It’s time Bangladesh built its own global apparel brand

Several years ago, while preparing for one of our brand management classes at Dhaka University, we searched for a suitable example of a brand that significantly contributes to a country’s GDP. We found a few well-known brands from the US, such as Coca-Cola, Google, and Amazon. However, their contributions to GDP were not substantial, given the vast size of the American economy. One brand that caught our attention in Asia was Samsung, which seemed to have a significant impact on South Korea’s GDP. According to a 2015 article published in The New York Times, the Samsung brand accounted for one-fifth of South Korea’s exports and contributed approximately 17 percent of its GDP. Reflecting on the considerable impact of a single brand on a country’s economy, we began to contemplate Bangladesh’s RMG industry. The RMG industry contributed about 82 percent of total exports and 12.69 percent of our GDP in FY2015-16. We tried to identify notable brands from the sector, but could not find any. Consequently, we intended to raise this point during the next brand management class discussion, but unfortunately, it was unsuccessful.

After further investigation, we realised that Bangladesh primarily manufactures products for others, concentrating significantly on lower-value-added goods. While the sector does produce some higher-value-added products for major brands, the quantities are relatively small. Further analysis indicated that we have substantial expertise in both lower- and higher-value-added manufacturing, as the sector has been operating for over 35 years, and we possess the necessary hard and soft resources to produce all types of RMG products. This encouraging discovery led to some questions: when we are highly equipped, why do we only produce for others? Why can’t Bangladesh have its own global brand? We only get paid for stitching; the company that owns the brand enjoys the major share of the pie.

In 2017, Dhaka University hosted a seminar outlining the roadmap for Bangladesh to achieve its $50 billion target for the RMG sector by 2021. We posed a question to the chief guest, who was both an RMG businessman and the state minister of an important ministry. We asked how realistic and sustainable the roadmap could be without our own Bangladeshi brand. He replied that we are not yet at a stage where we can have our own brand. This made me wonder why, despite having a mature industry and exceptional expertise in both hard and soft resources, we do not recognise the significance and necessity of establishing Bangladeshi RMG brands for the international market. Later, while conducting an ILO-funded research in the RMG sector, we asked the same question to several decision-makers from major RMG firms in Bangladesh. Most of their responses were along the line of “creating a brand is expensive and demands a significant time commitment. It also entails considerable risks, as we are collaborating with big brands. We certainly want to avoid threatening our existing business.”

The insights they shared are indeed true. However, Bangladesh has a comparative advantage over other nations from both the supply and demand sides. We have the necessary infrastructure, manufacturing efficiency, and the presence of feeder industries; thus, the upstream value chain is mostly well-established, except for occasional vulnerabilities in yarn supply. Additionally, Bangladesh is familiar with the downstream value chain as it effectively utilises it for its buyers. Consequently, establishing this chain would be less challenging, aside from the need for acceptance from independent international retailers and their willingness to feature Bangladeshi brands on their shelves, as well as consumer preference for these brands.

Bangladesh is strongly positioned to gain preference from both retailers and consumers. This is because these key downstream actors recognise that Bangladesh can produce high-quality products as a country of origin. Bangladesh has been manufacturing top-notch clothing for brands like Tommy Hilfiger, Giorgio Armani, Hugo Boss, Zara, and H&M, with “Made in Bangladesh” tags on the clothing that customers see. Therefore, the country-of-origin-based points of differentiation are already acknowledged by both retailers and end customers. If customers encounter a new brand that is of good quality and carries a “Made in Bangladesh” tag, they are unlikely to dismiss the brand outright. Besides those who are hardcore loyal to a particular brand, many customers will certainly be interested in trying the new brand from Bangladesh.

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), our apparel exports worldwide reached $38.48 billion in 2024. Although we still have considerable progress to make to achieve the previously set $50 billion target, there are ample opportunities to extend this goal within the $1.84 trillion global market. Unfortunately, without owning brands and benefiting from the premiums that established brands command in the value chain, it will be challenging for Bangladesh to capitalise on the available opportunities in the global clothing market. Creating and sustaining a brand in the international market is an expensive endeavour. However, a few companies have the financial capacity to do so. If it seems too costly and risky for major RMG players, a consortium could be established to create and develop a Bangladeshi apparel brand, allowing for shared risks. BGMEA could lead this initiative.

Let us conclude with the Samsung story. Samsung has inspired other South Korean brands like SK, Hyundai, and LG, and nearly half of South Korea’s GDP comes from Samsung and its success-inspired brands. These companies compete globally—most are going head-to-head and succeeding in their respective industries. They are sometimes viewed as the frontrunners of innovation in their fields. When will Bangladesh witness a day when it can proudly say our apparel brands are the market leaders and innovators in the global apparel industry?

Dr Muhammad Ismail Hossain and Dr Nasrin Akter are professors in the Department of Marketing at the University of Dhaka.

Views expressed in this article are the authors’ own.