Notwithstanding calls for product diversification and value-addition, majority of garment makers in Bangladesh are keen on investing in new units rather than in product innovation.
This was revealed in a recent survey report of the International Labour Organisation (ILO) regarding the improvement of work environment in Bangladesh’s readymade garment (RMG) industry, which underlined that a staggering 70 per cent of factory owners are not interested in investing in manufacturing new products.
According to the survey, in the two years preceding 2017, only 29.73 per cent of the garment factories invested in innovating new products while in the one year preceding 2017, only 23.42 per cent of the factories made such investments. And in the two years after 2017, only 22.52 per cent of the factories invested in innovative products.
“There have been a lot of changes in the readymade garment industry over the past 2 or 3 years. Buyers are pushing down the price of garments. There is no alternative but to go for new products. From BGMEA we are encouraging the entrepreneurs to diversify their products. We are informing the entrepreneurs about the latest demands in garments,” underlined Senior Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Faisal Samad speaking to the media adding, setting up new factories and innovating new products were both important.