Apparel buying houses play a substantial role in the fashion business, with the first-ever buying houses emerging in Bangladesh around the end of 1971. Though it was not popular at the time, the buying house trade grew in prominence between 1980 and 1990. There are now over 6,000 buying houses in Bangladesh, with more than 1,000 recorded in the BGMEA database. The number of buying houses has expanded over the previous two decades, with quite a few evolving with their innovative sourcing ideas and product thrusts. Following this trend, Kleider Sourcing is a renowned virtual sourcing, dynamic business model positioned to operate on short lead times, low margins and flexible volume. The global supply chain management company has an unwavering focus on both price and product. Kleider was founded in 2012 with only six people in management with over 22 years of experience. Iftekhar U Khan, MD Abu Toab Nayan and Mohammad Morshed Alam are the founders of the company and the owners as well, demonstrating their love for the fashion industry and commitment to providing real benefits to customers worldwide. After that, Suman Kumar Bhuiyan joined to serve together. It now has more than 100 employees onboard. For businesses in the fashion and hospitality sectors, Kleider Sourcing offers affordable sourcing for apparel, home textiles, fashion accessories and decorative accessories.
In early 2013, Kleider merged with a renowned multinational company PDS Group under a JV partnership agreement with Vice Chairman Pallak Seth, who is a very dynamic, young and talented leader of the RMG sector. His contribution to the RMG industry is truly remarkable. He has created huge employment opportunities in Bangladesh from time to time and supported the economic growth of Bangladesh’s RMG business. Kleider Sourcing operates its business through different territories across the world, especially in Europe, Canada, North America, the Middle East and Asia. Currently, it is working with 26 Readymade Garment (RMG) factories.
Product Development is a Boon
In this competitive era in the apparel industry, product development plays a crucial role, at which Kleider Sourcing excels. Kleider Sourcing has a dedicated group of designers who work around the clock to create fashionable and original apparel that captures the interest of consumers worldwide. Iftekhar Ullah Khan, Managing Director at Kleider Sourcing Ltd., told Apparel Resources (AR), “From our whole turnover, we sell 30 per cent – 40 per cent of our own designs to the retailer.” He added, “In early 2014-15, when we first recognised how important it was to have our own design team for product development, we took the first step and built this team. Initially, we brought in Spanish and Indian designers and trained them for two years before moving forward. Today, our design team includes all Bangladeshi designers who have graduated from the Bangladesh Fashion Institute.” In order to comprehend the buyer’s mentality, Kleider Sourcing regularly sends its design team to different countries so that they become acquainted with their specific culture when developing any item.
Technology and Innovation
The role of technology in transforming the buying and selling dynamics cannot be overstated, as per Iftekhar. “Digital transformation is reshaping how buying houses operate. From online platforms for connecting with manufacturers to utilising data analytics for trend forecasting, we must embrace technology to stay competitive,” he stated passionately. Iftekhar averred, “While we use SAP to track our orders, which has proven to be a great investment for us thus far, we have also installed several paid software programs in our fashion design department to help our designers improve their conceptual and technical ideas, which we then share with our buyers. Once they decide on a design, we then produce a physical sample based on the technical specifications. This is just one example of how technology benefits both suppliers and buyers.”
Going further, Kleider Sourcing aspires to implement Auto CAD software for error-free fabric consumption as 80 per cent of the product price depends on the fabric. Kleider Sourcing is also ready to opt for any new technology which may offer benefits to the company.
Addressing Current Challenges
Iftekhar spoke with AR about the challenges facing the RMG industry today. Firstly, he stated that the deduction of incentives actually puts a stop to growth, which many buying houses are finding difficult to overcome. He also mentioned the growing competition from nations like China, Turkey and India, which are not only technologically advanced but also receiving strong government support. To effectively compete with them, Bangladesh buying houses need a comprehensive strategy that includes diversifying their product range, emphasising value addition and exploring new markets. Iftekhar discussed the difficulty of obtaining CRP as an entrepreneur. “Despite paying all necessary taxes, acquiring CRP remains a challenge. In addition, port congestion delays become extremely difficult to manage; even though other countries send their goods every other day, it takes us at least a week to deliver. On top of that, one of the biggest problems we face is the continuous energy crisis, which reduces production efficiency and raises operating expenses”, he added.
Embracing Diversity
In the current manufacturing landscape, diversification of sourcing is crucial for apparel buying houses as it reduces the risks associated with relying on a single supplier or area. Kleider Sourcing aims to diversify likewise. It currently collaborates with 26 factories that produce readymade garments (RMG).
Nonetheless, Kleider Sourcing has big intentions to grow and aims to work with 50 RMG factories by expanding its operations. According to Iftekhar, “This expansion is about creating more job opportunities and fostering economic growth within the communities we operate in; it’s not just about scaling up. Our goal in expanding our factory relationships in the RMG sector of Bangladesh is to significantly lower unemployment and boost the local economy.” Overall, Kleider Sourcing’s focus on product development, technology, diversification and mostly the way of thinking ahead sets it apart as a leader in the buying house industry. With a strong commitment to deliver high-quality products and innovative solutions for its buyers and vendors, Kleider Sourcing continues to push the boundaries of what is possible in the world of apparel industry.
