The role of buying houses in the country’s economy is not less. The export income of the ready-made garment sector is said to be $47 billion, and small factories also deserve credit for this export income. Buying houses work through local manufacturing companies to take purchase orders from foreign buyers for export of garment products.
Most of the country’s garment factories are dependent on buying houses. However, buying houses need to transform according to the need for time and government policy support is needed to save the important export sector. Bangladesh Garment Buying House Association (BGBA) can play a significant role in these regards.
About 50 percent of the orders of the country’s exported garment industry are collected and implemented through these buying houses. Buying houses have been employed about four lakh people including merchandisers and quality control managers.
Factories with 20 lines or 25 lines or less are dependent mainly on buying houses. There is no way to export their manufactured garments to foreign markets except mainly buying houses. Buying house gives the apparel manufacturer a buyer’s look, searches for export orders actually does the marketing.
However, garment buying house does not get duty free import facility (UD) of raw materials. The government should provide policy support including cash assistance and reduction of income tax at source. Advance income tax on buying houses should be reduced from 10 percent and new buying houses should be given tax concession for three years. BGBA as a buying house association must negotiate with the govt.
Workshops and trainings need to be organized to continuously develop entrepreneurship and management people. BGBA should plan to organize regular workshops and trainings. BGBA can do MoUs with fashion and textile universities so that merchandising students can come to buying houses for future grooming.
There are many small buying house which are not able to make the proper deal. Due to which sometimes the shipments get disrupted and canceled which causes loss for the overall export including garment traders. Whatever happens, it must be remembered that the factory is exporting. Buying house is not solely responsible for any specific problems.
Increasing cooperation with BGMEA and other associations needs to be given high priority to facilitate the $100 billion apparel export target. Buying Houses are the helping hand to reach the export target.
Most buying houses focus on the costing and price of the apparel. This pattern must be changed and need to emphasis on product diversity, building design and development capabilities.
Despite its good contribution to the economy, employment generation and other allied sectors, unfortunately, buying houses do not get enough recognition. Garment buying houses have a significant disadvantage when it comes to international travel opportunities, not enjoying access to foreign delegations with governments, trade fairs and travel concessions. Although there are some top export earning buying houses that earn around $100 million.
This is the high time to understand dire need of buying houses and facilitate through govt. policy support and recognition. So that buying houses can contribute more in the apparel export especially to achieve the $100 billion export target.
