Challenges of Implementing a Circular Economic Model in the Bangladeshi RMG Industry

Abstract

In Bangladesh, the Ready-Made Garment (RMG) industry is by far the most important one in terms of generating export revenue. Adopting a circular economic model can bring benefits such as reduction of apparel waste, increased recycling practices, the creation of new unique selling points, and the creation of more jobs. Despite all these potential benefits, the Bangladeshi RMG industry is yet to adopt circular economic models in its operations. This research aims to discuss the challenges associated with shifting towards circular economic models in the Bangladeshi RMG industry by taking direct insights from RMG industry professionals. Previous studies have focused on field visits and observations and discovered some obstacles to introducing circular economic models in the industry, but none of them took direct insights from industry professionals through detailed interviews. This study involved 39 respondents who directly work in the Bangladeshi RMG industry in various corporations. Through an abductive approach, the study evaluated the previous literature and extended on their findings. The challenges in implementing circular economic models in the Bangladeshi RMG Industry include a lack of awareness and knowledge, resistance to change, insufficient government support and regulation, inadequate infrastructure and facilities, and a lack of market and product diversification.