Dressed in new attire: RMG exporters in the local fashion scene

Zainab Maqsood, a graduate of Coventry University and a fashion enthusiast, had always found the designs coming out of local brands underwhelming and lacking in excitement.

Her father, Mian Maqsood Ahmad, is the founder of Experience Group — a prominent entity in the apparel sector. Experience Group has a rich history, starting in 1965 in the apparel trade and growing to become a leader in the garments manufacturing industry.

Zainab, familiar with the RMG industry since her childhood, believes that the local retail market lacks innovation and variety, despite the success of the export segment of Bangladesh's garments industry.

"The export scene in Bangladesh's garments industry is fantastic, no debate on that. But when it comes to local retail, I believe there is very little excitement. The existing brands in the market are not much inclined towards experimentation or fusion," said Zainab.

So she went ahead and started Amira Apparel, a fusion-oriented brand focusing on ethnic wear, in 2020. 

Despite Zainab's reservations about innovation, it is safe to say that local retail brands have enjoyed a strong streak over the last few decades catering to Bangladeshi people's changing tastes in attire for both men and women. 

Brands such as Aarong, Kumidini and Kanishka - many of them born out of social enterprises - were among the first generation of stores promoting Bangladeshi fabrics and designs to a growing middle class in urban areas. As the market grew, more brands - Cat's Eye, Kay Kraft, Banglar Mela, etc - jumped on the bandwagon.

An interesting trend over the last decade, however, is that these local brands are now facing stiff competition from new retail brands backed by major apparel exporters such as Experience Group.

Apparel exporter Giant Group pioneered this trend by opening its first retail store in Dhaka in 1998 named 'Texmart.' Beximco Group then took it up a notch with its retail arm Yellow, which started its journey in 2004. Giant introduced another brand Occult in 2007, followed by brands like Le Reve (2009) by  REVE Tex Ltd, Twelve Clothing (2012) by Team Group, Sailor (2015) by Epyllion Group, SaRa Lifestyle (2018) by Snowtex Group, Qrius (2019) by Dekko Group and Klothen (2020) by TAD Group - changing the fashion landscape in the process.

So what is prompting these already successful business entities to dip their feet in local retail when, at least on the face of it, the export market is far more lucrative?

The first reason appears to be that many of the groups are now being taken over by the second generation of owners such as Zainab, who are no longer satisfied with stitching up clothes according to the specifications of global brands. They are looking for avenues to express their creativity and expertise, partly developed by working closely with international brands.

Secondly, their presence in the RMG industry for decades provides them with natural advantages in technical know-how and supply chain cost and management. 

In the larger scheme of things, the local market has been growing impressively in recent years on the back of GDP growth, drawing these big players into it. 

According to IDLC Finance Limited Monthly Business Review, the local textile market size was around $7 billion in 2021. The sector generates sales of around Tk20,000 crore during the two main national festivals, Eid and Pahela Baishakh, it reads.

Lastly, and possibly most importantly, as global apparel undergoes major shifts in terms of technology and sustainability requirements, and while Bangladesh enters the post-LDC era where many of our export advantages will diminish, some RMG exporters find themselves unsure about their future prospects. The entry into local retail is a form of hedging their bets. 

A new breed

Talking about the launch of Texmart, Faruque Hassan, Managing Director of Giant Group, said that at the time they felt the  local market was ready for fashion brands.

"A good number of exporters have local brands now and they operate more professionally," he said, adding that "after a two decade journey, local brands are more mature in terms of research, product development and competitiveness." 

"Some apparel exporters are also planning to take their brands abroad," said Faruque, also president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

"As the second largest RMG exporter, we have been producing apparels for a number of high end brands for a long time but local consumers have not had the chance to buy those items," said Ashikur Rahman Tuhin, managing director of TAD group. "Considering that, we started Klothen in 2020." 

Abdullah Hil Rakib, managing director of Team Group, said they started 'Twelve' to create opportunities for local customers to access international quality products at a competitive price.

"Twelve is operating in the local market following the sourcing model of international brands. We have developed some suppliers who produce apparels following Twelve's R&D team's designs," he added.      

SaRa Lifestyle Director Sharifun Reba said the customer response from their original brand prompted them to start a new sub-brand, 'DHEU', in 2023. "The new brand is focusing on the tastes of young people who follow global trends in design," she said. It is led by her daughter Saraf Saiyara.

For Yellow, the entry into the local retail market was about anticipating the demand for new fashion trends and capitalising on that.

Hadi S A Chowdhury, head of Retail Operations of Yellow, said, "Contemporary consumers in our country increasingly favour products that align with international fashion standards. Beximco recognised this demand and aspired to cater to our nation's population with globally recognised facilities."

While Yellow wants to keep up with modern wear, the brand Qrius, which started its journey in 2019, promises to preserve local heritage. Founded by Dekko Group, another big player in the RMG industry, the brand is a dream project of Shahadat Hossain Kiron, chairman of Dekko Group, who wanted to build an honest, new-generation brand.

The lifestyle and fashion statements of the next generation always fascinated Kiron. So, he built a brand that delivers local heritage in a modern envelope and named it 'Qrius'," said Bishwajit Roy, chief operating officer of Qrius Lifestyle.

Big brands, big advantage

One of the biggest advantages these brands have is the partnership with their parent companies, which provides them the opportunity to play around with the fabrics and techniques. 

For Amira, Zainab imports various grey fabrics (fabrics without any dye or further modification) and prints them with in-house curated motifs. Experience Group's logistics and equipment give her solid leverage in this regard. 

Hadi S A Chowdhury said Beximco's export unit plays a pivotal role in enhancing Yellow's capabilities by granting access to global fashion trends, industry expertise, and invaluable insights into international markets.

"This strategic partnership empowers Yellow to infuse cutting-edge fashion knowledge into its designs and production processes," he added.

In terms of logistics too, Yellow capitalises on the extensive expertise derived from its RMG heritage. Leveraging a substantial pool of skilled and semi-skilled workers from the apparel sector, the brand has harnessed this talent to uphold its commitment to delivering quality products. 

"With deep-seated connections in the RMG sector, Yellow possesses invaluable insights into consumer preferences, prevailing trends and demand dynamics, thereby gaining logistical advantages," Chowdhury said.

Presently, Beximco Textiles employs a workforce exceeding 40,000 individuals, while Yellow boasts a dedicated team comprising around 2,000 people.

However, Shah Rayeed Chowdhury, director and Production Director at Evince Textiles, believes that it is important to keep the logistics different to grow his brand Noir. Having a presence in the export garments industry is definitely a strength, but not enough to keep going with a local brand.

"Export garments and local brands are two very different ball games. The aspiration is different, and decision-making is different. Hence, it is important that we keep things separate so that both of these entities grow at their own pace and spirit," he said.

But Rayeed concurs that the experience, education about fabrics and networks, sources and technical sound he gained from the RMG industry is priceless and helped him a lot in building Noir. 

"Being in the RMG industry for so long helped me understand the global trends, which helps Noir stay ahead in the fashion game," added Rayeed.

Going full circle

While Bangladesh now exports apparel made for other brands, the retail outlets of these very same exporters plan to send their products abroad one day under their own brand names.

Team Group wants to establish stores in every district of the country by 2026. "In the long run, we envision becoming an international retail brand with presence in North America and Europe," said Rakib.  

"The way names like Zara or H&M pop in our head whenever we think about Western fast fashion, I want Amira to be one of those names when it comes to Eastern fast fashion," said Zainab.

She also aims to expand her brand abroad in the coming years.

Yellow now has 19 brick-and-mortar stores across Bangladesh, complemented by a 24/7 online store. They are also operating in Canada from Bangladesh through yellowclothing.ca. Previously, it had stores in Pakistan as well, which are no longer in operation.

Meanwhile, Rayeed's vision for Noir is a strategic approach that focuses on quality and affordability. The current strategy of maintaining three physical outlets in the city while also prioritising a strong online presence aligns with this vision. He also aspires to open outlets, at least in all the major cities of Bangladesh.

While many of the older brands see the entry of these RMG-backed retail outlets as a welcome step that will enrich the local scene, not everyone is excited about it. 

"All these brands have a strong Western influence as they all stem from RMG exports. Their ethnic collection is also fusion-based," said Fauzia Amin Neena, the founder of Kanishka, who lamented the decline in demand for local fabrics in the market.  

"Independent boutique houses in the city are fading," she added.