Developing a strong ‘Made in Bangladesh’ brand: Mohammad Pabel, President, BGBA

As the President of the Bangladesh Garment Buying House Association (BGBA) and the Managing Director of Dongyi Sourcing Limited, Mohammad Pabel is a leading figure in the country’s garment buying sector. Throughout his career, Pabel has demonstrated creativity, leadership and a dedication to quality, which has led him to substantially influence the manufacturing and sourcing sector. His incisive strategic thinking and capacity for building trust have been crucial in propelling expansion and cultivating a cooperative atmosphere that uplifts regional producers while satisfying the changing demands of the worldwide garment industry.

In discussion with Apparel Resources (AR), Mohammad Pabel, the young entrepreneur, shares how he is forecasting to develop a strong ‘Made in Bangladesh’ brand in the apparel industry.

AR: The Bangladeshi RMG industry has a massive target and a lot of work ahead. What are the immediate steps you have taken as BGBA President in this regard and what’s your long-term plan to help increase the country’s apparel exports?

Mohammad Pabel: As an immediate step, we expanded our market diversification, besides negotiating trade agreements and lobbying for tariff reductions or exemptions in key markets, participating in international trade fairs and exhibitions to showcase Bangladeshi apparel products. In addition, we started to improve workforce skills, providing training programmes to workers and also the managers and encouraged the adoption of new technologies in manufacturing processes, such as automation and digitalisation. We are also working towards establishing a robust communication network between buying houses and manufacturers.

Our long-term plans are to work for digitalising the BGBA platform for providing better service to all the members, promoting more sustainability. We are aiming to invest in renewable energy sources for manufacturing facilities. We also forecast developing a strong ‘Made in Bangladesh’ brand that emphasises quality, ethical practices and sustainability.

AR: There are 1800 BGBA members but very few are using advanced technology and have thrust on product development (PD) while these things are need of the hour. So what is your plan to motivate your members to increase the use of technology and focus more on PD?

Mohammad Pabel: There is a massive technology lag amongst buying houses. To address this difficulty, BGBA is organising workshops and training sessions on the latest technologies and best practices, encouraging digitalisation and automation within the industry. It is planning to establish R&D centres to innovate in fabric technology, garment design and production techniques. BGBA is also seeking to collaborate with international experts and institutions to stay ahead of global fashion trends.

AR: What are some of the key challenges currently facing buying houses in Bangladesh and how is the BGBA addressing them?

Mohammad Pabel: Buying houses in Bangladesh face several challenges as enlisted here along with the remedial measures being taken up by BGBA for them:

Challenge: Ensuring that all factories meet international safety and compliance standards remains a critical issue, particularly following high-profile incidents in the past.

BGBA Actions: Most of the members of BGBA advocate for stricter enforcement of safety regulations, providing training on compliance issues and collaborating with international organisations to certify factories under recognised safety standards. We are not doing the same from BGBA office centrally but we have plans for it in future.

Challenge: Increasing costs of raw materials, wages and utilities put pressure on profit margins.

BGBA Actions: BGBA members are working on newness with customs for fair pricing and support buying houses in finding cost-effective solutions, such as improving efficiency and adopting technology.

Challenge: Over-reliance on a few major markets like the US and EU makes the industry vulnerable to market fluctuations and changes in trade policies.

BGBA Actions: BGBA promotes market diversification by exploring new markets, participating in international trade fairs and building relationships with retailers and brands in emerging regions.

Challenge: Inefficient logistics and inadequate infrastructure can lead to delays and increased costs. Example includes customs clearance from airport, Chittagong port for sample!   

BGBA Actions: The BGBA is lobbying the government for improvements in infrastructure, such as better roads and port facilities and supports initiatives to streamline logistics and supply chain management.

AR: You have a one-stop doorstep service motto to provide 360® support to all BGBA members. Could you please explain more about this service?

Mohammad Pabel: The one-stop doorstep service motto of the BGBA aims to provide comprehensive and convenient support to all its members, covering every aspect of their business needs. This approach ensures that members receive 360° support, encompassing a wide range of services to enhance their operations, compliance and competitiveness in the global market. Here’s a detailed explanation of this service:

• One-stop logistics support
• Alert to potential risk customers to protect business
• Training and skill development
• Legal support
• New and renewal membership
• Smart card
• Airport lounge
• Digital service
• Doorstep service

By offering these extensive services, BGBA aims to be the solution for all the needs of its members, supporting them in every aspect of their business journey. This holistic approach helps members improve their operational efficiency, expand their market reach and ensure compliance with international standards, ultimately contributing to the growth and success of the Bangladesh garment industry.

AR: There are quite a few SME buying houses still struggling to deal with brands. How does BGBA support or suggest its members to overcome this scenario?

Mohammad Pabel: BGBA recognises the challenges faced by small and medium-sized enterprises (SMEs) in the buying house sector, particularly when dealing with international brands. These challenges often include limited bargaining power, difficulties in meeting compliance standards and challenges in establishing and maintaining business relationships. To support SME buying houses, the BGBA offers several strategies and services.

It organises events, trade fairs and business forums where SME buying houses can connect with potential buyers, brands and other stakeholders.

BGBA offers advisory services on financial management, access to credit and legal matters, helping SMEs navigate complex business environment. SMEs should invest in branding to differentiate themselves in the market and highlight their unique value propositions, such as quality, sustainability or ethical practices. BGBA even encourages the adoption of new technologies, such as digital platforms, automation and efficient supply chain management systems. This would help SMEs to streamline operations, improve efficiency and offer innovative solutions that appeal to brands. In addition, BGBA encourages partnerships and collaborations amongst its members, as well as with international brands and organisations.

AR: In terms of policy, what are your expectations from the government and stakeholders?

Mohammad Pabel: Investment in vocational training and education programmes tailored to the needs of the garment industry should be a priority. Public-private partnerships can enhance the quality and relevance of these programmes. We seek financial and credit facilities from the government that can be beneficial, especially for small and medium-sized enterprises (SMEs). This could include lower interest rates, extended credit lines and support for export financing. Research and branding are very crucial now. If the government and other stakeholders can support initiatives for market research, branding and marketing of Bangladeshi garments internationally, it could really be very beneficial for the apparel industry.

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