Wazir Advisors in its June 2023 ‘Apparel Trends Scenario in key global markets and India’ report reveals Japan’s apparel import in April was $1.8 billion, 6 per cent higher than that in April 2022. On YTD basis, imports are 4 per cent higher than in 2022. In Japan’s apparel imports, Vietnam’s share increased by 2 per cent, whereas that of China declined by 7 per cent compared to 2021. From January to April 2023, China was the largest apparels supplier to Japan, still holding on to more than half of the total imports, at 51 per cent. Vietnam during that period supplied only 16 per cent whereas Bangladesh and Cambodia supplied 6 per cent and 5 per cent respectively. The total supply from other countries to Japan is again bucking Western trends as its diversification of supplier countries is considerably less than that of the US, the UK and the EU. The latest Wazir report covers the period April and May 2023

Imports down, retail up in the US

April 2023 has been a tumultuous one for the US economy with many banks failing and national debt in crisis mode. Therefore, apparel imports were 19-months down at $5.8 billion in April, which is 28 per cent lower than in April 2022. On YTD basis, imports are 21 per cent lower than in 2022. China’s share in the US market has reduced by 5 per cent since 2021, whereas India’s share rose 2 per cent. Moreover, April performed slightly better than March 2023, YOY. China continues ruling the roost at 18 per cent with Vietnam catching up at 17 per cent. US’ near-shoring is evident as other supplier countries form the bulk at 42 per cent. The good news is that in May 2023, the US monthly apparel store sales were estimated at $18.5 billion, 1 per cent more than in May 2022. On YTD basis, sales were 4 per cent higher than in 2022. With home furnishings showing negative sales were down by 9 per cent in May 2023 compared to May 2022. In Q1 2023, online clothing and accessories sales grew 2 per cent over Q1 2022 and were 32 per cent lower than Q4 2022.

The UK and EU mirror the US

UK apparel imports in April 2023 were $1.4 billion, 22 per cent lower than in April 2022. On YTD basis, imports in 2023 are 16 per cent lower than in 2022. In the UK apparel market, China’s share has decreased by 5 per cent, since 2021 and it now has only 17 per cent of import as do Bangladesh. Again, like the US, the UK is definitely spreading its buying basket wider as other countries constituted 47 per cent, the largest amongst the four markets discussed. 

The EU’s diversification is lesser than that of the US and the UK as others form 30 per cent whereas China and Bangladesh are the two top suppliers pegging at 24 per cent. This is due to China losing 6 per cent and Bangladesh gaining 4 per cent. The EU’s apparel import in April 2023 decreased by 16 per cent, compared to April 2022, and was valued at $6.3 billion. On YTD basis, imports are 3 per cent higher than in 2022. 

As for e-commerce, in Q1 2023, online sales of clothing registered a growth of 13 per cent over Q1 2022. In April 2023, the UK’s monthly apparel store sales were £3.6 billion, which is 9 per cent higher than in April 2022. On YTD basis, the sales were 13 per cent higher than in 2022.

Indian apparel exports still down

In May 2023, India’s apparel exports are estimated to be $1.2 billion, 14 per cent lower than in May 2022 exports. On YTD basis, exports were 13 per cent lower than in 2022. The US remains India’s top destination with 31 per cent of its apparel exports.