The dependency of Bangladesh’s readymade garment (RMG) sector on buying houses has significantly declined over the last decade, thanks to advancements in product development, marketing strategies, and direct buyer communications, according to a Bangladesh Institute of Development Studies (BIDS) report.

The study reveals that exports through buying houses dropped to 38 per cent in 2023 from 51 per cent in 2014, while direct exports rose to 52 per cent from 38 per cent during the same period. Conducted on 43 firms producing eight key RMG products, the study highlights the sector's enhanced technical capabilities and productivity.

The total export value of these surveyed firms increased from $645 million in 2014 to $1.03 billion in 2023. Additionally, the average number of buyers per firm grew from 11 to 17 over the decade. Investments in research and development, certifications, and the adoption of advanced technology have driven this transformation.

Abdullah HilRakib, former vice-president of the BGMEA, attributed the decline in buying house reliance to factories establishing overseas offices and brands setting up local offices in Dhaka. However, smaller buyers without local offices still rely on intermediaries.

Meanwhile, KaziIftekhar Hossain, a former leader of the Bangladesh Garment Buying House Association, claimed buying houses remain integral, contributing $8 billion annually. He emphasized that smaller factories still depend on buying houses for basic support, including design and quality assurance services.