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

1. Manage supply chains
2. Access to products
3. Competitive prices
4. Meet sustainability
5. 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

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