Faisal Samad, MD of Savartex Group and Former Senior Vice President and Board Member of BGMEA, is deeply passionate regarding the nation’s RMG commerce – a passion that shines by the use of in his thought-provoking discussions. With over three a very long time of experience inside the enterprise, he is well-versed in apparel present chain’s complexities and gives confirmed insights. Employees Apparel Sources (AR) had the prospect to interview him and listed below are the highlights from the dialog.
AR: Other than pricing, all of the items seems to be rising – costs, geopolitical tensions and uncertainty – inserting stress on all stakeholders inside the present chain. Many patrons at the moment are not paying the prices they used to pay earlier and are moreover reducing margin percentages. On this state of affairs, what’s the way in which by which forward to verify truthful pricing and low-cost margins?
Faisal: That’s actually a vital issue and our enterprise has been calling for truthful pricing for a couple of years now. Compared with Bangladesh, worldwide places like China and India are in a higher place, so we’ve to evaluation our pricing model. There’s an unspoken understanding amongst producers in these worldwide places that we must always at all times undertake as correctly. Partaking in healthful rivals doesn’t suggest taking orders just for the sake of conserving the machines working.
Furthermore, our entrepreneurs and promoting and advertising and marketing teams ought to repeatedly improve their negotiation experience. As a country, we’re very accommodating within the route of patrons, normally offering an extreme quantity of flexibility relating to pricing. This is not a sustainable method. In the long run, taking orders with out meeting worth parameters will not work.
AR: Bangladesh has made massive strides in sustainability, with heavy investments on this space. Nonetheless, there’s a widespread notion that patrons aren’t ready to pay a premium for sustainability. Truly, sustainability seems to come back again at a worth to companies, on the very least initially. What are your concepts on this?
Faisal: Sustainability in Bangladesh’s RMG enterprise is often highlighted as a major power or benchmark, nonetheless I’ve not at all supported presenting it this style. Sustainability has been oversold. You could’t serve the planet with out being financially sustainable first. To understand true sustainability –whether or not or not it’s meeting ESG requirements or the SDGs – the enterprise must be financially safe.
| We might like a product-driven technique further supported by sustainability and competitiveness. Knitted garments are actually certainly one of Bangladesh’s strengths, nonetheless I’ve noticed that India has gained orders on this class by offering sturdy product value, added choices and a willingness to only settle for lower MOQs. |
This issue have to be addressed every on the protection stage and by patrons. We’ve seen points identical to the jute boiler issue, the place sustainable practices weren’t prioritised. Customers ought to help sustainable factories and pay an excellent value for his or her merchandise.
AR: Some companies are specializing in product and market diversification to develop, whereas others need to stay of their comfort zone, persevering with what they’ve been doing for years. How do you view this?
Faisal: Diversification is an efficient method, nonetheless offered that your foundation is steady. I contemplate one should diversify solely after mastering their current part. It’s easy to say, “I want to diversify” nonetheless if truth be told, it’s not a plug-and-play decision. It may actually really feel like starting a really new journey. You moreover should assess whether or not or not your core workforce is ready for diversification. There are few examples of worthwhile variations.
AR: Bangladeshi RMG exporters are determined to develop and are catering to many markets globally. The place do you see further improvement options for them?
Faisal: Our enterprise already has a strong presence in rising and non-traditional markets, nonetheless I see important improvement options in markets like Australia and India. To maximise these options, Bangladesh should deepen its penetration and make strategic modifications, akin to dedicating quite a few manufacturing strains for lower MOQs (Minimal Order Parts).
We might like a product-driven technique further supported by sustainability and competitiveness. Knitted garments are actually certainly one of Bangladesh’s strengths, nonetheless I’ve noticed that India has gained orders on this class by offering sturdy product value, added choices and a willingness to only settle for lower MOQs.
AR: The federal authorities has appointed Export Promotion Bureau (EPB) Vice Chairman Md. Anwar Hossain as a result of the administrator of BGMEA and BGMEA will now have elections inside the subsequent 4 months. How do you view this?
Faisal: The appointment of Export Promotion Bureau (EPB) Vice Chairman Md. Anwar Hossain as a result of the administrator of BGMEA is an efficient step forward. Our nation goes by the use of essential reforms and so can be BGMEA. So we stay up for a higher and transformed BGMEA which is member- and service-oriented.