“One way (and right way) to address rising input costs, hike in wages and removal of subsidies in apparel and textile manufacturing and export industry is adopting technology-driven strategies,” advocated Andreas Dietz, Managing Director, Groz-Beckert East Asia LLP when he recently had an exclusive face-to-face discussion with Team Apparel Resources.

It’s worth noting here that Groz-Beckert is a German company that specialises in manufacturing and providing high-precision needles and precision parts for textile production and related industries. These precision parts are used for different textile applications, including knitting, weaving, felting, tufting, carding and sewing, proving to be crucial components in the production of fabrics, garments and other textile products.

During a freewheeling conversation, Andreas touched upon key issues in Bangladesh’s RMG industry due to rising wages, the company’s strategy of reacting to persistent challenges and its role in educating the customers on digitalisation as well as technology products. Here are the excerpts.

AR: How has Bangladesh market been shaping up for you?

Andreas: With 172 years of global experience, we are a strong player in Bangladesh. Groz-Beckert has been a longstanding player in Bangladesh which initially used to be operated through our Indian representative production facility and office in Chandigarh, India, although it was geographically distant from Bangladesh. We established a representative office in Bangladesh in 2007, subsequently taken over by Singapore in 2013. Since then, our team has steadily grown. Our primary focus is on customer service, providing not only products but also comprehensive support through training and servicing to enhance production of apparel factories in the country.

We work with dealers and also supply customers directly from our Asia logistics centre in Singapore which houses all Groz-Beckert products, serving as a hub for our major markets in Asia, including China, which is our largest market.

AR: Embracing high-end automation and advanced textile accessories and auxiliaries is to drive value. How far is it true for Bangladesh?

Andreas: Bangladesh is frequently labelled as an ‘affordable’ and ‘cheap’ apparel manufacturing destination. However, recent developments, such as the increase in labour wages and the government’s removal of subsidies on RMG exports, have put significant pressure on apparel factories. I believe fixating solely on cheap labour and low-cost products seems like a dead-end strategy for buyers. This is something we want to address through technology. It’s important for factories to enhance operations by refining production methods, minimising costs, embracing optimisation and digitalisation. The crux lies in understanding that the true value of a high-quality product becomes apparent only when accompanied by accurate datasets and the right information for comprehensive analysis.

However, the progress of digitalisation in the textile industry tends to be slower compared to various other sectors. Despite the gradual pace, I am optimistic about Bangladesh as we have seen a high adoption for our high-end auxiliaries. There is a willingness amongst many customers to explore new-age approaches, entertain fresh ideas and actively engage in a digital learning curve.

AR: Groz-Beckert recently launched three new products. How have these been accepted by the market?

Andreas: The response has been excellent. These three products have been developed in collaboration with machine builders. One of them is LCmax, a development showcased on a new machine with Mayer & Cie. The newly developed, modified shank geometry of the LCmax needles has significantly simplified handling and greatly reduced friction when used in the needle channel of the circular knitting machine.

Another innovation is the Inotas system, created in partnership with Santoni, eliminating the need for machine cleaning. We also collaborated with Vanguard Pailung to develop a high-speed compound needle for an extremely fast machine.

While the Vanguard Pailung high-speed machine is currently targeted at the American market, the concept of high-speed knitting machines is applicable globally, including Bangladesh which is substantially investing in knitting machines. We are capitalising on the strong presence of Pailung and Santoni in Bangladesh to make our products’ reach more visible in the country.

AR: What is Groz-Beckert’s strategy to react to the market challenges, particularly in its Asian market?

Andreas: Let’s be straightforward. Do we really need to react quickly in the textile industry? Not necessarily, especially when considering the short-lived global disruptions. Take Cambodia for example! Primarily, it has been dominated by cut-and-sew operations, with Chinese producers establishing factories in Cambodia for their cut-and-sew operations. This trend has always been there. Have there been any noticeable changes in the recent years? No. Things are similar in other Asian countries such as Vietnam, Indonesia, Myanmar etc.

Having spent around 30 years in the industry, I can bet on the fact that one must stay alert and watchful. We have market research personnels in Singapore who are working closely with our Asian operations. We diligently track market changes, relying on various data sources, including our own figures, export/import statistics and additional data released by different firms. This approach allows our partner factories to have a broad view, addressing complexities in areas like fabric production, weaving, knitting and cut-and-sew processes.