China loses over 7% market share in US apparel industry in 2020

COVID-19, US China Trade War and buyers’ search for alternative sourcing destinations have collectively reduced China’s share to the US apparel market in 2020.

During January to September ’20 period, China shipped US $ 10.98 billion worth of garments to USA, noting 45.49 per cent downfall from the same period of 2019, while the overall import done by USA in this period valued US $ 47.03 billion.

As per Apparel Resources’ analysis, China’s share to USA import value was 23.35 per cent in the first 9-month period of 2020, reducing drastically from 30.97 per cent in the corresponding period of 2019.

The fact is that China’s Y-o-Y percentage change to USA was more negative than the decline USA noted in its import – 27.71 per cent – on yearly basis.

The fall was also attributed due to a massive drop in the unit prices as China shipped per SME garments to USA worth US $ 1.83 this year as compared to US $ 2.29 last year till September.

The benefit of China’s decline in the US market could clearly be seen getting by Vietnam which upped its share to 20 per cent in Jan.-Sep. ’20 from 15.91 per cent in Jan.-Sep. ’19. Vietnam’s fall in the USA market was just 9 per cent on Y-o-Y basis and that’s where Vietnam benefitted in market share race.

Bangladesh too surged its share from 7 per cent in 2019 (Jan.-Sep. period) to 8.42 per cent this year despite facing turbulence in the export of apparels due to COVID-19, while India dropped to 4.82 per cent from 4.97 per cent from last year.

Since there are a lot of speculations and strong predictions that China will surely decline further in the US market, the coming months will give better scenario.

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