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Product diversification needed to tap into TT market: Study

Staff Correspondent
13 Oct 2021 00:00:46 | Update: 13 Oct 2021 10:59:47
Product diversification needed to tap into TT market: Study
Bangladesh is now in the primary stage of manufacturing TT and PPE while most of the manufacturers produce basic items for quick returns –AFP Photo

To grab the large global technical textile (TT), including the personal protective equipment (PPE), market, Bangladesh needs to produce more diversified products and continuously train workers as well as the middle management, a study says. 

Bangladesh exported PPE and masks worth $618 million to the world market in the fiscal year 2020-21, which was only 0.5 per cent of global demand.

Besides, the size of the global TT market was $179.2 billion last year.

The study on scaling up the production of TT, including PPE, in Bangladesh was conducted by German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

Its findings were jointly published by GIZ and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at a webinar on Tuesday.

BGMEA President Faruque Hassan told the event Bangladesh at this moment, needs investment and technical know-how from the developed world to enter the TT/PPE market. 

He said Bangladesh was ready to cater to the growing TT/PPE market.

“We encourage joint ventures in entering this market. We also need support from brands, testing services companies, and technology suppliers to realise the big potential of the market,” he added.

Bangladesh is now in the primary stage of manufacturing TT and PPE while most of the manufacturers produce basic items for quick returns. They think it needs huge investment and do not have enough knowledge of the manufacturing process as well as the market, the study noted.

It identified five reasons why Bangladesh is lagging behind in the global market – a lack of awareness of market requirements, inadequate technical expertise, difficulty in sourcing high-performance raw materials, compliance and certification requirements, and the need for capital investment.

Any Bangladeshi manufacturer considering entering the TT/PPE market will have to reorganise its operations. Since the companies probably have unused capacity, this does not necessarily mean large investments will be necessary, the study said.

Certainly, setting up new production plants will not be necessary to launch the production of a limited number of higher value-added PPE products, it also said.

It further said the strength of this new sub-sector would depend on the ability of the current textile and apparel (T&A) industry to tweak its existing facilities in order to produce new PPE products made from technical textiles that are suitable for export orders in the most cost-efficient manner.

But even if entrepreneurs develop their research and development facilities as well as train workers and the middle management, these goals will not be achieved overnight, the study noted. 

It said, “To accelerate sector development and secure customer acceptance that TT/PPE products made in Bangladesh are certified as per international standards, we suggest that initially, a limited number of products requiring minimal technical training for a limited number of buyers be attempted. Furthermore, we suggest the initial manufacturers be limited to a pool of key role model partners clustered in Dhaka area.”

“Their early success will give the role model manufacturers the confidence to continue to develop their involvement as well as open the doors for a second group of manufacturers,” it added.

According to the study, Europe is the biggest importer of medical textiles and Bangladesh is currently enjoying duty-free access to this region under the Generalised System of Preferences (GSP) facilities.

Besides, the demand for medical textiles in North America is growing and is expected to grow further.

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