1. Import quantities of denim apparel into EU from these three countries during Sept’20 – Aug’21 . Eg imports from Bangladesh touched over 160 million pcs while prices were more competitive. Turkey showed the biggest numbers coming close to the figures of Pakistan.
2. Import prices from these locations
3. Breakup into Men’s and Women’s denim quantities and prices
4. Trend line of denim imports from Bangladesh
5. Analysis

This report is FREE to download for all the exhibitors and visitors registered on our DNJ (formerly De-Brands) platform .
For those visitors who are not registered, may register here and download the FREE report .

IMP. NOTE :

Do not miss to attend this LIVE TALK with the Godfather of Denim – Adriano Goldschmied on 7th Feb at our Instgram account – click here

In this report, we are covering the denim export from India during October & November 2020. The analysis will be in two parts:

1. Countrywise Export Analysis
2. Leading Denim Suppliers

We are regularly publishing reports on various aspects of the denim business globally including :

1. Exports and Imports
2. Market Intelligence 
3. In-depth market analysis on important importers and exporters
4. Updated information on different markets. 

We have published over 217 reports till now and we expect to publish over 40-50 reports in 2021 as well. You can check all our reports at- https://www.denimsandjeans.com/subscriber-only-reports-3 .

The annual subscription to our SPECIAL REPORTS enables access to all 217 previous reports and also to all new reports that we shall be publishing in 2021. Please do contact us for a subscription in case you find these reports useful for your business purposes.
Email- mktg1@denimsandjeans.com

In Q3, total revenue decreased by 18% to $2.118 billion compared to the prior-year period. The company believes it as a sequential improvement compared to the percentage of revenue decreased in the prior two quarters. The Company’s revenue through digital channels grew 36%, with sales through its directly operated digital commerce businesses up 70% compared to the prior-year period.

Before we go into deep dive of the Q2 results, here is the snapshot of Q3 earnings.

Revenue Distribution – Brands

Looking at the brand-wise revenue distribution, Tommy Hilfiger is leading the revenue chart with USD 1089.8 million accounting for 51.45% of the total revenue share. Calvin Klein with USD 790 million is the second in the revenue chart accounting for 37.29% of total revenue.
Comparing the same period from the previous year, both brands Tommy Hilfiger and Calvin Klein have registered a massive fall of 12% and 18 % respectively. Overall, the total revenue contracted by 12% which amounted to a total revenue loss of $469 million.

Revenue Distribution – Regions

Calvin Klein

Analysis of the regional distribution of revenue of Calvin Klein shows that revenue from the North America region saw a decline of up to 40% during Q3 2020, revenue fell from $455 million to $275. million. Internationally, CK revenue came back to pre covid level and has shown a positive growth of $1 million.

Tommy Hilfiger

The highest-grossing brand of PVH- Tommy Hilfiger has a similar story, its North American operation has reported a fall of 37% % in its revenue during Q3,2020 however international revenue witnessed a slight growth of $1.1 million.

Revenue Distribution – Channels

Whole Sale Channel is beating the retail channel in terms of revenue distribution of Heritage Brands by big margins. Where Retail Channel contributed USD 41.7 Million, the wholesale channel of Heritage Brand contributed USD 196.6 million during Q3,2020 however both channels were hugely affected and fell up to 37% during this quarter ended on Nov 2, 2020.

The Company anticipates its fourth-quarter revenue and earnings will continue to be negatively impacted by the COVID-19 pandemic; although there is uncertainty due to resurgences throughout Europe and North America, the Company currently expects revenue in the fourth quarter to decline approximately 20% compared to the prior year.

We are regularly publishing reports on various aspects of the denim business globally including :

1. Exports and Imports
2. Market Intelligence 
3. In-depth market analysis on important importers and exporters
4. Updated information on different markets. 

We have published over 215 reports till now and we expect to publish over 40-50 reports in 2021 as well. You can check all our reports at- https://www.denimsandjeans.com/subscriber-only-reports-3 .

The annual subscription to our SPECIAL REPORTS enables access to all 215 previous reports and also to all new reports that we shall be publishing in 2021. Please do contact us for a subscription in case you find these reports useful for your business purposes.
Email- mktg1@denimsandjeans.com

This is a report by Miguel Angel Andreu Marin from Cedetex- who has a long experience of the Mexican Textile Industry. He brings a macro analysis of the Mexican Textile Industry and its Outlook in a report recently published by him. We bring some key findings that he shares :

Key Findings
Mexico’s total GDP grew 0.25% in 2019. Flat behaviour.

• Textile GDP decreased 4%
• Clothes (Apparel) GDP decreased 4.7%
• The knitting sector grew 2%
• United States of America GDP grew 2.9% in 2019.
• 2020 first quarter fell 5%
• By the end of the year could be a fall of 5.9% of more.
• 2019 mexican inflation rate was 2.83%
• During the first five months of 2020 inflation rate continue being less and less, 2.15% in april
• Before the beginning of covid times, March 6th, the Exchange Rate begins to depreciate with respect to the United States Dollar, starting on $18 mexican pesos per U.S. Dollar, reaching a maximum of $ 25.12 on March 24th
• Starting in May, the exchange rate began to recover. Around $ 22 during the first fortnight of June.
• Despite the fact that the unemployment rate increased from 4.4% to 14.7% between March and April in the U.S.A. This country continues to be the main origin of money orders (remittances) to Mexico. The flow of this resource had a decrease of only 2.6% during the month of April compared to the same month of the previous year, with an amount of 2,861 million US dollars.
• Remittances increased 50% in March 2020 compared to the previous month, they were $ 4,694 million dollars.
• In April, they resumed the trend they have had in recent years, increasing 6.2% compared to February 2020
• The average wage of insured workers to the IMSS reached an amount of $ 403.6 (four hundred three point six pesos). More or less, USD $20 per day.
• The closure of Full Package suppliers in China and other Southeast Asian countries during the first quarter of 2020 led to additional orders for garments and footwear from Mexican factories.
• Total value of Imports of clothing from the World to the United States decreased 19% comparing January-April 2020 with the same period of the previous year, Mexico lost 25% . China had the biggest drop,
• Sales strategies that may be proposed in the near future by some big Mexican stores, as well as some the United States brands, could be delaying mark downs until the end of the season (Spring until August, Winter until March)
• Request their clothing suppliers, in different countries of the World, to acquire and use digital platforms for communications and collaborative design and production networks with their contractors
• Transform purchase orders, placed before the pandemic, into Fall-Winter collections
• Most textile and apparel factories in Mexico has been closed during the last three months. The fall of this industry GDP could be around 20% for the second quarter of 2020.
• With the “return to new normal”, the drop in GDP for the next three quarters would be less and less until it began to grow from the second quarter of 2021 on.
  
  In the charts below, Miguel shares the contribution of the Mexican TExtile and Apparel industry to the Mexican GDP. It is interesting to note that only about 3.8% of the GDP comes from Textile and Apparel. And this % seems to have reduced in 2020 compared to 2019 .
  

In the table below, it is interesting to see the approx sales of different types of clothing in the country from 2016 to early 2020 . The sales figues of jeans, casual trousers, Dress Trousers , Blouses , and many other categories are given below. The relative share of different clothing is also given. Download link for the full report also given alongwith.

Pakistan and Bangladesh both enjoy GSP benefit to EU and this has helped them to take a major share of market away from China which was the previous holder of major share in this market. We try to understand how these countries have developed their exports to the EU during these 3 years

Jeans Exported To EU By Bangladesh (BD) And Pakistan (PK) During 2016-18

By the end of the year 2018, the total denim exports by Bangladesh to the EU stood at 238.66 million pcs, which is 14% more than the export of 2016 and 11% more than 2017. Pakistan, on the other hand, exported 105.6 million pcs of denim to the EU by the end of 2019 which is only 2% higher than the export of 2016. The year 2018 also witnessed a marginal decline of 3.94 lacs pcs in the export from 2017.

Average Price (Euro/Pc) Of Jeans Exported

Bangladesh is one of the cost-competitive countries and due to various factors like lower costs, efficiencies and large capacities, the country has been exporting denim at very competitive prices. Bangladesh exported its Jeans at an  average price of Euro 5.71/pc in 2018 whereas Pakistan exported at Euro 7.03/Pc. Though the prices cannot strictly be compared unless there is a comparison of types of products exported, their complexities, volumes,  qualities, types of buyers etc but on broader terms, Bangladesh’s prices were lower than that of Pakistan.

Another interesting fact to note is that both countries have become more competitive in terms of price over a period of three years and we can see the changes in the below table and graphs.Increased competition among themselves and with countries like Vietnam and Ethiopia with a better geographical dividend and huge FDIs in past years made the trade little more intense. It is a reflection of a sad fact of our industry that with each passing year we are actually reducing the prices whereas the costs of production are going up ! .This also reflects that our industry is oversaturated with supply far exceeding the demand.

Jeans – Women & Men, Exported To EU By Bangladesh (BD) And Pakistan (PK) During 2016-18

Interesting to note that Pakistan is more focused on Men’s jeans with its Men jeans volume being almost double than that of women. However, in the period of 2016-28, the %age of women jeans is slowly increasing but its exports are still majorly dominated by Men’s Jeans.

Bangladesh also exports more Men’s jeans but their gap between the two is not so much. The exports of Men’s jeans was about 50% more than that of Women’s in 2016 whereas in 2018 it is about 30% more. So Bangladesh has probably better adapted to women jeans production over the years taking a major share away from China which was the major exporter of Women jeans.

Average Price (Euro/Pc) Of Jeans ( Men & Women) Exported

The average price of Women Denim is  lower side as compared to the average price of Men’s Denim for both the countries. In 2018, Bangladesh exported Men’s denim at an average price of Euro 5.88/Pc and Women’s denim at an average price of Euro 5.51/Pc, Pakistan exported the same at Euro 7.22/Pc and Euro 6.66/Pc respectively. But the drop in prices of women denim is more sharp for both the countries over a 3 year period. Bangladesh reduced its Men’s denim prices by about 6% from 2016 to 2018 whereas Pakistan reduced the prices of the same by about 5%. In Women’s denim , the reduction by BD is about 8.5% whereas that of PK is about 9% .

The total volume of both countries stands at about 330 million pieces of jeans to EU. This is more than 50% of total exports to EU which stands at about 600 million pcs. The share of these countries is expected to grow over the next few years and China would be one of the biggest loser of its share in this market.

TOP 10 COUNTRIES SUPPLYING DENIM FABRICS TO MEXICO

In the month of March-April 2019, Mexico has imported approx. 20 million sqm of denim fabrics.

TOP 10 COUNTRIES SUPPLYING DENIM FABRICS TO COLOMBIA

In the month of March-May 2019, Colombia has imported approx. 16 million sqm of denim fabrics.