The prices of apparel and, especially denim apparel, have been moving southwards in the last 2 decades. Where most of the other industries had the prices of their products move almost along with the inflation curve, apparel has been ignoring this trend. One of the main reasons for the same has been the rush of apparel retailers to go to countries where they can find the cheapest labor and take advantage of the same to bring out cheap apparel. However, there are many other issues involved and ultimately no one is winning by the downward movement of prices. One of the objectives of this panel discussion is to identify the root cause of this problem as to why in the past decade, this industry failed to align with the fundamentals of Inflation and how has been it affected their businesses so far.
RACE TO THE BOTTOM: WHO ARE THE WINNERS Â a panel discussion aims to discuss the various aspects of this RACE. Stefano Aldighieri, ex-creative head at Levis / 7 For all Mankind and a host of other companies, will moderate the panel discussion which will have some of the important companies from the supply chain as panel members. The panel will discuss changing patterns of denim business including its pricing, sourcing, quality, geographical influences, margins and sale strategies over the period of time and also the problems which are being faced by the industry and the solutions.
The panel discussion will also bring light on the changes which happened during the period of early 2000 and 2008. 2000 was the year when the premium segment of Jeans found its space in the market and able to sell the jeans at the price $300. However, this could not hold its ground for longer and there was a crash in mid-2008 when the recession hit the USA. The post-recession era opened the market for fast fashion and those retailers entered the market who were started selling Jeans even at ridiculous prices of less than $10!
Also, the impact of e-commerce business affecting the eco-system of traditional business and the challenges ahead will be discussed by this panel.
VF had previously announced that it would be divesting its jeans The new company, named Kontoor Brands, Inc., will include the Wrangler®, Lee® and Rock & Republic®brands, and the VF Outlet business. Its a big strategic move by VF where it has siphoned off the low growth denim labels to another company. Last year the sales of jeans for VF fell by 3.5% and current year does not look great either. In contrast , Levi’s has recently been listed on the stock market and received a huge response with the share price jumping over 32% on the listing day mainly on the strength of its profits and strategic growth. The management sounded positive on the filing with the govt. authorities.
“Our teams across VF have made tremendous progress to prepare for the successful separation of Kontoor Brands from VF and this filing is a significant next step in this process,†said Steve Rendle, Chairman, President and CEO of VF Corporation. “We are highly confident that the separation is the best path forward for both organizations to achieve even greater potential and enhance long-term shareholder value.â€
The separation is on track to be completed in May of 2019, subject to final approval by VF’s Board of Directors, customary regulatory approvals, and tax and legal considerations.
“This is an exciting next step in our work to establish our jeanswear organization as an independent , public trading company . Kontoor brands – a creative variation of the word ‘ Contour’ is a compelling name that will preserve each brand’s unique identity while also providing the opportunity to evolve the company in the years ahead ” says VF Corp CEO Steve Rendle .
The selection of the name has been an important part of the creation of the new company. The office of Kontoor Brands would be created in the historic Revolution Mill in Greensboro, North Carolina , that has been transformed into a mixed-use campus that includes commercial, residential, restaurant and studio space. VF is currently based in Greensboro, but will be moving its headquarters to Denver along with its diverse portfolio of brands that includes Vans, The North Face and Timberland.
“In choosing a name for the new company, it was important for us to select something that serves as an umbrella for our iconic jeanswear brands and provides us with the opportunity to advance our portfolio in the future. The selected name was inspired by the idea of a perfect fit, which speaks to the rich legacy and storied history of our brands. I’m excited about the opportunities that lie ahead for Kontoor Brands as an independent, publicly traded company,†added Scott Baxter, named CEO of Kontoor Brands.
Calik Denim will be launching the AW 20/21 collection, Eudemonia, in light of innovation’s growing effect on denim, in April 2019.
The most important feature of the new collection is that Calik Denim will be unfolding its completely new approach to sustainability with the new collection AW 20/21 by addressing sustainability from a wider perspective. The brand announced that it stopped creating “outsider†eco friendly concepts, instead the brand started adopting the D-Clear technology to whole collection, which has great saving scores in dyeing and finishing processes. Due to the unique technology, compared to traditional denim, D-Clear uses 40% less water in indigo dyeing and 83% less during the finishing process, thus reducing water consumption by over five litres per metre of fabric produced. In addition, it will also reduce the volume of chemicals used per metre of fabric from 150 grams to 9, meaning a reduction of 94%. D-Clear technology has been used in 10% of the new collection. Calik Denim commits to implement D-Clear technology in its collections up to 50% by 2020, 75% by 2023 and %100 by 2025.
This season Calik Denim introduces us future trends through its prominent concepts.
Selfsized was initially launched in the SS ’20 season with its unique feature that one single size jean can fit a wide range of different sized wearers perfectly due to its ultra-high elasticity and cotton for maximum comfort and softness. With this feature, Calik Denim feels that the customers minimise the risk of buying wrong size jean – especially for the online shoppings. What makes the this concept different than SS’20 season is that Self sized fabrics have more options with premium look with soft handle. In the new collection, Calik Denim will be showcasing more authentic denim look fabrics with salt & pepper effects and vintage washes. Besides, Selfsized concept will also be an option for the men in the new season with its masculine look, thanks to its slubby surface. All Selfsized denim have also been developed with Calik Denim’s T-Power technology to eliminate elastane yarn slippage as per Calik.
The fashion industry have been witness to see smooth surfaced leather look pants especially for men recently. To meet this demand in the denim industry, Calik Denim developed Colorart concept which presented in SS’20 season firstly. Colorart offers lightweight fabrics with high performance and close texture, making the fabric the perfect choice for sportswear. With the new collection, Calik Denim will be launching the concept with the combination of leather touch and matt appearance in a palette of black, burgundy and navy blue.
One of the pioneer technologies in the denim industry belongs to Calik Denim, Fly Jean, will maintain its importance for the athlejean story in the fashion industry. Fly Jean, creates a new chapter in the story of athlejean:Â athleisure + jean, the lightest ever fabric family offers exceptional flexibility and creamy softness, making it the perfect athleisure wear. Jeans made of Fly Jean fabrics always retain their shape. The first-day shape lasts forever so no baggy knees or seam slippage. This fabric family is also compact enough to fit even in an umbrella case. Calik Denim will be launching in the new collection Fly Jean with an additional shiny coated fabric family which has high elasticity and lightweight.
The rapidly changing climate conditions affect the expectations of the end consumer; as well as being stylish, the efficiency of the technical features is now important. Referring to this demand, Calik Denim will be showcasing a brand new concept named Puff Up in AW 20/21 collection. With Puff Up, Calik’s aim is to provide comfort, soft handling and warm feeling inside the fabric as well as providing visual elegance and authentic look.
Cotton is most widely used as a raw material in the world for manufacturing apparels, denims, textiles, lingerie and even food and medical products.With an increase in the organic cotton demand in the fashion world, it is a known fact that growing cotton has many challenges. This renewable and biodegradable resource has became an essential part of textile industry. The increase in interest in organic materials in fashion is growing, and the global market for just organic cotton alone has risen to $15 billion according to the recent article in Forbes.
What is Organic Cotton ?
The organic cotton eliminates the use of harmful pesticides, fertilizers and chemicals. The techniques used does not harm soil fertilization , prevents polluton of water etc.Farmers who have shifted to organic cotton farming, not only made their lives healthy but also benefitted the ecosystem. Not only this, organic ways improves the working and provides a healthy environment for farmers and wrokers.
Bext360 – The Initiative
The Blockchain startup Bext360 has decided to partner with multiple tech companies for testing if the blockchain can be used for using the organic cotton supply chian.
“We’ve developed systems at the farm level,†said Dan Jones, founder and CEO of Bext360. “We can mark those bags so that we’re sure about the location where we’ve harvested the cotton.â€
“By integrating these marker partners into this, we’re able to decrease the cost of people to manage their supply chain and increase their ability to prove authenticity, sustainability and origin,†added Jones
Bext360 provides comprehensive and measurable accountability for critical supply chains. The SaaS platform provides unsurpassed blockchain traceability and quantifiable measurements for sustainability.Bext360 focuses on supply chains such as coffee, seafood, timber, minerals, cotton and palm oil to provide a traceable fingerprint from producer to consumer.
The pilot test is called as Organic Cotton Traceability Pilot. It is a partnership between the C&A Foundation, the Organic Cotton Accelerator and Fashion for Good supported by C&A, Zalando, PVH Corp and the Kering Group. In the current phase, organic cotton is traced from farms to the gin for processing. The second and third phase will ensure the tracing of cotton from gin to consumer and then scaling it for fashion industries respectively.Organic cotton only accounts for under 1% of the total global production of cotton, according to the statistics from Textile Exchange. Still as it costs too much to produce, that percentage still accounts for nearly $15 billion market.
Several companies are working with technical pilot Bext360 for this initiative.To ensure the authenticity of the cotton , these companies “tag†the cotton which is further being “fingerprintedâ€Â in the supply chain by Bext360 to ensure the veritable nature of the cotton.The blockchain software then creates a “token†through which the consumer can trace every path of cotton. These individual electronic tokens can be used to track the process of harvesting, processing, manufacturing uptill the final product.
The blockchain software attached with every individual cotton source provides a digitized way to manage the payment of the stakeholders at every level.This way genuine farmers and cotton producers can be tracked and given their fair share of hardwork. It does not end here, the quality delivered to the customer can be fairly managed and maintained via this technology as it tracks those producers and fashion companies who are not producing the quality cotton that they claim.
The pilot Bext360 Agricultural project can be a great contributor in the sustainability efforts of the brands and the supply chain. With cotton becoming more verifiable, there will be added incentive for all in the chain to use the sustainable cotton and the brands will be happy to give verifiable tags to their consumers. In all , it can be a game change for DENIM and other cotton specific industries.
Located in South America, Ecuador is one of the denim destinations in that region and has imported over 3.5 million sqm of denim fabric during the month of September-November,2018. In this report, we’ve listed the major denim fabric buyers of ECUADOR during the months  of September-November,2018 and analyzed the volume and average price. The contents of this report are as below:
PARTICULARS
Table Showing Imports Of Denim Fabric Monthwise From September To November 2018
Graph Showing Imports Of Denim Fabric Monthwise From September To November 2018
Table Showing Countries From Where Denim Has Been Imported Along With Average Price And % Share
Graph Showing Countries From Where Denim Has Been Imported Along With Average Price And % Share
Table Showing Major Denim Buyers Of Ecuador Along With Average Price And % Share
Graph Showing Major Denim Buyers Of Ecuador Along With Average Price And % Share
6 Tables Showing the Imports Of Denim Fabrics By Different Companies Of Ecuador Along With Average Price
12 Graphs Showing the Imports Of Denim Fabrics By Different Companies Of Ecuador Along With Average Price
MONTHLY BREAKUP OF IMPORTS
[private_special]
September is the month in which the largest volume of denim fabrics was imported and the volume was 1.6 million sqm. This is close to 50% of the total 3.5 million sqm of denim fabrics imported during three months. October witnessed a slowdown however in the month of November, the import figures were little improved but could not be able to match up the figures of September.
Month
Imports ( Sqm)
September
1,637,952
October
888,141
November
993,876
DENIM EXPORTING COUNTRIES
During the month of Sept-Nov’18, Ecuador has imported approx. 3.5 million sqm of denim fabrics out of which 1.06 million sqm have been exported by China at an average price of $1.46/sqm. Brazil and Peru are the next biggest exporters of denim fabrics in Ecuador with 6.86 lac sqm and 6.24 lac sqm respectively. Pakistan is the most expensive supplier to Ecuador and Korea is the least one.
(Note: this data has been captured from various govt organizations including customs. the actual imports are likely to be higher than this figure .)
Country
Imports ( Sqm)
Average Price( USD/Sqm)
% Share
Republic Of Korea
121,036
0.25
3%
Venezuela
163,282
1.44
5%
China
1,063,098
1.46
30%
India
198,256
1.84
6%
Peru
624,493
2.04
18%
Brazil
686,067
2.05
20%
Colombia
564,648
2.06
16%
Pakistan
90,089
3.15
3%
TOP DENIM BUYERS
So far as the import of denim fabric by different companies are concerned, IMPORDENIM IMPORTADORA TEXTIL is the biggest buyer of denim fabric of Ecuador and it contributed 33% in the total import made by Ecuador during the period of Sept-Nov, 2018. VICUNHA ECUADOR – which is the import arm of Vicunha Brazil and imports for its own sales is the second largest importer -Â and DISTRIBUIDORA TEXTIL DEL ECUADOR are the next biggest buyers with the total volume of 4.78 lac sqm & 4.28 lac respectively. CONTRERAS MINCHALA bought at the least price of $0.19/sqm and DISTRIBUIDORA TEXTIL bought at the most expensive price of $2.46/sqm.
Buyers
Imports ( Sqm)
Average Price(USD/Sqm)
% Share
VICUNHA ECUADOR S.A.
478,557
1.97
14%
IMPORDENIM IMPORTADORA TEXTIL CIA. LTDA.
1,155,834
1.93
33%
DISTRIBUIDORA TEXTIL DEL ECUADOR DISTRITEX S.A.
428,140
2.46
12%
CONTRERAS MINCHALA SILVANA PATRICIA
320,311
0.19
9%
COLORTEX ECUADOR S.A
420,940
1.55
12%
ALVARADO MONCAYO JAIME BERNARDO
217,262
2.04
6%
OTHERS
498,925
1.84
14%
ALVARADO MONCAYO JAIME BERNARDO
COMPANIA DE FIACAO TECIDOS and FABRICATO are the two suppliers to Alvarado Moncayo Jaime during Sept-Nov’18 and they have supplied 36.236 sqm and 181,026 sqm of denim fabrics at an average price of $1.96/sqm and $4.51/sqm respectively.
Suppliers
Qunatity(Sqm)
Average Price(USD/Sqm)
COMPANIA DE FIACAO E TECIDOS SANTO ANTONIO ( BRAZIL)
36,236
1.96
FABRICATO S.A. ( COLOMBIA)
181,026
4.51
TOTAL
217,262
4.08
COLORTEX ECUADOR S.A
Colortex bought all its fabrics from China and Citytex Intl is the company from which it has bought the highest volume – 2.56 lacs sqm at an average price of $1.56/sqm. Minzhu is the 2nd biggest supplier with a volume of 1.23 lacs sqm at an average price of $1.54/sqm.
Suppliers
Quantity(Sqm)
Average Price(USD/Sqm)
CITYTEX INTL CO LIMITED (CHINA)
256,273
1.56
GLOBAL LYNX CORPORATION LIMITED (CHINA)
40,971
1.49
MINGZHU TRADING (CHINA)
123,696
1.54
CONTRERAS MINCHALA SILVANA PATRICIA
The purchase price of CONTREAS MINCHALA is little surprising and relatively very low from others. Sometimes companies underinvoice to avoid duties and this seems to be the case here. DONGYING SAHE supplied 1.99 lac sqm of denim fabrics at an average price of $0.15/sqm and JOOEUN CORPORATION supplied 1.21 lac sqm of denim fabrics at an average price of $0.25/sqm.
Suppliers
Quantity(Sqm)
Average Price(USD/Sqm)
DONGYING SAHE IMPORT AND EXPORT CO. ,LTD. ( CHINA)
199,275
0.15
JOOEUN CORPORATION (KOREA)
121,036
0.25
DISTRIBUIDORA TEXTIL DEL ECUADOR DISTRITEX S.A.
4.28 lacs sqm of denim fabric has been imported by DISTRIBUIDORA TEXTIL DEL ECUADOR during the period of Sept-Nov 18. FABRICS & TEXTILES LLC is the biggest supplier which exported 2.73 lacs sqm at an average price of $2.67/sqm.TEJIDOS SAN JACINTO S.A is the next biggest of the supplier of denim fabric which supplied 25,794 sqm at an average price of USD 1.08/sqm. SEAGOLD from Pakistan is the highest price supplying partner with an average price of USD 2.84/sqm and TEJIDOS is the supplier with the cheapest price with an average price of USD 1.08/sqm.
Suppliers
Quantity(Sqm)
Average Price(USD/Sqm)
COLTEJER S.A. (COLOMBIA)
24,945
2.16
DHARMSHIL INDUSTRIES PVT LTD(INDIA)
18,136
2.38
FABRICATO S.A.(COLOMBIA)
25,176
1.95
FABRICS & TEXTILES LLC (CHINA)
273,379
2.67
MAFATLAL INDUSTRIES LIMITED(INDIA)
5,016
2.71
MOVERS INTERNATIONAL PVT LTD(INDIA)
19,667
1.97
SANTISTA WORK SOLUTION S.A. (BRAZIL)
21,027
2.61
SEAGOLD (PRIVATE) LIMITED(PAKISTAN)
15,000
2.84
TEJIDOS SAN JACINTO S.A(PERU)
25,794
1.08
IMPORDENIM IMPORTADORA TEXTIL CIA. LTDA.
1.15 million sqm of denim fabric has been imported by IMPORDENIM IMPORTADORA TEXTIL during the period of Sept-Nov 18. CIA. INDUSTRIAL NUEVO MUNDO S.A. is the biggest supplier which exported 5.49 lacs sqm at an average price of $2.07/sqm.FABRICATO S.A is the next biggest of the supplier of denim fabric which supplied 2.41 lacs sqm at an average price of USD 1.98/sqm. CIA. INDUSTRIAL NUEVO is the highest price supplying partner with an average price of USD 2.07/sqm and JEANTEX is the supplier with the cheapest price with an average price of USD 1.44/sqm.
Suppliers
Quantity(Sqm)
Average Price(USD/Sqm)
SANTISTA WORK SOLUTION SA
133,546
2.02
FABRICATO S.A.
241,289
1.98
GINNI INTERNATIONAL LTD
68,572
1.71
CIA. INDUSTRIAL NUEVO MUNDO S.A.
549,127
2.07
JEANTEX S.A.
163,282
1.44
VICUNHA ECUADOR S.A.
Vicunha Ecuador bought most of its fabrics from its subsidiary companies from Brazil and China and the rest from Zhejian Tangma Textile. From Vicunha Textile Brazil, the company has bought 4.16 lac sqm of denim fabrics at an average price of $1.99/sqm and from Vicunha Netherlands, the company has bought 45,785 sqm of denim fabrics at an average price of $1.51/sqm
A pair of jeans is a staple that will never leave your wardrobe even with the changing trend every year. The washes, cuts, fits and styles change every season with new collections from the denim brands all over the world. Coloured denim, patchwork, layered denim etc are some of the trends that are loved every now and then. Not only in the era of athleisure , denim has evolved in every wardrobe style and pattern.The trend has fascinated the celebrity world, too. Hailey Baldwin wore a Versace logo denim jacket and Offset chose Brooke Shields–printed denim from Calvin Klein Jeans in various occasions. As the year comes to a close, we list out some of the looks bearing such trends from small boutique labels to some well known brands. Enjoy the looks as you prepare to enjoy the holidays !
Bangladesh and China are the two South East Asian Countries which have been leading the US denim exports charts for the last few years alongwith Mexico. China was struggling few years back due to surging labor prices however now the country is recovering, but amid tariff war with the USA we’r not sure if it is going to sustain the recovery for long .
In this report, we have :
Analysed the Denim Exports along with average price and growth of Bangladesh & China towards USA for 2013-18 ( June’18)
Segmented the total denim exports into Women & Men Denim and analysed the same for the aforesaid period .
Comprehensive analysis of growth in the exports of both the countries along with the changes in the average price of Mens and Womens Denim .
Table Showing Exports of All Denim Apparels(Million Pcs) along with Growth Rates To USA From 2013 to June 2018 By Bangladesh And China
Graph Showing Exports of All Denim Apparels(Million Pcs) To USA From 2013 To June 2018 by Bangladesh And China
Graph Showing Export Growth Rates Of Bangladesh & China From 2013- 2018
Table Showing Average Price All Denim Apparels Exported To USA From 2013 to June 2018 By Bangladesh & China
Graph Showing Average Price All Denim Apparels Exported To USA From 2013 to June 2018 By Bangladesh & China
Table Showing Mens & Womens Denim Exported To USA By Bangladesh & China From 2013- 2018
Graph Showing Mens & Womens Denim Exported To USA By Bangladesh & China From 2013- 2018
Table Showing Average Price Of Mens & Womens Denim Exported To USA By Bangladesh & China From 2013- 2018
Graph Showing Average Price Of Mens & Womens Denim Exported To USA By Bangladesh & China From 2013- 2018
[private_special]
Exports of All Denim Apparels(Million Pcs) along with Growth Rates To USA From 2013 to June 2018 By Bangladesh And China
Year 2013 , 2014 and Year 2015 have been not very good, neither for Bangladesh nor for China. Both the countries were trailing when it comes to exports to the USA. Bangladesh was down by 6% and 1% in year 2014 & 2015 respectively however China was even worse with 13% and 2% in the same year. Bangladesh bounced back in the year 2016 with an increase of 16% with the export of 77.6 million pcs on the table however China exported 123.58 million pcs in the same year but the growth was adverse which was 7%. Year 2017 was again proved to be positive for Bangladesh with a growth of 9% , though lower than previous year but the country was growing .
China , on other hand , was recovering from its previous debacle and managed to reduce the adverse growth rate from 7% to 3% in 2017 . Year 2018 seems more interesting for both the countries as both are expected to register very encouraging growth rates by the end of this FY. Bangladesh is expected to export approx. 96 million pcs of denim to the USA with a growth rate of 14% however the anticipated growth of China is 13%, which may surprise many trade pandits. If China manages to keep the pace of its first half whole year then it might reach the export volume of 135.86 million pcs , but due to recent tariff war between China and US , we aren’t vouching it to be like this as it seems now.
Years
All Denim Apparel ( Million Pcs)
B A N G L A D E S H
% Growth
All Denim Apparel ( Million Pcs)
C H I N A
% Growth
2013
72.23
–
155.23
–
2014
67.58
-6%
135.37
-13%
2015
67.02
-1%
133.13
-2%
2016
77.6
16%
123.58
-7%
2017
84.47
9%
119.72
-3%
2018 ( Till June)
48.18
67.93
2018 ( Projected)
96.36
14%
135.86
13%
Average Price All Denim Apparels Exported To USA From 2013 to June 2018 By Bangladesh & China
Average Price at which both the countries have been exporting Denim to the USA remained consistent with minor fluctuations. There was a time when China was known for its competitive price , which now has been exporting on a higher price as compared to its rival country – Bangladesh .
The average price of Bangladesh trades between the range of USD6 to 6.5 /PC from 2014 to 2018 however China is exporting at the average price range of USD7.5 to USD 8 /Pc which is USD1.5 more than Bangladesh.
Year
Average Price ( USD/Pc)
B A N G L A D E S H
Average Price ( USD/Pc)
C H I N A
2014
6.4
7.36
2015
6.53
7.52
2016
6.12
7.75
2017
6.06
7.75
2018
6.52
7.96
Mens & Womens Denim Exported To USA By Bangladesh & China From 2013- 2018
We can immediately understand that China is more into exports of Women’s Denim Garment however Bangladesh is more concentrated on Men’s Denim Export . In 2013 , the ratio of Mens: Womens for Bangladesh was 64:34 however year after year , the ratio inclined towards Women Denim Export. In the 1st half of 2018 , the share of Men’s denim in total export reduced to 56% however Womens denim accounts for 44% in the total export.
So far as the average price of both the categories are concerned , Women Denim is cheaper than Men’s on an average basis however, In 2018 , the men’s denim average price was USD 6.55/Pc but Women’s Denim was USD 6.51/Pc which is again little surprising. For China , the womens : mens denim remained closed to consistent with minor fluctuations over the years . On an average the country’s Women : Men denim export remained 75 : 25 however in terms of price , inconsistency has been observed over the years. In 2018 , the average price for Mens Denim Export is USD 8.58/Pc and for Womens Denim Export , it is USD 7.52/Pc.
Years
Women Denim ( Mil Pcs)
B A N G L A D E S H
Mens Denim ( Mil Pcs)
B AN G L A D E S H
Women Denim ( Mil Pcs)
C H I N A
Mens Denim ( Mil Pcs)
C H I N A
2013
26.14
46.09
118.36
36.88
2014
24.05
43.54
104.53
30.84
2015
25.73
41.29
102
31.13
2016
30.48
45.71
89.1
32.87
2017
34.99
48.72
85.46
32.27
2018
42.16
52.64
100.72
30.24
Average Price Of Men’s & Women’s Denim Exported To USA By Bangladesh & China From 2013- 2018
Years
Women Denim ( USD/PC)
B A N G L A D E S H
Mens Denim ( USD/PC)
B AN G L A D E S H
Women Denim (USD/PC)
C H I N A
Mens Denim ( USD/PC)
C H I N A
2013
6.41
6.24
7.97
7.77
2014
6.75
6.2
7.27
7.67
2015
7.25
6.09
7.38
7.97
2016
6.66
5.79
7.67
7.96
2017
6.32
5.89
7.78
7.68
2018
6.51
6.55
7.82
8.58
Bangladesh and China both are crucial denim players not only for the USA , but also for the rest of the world . New South Asian Competitors like Vietnam, Cambodia and Myanmar have been showing encouraging figures towards the exports and also the price seems very competitive . Amid such cut throat competition , innovation and quality are two commodities which could help the both to be little ahead from others. Pakistan , as a veteran denim supplier is moving ahead with the quality and if it manages to offer a competitive price with quantities , both Bangladesh and China can be in trouble.
How is the market of jeans performing in EU in terms of its imports from around the world. Who are the top exporting countries and what % share they hold in the total exports in this period. What are the average prices that these countries are exporting jeans at and what their individual and collective volumes. Is there expected to be more jeans imports this year than last year ? We try to answer all these questions and more in this Special Report .
Also checkout the breakup of men and women jeans exports and which countries lead the pack and are increasing their market share, prices etc.
[private_special]
Top Exporting Countries To EU
The total value of import of all jeans apparel to EU has been around Euro 2.2 billion .The highest exporting country, Bangladesh exported more than 110 million pieces as against 214 million pieces in the whole year of 2017. This shows a growth of exports and Bangladesh might export more than 220 million pieces this year to EU at the current rate of exports with a growth rate of about 3%.  Pakistan and China exported about 50 and 42 Million Pieces respectively whereas India , being the lowest exporter in the top 10 list manages to export less than 3 million pieces to EU with a negative rate of growth. Valuewise, Turkey is the second largest exporter after Bangladesh.
EXPORTING
COUNTRY/REGION
ALL JEANS
(MILLION PCS)
TOTAL VALUE
(MILLION EURO)
AVERAGE PRICE
(EURO/PC)
WORLD
295.64
2,238.32
7.57
BANGLADESH
113.15
631.79
5.58
PAKISTAN
49.24
340.22
6.91
CHINA
42.4
205.54
4.85
TURKEY
38.32
490.08
12.79
CAMBODIA
15.7
96.32
6.13
TUNISIA
9.87
170.79
17.3
MOROCCO
6.05
70.88
11.72
EGYPT
6
63.2
10.53
Â
INDIA
2.73
25.15
9.21
Men’s Jeans Exports To EU
The export of Men’s Jeans from different parts of the world results in total 151.27 Million Pieces into EU in the year 2018. Bangladesh and Pakistan leads the list of 10 top exporters with Bangladesh on top following by Pakistan. Together, they dominate the men jeans market with their share touching over 60% of the total exports. China exported a listless 16 million pcs.  The share of men and women jeans is almost same with men’s jeans being about 51% of total imports and women jeans being about 49%. However , as per unit value, men jeans are more expensive at Euro 7.96/pc as against Euro 7.17 per piece for women.
EXPORTING
COUNTRY/REGION
MEN’S/BOYS JEANS
(MILLION PCS)
TOTAL VALUE
(MILLION EURO)
AVERAGE PRICE
(EURO/PC)
WORLD
151.27
1,203.73
7.96
BANGLADESH
61
352.35
5.78
PAKISTAN
32.25
228.05
7.07
CHINA
16.29
86.57
5.31
TURKEY
15.6
210.23
13.48
TUNISIA
6.31
115.67
18.33
CAMBODIA
4.23
28.49
6.74
MOROCCO
3.86
45.74
11.84
EGYPT
3.12
34.69
11.11
UK
1.95
35.49
18.17
INDIA
1.75
15.99
9.16
Women’s Jeans
Moving forward with the import of Women’s jeans, EU has imported a total value of 1034.59 Million Euros in the year 2018 which enlist a down fall as compared to the Men’s jeans in the same year. Though, Bangladesh still is being on top exported 52.15 Million Pieces of Women’s jeans to EU making the highest export around the world and it is also now closing the gender gap by increasing the exports of women jeans. A fascinating import of the largest value 279.85 Million Euros worth women’s jeans is exported by Turkey as compared to the other list of exporting countries even though its export quantities are less than Bangladesh and Pakistan.
EXPORTING
COUNTRY/REGION
WOMEN’S/GIRLS
JEANS (MILLION PCS)
TOTAL VALUE
(MILLION EUROS)
AVERAGE PRICE
(EURO/PC)
WORLD
144.38
1,034.59
7.17
BANGLADESH
52.15
279.44
5.36
CHINA
26.11
118.97
4.56
TURKEY
22.73
279.85
12.31
PAKISTAN
16.99
112.17
6.6
CAMBODIA
11.48
67.83
5.91
TUNISIA
3.56
55.13
15.48
UK
3
50.98
17.01
EGYPT
2.88
28.51
9.9
MOROCCO
2.19
25.14
11.5
INDIA
0.98
9.16
9.3
Denim Fabric Exports To EU
Observing the Denim Fabrics imports to EU in the year 2018, the total value is marked as 77.12 Million Euros and it is expected to be at similar levels as the last year. Turkey is the largest exporter with about 12 Mill Square meters of denim fabric and about 40% of total exports. The second largest exporter is Pakistan with about 3.5 million sq mtrs of exports and about 10% of market share. The other countries including are low performers in the low volume imports market of denim fabrics in EU.
Gap Inc, one of the most reputed global apparel retailer , has released its financials for the First Quarter of 2018. In this report , we analysed in detail revenues & profits of their brands : Gap Global , Old Navy and Bananna Republic . The company came out with almost flat results with just 1% overall sales growth as compared to 2% growth last year. However, the senior executives at Gap were positive :
“We are pleased to have delivered our sixth consecutive quarter of positive comp growth, despite the expected challenges at Gap brand,†said Art Peck, president and Chief Executive Officer, Gap Inc.
“Our balanced growth strategy provides the right foundation to differentiate our portfolio of brands in this retail environment, with strategic investments in value, active and digital fueled by productivity opportunities unique to our scaled operating platform. Despite the pressures we faced in the first quarter, we are affirming our full-year guidance, reflecting our confidence in the underlying fundamentals of the business as well as the benefits of executing against our balanced growth strategy,†said Teri List-Stoll, executive vice president and Chief Financial Officer, Gap Inc.
Old Navy Global: positive 3% versus positive 8% last year
Gap Global: negative 4% versus negative 4% last year
Banana Republic Global: positive 3% versus negative 4% last year .
1. Sales For First Quarter 2018
The table below shows the sales for the first quarter of 2018 . Old Navy Global tops the sales with USD 1,745 million turover followed by Gap Global where the sales was USD 1,204 million .  Out Of the total revenue of USD 3,783 million , U.S.A continues to show the lions share of 80%, follwed by Canada which was 7% , Europe, Asia and Other Regions saw a share of 4%,8%, and 1% respectively.
Q1 2018
Old Navy Global
(million USD)
Gap Global
(million USD)
Bananna Republic Global
(million USD)
Others
(million USD)
Total
(million USD)
Percentage Of Sales
U.S
1,590
680
479
269
3,018
80%
Canada
127
77
50
1
255
7%
Europe
0
135
4
0
139
4%
Asia
12
284
25
0
321
8%
Other Regions
16
28
6
0
50
1%
Total
1,745
1,204
564
270
3,783
100%
 2. Sales For The First Quarter Of 2018
Old Navy always takes the cake when it comes to share of all brands.
Q1 2017.
Old Navy Global
(million USD)
Gap Global
(million USD)
Bananna Republic Global
(million USD)
Others
(million USD)
Total
(million USD)
Percentage Of Sales
U.S
1,426
688
437
202
2,753
79%
Canada
111
77
45
1
234
7%
Europe
0
133
4
0
137
4%
Asia
9
250
25
0
284
8%
Other Regions
16
30
6
0
52
2%
Total
1,562
1,178
517
203
3,460
100%
Revenue Distribution By Brands In Different Regions For Q1|201
1. USA
2. Canada
3. Europe
4. Asia
% Of Net Sales | 2017 vs 2018Â
When we make a comparative analysis of Net Sales for the first quarter of 2017 and with the same period of 2018 we do not find any change in terms of percentage of sales, except in U.S.A where the increase in sales was just by 1%, and for other regions where the marginal decrease in sales was just 1%. The leading market was U.S.A followed by Asia, Canada and Europe. Conclusion – just managing to keep the same levels !
Particulars
Percentage Of Sales Q1|2018
Percentage Of Sales Q1| 2017
U.S
80%
79%
Canada
7%
7%
Europe
4%
4%
Asia
8%
8%
Other Regions
1%
2%
Total
100%
100%
Comparative Analysis Of Revenue Distribution Of Different Brands For First Quarter Of 2018 And 2017
Gap Inc as a brand gained its shares in revenue from USD 3,783 million in first quarter of 2018, to USD 3,460 million in first quarter of 2017.The significant revenue generator was Old navy Global where the revenue increased from USD 1,562 million in first quarter of 2017 to USD 1745 million in same period of 2018. Similarly, Gap Global saw a marginal loss in revenue from 1,178 milion USD in first quarter of 2017 to 1,204 million usd in first quarter of 2018. Bananna Republic saw a increase in revenue from USD 517 million in first quarter of 2017 to USD 564 million in 2018.
RevoLaze, LLC, a laser technology firm headquartered in Westlake, OH, announced the official launch of the revolutionary LightLaze, an automated online software tool aimed at decreasing laser cycle time and removing harmful chemicals in the denim finishing process. The company has worked deeply into the technical aspects of the laser working to enable improve the performance of the lasers. Here is what they have done .
For the majority of laser files that have multi-layers, LightLaze software converts these files into one single file without compromising design or quality, and has shown up to a 40% improvement in laser cycle time. Trials of LightLaze have been very positive as per the company, with laser designers from over 10 countries using the software and reporting significant laser cycle time savings. For single layer files, LightLaze will enhance the design to bring out more contrast, such as highs and lows. Along with graphic optimization, LightLaze, when combined with modifying the washing process, reduces or eliminates the harmful potassium permanganate spray along with the neutralization process. By adopting this method, the laser alone can achieve the necessary brightness. Revolaze claims it is an eco-friendly and low cost alternative to PP spray and will result in major chemical, time and cost savings .
Since LightLaze is an online tool accessible to any laser designer throughout the world, no additional hardware or laser upgrades are needed to start converting files. The software works on all laser systems currently in the market. It is as simple as importing your standard laser files to www.lightlaze.com, pressing the export button and the new files are downloaded. Sign up will enable one to start converting files immediately upon activation.
According to Darryl Costin Jr., President of RevoLaze, the growth of using laser technology to abrade denim has created a need to maximize throughput, “The industry has learned that in order to create the natural and authentic look of worn jeans, laser designers typically use multi-layer files to replicate the standards. While the right look is achieved with this technique, it negatively impacts the overall production time. RevoLaze understands the importance for denim manufacturers to optimize each denim finishing process. We are confident that LightLaze will help the denim industry increase production and more importantly, lower costs without compromising the desired look.â€
To RevoLaze’s Vice President of Operations, Ryan Ripley, LightLaze is just one of the many ways they can help facilitate growth in laser usage for abrasion, “As the only independent laser research & development facility in the United States devoted to the textile market, our goal for the past two decades is to create and provide solutions for the industry. As consultants, researchers, inventors and trainers, our company wants the laser industry to continue to grow and replace harmful and hazardous denim finishing methods. The benefits of laser technology are plentiful and we want to make sure the industry has the right tools in place to succeed.â€
A RevoLaze customer tested the LightLaze software for both laser cycle time savings and PP replacement. The pictures below were provided by Silvermoon Jeans wash development centre under the direction given by Silver Jeans Company. Mr. Ali Fada, Director of Wet Processing, had this to say,
“From the development trials we run on the LightLaze software (using pixel time 70 vs original 50+50). We are encouraged by the outcome on initial trials and will continue to internally calibrate the execution further to achieve even better results. The time saving between LightLaze 70 vs original 50 + 50 is between 20 & 25%.â€
While any denim brand or manufacturer can access LightLaze, RevoLaze has partnered with industry representatives to help facilitate the global launch in key markets throughout the world. For the rapidly expanding Asian market, GDS Chemical, an environmentally focused leader in the laundry and textile market, will provide support throughout Bangladesh. Shaheen Ul Alam, Director, is excited for the partnership, “GDS is renowned for its quality and service in Bangladesh textile sector for more than two decades. We are really glad to be able to join hands with RevoLaze to introduce this latest LightLaze technology to our customers in Bangladesh as they will be highly benefited with this sustainable technology.â€
For Pakistan, India and surrounding countries, the RevoLaze representative will be Affan Ur Rahim, who has over 8 years of denim finishing experience in laser development, laser design, denim washing and laser maintenance / repair. He has worked at some of the largest Pakistan denim companies, including Ali Murtuza Associates, Rajby International, Artistic Denim Mills and Akhtar Textile. For the time being, RevoLaze’s technical support team will assist customers in all other markets. Please stay turned for future announcements regarding RevoLaze partners in other parts of the world. For more information on testing LightLaze, please contact Ryan Ripley at ryan@revolaze.com or visit http://www.lightlaze.com.
About RevoLaze LLC
RevoLaze is a US based technology firm dedicated to create and implement patented laser processes. For over 20 years, they have provided economic and environmental solutions to the textile industry through innovation. RevoLaze technologies help mills, manufacturers and denim brands lower overall cost, while increasing volume and design capabilities. These processes also reduce or eliminate various health hazards, such as hand sanding and PP spray. With over 30 international patents granted, some of the biggest denim brands and manufacturers in the world license RevoLaze technology. Several of the leading denim brands and manufacturers work with RevoLaze to maximize their use of lasers from development through production. Visit their US based design center where companies can see the future of laser technology – the only 2,500 watt laser that etches designs in seconds with ultra fine detail.
Donwan Harrell, the designer and founder of PRPS, continues the evolution of his women’s line (launched Spring 2017) with a collection that stays true to the core DNA of the brand but builds upon the unique techniques and innovations used by Harrell. The brand continues its vintage Americana for its second Spring collection, which proved popular among consumers. The Spring 2018 introduces six new silhouettes and a variety of distinctive embellishments applied on various denim pieces. The collection’s standout silhouette is the culotte shape, an ankle-length trouser, cut with very full legs to resemble a skirt.
PRPS introduces unique ways of pricking, ripping and repairing denim, noticeably found in their men’s collection and now introduced to the female consumer. A tri-color pant consists of three different denim fabrics, all in various shades of indigo and washed independently, sewn together to create a fashion-forward conversational piece.
Unexpected fabrics make an appearance in the collection, specifically a denim pant which incorporates tapestry fabric as an insert underneath the distressing. A standout outerwear piece includes a two-toned denim jacket with a “cold shoulder†effect. Inspired by the rise of women utilizing oversized men’s denim jackets aka ‘Boyfriend Jackets’ trend – so to say. While integrating two denim jackets, that are both washed independently, but then sewn together with a off the shoulder look. Metal eyelet embellishments decorate key stand out styles and include a mini skirt with an enzyme stone wash and intriguing uneven hem. There is also an oversized denim vest option, containing metal eyelets strategically applied throughout with a interlocking chain links. A two-piece mesh overtop tee contains a cinched extended hem.
The traditional Amex and Camaro fits were given noticeably detailed embellishments for Spring. The spring Amex pant includes a woven-esque pattern, achieved through a special laser cutting technique in which the denim fabric is precisely spot lasered. The Camaro fit particularly incorporates the lace up trend, Harrell applies the lace up motif along the ankles of the pant.
The women’s collection will be available starting in February at Nordstrom, Shopbop and Ron Herman among other notable retailers as well as online. Skirts range from $178 to $198, jeans from $198 to $268, jump suits from $278 to $298, and sweaters and jackets from $148 to $318. Harrell continues to push the innovation of denim construction and washing with a collection full of fashion pieces for the Spring 2018 season.
About PRPS
PRPS is a global lifestyle brand founded in 2002 by Donwan Harrell. Prps stands for “purpose†because everything you do in life should have one. Throughout both the Prps and Prps Noir. collections, the design philosophy remains true: the highest quality of fabrications, design integrity and attention for detail. With points of distribution in over 300 doors in 10 countries, some of the world’s leading retailers that sell Prps include: Neiman Marcus, and Saks Fifth Avenue. Fans include Ellen Degeneres, Gwen Stefani, Chris Pratt, Neil Patrick Harris, Gerard Butler, Leonardo DiCaprio, Johnny Depp, LL Cool J, Vin Diesel and more. Prps is based in New York City but can be found worldwide at www.prpsgoods.com.
China has been the largest exporter of jeans to EU and US for a very long period. Though it still retains its premier position as exporter of denim apparel, it seems to have lost this position to Bangladesh in last couple of years. For US countries like Mexico are giving it a tougher fight as China gets less competitive. However, the giant that China is, it still is fighting to retain its position and some results are showing.
It would also be interesting to see how China fares in these two markets in both men’s and women’s segment. Which of this segment is going strong for China and which one it is losing out on. Lets check out in the report below :
  Table Of Contents
S N.
                                                                                                                                                             Particulars
1.
Table showing the imports of all denim’s apparels into USA from China for the period from 2016 to Sept 2017
2.
Graph showing the imports of all denim’s apparels into USA from China for the period from 2016 to Sept 2017
3.
Graph showing the average price(usd/pc) of all denim’s apparels into USA from China for the period from 2016 to Sept 2017
4.
Table showing the imports of men’s jeans into USA from China for the period from 2016 to Sept 2017
5.
Graph showing the imports of men’s jeans into USA from China for the period from 2016 to Sept 2017
6.
Graph showing the average price(usd/pc) of men’s jeans into USA from China for the period from 2016 to Sept 2017
7.
Table showing the imports of women’s jeans into USA from China for the period from 2016 to Sept 2017
8.
Graph showing the imports of women’s jeans into USA from China for the period from 2016 to Sept 2017
9.
Graph showing the average price(usd/pc) of women’s jeans into USA from China for the period from 2016 to Sept 2017
10.
Table showing the imports of Jeans apparels into EU from China for the period from 2016 to Sept 2017
11.
Graph showing the imports of Jeans apparels into EU from China for the period from 2016 to Sept 2017
12.
Graph showing the average price(euro/pc) of jeans into EU from China for the period from 2016 to Sept 2017
13.
Table showing the imports of men’s jeans into EU from China for the period from 2016 to Sept 2017
14.
Graph showing the imports of men’s jeans into EU from China for the period from 2016 to Sept 2017
15.
Graph showing the average price(euro/pc) of men’s jeans into EU from China for the period from 2016 to Sept 2017
16.
Table showing the imports of women’s jeans into EU from China for the period from 2016 to Sept 2017
17.
Graph showing the imports of women’s jeans into EU from China for the period from 2016 to Sept 2017
18.
Graph showing the average price of women’s jeans into EU from China for the period from 2016 to Sept 2017
[private_special]
1. USA
a. All Jeans & Denim Apparel
The imports of denim’s apparel into USA from China for the period 2015 was 133.13 million pcs with an average price of USD 7.5/Pc which saw a decrease of about 7% to 123.58 million pcs at an average price(usd/pc) of 7.8 at the end of the year 2016. The imports of denim apparel into USA from China for the first nine months of 2017 was 87.55 million pcs and if the same trend is followed the imports is likely to be 116 million pcs at the end of the year 2017 which is again likely to be less than the last year imports of 2016. So we see a clear fall in exports of denim apparel from China to US. Over a period of 3 years from 2015-2017, the decrease is more than 12%.
Year of Import
All Denim Apparel
(Million Pcs)
Total Value
(Million USD)
Average Price
(USD/PC)
2016
123.58
958.01
7.8
Sept|2017
87.55
(Expected 116 million)
670.20
7.7
b. Men’s Jeans
The imports of men’s jeans into USA from China for the period 2015 was 31.13 million pcs at an average price of USD 8.0/Pc which saw an increase of about 6% to 32.87 million pcs at the same average price for 2016. The imports of men’s jeans for the first nine months of 2017 was 23.39 million pcs and the imports are likely to be 31 million pcs at the end of the year 2017. So in case of men’s jeans, we find that the exports are almost stable and hovering around 32 million pcs in the last 3 years. This shows that this segment is still strong for the Chinese exports. Though we can see that the average prices seems to have fallen by about 8% in 2017.
Year of Import
Men’s/Boys Jeans
(Million Pcs)
Total Value
(Million USD)
Average Price
(USD/PC)
2016
32.87
261.50
8.0
Sept|2017
23.39
(expected 31 million)
173.04
7.4
c. Women Jeans
The imports of women’s jeans into USA from China for the period 2015 was 102 million pcs which saw a decrease of 13% and the figure of imports came down to 89 million pcs in the year 2016 – a fall of about 12% in a year.. The imports of women’s jeans into USA from China for the first nine months of 2017 was 62 million pcs and if the trend in imports continues the imports is likely to be 82 million pcs at the end of the year 2017. If this figure is achieved , then we will see another fall of about 9% in 2017 imports. Thus it is clear that while the men’s jeans imports into US from China are still strong, women’s jeans market share is being lost. Still the % share of women jeans in exports to US from China was over 70% while men’s jeans were about 30%.
Year of Import
Women’s/Girls Jeans
(Million Pcs)
Total Value
(Million USD)
Average Price
(USD/PC)
2016
89.10
683.73
7.7
Sept|2017
62.60
(expected 82 million)
484.64
7.7
2. EU
a. All Jeans
The imports of denim’s apparel into EU from China for the period 2015 was 93.30 million pcs in 2015 with an average price of Euro 7.3/Pc which saw a decrease of about 15% to 79.53 million pcs at an average price of Euro 6.8/Pc in 2016. Further the imports for the first nine months of 2017 were 62.07 million pcs and if the same trends continues the import are likely to be 82 million pcs at the end of the year 2017. So here we see a typical position. While the US market clearly shows a clear trend of falling imports from China, we see that China may actually export more jeans in 2017 to EU than it did in 2016. Thus if the projected figures are achieved, we will see about 82 million pcs of jeans being exported from China in 2017 against about 79 million pcs in 2016. However, there has been a price loss of about 7% in 2017. This is perhaps because of increasing competition from countries like Bangladesh who are much more competitive.
Year of Import
All Denim Apparel
(Million Pcs)
Total Value
(Million Euro)
Average Price
(Euro/Pc)
2016
79.53
540.83
6.8
Sept|2017
62.07
(expected 82 million)
392.05
6.3
b. Men’s Jeans
The imports of men’ jeans for the year 2015 was 36.18 million pcs at an average price of Euro 7.8/Pc in 2015, which saw a decrease of about 16% to 30.64 million pcs at an average price of Euro 7.0/Pc, further the imports of men’s jeans for the first nine months of 2017 was 21.19 million pcs and if the same trend is followed the imports is likely to be 28 million pcs at the end of the year 2017. So from 2015 to 2017 , we see a fall of about 20% from 36 million to 28 million (expected) pieces of jeans imported.
Year of Import
Men’s/Boys Jeans
(Million Pcs)
Total Value
(Million Euro)
Average Price
(Euro/Pc)
2016
30.64
212.88
7.0
Sept|2017
21.19
(expected 28 million )
149.37
7.1
c. Women’s Jeans
The imports of women’s jeans into EU from China for the period 2015 was 57.12 million pcs at an average price of Euro 6.7/ Pc which saw a decrease of about 15% to 48.90 million pcs at an average price of Euro 6.7/Pc . The imports of women’s jeans into EU from China for the first nine months of 2017 was 40.89 million pcs which is likely to be 54 million pcs at the end of the year 2017. Thus we see another wonder – the exports of jeans from China for women’s jeans to EU may also be increasing. In 2016 the total exports were about 49 million pieces and this year the figure might touch 54 million pcs. This would be an increase of over 10% if the figures come as expected. This shows the resilience of China – inspite of increasing costs, they are managing the exports and even increasing them in some way or other.
Year of Import
Women’s/Girls Jeans
(Million Pcs)
Total Value
(Million Euro)
Average Price
(Euro/Pc)
2016
48.90
327.96
6.7
Sept|2017
40.89
(expected 54 million)
242.67
5.9
Thus on the whole, we can see that while China seems to have been losing share in EU market, it might recover some of it when we see the 2017 end figures. US market is also going down for them but men’s jeans are still holding out while women jeans exports are going down . On the whole, the dragon is fighting hard to retain its share.
