The apparel industry in Bangladesh is positioned to overtake those in the US, EU, and Africa in terms of market share. Virtual markets would be essential to this expansion, according to Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Following the release by BGMEA of the findings of research into the creation of an online marketplace for Bangladesh’s textile and apparel industry, Hassan spoke to industry participants.
“We have well realised the significance of the virtual marketplace during the lockdowns of Covid-19,” Hassan said.
According to BGMEA’s study, Bangladesh has the potential to claim 0.2 per cent of the US market share, 0.1 per cent of the EU, and 0.75 per cent of the African market share for textiles and apparel virtual markets by 2027, a gain of around US $ 489 million. That would bring Bangladesh’s garment industry to a combined total of approximately US $ 308 billion.
“The report serves as an important reference for the industry in its journey forward to tap our potential in the virtual market,” Hassan said. “I hope the policymakers and entrepreneurs will make the most use of it to get to the next step.”
Hassan identified barriers to leveraging the potential of virtual marketplaces as Bangladesh’s regulatory framework restrictions. According to him, the nation lacks international payment gateways and is confronted with obstacles including complicated export procedures, funding problems, and other regulations that prevent the development of a strong digital market comparable to those seen in other nations.
“The National Digital Commerce Policy of 2018 only governs the domestic market, and does not make any explicit policy framework addressing international e-commerce,” Hassan said.
That policy states that foreign e-commerce ventures are not allowed to operate in Bangladesh without forming joint ventures with local companies. And according to the policy, any company operating an e-commerce marketplace in Bangladesh cannot have a more than 49 per cent stake controlled by foreign investors.
