Garment manufacturers have sought a policy from the government on virtual marketplaces, saying they cannot enter into deals with international clothing retailers and traders in absence of dedicated international payment gateways for them.
The existing policy on online marketplaces is limited to only domestic markets, although e-commerce platforms are the main tool for sales of goods both at home and abroad, they said.
In this age of virtual connectivity, people of all ages are spending more time in the virtual world, said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in a statement yesterday.
For the fashion industry, it has created new opportunities since consumers are increasingly becoming inclined towards digital shopping, he said.
The disruption in global fashion retailing and distribution caused by digital technologies and applications is both a challenge and opportunity, he added.
“In fact, we have well realised the significance of the virtual marketplace during the lockdown periods,” Hassan said.
Limitations arising from the regulatory framework, particularly in the realm of cross-border transactions and foreign currency policies, serve as an impediment for the apparel industry to tap into the burgeoning global e-commerce market, he said.
The National Digital Commerce Policy of 2018 only governs the domestic market, and does not make any explicit policy framework addressing international e-commerce, he said.
The absence of global payment gateways, challenges in securing working capital financing, cumbersome export processing for small orders, and an impractical return policy, where returns are categorised as imports, constitute substantial impediments to establishing a robust digital marketplace, said Hassan.
It also underscores the virtual marketplace’s potential to serve as a central hub for stock lots, streamlining connections among local producers, traders, and international buyers in emerging markets, he said.
“I hope the policymakers and entrepreneurs will make the most of it to get to the next step, and it may require further studies on specific issues including logistics and distribution, branding, and foreign exchange and revenue policies,” he added.
“If we want to maintain our position in the global competition, we need to develop a comprehensive business model,” said Hassan.
Earlier, at a press conference on January 25, the BGMEA unveiled the findings of a study on virtual marketplaces. Hassan called on the government to take steps focusing on the study’s findings.
The study said the idea of fast fashion is to very quickly design, manufacture, and produce high volumes of clothing, replicating any ongoing trend and constantly updating the shelves of retail stores.
Across most apparel categories, consumers are now wearing each clothing article for only half the duration they did 20 years ago, it said.
Now, fast fashion clothing items are updated weekly by brands such as Zara, H&M, and Topshop, among others, it added.
Before the widespread adoption of fast fashion, clothing was produced on a seasonal basis. New clothes were released in fall, winter, spring and summer, said the study.
In contrast to fast fashion, seasonal clothing takes about a year to go from a concept to the hands of a customer. It takes about 6 to 8 months to conceptualise a design and prepare the clothing articles for production, it said.
Then, it takes another 2 to 3 months for the finished clothing to reach the hands of a customer. This one-year lead time is inefficient for today’s consumers, as fast fashion requires trendy clothes to reach customers within weeks, it added.
Hence, cost-efficiency is not the only requirement anymore. Faster production and shorter lead times are needed to stay competitive in the industry, said the study. News Sources : thedailystar
