BGMEA plans to introduce QR code instead of labels

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is currently planning to introduce a Quick Response (QR) code label instead of labels to check counterfeit products in the local and global markets.

Although the initiative is still at the primary level, BGMEA is hoping that the alternative idea will be accepted by the buyers and brands and if that happens, it will play a role in reducing RMG manufacturing costs.

The initiative came at a time when the US Trade Representative (USTR) said — based on allegations from the Paris-based Union des Fabricants and the American Apparel and Footwear Association (AAFA) — that counterfeit clothes and other export goods are coming from Bangladesh.

Commenting on the plan, BGMEA President Faruque Hassan told The Business Post, “It is our innovation and we have already started discussing it with the brands and buyers. They have taken it positively.

“But to execute the initiative, laws in destination countries would have to be amended. That is why it will take some time to execute.”

He also said, “We have to use multiple tags/labels [on the clothes to confirm authenticity]. Customers cut most of them because they make them uncomfortable. But if we opt for a QR code, we will need only one tag and it won’t cause consumers any hassle.”

Bangladesh is the world’s second-largest apparel exporter after China. The country exported $42.61 billion worth of goods in FY2021-22. In 2021, the global RMG export-import value was at $431.94 billion.

How will it work?

Sparrow Group Managing Director Shovon Islam, also one of the initiators of the QR code label, said that apparel manufacturers currently put three–eight tags/labels in a piece of clothing to meet the buyers’ requirements. Manufacture country name, brand name, product quality, washing procedure, product details and which chemicals and materials are used in the product are mentioned in the labels.

Generally, manufacturers have to involve four-five workers to attach the labels to a piece of clothing, which costs at least $0.5 including label prices per item.

“But we think that all information can be put on a single label using a QR code. It will reduce manpower loss and production costs,” Shovon said.

He said that they have developed a model, where manufacturers will be able to include all kinds of information. If a consumer wants to know about the product details, they would able to find out everything by simply scanning the QR code.

Faruque said that BGMEA — which wants to start the QR code label’s commercial journey next year — will provide all technical support and manufacturers will not have to pay the association.

If any foreign country — even Bangladesh’s competitors — wants to use the QR code label, BGMEA will provide technical support. “Our innovation is copyright free and everyone would be able to use it,” he added. Shovon said that they have already talked to several brands and AAFA about this and their response is positive. They will also discuss the issue with the rest of the top global brands.

“If the brands use the QR code label, counterfeiting will decline and the brands and authorities will easily be able to know the origin of the goods.

“But there is a big problem. To introduce and use the QR code label, the laws of the destination countries would have to be changed and it will take more time,” Shovon said. He added, “AAFA has already said that they will talk to the US government about this and we expect the US will give positive feedback. We will also talk to the EU soon.”