The February 2023 edition of Wazir Report has just been published and the findings indicate the outlook for Indian garment exports, global imports that affect developing and under-developed countries in Asia and global retail scenarios are all positive with no major shift since November 2022.
India’s readymade garments exports stable
In January 2023, India exported garment worth $1.5 billion. This figure is the same as the figure 12 months ago in January 2022. In January 2021 exports were 12 per cent higher than 2021. In terms of share of apparel exports, US’ share has increased by 8 per cent while UAE and UK have recorded a dip in share by 3 per cent and 1 per cent, respectively since 2019. The UAE’s share is 8 per cent and the UK’s 9 per cent in the total volume of readymade garments exports from India in January 2023.
Whilst January 2023 may not have registered a year-on-year growth, in these uncertain times in the West, it may be looked upon as a blessing that Indian readymade garments did not lose grounds in terms of exports value.
Imports down in UK and US, up in EU and Japan
Out of the three Western markets, only the UK showed a drop in imports of readymade garments in November 2022 by 4 per cent compared to November 2021. However, on YTD basis, imports in 2022 are 18 per cent higher than in 2021. Among the countries that whose exports increased to the UK, China once gain topped the list with 6 per cent; Bangladesh and Turkey gained 4 per cent and 2 per cent respectively since 2019. India lost 1 per cent in the same period.
In December 2022, US’ apparel imports were $6.5 billion, which is 11 per cent lower than in December 2021. On YTD basis, imports are 22 per cent higher than in 2021. China’s share in the US market has reduced by 8 per cent since 2019, whereas Vietnam and Bangladesh’s shares have risen by 2 per cent and 3 per cent, respectively.
In December 2022, Japan’s apparel imports stood at $1.8 billion, which is equal to that of December 2021. On YTD basis, imports in 2022 are 5 per cent higher than last year. Bangladesh’s and Cambodia’s share increased in Japan’s apparel imports, by 1 per cent each while China’s share dropped by 2 per cent compared to 2019.
EU’s apparel imports in October 2022 were 14 per cent higher compared to October 2021, although the higher percentage is attributed to price inflation and low base value. In the EU apparel market, China’s share increased 1 per cent whereas Bangladesh’s share increased by 4 per cent since 2019. Clearly Bangladesh is gaining ground at China’s cost in the EU market.
US, UK reflect high retail growth in January 2023
In January 2023, US’ monthly apparel store sales were estimated at $18.2 billion, 47 per cent more than in January 2022. In 2022, sales were 7 per cent higher than in 2021. In January 2023, US’ monthly home furnishing store sales were estimated at $5.2 billion, 6 per cent more than in January 2022. In 2022, sales were 1 per cent higher than in 2021. In Q4 of 2022, online sales of clothing and accessories registered a growth of 5 per cent over the same quarter in 2021. The fourth quarter of 2022 was 42 per cent higher than the sales in the third quarter of 22. This was attributed mainly to the festive season. Overall, in 2022 sales were 7 per cent higher than 2021.
In January 2023, UK’s monthly apparel store sales were £3.1 billion, 19 per cent higher than in January 2022. In 2022, sales were 21 per cent higher than in 2021, mainly on account of low base value. In Q4 of 2022, online sales of clothing registered a growth of 1 per cent over the same quarter in 2021. Overall online sales in 2022 saw negative growth of 18 per cent over 2021. This may be due to the extremely high inflation in UK since second quarter of 2022.
