Cambodian Denim Industry has been growing and the export figure of approx.[private_special] 48 million Pcs of Denim Apparels to EU and USA in the year 2016 is somehow taking this country on the right path of growth . Retail brands sourcing from Cambodia include H&M, Inditex, N Brown Group, Tchibo, Next, New Look, Gap, Banana Republic, Nike, Levi, C&A, Walmart, Puma, Old Navy, Adidas, Calvin Klein, Clarks, Marks and Spencer, Tesco, and more which sounds very encouraging for the small country like Cambodia . High levels of foreign investment in the garment industry; around 90% of private investment in the Cambodian garment and textiles industry is foreign and in the coming years more investment will be coming which will help this country to expand its ambit of production. Cambodia has concluded Bilateral Investment Treaties with 21 countries and 11 are in force and also has concluded 15 other investment agreements, including ASEAN –EU, ASEAN-China agreements.  In the recent times , the country has made revolutionary changes in the Labor laws facilitating the labors the minimum wage as per International Regulations. This enables the labor with a new sense of motivation and encouragement which will surely going to improve the efficiency of the workforce .

USA

In the year 2014, the import was  15.29 million pcs and  in the year 2015 , it imported  15 million pcs. There is a marginal decline  of million 0.29  pcs in the import from the year 2014 to 2015. Further when we compare  the import from 2015 with 2016, in the year 2015 the import was  15 million pcs  and in the year 2016 the import came down to  9.77 million pcs ,we find the considerable decline in imports by  5.23 million pcs.

In the case of Average price from year to year, in the year 2014, the average price was USD 8.5/pc, and  in the year 2015 the average price declined to USD 7.8/pc  and in the year 2016 the average price further declined to USD 7.7/pc , which shows a  positive response in average price from year to year irrespective of substantial fall in the imports in 2016 .

1. Table  Showing the Import of All Denim Apparel (million pcs )into USA from Cambodia |2014 – 2016

Men’s Jeans

In the year 2014 the import was million 5.34  pcs  and in the year 2015 the import was million 4.48 pcs. There is a marginal decline of million  0.86  pcs from the year 2014 to 2015. Further when we compare the import  from 2015 with 2016 , in the year 2015 the import was million 4.48  pcs and in the year 2016 the import was million 2.47 pcs , which shows a considerable decline of million 2.01 pcs .

The analysis for average price shows , that in the year 2014 the average price was USD 9.2/pc and in the year 2015 the price reached to the level of  USD 8.5/pc ,  which shows the positive response in the average price .Further the average price moved forward and reached to USD 8.9/ pc in  the year 2016. This is considerably higher than the average prices from Bangladesh or China showing that Cambodia is doing a great job in terms of price realizations.

  2. Table Showing the Import of Mens Jeans (million pcs )into USA from Cambodia |2014 – 2016

Women’s Jeans

In the year 2014 the import was million 9.95  pcs and in the year 2015 the import was million 10.52  pcs . There is a marginal increase in import by million  0.57 pcs from the year 2014 to 2015. Further when we compare the import  for 2015 with 2016 , in the year 2015 the import was million 10.52 pcs and in the year 2016 the import was million 7.25  pcs , which shows a considerable decline of  million 3.25 pcs .

The analysis for average price shows , that in the year 2014 the average price was USD 8.1/pc and in the year 2015 there was a decline to USD 7.5/pc ,which shows the positive response in the average price  for the year 2014 and 2015. Further the average price declined  marginally to USD 7.4/pc in  the year 2016 with respect to the average price of 2015 which is USD 7.5/pc .

3.Table Showing the Import of Women’s Jeans (million pcs )into USA from Cambodia |2014 – 2016

Exports To EU

In the year 2014 the import was million 19.49  pcs and  in the year 2015 the import reached to million 25.47 pcs. There is a considerable increase  of million 5.98  pcs in the import from the year 2014 to 2015. Further when we compare  the import from 2015 with 2016, in the year 2015 the import was million 25.47  pcs  and in the year 2016 the import was million 38.38  pcs ,we find the considerable  increase  in imports by million 12.91 pcs ie about 30% ! . The country seems to be leaning towards the EU market .

In the case of Average price from year to year, in the year 2014 the average price was USD 6.2/pc, and  in the year 2015 the average price increased to USD 6.9/pc and in the year 2016 the average price  declined to USD 6.1/ pc . This price is considerably lower than the average price that comes for US markets.

1. Table  Showing the Import of All Denim Apparel (million pcs )into  EU from Cambodia |2014 – 2016

Men’s Jeans

In the year 2014 the import was million 10.54 pcs  and in the year 2015 the import was million 10.93 pcs. There is a marginal increase of million  0.39  pcs from the year 2014 to 2015. Further when we compare the import  from 2015 with 2016 , in the year 2015 the import was million 10.93 pcs and in the year 2016 the import was million 11.35 pcs , which shows a marginal increase of million 0.42 pcs .

The analysis for average price shows , that in the year 2014 the average price was USD 6.5 pc and in the year 2015 there was a decline to USD 7.5 pc .Further the average price decreased to USD 6.7 pc in  the year 2016 .

2. Table Showing the Import of Men’s Jeans (million pcs )into EU from Cambodia |2014 – 2016

Women’s Jeans

In the year 2014 the import was million 8.95  pcs and in the year 2015 the import was million 14.54 pcs . There is a considerable  increase in import by million  5.59 pcs from the year 2014 to 2015. Further when we compare the import  for 2015 with 2016 , in the year 2015 the import was million 14.54 pcs and in the year 2016 the import was million 27.03 pcs , which shows a considerable increase of  million 12.49 pcs ie about 40% !

The analysis for average price shows , that in the year 2014 the average price was USD 5.8/pc and in the year 2015 there was a increase to USD 6.5/pc . Further the average price declined  marginally to USD 5.9/pc in  the year 2016 with respect to the average price of 2015 which was USD 6 .5 /pc . As mentioned before, this prices is considerably lower than the average price achieved in exports to US.

On a complete analysis , we find that Cambodia is veering towards the EU market rather than its traditional market US. But the country is not getting a good price from this market and seems to be competing with markets like Bangladesh in terms of prices which are almost similar to them. With raised labor cost, Cambodia is not as competitive as Bangladesh in terms of prices and it will have a tough time fighting at the lower end.

3.Table Showing the Import of Women’s Jeans (million pcs )into EU from Cambodia |2014 – 2016

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