Apparel exporters seek fair pricing from brands

The country's apparel exporters have called on foreign buyers to adopt a fair pricing policy to counterbalance rising production costs.

"Foreign brands should support suppliers through fair costing policies and remain committed to implementing human rights due diligence at the factory level," Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said at a seminar in Dhaka today (18 December).

The seminar on "Human Rights Due Diligence" was organised by the Europe-based Fair Wear Foundation at a Gulshan hotel.

Ehsan, who is also the CEO of Fatullah Apparels, a leading US-GBS-certified green factory in Bangladesh, stressed the importance of ethical business relationships, urging brands to refine their policies and purchasing practices accordingly.

He said, "Once suppliers adopt better practices with higher cost, they have to maintain those standards even if order volumes decrease or are withdrawn."

In this situation, mutual commitment and cooperation for sustainable business policies and supply chain management are required, said the BKMEA president.

As part of the "Sustainable Textile Initiative: Together for Change" project, representatives from six European member brands — Stanley & Stella, B&C, TAKKO Fashion, Solo Invest, s'Olive, and ZEEMAN — along with 12 supplier representatives attended the seminar.

After the seminar, Bablur Rahman, country manager of Fair Wear Foundation, told TBS, "Supplier representatives also called for fair pricing, highlighting that apparel prices have stagnated or decreased despite significantly higher production costs."

He further said, "Brand representatives acknowledged these challenges and expressed their commitment to collaborative solutions."

Mohiddin Rubel, a director of the Bangladesh Garment Manufacturers and Exporters Association, said over the past two years, apparel entrepreneurs in Bangladesh have reported increasing production costs driven by rising energy prices, implementation of a new wage board for workers and other causes. 

"While production costs have surged by about 50%, product prices in some markets have dropped by about 5%," he said.