The function of the “Buying House” in Bangladesh’s RMG sector
Introduction: One of the most prestigious business sectors in Bangladesh’s RMG industry is buying houses (BH). Bangladesh is well known for being the second-highest RMG exporter in the world due to its industry’s ability to produce high-quality goods at prices that are competitive with those of its competitors. Bangladesh has had a substantial impact on the global apparel industry, and garment-buying companies are essential to this achievement.
Buying House (BH):A purchasing house essentially acts as a trade partnership between the producer and the buyer/retailer. In the business world, there are two different sorts of BH: trading/purchasing offices and buying agencies or liaison offices. Both phrases have distinct connotations.
History of Bangladesh (Buying House):The export-focused RMG business in Bangladesh began as a tiny, unconventional export sector in the latter half of the 1970s. The RMG sector began to grow rapidly after freedom, notably in the 1990s as the nation attained political and social stability. RMG has changed into the industry that generates the most income for the nation in only three decades. The early ’90s some entrepreneurs brought the “buying house” concept to fulfill industrial demand.
Why need Buying House?In reality, a purchasing house is always essential to the RMG industry. It represents the culmination of all marketing efforts, including finding overseas customers for clothing, gathering orders, using the media on behalf of manufacturers, placing orders with the best factories for producing clothing, and providing a range of technical and communication support to both customers and manufacturers.
In Bangladesh’s garment manufacturing industry, BH is significant. The RMG business in Bangladesh is entirely dependent on international consumers, and consumers abroad depend on garment-buying houses. As a result of their frequent lack of knowledge regarding the country of production, the mode of communication, the culture, the environment, and other relevant factors, apparel buying houses frequently offer them significant assistance by providing them with clothing products that meet their needs. Several of the more well-known buyers created their own office in Bangladesh, which was quite expensive, to lessen their dependency on purchasing homes. For some overseas purchasers, that is not an option. such that the number of new buying houses is growing daily.
Conclusion: By 2030, Bangladesh has a new goal of earning $100 billion from the export of RMG goods. In order to hit the $100 billion export goal, the industry must grow its export revenues by 11.26% annually until 2030, or $7.17 billion, up from FY22’s 35.47 percent annual growth rate. The apparel buying house will be crucial to secure several orders from the top clothing buyers worldwide.
