Thursday, June 13, 2024

Section

বাংলা
Dhaka Tribune

BGMEA president: Bangladesh could earn $489M from a virtual marketplace

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 global burgeoning e-commerce market

Update : 15 Feb 2024, 09:24 PM

The apparel manufacturers in Bangladesh should focus on the virtual marketplace in this age of virtual connectivity as people of all ages, particularly Gen-Z, are spending more time online.

Moreover, the exporters also should know about this emerging frontier. It has created new opportunities for the fashion industry consumers are increasingly inclined towards online shopping.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), made the statements in a letter issued to the stakeholders on Thursday.

“We have well realized the significance of the virtual marketplace during the lockdowns during Covid-19,” he added, noting that there were also some incompatibilities and disconnects in the policy settings.

He said that the 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 global burgeoning e-commerce market.

“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 added.

To elaborate, 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 categorized as imports) constitute substantial impediments to establishing a robust digital marketplace, he added.

He also mentioned that considering these challenges, BGMEA undertook a study as a precursor to developing a virtual platform tailored for Bangladesh's Textile and Apparel Sector.

The report stated that it aims to unlock the untapped potential of the virtual garment market in the major export destinations of the country and Bangladesh stands to gain an additional $489 million in garment business from virtual markets in the USA, European Union (EU), and African markets by 2027.

The study also indicated that by 2027, Bangladesh has the potential to capture 0.2% of the USA, 0.1% of the EU, and 0.75% of the African markets, amounting to a combined worth of approximately $308 billion.

“The report serves as an important reference for the industry in its journey forward to untap our potentials in the virtual market. I hope the policymakers and entrepreneurs will make the most use of it to get into the next step,” said Faruque Hassan.

He also said that it may require further studies on specific issues including logistics and distribution, branding, and foreign exchange and revenue policies.

“If we want to maintain our position in the global competition ahead, we need to develop a comprehensive business model,” he added.

He also said that it will facilitate the expansion of the presence in the digital realm and will also serve as a guiding framework for future business expansion endeavours.

Top Brokers

About

Popular Links

x