Bangladesh’s RMG industry has the ability to make goods of greater quality at a lesser cost than those produced in other nations that manufacture clothing. Bangladesh has thus established a substantial position in the global apparel and clothing market, which is only achievable as an outcome of the significant contribution made by clothing-buying houses. In the RMG sector in Bangladesh, buying houses is one of the most prestigious business sectors.

In the apparel sector, buying houses act as intermediaries between retailers (apparel buyers) and suppliers (garment manufacturers, export companies). A buying house is sometimes referred to as a sourcing agent or buying agency. The buying agency may operate independently and interact with a variety of retailers, brands, and consumers. On the other hand, some businesses have local buying offices for sourcing needs. Due to the sector’s ability to create high-quality goods at prices that are competitive with those of its rival nations, Bangladesh now ranks second among RMG exporters worldwide. In the global apparel market, Bangladesh has carved out a sizable niche for itself, and garment-buying companies are essential to this important development.

Note: This list is not exhaustive, and there are many other garment-buying houses in Bangladesh that are also reputed and well-known.

Behind the Seams: The Vital Role of Garments Buying Houses in Bangladesh

The garment industry in Bangladesh plays a crucial part in the nation’s economy. Since the vast majority of customers come from other nations, it is impossible for them to directly monitor manufacturing, quality control, and price competitiveness. The garment-buying house fulfills this function for the purchasers and keeps an eye on the products’ efficiency, competitive cost, lead time, and shipment, among other factors. 

Role of a Garments Buying House

Between the buyer and the maker, the garment-buying house or clothing manufacturers act as an intermediary. Apparel is purchased by buying houses from producers and exported to other nations. A buying house’s major players are the merchandisers of clothing. Essentially Garment buying houses makes an effort to connect with buyers from other nations who want to purchase clothing. Then they get in touch with garment firms that can produce certain kinds of goods and meet customer demand. In this way, they forge a legal agreement between these two entities. In order to quickly and readily draw customers, some buying houses would create their own sample department rather than traveling to companies to gather samples. In contrast, they build a product showroom to draw customers. Additionally, this establishment keeps a merchandiser closely monitoring the product production process and has established a quality assurance team to assess the product’s actual quality.

There are many services that a buying company might offer its clients. These are their primary duties:

• Product creation and sampling for buyers 
• Selecting the best supplier for their buyers 
• Carrying out orders from local suppliers 
• Contacting buyers and obtaining approval for development, samples, samples off strike, etc. 
• Transmitting buyer comments on samples buyer requirements to suppliers 
• Providing local approvals to sellers 
• Following up on order processing with suppliers (export houses) 
• Attention to the quality of products, sample development, and other factors.

Buying houses plays an essential part in Bangladesh’s garment manufacturing sector. Since the garments sector is entirely dependent on foreign purchasers, international buyers are overly reliant on garment-buying houses. As they lack sufficient knowledge to place orders and execute them here, whereas the buying house gives them significant help by delivering apparel products in accordance with their requirements. The number of new buying houses is expanding on a daily basis. Apparel producers are completely reliant on buying houses since they must collect orders from them. Exporting garment products also requires numerous stages, from marketing to distribution.

Buying houses deals not just with well-known factories, but also with small businesses. At the moment, a large number of small factories are sprouting up with no specific buyer in mind. If they have the potential to finish an order while meeting buyer demand, buying a house gives them a good chance. As a consequence, new entrepreneurs are eager to engage in the garments sector by opening garment factories, which is extremely beneficial to the nations, particularly the clothes industry.

Why Is There a Need For Garments Buying House? 

Less Expenditure

One of a retailer’s main goals is to reduce production costs. It will help to capture the mass degree consumer market if a buyer receives the goods at a competitive price and highest quality. Bangladesh is a manufacturing-oriented export nation. Although hundreds of buyers and retailers get their products from Bangladesh, the majority of these businesses lack any kind of operational presence or connection. Therefore, there is no other option for ensuring the correct execution of a contract than to establish a functioning office of one’s own rather than relying on a trustworthy buying partner. It costs money and takes time to set up your own office. With only a small percentage FOB or service fee, occasionally both, a buyer can easily obtain all necessary amenities from a buying house.

Care and Precision

A new product that isn’t taken care of properly will result in losses of thousands of dollars for both parties. Both reputation and financial loss are significant losses for buyers. The merchandiser is constantly preoccupied with maintaining the product’s quality in accordance with customer expectations. In the stages of development and shipping, he handles any kind of intense situation. For purchasers who are located far away, that is not possible. These services are provided by buying houses completely satisfactorily for both the client and the provider.

Strong Communication and Teamwork

Buying house obtains accurate information from the customer and clarifies it for the supplier, who then executes the order directly. Most of the time, individuals in this process make actual meaning using their own tongue. Many potential new brands are currently developing but do not yet have a designated provider. Giving garment suppliers, buying a property gives them a good opportunity.

A creative staff is one of the most important components of a strong buying house. Merchants, quality control, and the technical department make up a trustworthy buying house team. A daily exchange of messages between suppliers and customers is the responsibility of merchants. This responsibility may also include procuring materials, approving suppliers, and creating samples at vendor and supplier factories.

Quality Control

As an apparel sourcing company runs an intricate supply chain where vendors get various materials from various locations, sew clothing using various trained workers, and then sell items to retailers, quality control is one of the essential responsibilities of a buying house. To guarantee product quality, buying houses always use qualified professionals. A garment that is of low quality and has obvious flaws won’t be purchased by the general public. As a result, consumers and merchants purposefully refrain from buying goods that do not adhere to the global quality standard. Strong quality inspection systems are in place for customers who are concerned about quality to prevent them from buying faulty goods. So it’s challenging to produce the correct quality goods from factories without the cooperation of a buying team.

Intend Support

The supplier typically meets a lead time of 90 days for completing a single order. It has been considerably decreasing during the past year. In this intricate supply chain process, ongoing third-eye help is required; this is especially true on the supplier’s side during production. Merchandisers must make certain crucial decisions during production to ensure efficient production, therefore before making a choice, they should carefully examine the factory floor and the actual situation. He has the ability to make a choice that will guarantee both quality and timely production. Without the assistance of a buying house, it is also impossible for a foreign buyer.

Compliance

Foreigners must be aware of the specific business laws, rules, and regulations as well as the most fundamental license requirements in order to conduct business in Bangladesh. It’s crucial to be aware of vital laws including the BIDA Act of 2016, investment-related laws, tax, customs, and revenue laws, and laws relating to investments. The buyer won’t have to worry about the aforementioned problems if they associate with a buying house as the local buying house will be aware of these regulations.

Market Analysis

One of the rapidly expanding buyer’s top worries is the market updates in the country of production. They are always curious about the political climate of the country where the production is taking place, the labor code, a review of worker pay, the cost of yarn, accessories, and fabrics, lead times, the future of the industry, foreign direct investment, and several other production-related topics. However, since the international media only report on the most important subjects, these topics aren’t often reported by the international media. The local buying house is the key player who plays a vital function in the Bangladesh RMG sector for international buyers, however, buyers need a frequent update about the manufacturing country because it is entirely related to their next financial strategy.

Risk Minimization

Buying house controls the functioning of the social, political, and environmental systems. The long-term viability of supply chains and communities across the ecosystem is a goal of buying houses’ collaboration with clients, partners in the industry, and customers. Well-known buying houses have evaluated the progress made in relation to objectives for sustainability, set aspirational goals based on best practices benchmarks, and taken steps to achieve those goals. Due to its thorough observation, they are able to provide customers with immediate information so they may act promptly in order to prevent future problems.

Development Support 

Every retailer needs to focus on new design development. Buyers develop many new items each year, and they involve a lot of experimentation and error. Retail businesses that depend on suppliers for immediate assistance must be quick to market. The suppliers, however, are constantly hurried. To provide speedy development support to the buyer, several buying houses construct their own sample facilities.

Since it takes a lot less time to create, produce, handle, and get approval for product samples, virtual sampling has recently become popular. For usage by buyers in an online showroom, product designers compile sets of virtual outfit samples. Virtual sampling provides a more environmentally friendly alternative to conventional design and sampling procedures, in addition to the advantages of time and efficiency.

Summary

The RMG sector heavily relies on buying houses. It is the culmination of all marketing initiatives, including finding overseas buyers for clothing, gathering orders, utilising media on behalf of manufacturers, as well as placing orders with the most appropriate factories for producing clothing and offering both buyers and manufacturers a variety of technical and communication support.

This approach boosts the possibility of finding high-quality products quickly and nimbly, which is one of the key reasons to use it. When you source from abroad, it is more difficult to monitor local suppliers and you are unable to closely monitor product quality. Dealing with individuals from different cultures can sometimes make it difficult for buyers and suppliers to communicate clearly and effectively. Choosing a reliable garments-buying house is crucial if you want to make sure that the products you acquire fit your criteria and can be easily sold elsewhere in your market. Qualified buying houses act as reliable middlemen, using their resources to put you in touch with reliable suppliers so you can get the right products at a fair price. Gaining assistance from a buying house increases your chances of minimising expenses, maximising profitability, and saving time.

Frequently Asked Questions (FAQs)

What is a Garments Buying House? 

The buying house or export house for garments acts as a middleman between the consumer and the producer.

Why should I rely on a buying house?

You have a greater chance of limiting costs, optimising profits, and saving time if you receive support from a buying house.

What place does the clothing sector in Bangladesh occupy in the global economy?

Just behind China, Bangladesh is the second-largest exporter of ready-made clothing worldwide.

How much money is made annually in Bangladesh’s clothing sector?

Bangladesh’s clothing sector generates more than $22 billion in sales each year.