BGMEA launches study for Bangladesh RMG sector's virtual marketplace

The primary objective of this virtual marketplace is to integrate the local textile industry into global value chains, capitalising on the shift towards online purchasing. The study suggests two strategic approaches: expansion of business-to-business (B2B) activities into emerging markets like Asia and the Middle East, and creation of direct connections between Bangladeshi manufacturers and end customers (B2C), to achieve higher profit margins and business volume, BGMEA said in a press release.

Commissioned by BGMEA and funded by the International Finance Corporation’s (IFC) Partnership for Cleaner Textile (PaCT II) programme, supported by the Danish International Development Agency (DANIDA), the study was conducted by LightCastle Partners. The findings, unveiled at the BGMEA headquarters in Dhaka on January 25, highlighted market potential, sector readiness, sustainable business models, policy gaps, and strategies essential for the successful implementation of the virtual marketplace.

The proposed platforms will operate as independent private entities, offering features such as logistical assistance, design consultation services, secure payment systems, and spare capacity matching. However, the study points out the lack of a specific policy framework addressing international e-commerce, highlighting challenges like the absence of global payment gateways, difficulties in securing working capital financing, and cumbersome export processing for small orders.

The virtual marketplace also has the potential to serve as a central hub for stock lots, enhancing connections among local producers, traders, and international buyers in emerging markets. The study emphasises the need for a robust digital marketplace and suggests policy recommendations to overcome the existing challenges.Top of Form

“If we want to maintain our position in the global competition ahead, we need to develop a comprehensive business model. This report, I believe, will not only facilitate the expansion of our presence in the digital realm but also serve as a guiding framework for our future business expansion endeavours,” said Faruque Hassan, president of BGMEA.

Shahidullah Azim, vice president of BGMEA, and several BGMEA directors including Abdullah Hil Rakib, Navidul Huq, and Md Imranur Rahman, along with other key BGMEA committee chairs, attended the launch event for the feasibility study. Representatives from IFC-Pact and LightCastle Partners, including Nishat Shahid Chowdhury, Zahedul Amin, Dipa Sultana, Priyo Pranto, and Naziba Ali, were also present.

Fibre2Fashion News Desk (DP)