Wazir Advisors September 2023 report spanning June and July 2023 reveal not much has changed since August in terms of Western import of apparels and India’s exports. Comparing the stats in August and the soon-to-be-published report, shows no newsworthy changes but more affirmation that apparel imports are currently low in Western markets and a stagnation in Japan, having experienced a rise only in June – the stagnation started in July and continued into August 2023. Indian exports continue to lose ground, which may lead to speculation about 2024 being the year of a big comeback.  

Indian apparel exporters continue underperforming

The report shows, the total value of Indian apparel export in 2022 was at $15 billion and between January and August 2023 only $10.2 billion has been achieved. In August 2023, India’s apparel exports were estimated at $1.1 billion, 22 per cent lower than in August 2022. On a year-to-date basis, that reads 14 per cent lower than exports achieved in 2022 but an improvement of 1 per cent based on August 2023 stats. 

Overall, some interesting picture emerges. In 2022, India’s export to the US was at 35 per cent but between January and July this year, it stands at 33 per cent only. It is by the end of the year, it will be known if India managed to retain, gain or lose US orders. UK, UAE and France remain the same and Germany has dropped by 1 per cent in the months January to July 2023 compared to the entire year of 2022 and there is a possibility of recovery during upcoming winter festivities. 

Readymade garment imports remain depressed in the West

In July 2023, US apparel imports were $7.7 billion, which is 17 per cent lower than July 2022. On year-to-date (YTD) basis, imports were 21 per cent lower than in 2022. It seems, Bangladesh was gaining China’s market share in the US but it too lost 3 per cent since 2021. The EU’s apparel imports in June 2023 were $7 billion which is 10 per cent lower than June 2022. On YTD basis, the imports were 4 per cent lower than in 2022 but there may be a spike during the upcoming festive season to shorten the deficit. The UK’s apparel imports in July 2023 were $1.5 billion, 21 per cent lower than in July 2022. On YTD basis, the imports were 15 per cent lower than in 2022. In July 2023, Japan’s apparel imports were $1.9 billion, similar to that in July 2022. On YTD basis also, the imports have not changed. 

Domestic retail faring better than imports in UK, US

In the UK, Q2 2023 saw online sales of clothing registering a growth of 10 per cent over Q2 2022. In the same period, it was a different story in the US as it witnessed a negligible 1 per cent growth in Q2 2023 over Q2 2022. In July 2023, UK’s monthly apparel store sales were £3.7 billion which is 3 per cent higher than in July 2022. On YTD basis, sales were 9 per cent higher than in 2022. In the UK, e-commerce continues to grow more than purchases in physical retail outlets as a key factor being higher fuel costs hindering commuting. 

In August 2023, US monthly apparel store sales were estimated at $19.2 billion, 8 per cent more than in August 2022. On YTD basis, sales in 2023 are 5 per cent higher than in 2022. In the US, surprisingly defying global trends, sales of home furnishing are dropping steadily. August 2023’s home furnishing store sales were estimated at $4.6 billion which is 16 per cent lower than in August 2022. On YTD basis, sales are 3 per cent lower than in 2022. 

In a significant development during the Annual General Meeting on September 22, 2023,  Prashant Mohota, the Managing Director of Gimatex Industries Ltd., has assumed the Presidency of the Indian Spinners Association. Gimatex Industries, renowned for its integrated textile plants in Hinganghat near Nagpur and Ahmedabad, boasting 225,000 spindles, sees Mohota's election as a testament to his industry leadership.

Furthermore, Prakash Maheshwari, the Chief Executive of Corporate Affairs at RSWM Ltd., has been elected Vice President. RSWM Ltd., a major player in the sector, operates a substantial 578,126 spindles for synthetic blended and cotton/melange yarn production, alongside impressive Denim Fabric and synthetic/cotton knitted fabric output.

In an additional development, M.L. Jhunjhunwala, former President of RSWM Ltd., has been appointed as the Executive Director. The Indian Spinners Association's role in uniting spinning mills focused on man-made and synthetic fibers under one umbrella signifies its dedication to fostering growth and collaboration within the industry.

Coloreel celebrates a major achievement with a $2 million deal alongside a leading Asian manufacturer, supplying renowned global brands. This marks a pivotal moment for Coloreel and its groundbreaking embroidery innovation. The Swedish company's technology revolutionizes thread dyeing, offering an endless color spectrum in real-time while boosting production efficiency through digital automation and slashing water usage by 97%.

This partnership underscores Coloreel's ability to address the surging demand for sustainable solutions in the manufacturing and brand sectors worldwide. Initial deliveries of the digital thread-dyeing units are scheduled for October, with the bulk arriving in 2024.

Torbjörn Bäck, Coloreel's CEO, exclaims, "We're thrilled about this partnership and eager to collaborate, showcasing our patented technology's role in enhancing fashion's sustainability while fueling design creativity."

Japan's largest international fashion trade show with 1,150 exhibitors from all over the world!

Highlights of the 2023 October show:

Showcase the latest sustainable products/materials, apparel, bags, shoes, accessories, fabrics/materials/textile accessories, fashion digital technologies, and eyewear.

Welcome 27,000 buyers from all over the world to source brands, the fabrics and materials, and order fashion sourcing/OEM/ODM services and more.

Dates: October 10 (Tue) – 12 (Thur), 2023 Venue: Tokyo Big Sight, JAPAN

FASHION WORLD TOKYO is the business platform for companies from all over the world to showcase the latest fashion trends and innovations. The October show will gather SS collections and welcome 27,000 buyers from all over the world to source brands, the fabrics and materials, and order fashion sourcing/OEM/ODM services and more.

If you are interested in the latest fashion trends and innovations, or if you are looking to source fashion products, FASHION WORLD TOKYO is the must-attend event for you.