The latest apparel trade data for August 2024, as analyzed by Wazir Advisors in their monthly ‘Apparel trade scenario in keyglobal marketsand India’, highlights a global market that is still recovering from the disruptions of the past few years. While some key markets showed signs of growth, others experienced declines, revealing the ongoing challenges and uncertainties in the industry.
Apparel imports adivergent landscape
The performance of major apparel importing nations in August 2024 was uneven. The US for example, a major market, maintained its import levels at $7.8 billion, indicating no year-to-year change. This indicates that the US apparel market remains relatively stable. However, other markets experienced fluctuations.
The European Union saw a 10 per cent increase in apparel imports, reaching $9.0 billion, suggesting growing demand for apparels in the region. In contrast, the United Kingdom and Japan recorded import decline, with decreases of 6 pr cent and 8 per cent, respectively. This highlight the varying economic conditions and consumer sentiments across different countries.
China's dominance continues in apparel exports
China, the world's largest apparel exporter, maintained its position in August 2024. Despite a slight 5 per cent decline in exports to $13 billion, China's dominance in the global apparel market remains unchallenged.
India, another major player in the apparel export market, experienced no significant change in exports, remaining at $1.1 billion. However, the overall Indian apparel exports are projected to reach $15 billion in 2024, a growth of 5-7 per cent compared to the previous year. This indicates a positive outlook for India's apparel industry.
Mixed signals in apparel retail
The retail landscape also reflected mixed trends. In the US, apparel store sales were estimated 1per cent higher in September 2024 compared to the same period in 2023. This suggests a modest increase in consumer spending on apparel. Home furnishing store sales witnessed a more substantial growth of 15 per cent, indicating a rising interest in home decor and renovation. Also, for last several quarters, major retailers have reported lower inventory levels compared to sameperiod in the previous year. These retailers include GAP, Walmart, Target, Kohl’s among others.
In the United Kingdom, apparel store sales rose by 5 per cent in September 2024, indicating a stronger demand for clothing. However, the US Consumer Confidence Index declined by 4 per cent in September, suggesting some uncertainty among consumers. Which means consumers may be cautious about spending despite improving economic conditions.
Overall, the Wazir Advisors report indicates global apparel trade in August 2024 was a mix of positive and negative developments. While some markets experienced growth, others faced challenges. The overall recovery process continues to be uneven, due to factors such as economic conditions, consumer sentiment, and geopolitical events. As the industry navigates these complexities, it remains to be seen how the global apparel market will evolve in the coming months.
