About 84 percent of the country’s export earnings come from the garment sector. Apparel market is US-Europe centric. As a single country, the largest market for Bangladeshi clothing is the United States. However, entrepreneurs are turning to new markets by reducing their dependence on Europe-America. The non-traditional clothing market is becoming popular. However, to avoid over-dependence, the government has reduced the rate of cash support for exports to non-traditional markets.
Entrepreneurs fear that many factories may fall. Consumers in many countries have reduced their clothing purchases due to global inflation. This has also created new challenges. In the meantime, BGMEA, the largest organization of the clothing sector, is coming up. He is contesting for the post of director in the upcoming elections. Shah Raed Chowdhury, director of Evins Group, one of the companies in the apparel sector, spoke to Jago News about the future leadership, facing the challenges of the sector and relationship with Bayer. Interviewed by own reporter Yasir Arafat Ripon.
wake up News: How to advance BGMEA as an entrepreneur of the current generation?
Raid Chowdhury: At one time he went to meetings with Bayer in a suit and tie. Now buyers go to meetings in half pants, doing it to save time. As fashion has changed, so has Bayer. But the customer is not the same. The buyer is younger than me. Now naturally a senior’s language and mine will not be the same. In those positions our generation should come, should come, who will be guided by seniors. Young people should be encouraged. BGMEA is an example where young people are encouraged to come. But there are not two factions among the Yangs. K Forum, K Combined Panel It does not exist. Again the seniors did not give it to their heads.
I focus on new markets, new product development, customer relationship building. I will relate with buyers, create a market not for myself, but for the entire garment sector.
‘Globally, it can be seen that the current generation of people is leading the way. Only the second generation has come to the RMG sector in our country. My father started the factory in 1983 with Tinshed. It’s been 40 years now. Seniors will guide us, youths will run. They (current generation) should be given freedom, they will run, work.’
wake up News: What will your commitment be, are there any plans for a relationship with Bayer?
Raid Chowdhury: I have to have ground under my feet in any election. Must have business oriented experience. We have done two brands (Nair and Miniso Bangladesh). Retail is at the top level in our country. Everyone in my family is involved in business. Two brothers built a green factory with their own hands before covid. We have tried to know, have known and understood how much pain is required to make a factory, there is pain with capacity. I also understand Bayer’s pressure.
We have 30 plus buyers here on garments alone. We export not only to Europe-America, but to many countries around the world. We export to various countries including South America, Panama, Australia, India, Latin America. It is our responsibility to explore new markets. We do not give capacity power to one buyer. We work on online ventures, work on top design brands, work on supershops. We deal with large mixed buyers. Can say tested, experienced youngsters should come. I focus on new markets, new product development, customer relationship building. I will relate with buyers, create a market not for myself, but for the entire garment sector.
wake up News: The new generation is staying outside the country, a large part is not coming to the clothing industry, why?
Raid Chowdhury: Many are staying outside the country. After studying abroad, they stay there, many come back and do business. Here, if I only follow my father’s reputation, then I will draw danger. Not for my father, not for myself, for trade, for country should come, work. Young leaders will be encouraged to come to the sector. They will be informed about the sector of the country, training will be done. Young leaders will be brought in to work for their country, guided by our senior members.
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Many of our current generation have come in this election. I would like to represent Young and encourage you to come to this trade. I want to play that role too that you should come. I came to the country after studying abroad. I have many brothers and sisters who have many big industries. I will tell them come, see how important the garment industry is. Again, it is ok to stay abroad, open an office there, see the buying site. This is also a factor. Buyers are also encouraged when they come and see the new generation coming.
wake up News: What is the scope of product negotiation with Bayer?
Raid Chowdhury: Buyers don’t look at groups first, they look at which countries they will work with. It is international business. The market is in their hands. There are many factories like us. The country has the highest number of green factories. When the first buyer sees which country to order from, he has many options including Cambodia, Vietnam, China, Myanmar. He looks at the quality, whether it is around his country or not. He doesn’t look at the price first. Then he saw the price. By looking at value-added items. Then when he sees price, he compromises on quality.
And Bangladesh is better than all these. They love us because I can give them cheap products. There is no reason for our love. But now it’s different, because I’m developing. When he placed the order in love, three of us (three factory owners) started fighting. I am bringing buyers at a profitable price, suddenly one said I will deliver 20 cents less, another I will deliver 30 cents less. So where did the price go? First country bargaining is with Bayer, after selection bargaining among themselves. Price ends or sets here. I don’t have it.
Good service should be given to get good price. In this case, those who will focus on automation have more opportunities. Now we are moving to automation. Because mistakes can be made by hand. Investing in automation can bring in buyers. Earlier there was no requirement, now there is automation. There is scope for bargaining.
Various Chinese buying houses have entered the country, various Chinese companies are investing in the country. There are many Chinese owners, orders are coming in, value-added customers are paying attention to this country. Now making myself that way. This is because the wages of labor suddenly increased, but the quality of individual factories did not suddenly increase.
wake up News: Government has reduced export incentives, what will be the impact on the industry?
Raid Chowdhury: With reduced incentives, survival of many factories will now be challenging. There are many factories, which survive on incentives. Owners are getting what we think is extra. But there is also the opposite picture. When negotiating with a buyer, the buyer directly says you get incentives, so why not give me a discount. Reduce more, reduce. In that case, this incentive is included in the price. In most cases the incentive is included in the price. When the negotiation takes place, say you drop so much … percent. It will cause a lot of damage. It is within the cost. Because of this order will result.
Exporting products to new markets inspires me. We export goods to Panama to get some. But if I don’t get anything, why do I do business in risky country, not at all. Why should I do it, I will sit with America-Europe, because it is a safe place. This allows overall exports to decline. Entrepreneurs will take risks, many will stay at home. I will see if I have the opportunity to go to different countries. I will guide the market not only in America-Europe, but in the whole world.
Our brand miniso Bangladesh retail business, if I give some conditions to my salesman, he will take care of the customer more. If I get the same motivation, I will run. Suddenly he pushed, but I was not ready. Exports will be negative due to reduced incentives.
Our brand miniso Bangladesh retail business, if I give some conditions to my salesman, he will take care of the customer more. If I get the same motivation, I will run. Suddenly he pushed, but I was not ready. Exports will be negative due to reduced incentives.
wake up News: I want to know about the crisis in the clothing sector.
Raid Chowdhury: The major export sector is clothing. The crisis in this sector is not in one place. Whether there is a gas problem, whether there is a supply or not is to be seen. The big industrial garment industry of the country, if it has a crisis, there is a crisis of that label, it happened. The big player’s crisis is also big, coming from different directions. If BGMEA is capable, can perform then the crisis can be overcome. We want to advance our sector by confronting it.
wake up News: Why should voters choose you in the BGMEA elections?
Raid Chowdhury: Our group is growing every year. There is a chain of command. Everything is going as per the rules. Each unit has a different corporate culture. I have no contacts. I am not coming to the election to get BGMEA card. I have no personal gain. But even if I am not on the board of my company it will continue as the corporate culture is on. In this case, I have time and experience. Want to work in combination of both, where seniors will be guided. Many have the time but lack the experience, which will again be a danger. If there are people like me, who have time, they can give something if they come to this sector. Time and experience can be used.
EAR/ASA/GKS
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