of Bangladesh's RMG industry. Improvements in infrastructure can help reduce production costs and lead times, making Bangladeshi manufacturers more attractive to global buyers. Overall, while challenges persist, including those related to sustainability, labor rights, and global market dynamics, the RMG industry in Bangladesh is poised to capitalize on emerging opportunities and maintain its position as a leading player in the global apparel market in 2024 and beyond.

The textile and apparel industry is one of the largest and most dynamic sectors in the world economy, generating trillions of dollars in revenue and employing millions of people. According to the World Trade Organization (WTO), the industry accounted for about 4% of the world merchandise trade in 2019. The global textile and apparel industry is expected to grow steadily in the next decade, according to the data from the International Textile Manufacturers Federation (ITMF) and the McKinsey Global Fashion Index (MGFI). The Bangladesh textile and apparel industry is a global leader in the low-cost and mass-market segments, with a turnover of USD 59 billion in 2023. The industry has a vision to achieve a turnover of USD 100 billion by 2030, by increasing the value addition and diversification of its products, enhancing the productivity and efficiency of its operations, ensuring the social and environmental sustainability of its practices, and expanding the market access and penetration of its products. Read how Bangladesh Textiles & Apparel Industry is seamlessly weaving towards global leadership: https://lnkd.in/g-xneT-a Abhishek Yugal Divya Mohan Imtiaz Mullick Utkarsh Mishra Jubaidur Rahaman #apparelindustry #apparel #apparelmanufacturing #textileindustry #textile #managementconsulting #consulting #bangladesh #smartfactory #futureofmanufacturing #industry4point0

Sri Lankan Apparel Manufacturers make traceability the norm Part 1 Look out, South Asia—Sri Lanka’s apparel industry isn’t willing to disappear without a trace. The company’s apparel manufacturers have teamed up to proactively embrace the onslaught of legislation changes that could begin affecting the fashion and apparel industries in the coming years. Sri Lanka’s manufacturers have linked with Global Language of Business (GS1), the Asian Development Bank (ADB) and International Financial Reporting Standards (IFRS) to usher in an era focused on transparency and traceability. The entities announced that, going forward, all pieces of apparel coming out of Sri Lanka will have a QR code tag affixed to them. Scanning the QR code will show stakeholders information about the brand, the materials used for the product, care instructions, guidelines for end of life, supply chain traceability and more. Putting QR code tags to good use Nick Allison, general manager government of GS1 New Zealand, explained that the new QR code tags will be accessible to consumers and worthwhile for stakeholders who need access to nitty-gritty details. “QR codes powered by GS1 will appear familiar to consumers—they look just like standard QR Codes, but they also carry a barcode number (GTIN) and can do many more things than usual QR codes. Think of it as a supercharged QR code opening the door to dynamic data that can be updated on every aspect of an apparel item,” Allison said. “In the Sri Lanka project, GS1 is helping industry digitally share the likely ESG information requirements so that export market access is facilitated.” Status of Sri Lanka apparel among competitors According to the Joint Apparel Association Forum Sri Lanka, in 2023, the country exported just over $4.5 billion in apparel products to global markets, which was down over $1 billion from 2022’s record-high global export total of nearly $5.6 billion. Though those figures lag behind the likes of China, Vietnam and Bangladesh, the Ceylon Chamber of Commerce released data in February that 39 percent of Sri Lankan exporters expect to see moderate growth in the country’s economy in 2024. Some fashion brands, like Mara Hoffman and Coach, have already introduced digital passport-style tags on some of their items and product lines. But global adoption has not yet occurred. Source: https://lnkd.in/gQ4s-3wn #ApparelIndustry #FinanceInsights #FinanceNews

Which are the top 3 sourcing destinations for apparel in 2024? In 2024, we see a continued focus on diversification and strategic partnerships. The reason is very simple, diversifying your sourcing strategy is key to mitigating risk and ensuring a smooth supply chain. So, to operate a business successfully in this challenging environment, it requires a keen understanding of the top destinations and their unique advantages and considerations. 1. China 🇨🇳 Pros: ✔️Unmatched Production Capacity: China remains the world's leader in apparel manufacturing, offering a vast network of suppliers and unparalleled production capabilities. ✔️Extensive Skillset and Technology: China boasts a deep pool of experienced manufacturers with access to advanced technology, ideal for complex or large-scale orders. ✔️Competitive Pricing: Established infrastructure allows China to offer competitive pricing on a wide range of products. Cons: ❌Rising Costs: Labor and material costs in China are steadily increasing, impacting overall affordability. ❌Geopolitical Uncertainty: Trade tensions and potential disruptions can create challenges in the supply chain. ❌Intellectual Property Concerns: Counterfeiting can be a concern, requiring strong IP protection measures. 2. Bangladesh 🇧🇩 Pros: ✔️Cost-Effectiveness: Bangladesh offers a significant cost advantage compared to China, making it ideal for budget-conscious buyers. ✔️Government Support: The Bangladeshi government actively promotes the apparel industry, offering incentives and fostering a business-friendly environment. ✔️Strong Workforce: Bangladesh has a large and skilled workforce adept at producing high-volume orders efficiently. Cons: ❌Infrastructure Limitations: Logistics and infrastructure can be less developed compared to China, potentially impacting lead times. ❌Labor Issues: Labor rights concerns persist, requiring buyers to prioritize ethical sourcing practices. ❌Product Complexity: While Bangladesh excels in basic and mid-tier garments, complex designs might be challenging. 3. Vietnam 🇻🇳 Pros: ✔️Diversification and Agility: Vietnam positions itself as a strong alternative, attracting brands seeking diversification. They offer a growing range of capabilities beyond basic production. ✔️Favorable Trade Agreements: Vietnam benefits from free trade agreements with major economies, reducing import duties. ✔️Focus on Sustainability: Many Vietnamese manufacturers prioritize sustainable practices, appealing to eco-conscious brands. Cons: ❌Lower Production Capacity: Vietnam's production capacity is still developing compared to China, limiting its suitability for very large orders. ❌Skillset Development: While skilled labor is available, Vietnam is still investing in expanding its workforce's expertise. ❌Competition and Pricing: As Vietnam's popularity rises, competition is increasing, potentially impacting pricing. Collected #apparelindustry #apparelsourcing #globalsourcing #supplychain #textiles #BD #sourcing

European apparel buyers have generally positive views on the Bangladesh garment industry, recognizing its significant progress in safety, sustainability, and product diversification. After the Rana Plaza disaster, the industry has seen substantial improvements in factory safety, largely due to international collaborations and local initiatives like the Accord on Fire and Building Safety and the Alliance for Bangladesh Worker Safety. These efforts have enhanced the confidence of European buyers, as evidenced by the fact that many leading global apparel brands continue to source from Bangladesh. Moreover, the sector's efforts in sustainability, such as increasing the number of green factories and participation in circular fashion initiatives, have been well-received by European buyers. This focus on environmental sustainability aligns with the values of many European consumers and retailers, further strengthening Bangladesh's position as a key supplier (McKinsey & Company) (The Diplomat). However, challenges remain. European buyers are concerned about the industry's reliance on basic product categories like T-shirts, trousers, and sweaters, which face price pressures and intense competition. There is a push for Bangladesh to diversify its product offerings and move into more complex and higher-value-added segments (McKinsey & Company) (TBS News). Despite these challenges, European buyers recognize Bangladesh as a critical player in the global apparel supply chain, particularly given the geopolitical and economic issues affecting other manufacturing hubs like China, Ethiopia, and Myanmar. With ongoing efforts to improve working conditions, enhance product quality, and embrace sustainability, Bangladesh's apparel industry is expected to maintain its crucial role in European sourcing strategies (The InCAP) (The Diplomat).

Exploring the Dynamics of Apparel Supply Chain from Pakistan At SADEEZ INTERNATIONAL, we're dedicated to delve into the sophistication of global supply chains to enhance our understanding of industry dynamics and foster meaningful collaborations. Today, we shine a spotlight on the vibrant and evolving apparel supply chain originating from Pakistan. 1- A Rich Tapestry of Craftsmanship and Innovation: Pakistan's apparel industry renowned for its textile manufacturing capabilities, the country boasts a diverse ecosystem comprising skilled artisans, cutting-edge factories, and forward-thinking designers. 2- Strategic Geographic Advantage: Situated at the crossroads of South Asia, Pakistan enjoys strategic geographic proximity to key markets, facilitating efficient logistics and transportation networks. This geographical advantage positions Pakistan as a pivotal player in the global apparel supply chain. 3- Unparalleled Product Diversity: From high-quality cotton garments to intricately embroidered fabrics, Pakistan offers a vast range of apparel options catering to diverse tastes and preferences. Whether it's casual wear, formal attire, or specialized textiles, the country's versatile production capabilities ensure a sufficient of choices for well-aware consumers worldwide. 4- Commitment to Sustainability and Ethical Practices: As sustainability gains prominence in the apparel industry, Pakistan has made significant strides towards adopting eco-friendly practices and ensuring ethical manufacturing standards. Initiatives focusing on water conservation, renewable energy adoption, and fair labor practices underscore the industry's commitment to responsible production methods. 5- Opportunities for Collaboration: As advocates of global partnerships, SADEEZ INTERNATIONAL recognizes the immense potential for collaboration within Pakistan's apparel supply chain. Whether it's sourcing premium textiles, exploring manufacturing opportunities, or fostering design collaborations, we believe in harnessing the collective expertise of industry stakeholders to drive innovation and create value. 6- Connect with Us: Curious to learn more about the potential of Pakistan's apparel supply chain or explore collaboration opportunities? Reach out to us today to start a conversation. Together, let's shape the future of fashion and redefine the boundaries of possibility. #ApparelIndustry #SupplyChain #PakistanTextiles #FashionForward #GlobalPartnerships #SustainabilityInFashion #Innovation #Collaboration

🌐 Sri Lanka's Apparel Industry Takes a Digital Leap for Transparency 🛍️ Sri Lanka's apparel manufacturers, in collaboration with GS1, ADB, and IFRS, are spearheading an industry-wide shift towards transparency and traceability. Every garment produced in Sri Lanka will now feature a QR code tag, offering consumers and stakeholders comprehensive information about the brand, materials used, care instructions, supply chain traceability, and more. This proactive initiative positions Sri Lanka's industry ahead of impending global legislative changes, particularly in the U.S., U.K., and EU, emphasising the country's commitment to supply chain transparency and sustainability. The move aims to boost the industry's global competitiveness and attractiveness to brands prioritising ethical and transparent sourcing. Joint Apparel Association Forum (JAAF) Sri Lanka Apparel Exporters Association Sri Lanka Apparel Sourcing Association (SLASA) National Chamber of Exporters of Sri Lanka #ApparelIndustry #Sustainability #Traceability #GlobalTrade #SriLanka 🌍👕 https://lnkd.in/gWyEjSBV

Vietnam, the third-largest clothing exporter, is akin to the Textile and Apparel ‘Water Buffalo’ exhibiting the fastest growth among the top five players. Vietnam’s strategic location, skilled and youthful workforce, and emphasis on quality and design contribute to its success.  Vietnam’s textile and apparel industry has set an ambitious vision for 2030, aiming to achieve $100 billion in export value, capture 30% of the domestic market share, and maintain 50% local content. To realize this vision, the industry must overcome certain challenges while leveraging potential enablers. Explore these challenges and enablers in detail in the below article by Groyyo Consulting Groyyo. #vietnam #apparel #apparelindustry #managementconsulting #vision2030 #consulting #industry4point0 #futureofmanufacturing #smartmanufacturing #garment Abhishek Yugal SUSHEEL YADUVANSHI Divya Mohan Jigyasa Sachdeva Imtiaz Mullick Utkarsh Mishra

#Vietnam’s garment industry has emerged as a global powerhouse, with ambitious targets set for the future. According to Prime Minister @Pham Minh Chinh, #Vietnam aims to achieve $100 billion in textile exports by 2030, showcasing the sector’s significant growth and potential. This growth trajectory is supported by various factors, including a skilled workforce, competitive production costs, favorable trade agreements, and a strategic geographical location that facilitates efficient supply chains and access to key markets. Capacity building initiatives are instrumental in unlocking the full potential of Vietnam’s #garment manufacturing sector. From increased productivity and technological adaptation to environmental #sustainability, market access, and resilience, the benefits of capacity building extend across various aspects of the industry, contributing to its growth, competitiveness, and positive impact on the economy. Groyyo Consulting Vietnam Textile & Apparel Association (VITAS) Abhishek Yugal Divya Mohan Utkarsh Mishra Jigyasa Sachdeva Imtiaz Mullick Nitesh Kumar sahoo Jubaidur Rahaman Sumit Mahato #apparel #apparelmanufacturing #capacitybuilding #managementconsulting #consulting #smartfactory #skills #connectedmanufacturing #thoughtleadership