03 June 2023, Mumbai
The renowned Indian consulting firm, Wazir Advisors, recently published a report examining apparel imports and retail sales in four major economies: the US, the EU, the UK, and Japan.
An overview
The report also shed light on India's performance as an exporter of readymade garments. Let's dive into the key findings.
Declining Imports in the US and UK
The report highlighted a downward trend in readymade garment imports in the US and the UK, posing a challenge for manufacturing hubs worldwide.
In the US, imports experienced a 19% decline in the first three months of 2023, while the UK saw a slightly lower decrease of 14%.
Notably, the sharpest decline occurred in March 2023, with a 32% drop in the US and an 18% decrease in the UK. Conversely, the EU and Japan witnessed a marginal increase of 10% and 3% respectively in readymade garment imports during the same period.
Changing Dynamics of Apparel Imports
Global diary; Ongoing disputes between the US and China have contributed to the downward slide of the Chinese market share.
In the first quarter of 2023, China's market share fell to 18% in the US and 17% in the UK. Bangladesh and India, on the other hand, gained 1% each in the US, while Italy made gains in the UK.
It is evident that the UK has diversified its sourcing options, with other countries collectively improving by 10%, reaching a total market share of 47%.
Japan imported 5% less from China, while Bangladesh made gains in both the EU and Japan.
Indian Apparel Exports Take a Hit
India's apparel export industry faced significant challenges, with exports in April 2023 estimated to fall to US$ 1.2 billion—a 25% decrease compared to April 2022. Year-to-date exports were also 13% lower than the previous year.
Within India's export basket, the UAE's share declined by 6%, while France and the UK saw an increase of 1% each since 2021.
Store and E-commerce Performance on Track
Despite the challenges faced by the apparel industry, both physical stores and e-commerce platforms demonstrated resilience.
In the US, physical store sales in April 2023 were estimated at $18.6 billion, a 4% increase compared to April 2022.
Online sales of clothing and accessories in Q1 2023 registered a 2% growth compared to the same period in 2022.
In the UK, apparel store sales in March 2023 amounted to £4.2 billion, representing an 11% increase from March 2022.
Online sales of clothing in the UK also witnessed a positive growth of 13% in Q1 2023 compared to the previous year.
Insights
The Wazir Advisors report highlighted the varying performance of apparel imports and retail sales in key economies.
While the US and the UK experienced declining imports, the EU and Japan witnessed modest growth.
India faced challenges as an apparel exporter, but both physical stores and e-commerce platforms showcased encouraging performance.
These insights provide valuable information for stakeholders in the global apparel industry.
