Bangladesh's apparel sector cannot rely on cost competitiveness alone

The global apparel market is changing rapidly, and Bangladesh is not in as strong a position as it was five to seven years ago. We have not fully utilised the advantages we have. When tariffs imposed during the Trump administration affected China's apparel business, for example, it created opportunities for sourcing destinations such as India and Vietnam. Bangladesh could not fully capitalise on that shift.

Global uncertainties, including the Russia-Ukraine war and Middle East developments, have affected our export markets. At home, limited marketing efforts and disruptions in energy supply are making it harder to remain competitive.

Urmi Group is the first Bangladeshi group with SBTi-validated decarbonization targets, achieving 34% energy efficiency and 30% GHG intensity reduction from 2017. Driven by a DPP-ready energy tracking system and 6.52 MWp solar (target 8.18 MWp), we are advancing data-led, renewable-powered transformation.

Infographics: TBS

Scale and cost efficiency have always been major strengths of Bangladesh's RMG industry, and we must maintain them. But cost efficiency itself has to evolve as global fashion changes. We need more efficient supply chains, particularly in waste and water management. Industry efficiency has improved, but there is still room for improvement.

Energy security is currently one of our biggest challenges. Buyers need confidence that factories can complete orders without disruption, and uncertainty over energy supply affects that confidence.

In the short term, Bangladesh needs a balanced mix of imported and local energy while continuing to explore new gas fields and expand solar generation. If necessary, coal-based power may also need to be considered. We should also have a specialised team with strong industry and business knowledge to ensure LNG is procured at the right price and supplied without interruption.

Infographics: TBS

Looking ahead, I see three priorities: energy security, strengthening Bangladesh's global positioning, and moving beyond low-hanging opportunities to create greater value.

The government needs to develop and clearly communicate a long-term power and energy plan. This visibility is important for entrepreneurs making investment decisions and for global brands that need confidence in Bangladesh's ability to deliver consistently.

We also need to tell Bangladesh's story more effectively. International roadshows and engagements should not only be about finding customers; they are opportunities to showcase our products, quality, capacity and sustainability. The media can help make these strengths more visible.

Infographics: TBS

Technology will be another major part of our future. AI and automation are essential if we want to prepare for the next level of business challenges. Process automation can improve quality and production speed, while robotic process automation can improve repetitive office tasks. Good data analysis enables better decisions.

Sustainability is another area where the industry has invested significantly. We are focusing on carbon emissions, waste and water management, green energy and fabric reuse. But manufacturers do not always receive corresponding value from buyers for these investments.

Initiatives such as the EU's Digital Product Passport show where the industry is heading. Sustainability will become an increasingly important consideration after the product itself. But sustainability must also generate a return on investment. Buyers need to recognise and appropriately value manufacturers' investments.

LDC graduation is inevitable for Bangladesh, whether it happens in 2026 or is deferred to 2029. We are hopeful about a deferment, but must prepare to compete in a less-protected global market. GSP+ may not be straightforward for our apparel sector, so we need to pursue FTAs, CEPAs and other bilateral or regional trade arrangements. Discussions with the European Union are important, while the Economic Partnership Agreement with Japan is a positive step.

Over the next decade, innovation and new product development must become stronger priorities. We need to anticipate market shifts, develop the right products and respond to changing customer needs more effectively.

Bangladesh has to become a quick mover, from product development to production and delivery. We need to fast-track the supply chain and reduce unnecessary lead times. The ability to respond quickly to buyers will be critical to strengthening our position.

At Urmi Group, we have always tried to contribute to industry change through innovation and new product development. As my leadership responsibility has grown, I have focused more on understanding client needs, building resilience and taking a professional approach to manufacturing.

For me, moving forward means continuously improving our designs and processes while reducing costs and waste. That is how we strengthen customer relationships, attract new customers and remain competitive.

As a second-generation industrial leader, I recognise the importance of preserving the foundations built by earlier generations. Bangladesh has developed strong capabilities in cost competitiveness and scalability, as well as an ecosystem that has created confidence among international buyers. Even without a strong domestic raw-material base, we have become the world's second-largest RMG exporter.

Our responsibility is to protect those strengths while adapting to what customers need. That means flexibility, quicker turnaround, stronger innovation and more efficient factories.

I believe opportunities lie ahead. But we have to navigate them professionally by reducing avoidable delays, addressing bottlenecks and becoming more efficient. If we can respond to the market with greater speed, innovation and professionalism, I see a bright future for Bangladesh's apparel industry.

Asif Ashraf is the Managing Director of Urmi Group.