US apparel import in Jan.-Sep. ’20 remains sluggish; China still the biggest loser with 45% fall, cheers to Bangladesh

USA was down in its import volume by 13.68 per cent in Q3 ’20 from the same quarter of 2019; however Bangladesh and Vietnam still stayed positive on Y-o-Y basis in volume-terms, despite USA’s fall. Bangladesh was up in its value-wise exports as well in the third quarter, while India and China couldn’t turn the waves in their favour both in volumes and values!

Q3 ’20 (July-September) data of US apparel imports shows that the market is still sluggish in the country and the shipping partners of USA are just surviving in this tough time while revival doesn’t seem to be on the cards – at least not in the subsequent quarter! According to an analysis done by the data analysis team of Apparel Resources, some apparel exporting countries were able to recover business and some even saw a growth from the same quarter of 2019 but majority of them fell on yearly basis.

USA was down in its import volume by 13.68 per cent in Q3 ’20 from the same quarter of 2019; however Bangladesh and Vietnam still stayed positive on Y-o-Y basis in volume-terms, despite USA’s fall. Bangladesh was up in its value-wise exports as well in the third quarter, while India and China couldn’t turn the waves in their favour both in volumes and values!

As far as September ’20 is concerned, Y-o-Y drop (15 per cent) in US apparel imports value has continued; however there is slight surge (1.22 per cent) from a month earlier. This monthly recovery in September ’20 over August ’20 is something that the major exporting destinations will be looking forward to see in the coming months as well, amidst the wave of economic turbulence that’s likely to be created due to the results of US Presidential elections. It’s worth mentioning here that the trade war with China may become less intense under the tenure of new President of USA which may fix the supply chain woes for the buyers!

Here is the complete analysis of USA apparel import, month-wise, quarter-wise and on YTD basis…

China’s market share to USA falls from 30.97 per cent in Jan.-Sep. ’19 to 23.35 per cent in Jan.-Sep. ’20; this loss of 7.62 per cent seemed to be captured by Vietnam and Bangladesh

• During -Sep. ’20 period, China exported US $ 10.98 billion worth of garments to USA, marking 45.49 per cent downfall from the same period of 2019.
• China’s share to total apparel import value of USA shrunk to just 23.35 per cent in the first 9-month period of 2020 from 30.97 per cent in the corresponding period of 2019, reducing drastically by 7.62 per cent.
• The fall can be attributed to a drop in the unit prices which have come down to US $ 1.83 per SME garments in Jan.-Sep. ’20 from US $ 2.29 in the same period of 2019.
• In Q3 ’20 (July-September), China noted drastic decline of 23.39 per cent in volume-wise shipment and 40.85 per cent in value-wise shipment from the same quarter of 2019.
• Particularly in September ’20, China’s apparel export valued US $ 1.82 billion, down 28.80 per cent from September ’19 and up marginally by 0.08 per cent from August ’20.
• The benefit of China’s decline in the US market could clearly be seen going to Vietnam which upped its share to 20 per cent in Jan.-Sep. ’20 from 15.91 per cent in Jan.-Sep. ’19.

India recovers 91 per cent USA business in September ’20 from September ’19; while Q3 and YTD more negative!

• India’s apparel export to USA nosedived 8.80 per cent in value terms during September ’20 on Y-o-Y basis as it clocked just US $ 269.53 million as compared to US $ 295.69 per cent in the same month of 2019. This way the country recovered its 91.20 per cent yearly business.
• There was a meagre growth of 0.90 per cent in its volume-wise exports to USA on Y-o-Y basis in September ’20 that says India shipped more orders (volume-wise) than previous year but in low prices.
• On M-o-M comparison with August ’20, India’s export to USA marked a marginal surge of 9.17 per cent in September ’20.
• Q3 ’20 (July-September) remained a dismal period for India as it was down by 14.13 per cent in volume terms and by 24.76 per cent in values.
• In YTD period, India share to USA apparel import values dropped to 4.82 per cent from 4.97 per cent last year.

Bangladesh concludes Q3 ’20 on positive note; however faces brunt in September ’20 …

• Bangladesh noted 0.17 per cent growth in value terms in its apparel shipment to USA during Q3 ’20, while volumes were up by 5.30 per cent from the same period of 2019.
• The country’s shipment upped for the first time in August ’20 in the US market both on M-o-M and Y-o-Y basis, but it fell in the subsequent month – September ’20, both on monthly and yearly note.
• In September ’20, Bangladesh clocked US $ 474.54 million from its apparel shipment to USA, falling 2.20 per cent from September ’19 and 20.21 per cent from August ’20.
• As far as volume of orders is concerned, Bangladesh noted 2.80 per cent growth in Sep. ’20 on Y-o-Y basis. However, the same was down by 15.70 per cent as compared to August ’20.
• During YTD period (January-September ’20), Bangladesh clocked US $ 3.96 billion in its apparel export to USA, marking 13.23 per cent Y-o-Y fall.
• Despite YTD fall, Bangladesh surged its share from 7 per cent in 2019 (Jan.-Sep. period) to 8.42 per cent this year.

Y-o-Y and M-o-M % Change in Apparel Exports to USA:
(Comparison between September ’20 over September ’19 and September ’20 over July ’20)

(Qty in million SME)

(Value in US $ million)

YTD % Change in Apparel Exports to USA:
(Comparison between Jan.-Sep. ’20 over Jan.-Sep. ’19)

(Qty in million SME and Value in US $ million)

Y-o-Y % Change on Quarterly basis in Apparel Exports to USA:
(Comparison between July-September ’20 over July-September ’19)

(Qty in million SME and Value in US $ million)

 (*Entire data and all tables are a result of the compilation done by Team Apparel Resources, based on the data released by OTEXA)