Low prices, export volumes top challenges
The biennial election of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is set for April 4. Two panels -- Forum and Sammilita Parishad -- are contesting in the polls. Both panels have unveiled their manifestos and the campaign is nearing an end. Refayet Ullah Mirdha, a senior reporter of The Daily Star, talked to Faruque Hassan, panel leader of Sammilita Parishad and ABM Shamsuddin, panel leader of Forum.
The lower price of apparel items shipped from Bangladesh and the lower volume of orders due to the devastating impact of the coronavirus pandemic are two major challenges for the garment industry, said ABM Shamsuddin, the panel leader of the Forum.
"On average, prices have gone down by 4 per cent. Export has dipped by almost 18 per cent. There has to be an emphasis on online transactions. Besides, we also need to transform our production lines to modular lines so that we can accommodate small and more value-added orders," he said.
According to the businessman, the only way to increase the price is to raise awareness among manufacturers to maintain the required price level and avoid undercutting each other.
If elected, he would organise monthly sessions where the association will bring five different groups of manufacturers to discuss five basic product price ranges so that the industry can standardise the price level and does not give in to any undue pressure on price cuts.
The entrepreneur said the image of the industry was way better now. "If you search BGMEA on internet, you will find good and green stories. The attempt to brighten the image of the industry will continue."
"Our emphasis on sustainability and workers' welfare will hopefully carry us through. In order to look good, we need to do good first," the Forum panel leader said.
The BGMEA recently published a sustainability report. Management consulting firm McKinsey & Company has also appreciated the recent developments of the key exporting sector.
"Therefore, I feel the sector's image is on the mend," Shamsuddin said.
An election is, by default, expected to be fair. For an association of this stature, the election needs to be 100 per cent transparent to the highest order, the entrepreneur said.
"Election results will depend on the voters and their will. Considering the work the Forum panel has done in the last two years, I hope that they will side with us and give us a landslide victory," he said.
The chairman of Hannan Group said the cooperation in industrial relations has improved, and there must be a weekly meeting with labour leaders to take the relationship to the next level.
"Our goals are unified. We want a safer sector that is sustainable. Without the focus on the welfare of workers, the sector can't be stable, and we can't expect a better outcome. Besides, we must have a streamlined and better alternative dispute resolution."
On the issue of safeguarding the interest of small and medium-sized factories in the garment industry, Shamsuddin said SMEs were going to be the most viable setups in the next decade.
"Consumer tastes are changing. Therefore, we need to ensure that SMEs get proper thrust, funding and infrastructural support from policy-makers."
The industry will also seek an assistance fund for SMEs.
The entrepreneur is bullish about the RMG Sustainability Council (RSC), a compliance and safety monitoring body of the apparel sector.
"I am very hopeful that the industry will establish its position and align with the best practices. It is also a platform where local capacity building is bound to happen."