Can ‘Made in Bangladesh’ Be a Seal of Quality?
DHAKA, Bangladesh — Manufacturers in Bangladesh feel they are at a crossroads once again.
Having kept their space as the second-largest apparel exporter in the world after China, having come a long way over the last nine years in terms of adding safety measures to factories, and understanding and moving toward sustainability, the Bangladesh Garment Manufacturers and Exporters Association, or BGMEA, partnering with the Bangladesh Apparel Exchange put together a show of strength — and to find ways to give the Made in Bangladesh label the best global image possible.
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The weeklong Made in Bangladesh Week 2022, which ended Friday was, as BGMEA president Faruque Hassan told WWD, “To find the best way forward as the country comes up for graduation to a middle-income country by 2026. This would mean a loss of the zero duties structure for many countries that has given Bangladesh a competitive edge making it the second-largest apparel exporter in the world.
“It also means taking into account production diversification that could yield higher pricing — and the geographical and material shifts required for global retail,” he added.
The goal has been partially to replace the terrible memories of the accidents at Bangladesh factories, as well as to move more upscale in order to sustain the industry.
Showing the scale and reach of the products at the event at the International Convention City Bashundhara in Dhaka was the Fashion Innovation Runway show, while sustainable production was also emphasized with several panels and awards.
The Dhaka Apparel Summit was part of a seven-day initiative on Made in Bangladesh. Prime Minister Sheikh Hasina inaugurated the event, and discussions among the stakeholders in the industry, including global brands, entrepreneurs, ministers and analysts made clear the path that many manufacturers believe will be key: the focus on a seal of quality for the Made in Bangladesh label.
Bangladesh had export earnings of $42.6 billion from ready-made garment exports in fiscal 2022, according to data from the Export Promotion Board. As global markets enter a slowdown, the industry is looking for more clarity on the path ahead. One of these has already been to invest in green factories, and a greater focus on sustainability; Bangladesh has 178 LEED-certified factories from the U.S. Green Building Council, or USGBC, with more than 500 others awaiting certification.
According to figures from BGMEA, Bangladesh has eight out of the top factories in the world in the USGBC ranking.
“We are planning to shift almost all factories to the green or sustainable concept as per their carbon-reduction initiative,” Faruque Hassan said. “Our plan is to raise the 6.8 percent of Bangladesh apparel exports of the global apparel supply chain to double in the next three years, and to earn $100 billion in apparel exports by 2030.”
During the discussions at the event, it was clear that the low-cost products that Bangladesh has come to be associated with may not be the final solution, especially as product prices do not appear to be increasing.
The questions raised during the event included: Will the Made in Bangladesh label conjure images of sustainability in the near future? Of higher end-products like winter wear? Of women’s empowerment? (The country’s industry employs more than four million workers, of which more than 80 percent are women).
The industry has been seeing shifts that might signify what the label will stand for. “You see the change of leadership happening in the garment industry in Bangladesh,” said Jill Tucker, head of Labor Rights Programme, Laudes Foundation. “Now there is more organizational strength, more ability to report, but you also see the second tier gaining strength and ability. This includes organizations like Awaj and Bangladesh Centre for Solidarity. There’s much more awareness among garment workers about what their rights are. It’s not going to solve the problems right away, but it is moving in the right direction,” she said.
“Even though it may not be entirely homegrown, we’re hoping EU initiatives will make this happen. Bangladesh does not have to wait for its laws to come into effect. Bangladesh, you are free to change before,” she said.
As the president of the Federation of Bangladesh Chambers of Commerce and Industries Jashim Uddin put it: “The garment manufacture in Bangladesh has matured in all aspects — workplace safety, environment, recent changes in product innovation. From the environment friendly factories, strengthening and modernizing processes, innovation and sustainability, the products themselves speak of quality. It should be recognized as such globally,” he said.
