Japan apparel retail sales, in its department stores, surged by massive 217 per cent in June ’20 over May ’20, owing to stores reopening from mid-May. However, if analysed on half-yearly basis in January-June ’20 period, the sales fell 40 per cent on Y-o-Y basis as the country experienced a major hit due to COVID-19.
Apparel Resources recently reported that in the COVID-19 affected quarter (April-June ’20), Japanese apparel sales revenues were 135,516.61 million yen (US $ 1.27 billion) which is 66.81 per cent less from the same period a year earlier. The first quarter January-March ’20 hit 350,467.15 million yen (US $ 3.28 billion), 22.30 per cent less than the same period of 2019. This says the decline was already happening in Japanese market and COVID-19 made it even worse.
According to the recent data released by the Ministry of Finance, Japan, the imports of apparel are in lines with the sales as RMG import of the country grew 10 per cent in June ’20 over May ’20 and valued at 151.13 billion yen (US $ 1.43 billion), while it marginally grew in Q1 ’20 by 1.83 per cent and dropped by 32.93 per cent in Q2 ’20. Cumulatively in January-June ’20 period, Japan fell by 14.18 per cent on Y-o-Y basis in its RMG import.
The marginal growth in RMG import in Q1 ’20 couldn’t convert into positive retail sales due to COVID-19, as stores got closed from the first week of April. However, the reopening of stores gave an opportunity to store owners to stock out inventory first which they began to accomplish from mid-May onwards. (See tables below for detail data)
India and Bangladesh were the most benefitted countries, as both noted triple-digit growth in their apparel exports to Japan in June ’20 from the preceding month. Vietnam too remained positive, while China tumbled for four consecutive times which shows that somehow the growing Japan may source less from its biggest importing destination even in subsequent months.
Key findings in overall apparel import figures in H1 ’20
Period: January-June ’20 is split into two quarters (Q1’ 20 and Q2 ’20) here
- The apparel imports of Japan valued 762.84 billion Yen (US $ 7.22 billion) in Q1 ’20, marking 1.83 per cent Y-o-Y growth.
- The import fell drastically in Q2 ’20 both yearly basis (32.93 per cent) and quarterly basis (43.74 per cent). During Q2 ’20, import stood at 429.18 billion yen (US $ 4.06 billion).
- China clocked 252.34 billion yen (US $ 2.39 billion) from its RMG exports to Japan in Q2 ’20, noting 30.70 per cent fall on Y-o-Y basis, while fall from the previous quarter was 36.68 per cent.
- During Q1’ 20, China, however, dropped by 4.39 per cent on Y-o-Y basis, while other Asian countries grew in the same period.
- Vietnam, the second largest exporter of apparel to Japan, started the year on a positive note by clocking 124.98 billion yen (US $ 1.18 billion) in Q1 ’20 and noted 14.32 per cent growth.
- The next quarter, however, wasn’t positive for Vietnam, as its RMG shipment to Japan dropped by 22.69 per cent from the same quarter of 2019. The fall from Q1 ’20 was also significant – 40.57 per cent.
- Bangladesh and India too noted growth in Q1 ’20 in their respective exports to Japan by 22.44 per cent and 4.18 per cent.
- Bangladesh then registered a major drop in subsequent quarter (April-June ’20) by 74.63 per cent and shipped 11.21 billion yen (US $ 106.18 million) of garments to Japan.
- India’s performance too remained dismal in Q2 ’20, as it accommodated just 3.75 billion yen garments in its exports to Japan, falling 65.25 per cent from Q1 ’20 and 63.55 per cent from Q2 ’19.
All 3 Asian countries grew in June ’20 over May ’20, except for China
- Both India and Bangladesh noted triple-digit monthly growth in their respective RMG exports to Japan in June ’20 as compared to May ’20. Japan imported 6.41 billion yen (US $ 60.76 million) worth of garments from Bangladesh in June ’20, noting 167.71 per cent monthly surge over May ’20. The drop in import is there from June ’19 by 72.70 per cent, as retail sales undoubtedly grew in June ’20, but were far away from the level of June ’19
- On the other hand, Japan’s import from India valued at 1.93 billion yen (US $ 18.36 million) in June ’20 which is 113.51 per cent higher than the value it clocked in May ’20.
- Despite the surge, India couldn’t reach to the level of June ’19 figures and fell by 57.53 per cent on Y-o-Y basis in June ’20.
- In June ’20, Vietnamese apparel shipment to Japan valued at 26.13 billion yen (US $ 247.70 million), marking a surge of 9.58% per cent on M-o-M basis.
- China accounted for 79.51 billion yen (US $ 753.82 million) of RMG exports to Japan during June ’20, noting a monthly decline of 6.75 per cent. Y-o-Y, too, China sunk by 13.37 per cent in its apparel exports to Japan from June ’19.
(Conversion Rate: 1 Japanese Yen = 0.0094 US Dollar)
Value wise total apparel exports to Japan by 4 major manufacturing destinations
|June 2019||May 2020||June 2020||% Change
(June 2019 & June 2020)
(May 2020 & June 2020)
|(Value in 1,000 Yen)|
Quantity-wise total apparel exports to Japan by 4 major manufacturing destinations
|April-June 2019 (1)||Jan.-March 2020 (2)||April-June 2020 (3)||% Change (1 & 3)||% Change (2 & 3)|
|(Qty in Kg)|
Value-wise total apparel exports to Japan by 4 major manufacturing destinations
|April-June 2019 (1)||Jan.-March 2020 (2)||April-June 2020 (3)||% change (1 & 3)||% change (2 & 3)|
|(Value in 1000 Yen)|