Wazir Advisors July 2023 ‘Apparel Trade Scenario in Key Global Markets and India’ study that covers the three months of April, May and June 2023 highlights global trade in readymade garments (RMG) hasn’t really changed since the last report that was released in June 2023. The report which covers four of the largest readymade garment importers: US, EU collective, UK and Japan reveals, Japan is the only country out of the four that continues to increase import of readymade garments while the EU has turned its import quantities around in June, gaining an increase of 1.6 per cent year to date, and 4 per cent in April 2023. The decrease in import of RMF continues in the UK and US.
It may be noted the Wazir Advisors report publishes import, physical retail and online retail scenarios of these four countries, month after month and the July report highlights the current trends in these markets.
RMG imports recovers in the EU
The EU’s apparel imports in April 2023 increased by 4 per cent compared to April 2022. The April 2023 imports were valued at $7.8 billion. On YTD basis, imports were 1.6 per cent higher than in 2022. In the EU market, Bangladesh's share witnessed an increase of 4.5 per cent from 2022 and, China’s share decreased 7.4 per cent.
As retail shines in the US, imports still lag
In June 2023, the US’ monthly apparel store sales were estimated at $18.4 billion, 6 per cent more than in June 2022. On YTD basis, sales were 6 per cent higher than in 2022. E-commerce growth was not as significant - in Q1 2023, online sales of clothing and accessories registered a growth of 2 per cent over Q1 2022 and were 32 per cent lower than Q4 2022 sales. This is, explained by the fact that the fourth quarter of every year is the peak of festive sales. The report indicated mixed fortunes for home furnishings in June 2023. US monthly home furnishing store sales are estimated to be $5.1 billion, which is 2 per cent lower than in June 2022. However, on a year-to-date basis, sales were 1 per cent higher than in 2022. The downward slide of imported RMGs now stands at a negative 20 per cent, year-to-date.
Japanese buyers remain steady in RMG imports
In April 2023, Japan’s apparel imports were $1.8 billion, 6 per cent higher than that in April 2022. In a reversal of fortune since the last Wazir report, Vietnam’s share decreased by 7.2 per cent and China’s share declined further 1 per cent, bringing the total to a decline of 8 per cent compared to 2021. Between January and April 2023, China was the largest supplier of apparel to Japan, still holding on to more than half of the total imports, at 51 per cent. Vietnam in that period supplied only 16 per cent whereas Bangladesh and Cambodia supplied 6 per cent and 5 per cent respectively.
UK imports continue to fall
UK apparel imports in May 2023 were $1.6 billion, which is 24 per cent lower than in May 2022. On YTD basis, imports in 2023 are 17 per cent lower than in 2022. In the first five months of 2023, China has only 16 per cent market share, equaling that of rival Bangladesh. So far down 2023, Italy and India have gained 1 per cent each, standing with market shares of 8 per cent and 7 per cent respectively.
On the other hand, in physical retail, May registered monthly apparel store sales were £3.8 billion, which is 6 per cent higher than in May 2022. On a year-to-date basis, sales were 11 per cent higher than in 2022. On the e-commerce front, the first quarter of 2023 fared better than the first quarter of 2022 by 13 per cent.
