Apparel Online Bangladesh Magazine November Issue 2018 | Page 32

BANGLADESH INSIGHT
Going Green vs. Price Points:
Apparel manufacturers caught
in quandary!
B
angladesh’s readymade garment
industry has come a long, long
way. Today, it boasts of having one of
the most exemplary lines of compliant
factories around the globe. As per
reports, there are around 280 green
factories in Bangladesh, amongst
which 67 are certified by the US Green
Building Council (USGBC). Out of
these 67, several are Platinum rated,
recognised for best practices in
design, construction, and operations
that protect the environment and
human health.
At present, among the top 10 green
factories in the world, 7 are reportedly
of Bangladesh origin. The apex
garment manufacturers’ body BGMEA
in association with the USGBC and
Green Business Certification Inc.
(GBCI) organised an event in March this
year to recognise 13 LEED Platinum
certified factories of Bangladesh namely,
Remi Holdings Limited, Tarasima
Apparels Limited, Plummy Fashions
Limited, Vintage Denim Studio Limited,
Columbia Washing Plant Limited,
Echotex Limited, SQ Celsius Unit
2 Limited, Kaniz Fashions Limited,
Genesis Washing Limited, Genesis
Fashions Limited, SQ Birichina Limited,
SQ ColBlanc Limited, and Envoy
Textiles Limited, for their achievements.
Participating in the event, industry
experts opined that green apparel
Despite all
the success
‘going green’
has helped the
manufacturers
to achieve, the
critical question
of ethical or
fair pricing is
apparently still
a major concern
for the factory
owners. Although
it has led to
widespread
international
recognition,
many still feel
that it has
not helped
them where it
really matters,
generating
revenue.
factories of Bangladesh are creating
examples of best practices around the
globe, all the while contributing
to overall sustainable, economic
and environmental development of
the country.
“The RMG industry’s steps and
achievements so far in environmental
sustainability will contribute to usher
in a new era in the industrial sector
of Bangladesh,” reportedly stated
Anisul Islam Mahmud, from the
Ministry of Environment and Forest,
at the event.
There’s no denying that ‘going green’
has helped the apparel manufacturers
to successfully counter the issue
of image crisis that followed the
industrial disasters of Rana Plaza and
Tazreen Fashions fire, which helped
to reinstate the faith of the global
brands and retailers in the industry,
and they not only continued sourcing
from Bangladesh but also increased
their order volumes significantly over
the years. The results are here for all
to see; Bangladesh today is the second
biggest apparel exporter globally
after China.
Nevertheless, despite all the
success, ‘going green’ has helped
the manufacturers to achieve, the
critical question of ethical or fair
pricing which is apparently still a
major concern for the factory owners.
Although it has led to widespread
international recognition, many still
feel that it has not helped them where
it really matters, generating revenue.
“It needs one-third more money to
set up a green garment factory. If we
did not make green garment factories
we could have employed one-third
more workers and increased our
productivity. I regret I made green
garment factories; the buyers do
not pay even a single cent more
for sourcing from a green garment
factory,” reportedly underlined
KM Rezaul Hasanat, CEO of
Viyellatex Group, a leading
garment exporter of the country while
participating as a panel discussant
at a dialogue on green compliance,
held at the Metropolitan Chamber
of Commerce and Industry (MCCI)
in Dhaka.
The MCCI, in partnership with
Adam Smith International and
UKAid, Bangladesh, organised the
dialogue. Highlighting the pros and
cons of going green, the owner of
another highly-rated green facility
too, shared his thoughts on this
issue: “The green revolution has
given the industry sustainability.
As a result, we, the manufacturers,
have gained confidence. It has
opened up an opportunity to brand
Bangladesh,” reportedly stated Md
Fazlul Haque, Director of LEED
certified Plummy Fashions, adding,
“We have established green factories
at huge costs. But, the buyers do not
want to give us more than a Dollar for
our products.” Not ready to put the
complete onus on the buyers, Haque
cited lack of bargaining skills of the
manufacturers to get the desired price
points, as partly responsible.
Talking of prices, buyers apparently
also have their own share of
challenges, more so amidst rising
competition, increased logistic cost
and above all the overtly price-
conscious end customer.
Nevertheless, considering the amount
of investment that goes into making
a fully-compliant, green facility, a
little incentive from the buyers —
be it in terms of better margins or
increased and regular orders — could
go miles in not just motivating the
manufacturers but also in giving a
further boost to the green initiative
to ensure long-term and sustainable
business for both.
32 Apparel Online Bangladesh | November 2018 | www.apparelresources.com