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Harnest Oceansafe biodegradable garment labels<\/span><\/p>\n Harnest<\/small><\/div>\n<\/div>\n<\/figure>\n Four decades ago, Bangladesh\u2019s garment industry consisted of small sewing workshops assembling pre-cut garments from Korea. Today, Bangladesh is the world\u2019s second-largest garment exporter, with exports climbing from $31 million in 1983 to $39 billion by 2025. That 1,000\u00d7 increase was powered by abundant, low-cost labor and expertise in producing cotton-rich knitted garments and woven shirts and trousers.<\/p>\n But Bangladesh\u2019s garment industry is now reaching the limits of a low-cost manufacturing model and must move into more sophisticated, value-added production, according to World Bank analysis<\/a>. The country knocks on the door of graduation from \u2018least developed country<\/a>\u2019 status, meaning it will lose some duty-free trade benefits; and rising wages already mean countries like Ethiopia and Cambodia can offer lower cost production. Can Bangladesh transcend its cornerstone \u2018basic, low price cotton garments\u2019 reputation? Is its manufacturing infrastructure evolving, and are brands\u2019 sourcing strategies in Bangladesh changing with it?<\/p>\n Four years ago, UK-based Equip Outdoor Technologies began sourcing from Bangladesh, following 18 months of due diligence with support from partner FairWear. Matthew Bingham, buying and sourcing director, says, \u201cWe make cotton t-shirts [there] like everyone, through to synthetic insulation jackets, taped rainwear, wovens, knits and fleeces.\u201d Their three suppliers, one Chinese-owned and two Bangladeshi-owned, now account for a quarter of all production for their two brands: Rab and Lowe Alpine.<\/p>\n Rab Force Collection UV protection base layer<\/span><\/p>\n Lena Drapella<\/small><\/div>\n<\/div>\n<\/figure>\n Equip Outdoor Technologies<\/a> has grown from $27 million to $143 million in annual revenue since Bingham joined the company twelve years ago, with key supplier relationships in China dating back 25 years. \u201c[Our] preferred factories in China can\u2019t recruit workers as the economy progresses,\u201d says Bingham, prompting expansion to Bangladesh to mitigate this risk. The brand’s growth has also contributed to the decision. \u201c[Product] categories that are growing need to be split across geographies and factories.\u201d But the expansion has introduced logistical and cultural challenges, he says.<\/p>\n \u200b\u201cWe make technical apparel from fabrics that are specialized and come from China. Bringing fabric in from China to Bangladesh takes a month via Chittagong\u2019s deep sea port, compared to 2 days in China\u201d. He says transporting goods out of Bangladesh can take a month, but \u201cthe infrastructure has gotten better in the past year\u201d.<\/p>\n \u200bA pain point in Bangladesh\u2019s supply chain is that it\u2019s still geared toward final garment assembly, but more manufacturers are expanding to fabric and yarn production so that fabrics do not have to be imported. This expansion, however, has mostly been in knitwear and cotton-rich textiles. One example of such expansion is Viyellatex.<\/p>\n \u200bEstablished in 1996 as a garment manufacturer, Viyallatex\u2019s operations now include yarn spinning, textile production, dyeing, printing, and embroidery. \u201cOur expansion was from pain\u2013 when we struggled with fabric and yarn [supply], we set up fabric manufacturing, then a spinning mill,\u201d says founder, chairman, and CEO, David Hasanat. Vertical integration has enabled the family-owned company to invest in regenerative cotton and low-impact dyes and chemistries, which have acted as drawcards for premium brands such as Ralph Lauren, according to the brand\u2019s factory list. <\/p>\n \u200bAmir Hasanat, Director at Viyellatex and son of David, says their eyes are now on synthetics. \u201cMan-made fibers are something that we need to focus on \u2013 it’s a journey we need to start\u201d. Currently, most synthetic materials, like those sourced by Equip Outdoor, are imported. While Viyellatex<\/a> has conducted test runs of synthetic garment assembly, Hasanat explains that certain characteristics related to snagging and quality control require careful consideration and expanded skill sets that, while possible, require new setups and expertise.<\/p>\n \u200bConsultant and former Puma Chief Sourcing Officer, Anne-Laure Descours, has worked with Bangladeshi suppliers for more than three decades. Descours encouraged the installation of the country\u2019s first seamless knitwear machines at Urmi Group to produce leggings and underwear that fueled the athleisure boom. These products still rely on imported synthetic yarns, though. \u201cOn the machinery side, they have been investing in Tier 2 and 3; this is already in traction\u201d. Descours says they are becoming a \u201ctech-driven workforce\u2013they build systems and processes internally, not to a China level, but with a lot of improvement\u201d.<\/p>\n \u200bDescours recounts that Bangladeshi suppliers were \u201cone of the first ones scaling mechanically recycled cotton from post-industrial waste to [include] 25% recycled cotton\u201d for high volume production. \u201cDBL is very strong on this\u2013our first [quantities] came from them\u201d. While this innovation meets the sustainability demands of brands and aligns with Bangladesh\u2019s strength in cotton knits, another manufacturer is tackling a more challenging segment further up the supply chain.\u200b<\/p>\n Harnest is a rare local producer of synthetic yarns for sock, sweater, and hosiery production, as well as sewing threads, elastics, drawcords, garment labels, and other related components. The company was acquired by family-owned pharmaceutical company Drug International Limited in 2015 and has invested heavily in infrastructure at its landmark zero-wastewater-discharge plant, increasing its capacity 10-fold in the past two years.\u200b<\/p>\n Harnest yarn spinning, Gazipur, Bangladesh<\/span><\/p>\n Kazi Shumon Reza, eCarnival Limited<\/small><\/div>\n<\/div>\n<\/figure>\n \u201cTrims are painful [to produce] and extremely specific, yet critical,\u201d says the Harnest<\/a> Chief Executive, Assef Shaikh. \u201cSetting up a trims facility requires significant capital\u2013far more than a garment factory\u201d and is the reason more companies in Bangladesh are not doing this at scale, according to Shaikh, whose family owns the parent company. \u201cWe are part of a larger debt-free conglomerate with healthy reserves, so we can make these investments without always having to have a healthy return. Our risk is just investment in the new feedstock [that] drops into [our] infrastructure\u201d.<\/p>\n The Chief Executive speaks of investments in recycled, \u2018next-generation\u2019 and biodegradable raw materials to produce their sewing threads, elastics and drawcords. Their new endeavor \u2013 the \u2018Responsible Trims Collection\u2019 \u2013 matches the performance and price of conventionally made trims, but meets the \u2018preferred\u2019 and \u2018low impact\u2019 materials criteria that brands are setting in the wake of regulatory pressures. Simultaneously, major consumers of synthetic fabrics have publicly announced ambitious sustainability goals, including Lululemon\u2019s \u2018100% preferred materials by 2030\u2019 and \u2018fully circular ecosystem\u2019 targets, yet many of these preferred or recycled fibers have struggled to achieve commercial scale to make such targets achievable.<\/p>\n Harnest Oceansafe biodegradable elastic<\/span><\/p>\n Kazi Shumon Reza, eCarnival Limited<\/small><\/div>\n<\/div>\n<\/figure>\n Harnest\u2019s partners in the responsible trims venture include OceanSafe, Ambercycle, BlockTexx, Indorama Ventures, and Jiaren, which provide secured feedstock of lower-impact raw materials. The company is betting on establishing direct sourcing agreements with brands, allowing them to nominate the use of their locally manufactured, responsibly sourced trims in garment manufacturing, in place of imported conventional ones. It\u2019s a timely move with increasing volatility in global markets, meaning that local sourcing with more flexible lead-times could help reduce sourcing and supply chain risks, and boost expanded production in Bangladesh beyond \u2018bread and butter\u2019 fabrics and garments.<\/p>\nWhy Bangladesh\u2019s Garment Industry Must Move Beyond Low Cost<\/h2>\n
How the Garment Industry Is Expanding Beyond Final Assembly<\/h2>\n
Can the Garment Industry Scale More Technical Production?<\/h2>\n
Why the Garment Industry Is Investing in Trims and Synthetics<\/h2>\n
What Global Brands Still Need From the Garment Industry<\/h2>\n