To leverage the burgeoning virtual marketplace, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has unveiled a groundbreaking feasibility study. The study, titled “Establishing A Virtual Marketplace for Bangladeshi Apparels,” conducted by the International Finance Corporation (IFC) in collaboration with consulting firm LightCastle, presents a compelling outlook for the Ready-Made Garment (RMG) sector in the country.
The BGMEA, a key player in the textile industry, believes that the introduction of a virtual marketplace platform could unlock the untapped potential of the global garment market, particularly in major export destinations such as the USA, European Union (EU), and African markets. Reportedly, Bangladesh stands to gain an additional $489 million in garment business by 2027, contingent upon the successful establishment of an international e-commerce platform within this timeframe.
BGMEA President Faruque Hassan, addressing stakeholders at the event, projected that the value of the virtual garment marketplace in the USA, EU, and African countries is expected to reach a staggering $308 billion by 2026. The study also indicated that Bangladesh could capture 0.2% of the USA, 0.1% of the EU, and 0.75% of the African markets by 2027, amounting to a combined worth of approximately $308 billion.
Dipa Sultana, Senior Business Consultant and Project Manager of LightCastle, emphasized that the virtual marketplace would not only reduce lead times and business costs but also simplify international trade procedures. Sultana highlighted the potential shift of one-third of apparel sales in the EU and the US to online channels by 2027.
Acknowledging the existing challenges, the report mentioned that although virtual marketplaces are already in place, they are not yet fully operational for the international market. It also emphasized the need for streamlined rules to address issues related to the shipment of goods to Western countries.
The garment sector plays a pivotal role in Bangladesh’s economy, and with this initiative, the industry aims to secure a significant portion of the global business through virtual online platforms. The success of this ambitious endeavor is contingent upon collaborative efforts from both the public and private sectors to create an enabling environment for international e-commerce.
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