FROM WORLD AN ANALYSIS CHINA STILL REMAINS AT THE TOP, VIETNAM GRABS SECOND POSITION
US has always been an important destination for apparels and almost all the trends in apparel fashion are targeted towards it. If we talk about retail sales in the US as per the latest figures revealed by NATIONAL RETAIL FEDERATION, March retail sales increased 0.3 percent seasonally adjusted over February and 5 percent year-over-year as the economy continued to grow.
This is a healthy spending report despite market volatility, unseasonable weather and uncertain economic policies said NRF in an official statement. Consumers continue to show resiliency in spending, and these numbers reflect how the economy is performing with a strong job market, gains in wages, improvements in confidence, rising home value and judicious use of credit. The biggest risk to spending is in market fluctuations that could affect confidence, but basic improvements in economic fundamentals is expected to continue.
The three-month moving average was up 4.8 percent over the same period a year ago, and the results come as NRF is forecasting that 2018 retail sales will grow between 3.8 percent and 4.4 percent over 2017.The March results build on improvement seen in February, which was up 0.2% over January and 4.3 percent year over year. Clothing and clothing accessory stores were up 6.1 percent year-over-year but down 0.8 percent from February seasonally adjusted.
If we look at the figures of total apparel imports to the US from various countries, it is found that there is big shift in sourcing pattern of the US from 2016 to 2018. While China still remains the biggest shareholder in apparel exports to the US with around 33% share, Vietnam is catching up very fast.
In 2017 China exported garments worth USD 27.03bn, and if we look at the exports in month of Feb in 2017 it stood at USD 4.37 while in the same period in 2018 it exported garments worth USD 2.70 bn a decrease of around -1.56%.
In exports to the US Vietnam is now at the second position, the country exported garments worth USD 11.5 bn as compared to10.8bn in 2016. The country has left no stone untouched to succeed the race of competition and is leaving Bangladesh also behind. In fact it saw a growth of around
7.32% in export to the us and grabbed a share of 14.46% in the US market.
Coming on to Bangladesh which has been striving hard to race up in the supply chain and become the largest exporter the US the position seems to be slipping a bit. The country exported garments worth 5.06 bn to the US in 2017. In the year under review i.e in Feb month of 2018, Bangladesh exported garments worth USD 937.704 mn as compared to USD 927.253 mn registering a growth of 1.13%. This clearly indicates that now the US is looking at other alternatives to sourcing and may be soon Bangladesh will become stagnant in growth in apparels.
Coming on to India the country export garments worth USD 3.681bn to US in 2017. In the review period that is Feb 2018 it saw growth of 4.92% with USD 696.179 mn exports as compared to 663.522mn in the same period last year. Overall India has seen a growth of 3.07% in the US market in year under review and has 4.60% share.