In 2024, the fashion landscape would have to reckon with technological shifts globally, McKinsey estimates. Apparel manufacturers will have to respond to technological changes in the world at large, while also integrating their factory units and processes with appropriate pieces of technology and software. 

‍

Fashion’s technological awakening is not new – now, ERPs, supply chain management systems, and IoT devices are commonplace in factories. And Bangladesh, one of the world’s largest garment manufacturers, has embraced it wholeheartedly. 

Overview of Bangladesh's Tech Adoption

Bangladesh’s garment exports more than doubled over eight years, from $14.6 billion in 2011 to $33.1 billion in 2019. Several factors contributed to the growth – improved transparency around factory safety and value chain responsibility following multiple factory disasters; a bid to reinstate preferential trade agreements with western markets; and stave off growing competition from Vietnam. 

‍

The country achieved this by diversifying the markets it served, manufacturing more complex products, and providing value added services. However, the adoption of manufacturing technology remained the cornerstone of its growth over this period.

‍

Manufacturers invested in digitisation, automation, and improvement of productivity to log this compound annual growth rate of 7%. Apparel manufacturers have realised that investments in enterprise resource management and other production monitoring systems has become a must-have. Moreover, cloud computing solutions add a layer of interoperability between the disparate software solutions. Additionally, digitisation of wage payment has ensured safety and surety of payment.

‍

Challenges Faced by Indian Players

‍

Despite being a leading textile producer for centuries, India faces several challenges when it comes to adapting with the times and implementing technological solutions in apparel manufacturing.

‍

• Over-reliance on manual labour: Perhaps because textile manufacturing has been a historical vocation dating back centuries, it is a calling traditionally passed from generation to generation. This could explain the textile (and, by extension apparel) manufacturing sector’s dependence on manual labour in India. 

‍

Such dependence on manual labour may often lead to negligence and oversights, and ultimately, high downtimes.

‍

• Skills gap: A persistent shortage of skilled workers capable of operating new technologies has been a long-standing issue. The training required to shift from traditional methods to modern systems was often seen as too costly or time-consuming.

‍

• Financial hurdles: Smaller firms, which dominate the industry, have often struggled with access to capital, preventing them from investing in expensive technology. Despite government initiatives like the Technology Upgradation Fund (TUF), much of the financial support was funnelled to specific segments like spinning, leaving other areas underfunded​.

‍

• Poor infrastructure:  Poor infrastructure and outdated production facilities have historically plagued the industry, limiting the ability to integrate modern technologies effectively. These bottlenecks, combined with frequent downtimes and manual oversights, further slowed tech adoption​.

‍

• High Cost of Raw Materials: Volatility in raw material prices, particularly cotton, and the imposition of duties (such as the 10% levy on cotton imports) strain working capital for manufacturers. These costs are passed down through the supply chain, reducing the industry's global competitiveness​

‍

• Environmental and Regulatory Pressures: Emerging Environmental, Social, and Governance (ESG) norms and sustainability mandates are adding layers of complexity. Companies must invest in greener technologies, but the costs and regulatory requirements can be prohibitive, particularly for smaller manufacturers.

‍

Lessons from Bangladesh

‍

Bangladesh’s approach to tech adoption in apparel manufacturing has been supported by government initiatives, and propelled by industry collaboration and evidence of successful integrations. Here are some lessons India may learn from its neighbour’s approach to technology adoption.

‍

1. Government support: The Smart Bangladesh initiative which aims to transform the country into a digitally advanced economy 2041 will help encourage innovation across industries, including apparel manufacturing. The objective of the initiative is 100% digitisation of government services and fostering the adoption of advanced technologies in manufacturing. It will also include the setting up of innovation hubs in universities to give a boost to research and development of textile technologies and automation.

‍

2. Green manufacturing: The government and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have collaborated to promote the adoption of tech-backed green manufacturing practices. The collaboration encourages that factories get Leadership in Energy and Environmental Design (LEED) certifications which incentivise energy-efficient technologies. 

Similarly, the International Finance Corporation;s PaCT initiative in Bangladesh helps factories adopt sustainable energy efficient and water recycling technologies.

3. Technology Upgradation Fund: The Bangladesh government provides financial support for the adoption of tech in apparel manufacturing through initiatives like its Technology Upgradation Fund. This fund has especially helped the country’s large clutch of apparel manufacturing SMEs to invest in technology they could not otherwise afford.

‍

4. BGMEA and tech upgrades: The BGMEA has enabled collaborations between apparel manufacturers and technology providers to promote the adoption of digital tools and automation across the industry. BGMEA’s initiatives, in partnership with various tech providers, have led to the development of digital platforms for supply chain management, product lifecycle management, and digital sampling, helping factories streamline operations and reduce costs.

‍

1. Strategies for Indian Players

‍

India can take a page out of the Bangladesh tech adoption playbook and develop strategies across policymaking levels, infrastructure development, and capacity building. Here’s how: 

‍

1. Financial support: Indian policymakers may consider the roll out of a funding scheme for technology upgradation and offer low-interest loans and/or subsidies for adopting new technologies allowing even smaller manufacturers to afford advanced technologies. Additionally, they may introduce and strengthen tax incentives and grants for manufacturers who invest in digitalisation, automation and tech.    

‍

2. Investment in skill development: Policymakers may establish vocational training programs focusing on the tech needs of apparel manufacturing. Moreover, they may design reskilling and upskilling factory workers to operate machinery and software, rather than be replaced by it. This would not only ensure a smoother transition to tech-driven manufacturing processes, but also prevent job loss.

‍

3. Infra development: Investment in infrastructure like building smart manufacturing hubs equipped with technology, high-speed internet, and efficient logistics, and creating spaces for tech providers, research institutions, and government bodies to work on new innovations and solutions.

‍

4.  Digitisation of the supply chain: A government initiative not unlike the other pieces of digital public infrastructure (IndiaStack), can be constituted to digitise the apparel supply chain. Such a platform could centralise the repository of supply chain data while also making it open and accessible to manufacturers and other stakeholders. This would democratise data sharing, improve transparency and enhance supply chain management. 

‍

5. Eased regulation: Simplify the regulatory environment to reduce the bureaucratic hurdles manufacturers face when adopting new technologies. A fast-track approval process for technology investments and modernization projects could significantly speed up adoption. Ensure alignment between trade policies and technology initiatives. For example, reducing import duties on essential technology equipment could encourage more manufacturers to adopt advanced machinery.

‍

Comparative analysis

‍

India and Bangladesh have both similarities and differences when it comes to adoption of technology by the apparel manufacturing sector. Let’s look at the strengths:

‍

India

Bangladesh

The Indian government has introduced various schemes like the Technology Upgradation Fund Scheme to promote modernization in the apparel sector. These financial incentives help manufacturers adopt advanced machinery and automation.

Bangladesh is a global leader in green and sustainable tech-backed manufacturing, with the highest number of LEED-certified green factories.

Industry 4.0 technologies like AI,  IoT, and robotics, are being adopted in the automation of production lines and supply chain management. India's strong IT sector complements this trend, promoting collaboration between digital and manufacturing sectors.

Programs like Smart Bangladesh Vision 2041 emphasise the importance of digital transformation across all sectors, including apparel manufacturing, which promotes tech adoption across the board

India benefits from a diversified manufacturing base, with both SME and large operations. This diversity drives demand for various levels of technology, from basic automation to advanced digital solutions.

The Bangladesh apparel industry remains highly competitive due to low labour costs and the growth of automation, 3D design tools, and AI-driven processes. This balance helps the country remain a dominant player in global apparel markets.

India’s large domestic market provides a testing ground for tech solutions before scaling internationally.

Bangladesh has strong collaboration between the government, industry bodies like BGMEA, and international organisations.

‍

Despite this, both countries struggle with several things that could be improved on. Let’s explore some weaknesses that cause poor tech adoption in both countries:

‍

India

Bangladesh

Many industrial clusters suffer from unreliable electricity, poor logistics, and inadequate digital connectivity, which hampers the adoption of advanced technologies like automation and IoT.

Bangladesh remains heavily reliant on low-cost labour, which can sometimes discourage investment in full automation. The fear of displacing large workforces may slow down more aggressive tech adoption.

The industry is fragmented with many small, family-owned businesses, which makes scaling technology adoption more challenging.

Bangladesh relies heavily on imported machinery and technology, raising costs and leading to slower implementation.

For SMEs, the high cost of technology and limited access to affordable financing create significant barriers. Financial support from the government remains limited.

SMEs often struggle with the financial burden of adopting expensive technologies. Government support is still somewhat limited for smaller players.

Price volatility in raw materials like cotton affects working capital, limiting the ability of companies to invest in new technology

There is a skills gap in handling sophisticated machinery and digital tools. Training programs are growing but are not yet sufficient to meet the industry's evolving needs.

Bureaucratic hurdles and delays in policy implementation can slow the pace of technology adoption in India. While policies exist to encourage modernization, they are often slowed by cumbersome regulatory processes.

‍

Future Outlook

‍

The future of technology adoption in the apparel manufacturing industry will accelerate dramatically due to emerging innovations and evolving market demands. Here are some key trends likely to shape the industry in the coming years:

‍

1.  Automation and robotics: Automation will extend beyond basic tasks like cutting and sewing to include more sophisticated operations such as automated quality control, real-time monitoring, and robotic garment assembly. This will enable mass customization, shorter lead times, and better scalability, allowing manufacturers to handle high-mix, low-volume production efficiently.

‍

2. Smart factories: The adoption of IoT, AI, machine learning, and big data analytics will lead to fully connected smart factories where machines, systems, and workers are highly integrated. Data from machines will be collected and analysed in real-time. This trend will enhance decision-making, predictive maintenance, inventory management, and energy efficiency, while improving product quality and reducing waste.

‍

Predictive analytics will allow factories to anticipate equipment failures before they occur, minimising downtime, and digital twins will enable real-time monitoring and optimization of factory operations.

‍

3. Sustainability through tech: The demand for sustainable and eco-friendly apparel will push manufacturers to adopt technologies that promote resource efficiency, waste reduction, and recycling. This includes waterless dyeing, fabric recycling, and circular production systems. 

‍

4. Customised manufacturing: Technologies such as 3D knitting, digital printing, and automated pattern design will fuel the rise of on-demand manufacturing, where garments are produced in response to customer orders rather than in bulk. On-demand manufacturing reduces waste by minimising unsold inventory and allows for greater personalization.

‍

5. Trend forecasting: AI will be increasingly used to assist in garment design, predicting fashion trends, and material choices based on consumer data and market trends. AI will also optimise production by predicting which styles are likely to be most popular, reducing overproduction and waste.

‍

6. Enhanced supply chain transparency: The use of blockchain, RFID, and IoT technologies will increase supply chain transparency, enabling manufacturers to track every step of the production process, from raw material sourcing to final delivery. Supply chain disruptions, like those seen during the COVID-19 pandemic, have prompted a greater focus on resilience.

‍

India and Bangladesh may also explore cross-border collaboration to advance the adoption of technology in garment manufacturing. This would allow both countries to leverage each other’s strengths and improve productivity.

‍

1. Joint R&D: : Both countries can collaborate on research and development focused on developing new technologies by sharing resources and expertise from academic institutions, government agencies, and private sector players. They may establish shared innovation hubs. 

‍

2. Cross-border supply chain digitization: Bangladesh and India could collaborate on digitising supply chains, ensuring better integration, transparency, and efficiency across both countries’ manufacturing ecosystems.

‍

3. Export market collaboration: Collaborating to enhance their presence in international markets, Bangladesh and India can focus on utilising technology to ensure high-quality, sustainable production that meets global standards. Both countries could work together to enhance quality control through technology, co-branding sustainable garments, and sharing international market insights for better positioning in global trade.

‍

Conclusion

Through strategic investments in tech adoption, automation, sustainability, and digitalisation, Bangladesh has transformed its apparel sector. It has enhanced productivity, met global demands, and established itself as a leader in sustainable manufacturing.

Indian apparel manufacturers may take cues from Bangladesh's successes and challenges to accelerate their own tech adoption, positioning themselves as competitive, resilient players in the global apparel industry. Embracing innovation will not only boost profitability but also ensure long-term leadership on the international stage.

‍