The global apparel market was anticipating to pick up from July ’20 as consumers started visiting markets amidst fading COVID-19 havoc. The onus was obviously on the USA being the largest apparel market and importer in the world, and July ’20 as well as the latest released August ’20 data are somehow giving signals of gradual monthly recovery, right before the start of S/S 21 season.
It’s worth recalling here that July ’20 was the best month for USA in 2020 when it registered 51 per cent monthly growth over June ’20 in its RMG imports and the growth has been continued in August – though not as big as the July level. Upon comparing August ’20 import data with July ’20, the import has gone up by 10.50 per cent in value-terms. But, it’s still down by 22 per cent against August ’19 as it imported US $ 6.56 billion worth of garments this year in August, while the value was US $ 8.45 billion in August ’19.
May-August ’20 period remained negative for the US apparel industry, but China gained momentum with 35.61 per cent growth as compared to Jan.-Apr. ’20 period.
The period when markets started resuming operations again (May-August ’20) is still in negative growth of 10.07 per cent as compared to January-April ’20 period and 38 per cent as compared to the same period of 2019.
As far as YTD data is concerned, the largest apparel importer in the world imported US $ 40.38 billion worth of apparels in January-August ’20 period. This means the overall imports, in terms of values, fell short of US $ 16.88 billion as compared to the imports done in the same period of 2019.
What’s interesting is the performance of China in May-August ’20 period as it upped its shipment to USA by 35.61 per cent in value-terms and 45.19 per cent in volume-terms as compared to export done in January-April ’20 period – that’s all because of a massive reduction in the unit prices. China has been reducing its unit prices for quite a long time now to take on the US policies and to stay relevant for the US buyers.
In January-April ’20 period, unit prices of the Chinese shipment were US $ 1.92 per SME which further reduced to US $ 1.79 in May-August ’20 period. This is how dragon is still in the game and barely giving any opportunity to other destinations to grab the shift!
India recovers around 97 per cent US business in August ’20 from August ’19…
- August came with some positivity for the exporters as India recovered by around 97 per cent in this month in volume-terms from the same month of 2019.
- However, the country was still down by 18 per cent in August ’20 on Y-o-Y basis in value-terms to clock US $ 256 million and that’s where it is clear that prices are too tight for the exporters.
- In YTD period, India clocked US $ 1,997.64 million in its apparel exports to USA, noting 32 per cent yearly downfall. Unit prices cumulatively in the first 8-month period were US $ 3.46 per SME as against US $ 3.63 in the same period of 2019.
Bangladesh positive (Y-o-Y) for the first time in 2020 as it taps 15.70 per cent growth in August ’20; unit prices increasing post-COVID-19…
- August was the month when Bangladesh grew on Y-o-Y basis both in values and volumes for the first time in 2020, indicating that finally a lot of the held-up orders have been shipped out.
- The country noted a 15.66 per cent surge in its export values, while volumes upped by 20.10 per cent in August ’20 as compared to August ’19.
- As compared to July ’20, the increase of Bangladeshi shipment is noteworthy. It tapped 41.11 per cent more growth in August ’20 over July ’20 in value-terms, while the surge in volumes was 34.80 per cent.
- Interestingly, unit prices were higher in May-August ’20 period (US $ 2.90) than January-April ’20 period (US $ 2.77) and even YTD period (US $ 2.83).
| Countries | Y-o-Y % Change in Volumes of Apparel Exports to USA | ||||
| May-August ’19 | Jan.-Apr. ’20 | May-August ’20 | % Change May-August 19 & May-August 20 |
% Change May-August 20 & Jan.-Apr. 20 |
|
| World | 10143.68 | 7216.54 | 7052.26 | -30.48 | -2.28 |
| China | 4474.75 | 2020.59 | 2933.75 | -34.44 | 45.19 |
| Bangladesh | 669.75 | 748.02 | 485.45 | -27.52 | -35.10 |
| India | 372.77 | 387.80 | 189.53 | -49.16 | -51.13 |
| Vietnam | 1354.36 | 1297.48 | 1166.73 | -13.85 | -10.08 |
(Qty in million SME)
| Countries | Y-o-Y % Change in Values of Apparel Exports to USA | ||||
| May-August ’19 | Jan.-Apr. ’20 | May-August ’20 | % Change May-August 19 & May-August 20 |
% Change May-August 20 & Jan.-Apr. 20 |
|
| World | 30842.31 | 21263.75 | 19121.83 | -38.00 | -10.07 |
| China | 10331.23 | 3889.55 | 5274.75 | -48.94 | 35.61 |
| Bangladesh | 2048.23 | 2074.54 | 1410.82 | -31.12 | -31.99 |
| India | 1371.72 | 1361.67 | 635.98 | -53.64 | -53.29 |
| Vietnam | 4821.82 | 4185.61 | 3990.43 | -17.24 | -4.66 |
(Value in US $ million)
Y-o-Y and M-o-M % Change in Values of Apparel Exports to USA:
(Comparison between August ’20 over August ’19 and August ’20 over July ’20)
| Countries | August 2019 | July 2020 | August 2020 | % Change August 2019 & August 2020 |
% Change July 2020 & August 2020 |
| World | 8447.70 | 5943.13 | 6567.35 | -22.26 | 10.50 |
| China | 3092.95 | 1576.90 | 1819.41 | -41.18 | 15.38 |
| Bangladesh | 514.25 | 421.48 | 594.76 | 15.66 | 41.11 |
| India | 314.01 | 204.03 | 256.02 | -18.47 | 25.48 |
| Vietnam | 1256.86 | 1285.72 | 1233.38 | -1.87 | -4.07 |
(Value in US $ million)
Y-o-Y and M-o-M % Change in Volumes of Apparel Exports to USA:
(Comparison between August ’20 over August ’19 and August ’20 over July ’20)
| Countries | August 2019 | July 2020 | August 2020 | % Change August 2019 & August 2020 |
% Change July 2020 & August 2020 |
| World | 8447.70 | 5943.13 | 6567.35 | -22.26 | 10.50 |
| China | 3092.95 | 1576.90 | 1819.41 | -41.18 | 15.38 |
| Bangladesh | 514.25 | 421.48 | 594.76 | 15.66 | 41.11 |
| India | 314.01 | 204.03 | 256.02 | -18.47 | 25.48 |
| Vietnam | 1256.86 | 1285.72 | 1233.38 | -1.87 | -4.07 |
(Qty in million SME)
Total apparel exports to USA by major manufacturing destinations – Jan.-Aug. 2020
(Qty in million SME & Value in US $ million)
| Countries | Jan.-Aug. 2019 | Jan.-Aug. 2020 | % Change | |||
| Qty | Value | Qty | Value | Qty | Value | |
| World | 18984.06 | 57297.57 | 14268.80 | 40385.58 | -24.84 | -29.52 |
| India | 810.14 | 2938.15 | 577.332 | 1997.644 | -28.74 | -32.01 |
| Bangladesh | 1397.96 | 4079.52 | 1233.469 | 3485.35 | -11.77 | -14.56 |
| China | 7619.65 | 17593.58 | 4954.33 | 9164.30 | -34.98 | -47.91 |
| Vietnam | 2703.22 | 9063.10 | 2464.215 | 8176.043 | -8.84 | -9.79 |
(*Entire data and all tables are a result of the compilation done by Team Apparel Resources based on the data released by OTEXA)