EU apparel import from world declines in Jan-Jun 2023
04 September 2023, Mumbai
EUROSTAT for the period of January-June 2023 with a few analyses on the European Union’s (EU) overall import from the world and top sourcing countries:
-
- EU's apparel import from the world declined by 9.22% in the first six months of 2023.
- The decline was even steeper in terms of quantity (measured in kilogram), at 16.34%.
- EU's apparel import from Bangladesh declined by 13.65% in dollar value and 17.59% in quantity.
- EU's apparel import from China declined by 13.52% in dollar value and 15.45% in quantity.
- EU's apparel import from Turkey declined by 11.12% in value term and 22.89% in quantity.
- EU's apparel import from India declined by 6.49% in value terms and 14.07% in quantity.
- EU's apparel import from Vietnam declined by 2.54% in value terms and 10.74% in quantity.
- EU's apparel import from the other top sourcing countries also showed decline, with the exception of Cambodia, whose import increased by 0.14%.
- The unit price (USD value/kg) of EU's apparel import from the world increased by 8.52% in January-June 2023.
- The unit price of Bangladesh's apparel import increased by 4.79%.
- The unit prices of other countries have also shown positive growth during the mentioned period.
Analysis:
The decline in EU's apparel import can be attributed to a number of factors, including:
- The ongoing COVID-19 pandemic, which has disrupted supply chains and led to higher prices.
- The war in Ukraine, which has also disrupted supply chains and led to higher energy prices.
- The rising cost of living, which has led consumers to cut back on discretionary spending.
Despite the decline in overall import, the unit price of EU's apparel import from the world increased. This suggests that EU buyers are shifting their focus to higher-quality and higher-value items. This is likely due to the rising cost of living, as consumers are looking for ways to get more value for their money.
The decline in EU's apparel import from Bangladesh is significant, as Bangladesh is the second largest apparel supplier to the EU. This decline is likely due to a number of factors, including:
- The rising cost of labor in Bangladesh.
- The increasing competition from other low-cost apparel suppliers, such as Vietnam and Cambodia.
- The stricter environmental regulations in Bangladesh, which have made it more expensive to produce apparel.
The decline in EU's apparel import from China is also significant, as China is the largest apparel supplier to the EU. This decline is likely due to the same factors that are affecting Bangladesh, as well as the ongoing trade war between the US and China.
The overall decline in EU's apparel import is a sign of the challenges facing the global apparel industry. The industry is facing rising costs, increased competition, and changing consumer preferences. These challenges are likely to continue in the coming years, and it will be interesting to see how the industry adapts.
CREDITS: BGMEA Press Release.
