Apparel Imports Decline in Major Markets in August 2023
26 October 2023, Mumbai
World Economic Outlook:
- Global growth is expected to plummet from 6.0% in 2021 to 2.7% in 2023. The World Economic Outlook predicts a sharp slowdown in global growth, from 6.0% in 2021 to 2.7% in 2023.
- The global economy is poised for a significant slowdown, with growth projected to decelerate from 6.0% in 2021 to 2.7% in 2023.
State of affairs
Garments imports decelerated in all key markets in August 2023, compared to the same month in 2022. The largest drop was seen in the US (25%), the EU (23%), and the UK (10%).
China's market share fell in all four markets, while Bangladesh gained market share in the US, UK, and Japan.
Salient features:
- Global apparel imports are expected to decline by 10-15% in 2023, due to a combination of factors including inflation, the war in Ukraine, and rising labor costs in major exporting countries.
- China's share of the global apparel market is expected to decline from 39% in 2022 to 35% by 2025 as buyers diversify their supply chains and shift to more sustainable sourcing practices.
- Bangladesh, Vietnam, and India are expected to benefit from China's declining market share as they offer buyers competitive pricing, a large and growing workforce, and a commitment to sustainability.
Inference:
Key Insights
- Manage supply chains
- Access to products
- Competitive prices
- Meet sustainability
- Consumer demands
Apparel brands and importers will need to carefully manage their supply chains in the coming years to ensure that they have access to the products they need at a competitive price.
They will also need to focus on sustainability to meet the growing demands of consumers and regulators.
CREDITS: Wazir monthly apparel report
