HSBC, Serai and BKMEA discuss apparel export, its risk management

The Hongkong and Shanghai Banking Corporation (HSBC), Serai and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday discussed how the readymade garment (RMG) exporting business of Bangladesh can grow and manage risk in 2021.

Key discussion points included Bangladesh’s apparel industry, global apparel buyers, demand landscape, associated risks and collaboration using digital technology.

Vivek Ramachandran, CEO of Serai, Kevin Green, country head of Wholesale Banking at HSBC Bangladesh, and Mohammad Hatem, senior vice president of BKMEA, spoke at the discussion.

In the wake of 2020 and the lessons learnt from the COVID-19 pandemic, the Bangladeshi apparel industry now emphasises the importance of managing risk, they said.

Order cancellations, reduced order volumes, extended payment terms and shipping delays left many in the industry in a situation of financial uncertainty, said the speakers.

It has become essential for apparel businesses to have an effective risk management framework. To address these challenges, the webinar discussed the importance of monitoring and managing risks, also how Bangladeshi manufacturers can reduce such risks.

Serai is a technology subsidiary of HSBC. 

It is a platform that brings together buyers and suppliers to build trusted relationships, with an initial focus on the garment and apparel industry.

The platform allows industry participants to share relevant data in a highly secure manner with their partners and access a range of digitals solutions.