Tag: denim imports

  • Production of Jeans in East EU Countries

    east eu copy Many of East European  countries, and erstwhile members of former Soviet Republic, had been integrated into EU in the last decade and have been climbing up the development ladder. Many of these countries had low costs of production due to reasonable wage structures . But over the years , as they integrated into EU , their economies no longer remained as competitive as before . Apparel production, which was there is some of these countries in some numbers could not be carried forward in the same way and they lost the productions to Asian countries. However, in spite of these losses , some of these countries still have some apparel productions and we will check out about jeans production in a few of these countries in 2011 and 2012.
    We shall cover these countries in this report (also given their years of integration into EU).

    Country Year Of Integration in EU
    Lithuania 2004
    Hungary 2004
    Romania 2007
    Bulgaria 2007
    Poland 2004

    We will look at the production of jeans in these countries in the year 2012. These numbers will be given for men’s and women’s jeans separately. Also we will have a look at the production values for men’s and women’s jeans and see how they compare with the average value of import of jeans into EU.

    [private_special]

    Jeans production in five east EU countries in 2012

    Country

    Men’s Jeans

    Women’s Jeans

    Total

    Lituania

    7,762

    45,657

    53,419

    Hungary

    4,735

    46,524

    51,259

    Romania

    2,427,471

    3,720,639

    6,14,8110

    Bulgaria

    9,06,766

    1,27,699

    1,034,465

    Poland

    44,932

    3,79,459

    4,24,391

    Total

    3,391,666

    4,319,978

    7,711,644

    From the above table , we can see that the highest production of jeans remains in Romania . It is almost 80% of the total jeans produced in these above mentioned five countries. However, Romania produced about 14 million jeans in 2007 , hence we have come down to less than half in just 5 years.    Other countries like Lithuania , Hungary, Poland etc have hardly any jeans production left. Bulgaria , at about 1 million jeans, is the next highest , but again not something that they can be really proud of .  However, it would be important to mention here that in these countries sometimes entire production quantities may not be fully reflected due to some productions escaping govt. records – as the records maintained in these countries are not as perfect as those of developed countries like Germany, France  etc. Hence these figures need to be taken with a pinch of salt.
    Also to be noted is that the production of women’s jeans is higher than that of men’s jeans. Women’s jeans are about 60% of the total jeans production in these countries – again indicating production for fast fashion items for women. We will see another reason too.

    We will also see how these countries value the production of these jeans in their countries. We will see the different valuations for men’s and women’s jeans.

    Production value of Men’s Jeans Produced

    Country

    Men’s Jeans
    (No. of pcs)

    Prod. Value per unit of Jeans ( In Euros)

    Lituania

    7,762

    10.9

    Hungary

    4,735

    16.9

    Romania

    2,427,471

    14.6

    Bulgaria

    9,06,766

    14.3

    Poland

    44,932

    9.3

    Total

    3,391,666

    14.4

    Production value of  Women’s Jeans Produced

    Country

    Women’s Jeans
    (No. of pcs)

    Prod. Value per unit of Jeans ( In Euros)

    Lituania

    45,657

    N.A

    Hungary

    46,524

    12.8

    Romania

    3,720,639

    10.3

    Bulgaria

    1,27,699

    7.9

    Poland

    3,79,459

    6.3

    Total

    4,319.978

    9.9

    As we can see from the figures above, it is more costly to produce a men’s jeans in these countries with average production values coming to about  Euro 14.4 and those for women’s jeans nearing about 10 Euros.  This is also probably a reason for higher production of women’s jeans in these countries when compared to men’s. We must , however, remember that these are production valuations and not necessarily the prices at which the retailer might be able to get the jeans to retail.

    In this context, it would be interesting to see what are the average prices of jeans being imported into EU from around the world. Are those prices significantly different from figures seen above  ? We can have a look at the following figures of import of jeans into EU with their average prices( sans duties) .

    image 

    If we make a comparison with the of jeans production in these countries in 2011 vs 2012 , we will find that the falling trend of production continues.

    image

    [/private_special]

  • Sri Lanka: Listing 6 Buyers Of Denim Fabrics

    Here is a list of some buyers of denim fabrics from Sri Lanka who are buying denim from various places around the world.
    These are some large exporters of garments from Sri Lanka who source fabrics from multiple sources. We are providing in this report :

    a)Contact addresses of these 6 denim fabric buyers.
    b)Who are the some of the buyers they supply denim garments to. Some details on these buyers – wherever warranted.
    c)Which denim mills they have been buying their denim fabrics from , recently and their addresses .
    This report is available to our paid subscribers. See other titles in the Subscriber Reports section

    [private_special]

    1. Orit Apparels

    image_thumb7_thumb

    Orit Apparel : Is one of the important companies using denim fabrics for apparel manufacturing and export. It is an important vendor for companies like Levi’s and manufactures various kinds of denim apparel particularly denim jeans for men .
    It also supplies to Hybrid Promotions LLC – a diversified apparel company servicing all tiers and trade channels of distribution.
    image_thumb15_thumb

    Sourcing of Denim Fabrics by Orit

    Orit is getting fabrics from a number of mills around the world. In the end of 2011, it has been sourcing fabrics from a few companies . We are mentioning some here. – mainly from China.

    1.ZIBO LANYAN GROUP CO LTD #161, DONGMENLU ZHOUCUN ,, ZIBO SHANDONG CHINA : A denim company from China.
    2. XINGTAI H & J TEXTILES CO LTD YINGHUA STREET,, DEVELOPMENT ZONE,XINGTAI CITY,, HEBEI,CHINA. : A denim company from China.
    3.BLACK PEONY (HK) LTD, ROOM 1605-1606 ENTERPRISE ESQUARE,, TWO 3 SHEUNG YUET ROAD,, KOWLOON HONG KONG.
    4. US Denim Mills ,3 KM DEFENCE RAIWIND ROAD,, LAHORE 53700,, PAKISTAN

    2.Brandix Apparel

    image_thumb23_thumb

    Brandix is another very large apparel group from Sri Lanka with over 25000 workers. It is a very large exporter to USA and works with a number of important brands. For Denim it has been dealing with , among others , retailers like Gap , Land’s End etc.
    In the end of 2011 it has been buying denim from Arvind Mills from India mainly and some quantities from other places.

    3.G.C.LANKA CLOTHING PVT LTD.
    #.06, ARAMAYA ROAD,, DEMATAGODA,, COLOMBO 9. Tel 94-11-2677256/ Fax-94-11- 2677151

    This company has been recently buying fabrics from Nien Hsing textiles from Taiwan

    image_thumb32_thumb

    4. Hirdaramani Group

    image_thumb41_thumb

    Hirdaramani group is one of another famous apparel groups from Sri Lanka. The group is manufacturing a number of different apparel and denim garments are just one of them. Though denim is not , comparatively, very large for them , but still they do decent quantities in denim.
    They are supplying denim garments to Philip Van Huesen (US) , Hybrid Promotions and Orvis Co. – among others.
    Orvis Co. is a mail order company and supplies men`s and women`s clothing, furniture, gifts, and fishing gear and equipment in the United States.
    Hirdaramani buys denim from a number of companies around the world – specially from India. Recently , they have been buying from :

    a) BLACK PEONY (HK) LTD, ROOM 1605-1606 ENTERPRISE ESQUARE,, TWO 3 SHEUNG YUET ROAD,, KOWLOON HONG KONG,
    b)WEIFANG LANTIAN TEXTILE CO.LTD. JIA 31 FUSHOU EAST ST,, SHANGDONG,, CHINA
    c)LNJ Denim , India : Bhilwara Tower, A –12 , Sector 1 , Noida, Ph : 91-120- 43900000
    d)Raymond UCO : RAYMOND UCO DENIM (P) LTD, NEW HIND HOUSE,, N.M.MARG BALLARD ESTATE FORT,, MUMBAI, India :
    e)INDIGO TEXTILE (PVT) LTD,, NACLASS 306 DEH JOREJI,, BIN QASIM TOWN KARACHI,, PAKISTAN

    5)Miami Export (P) Ltd

    #52,, SIR MARCUS FERNANDO MW,, COLOMBO 07 Tel –94-11- 796900/+94117796900 Fax- +94117796816

    This exporting company has been denim fabrics recently from :
    a)KG DENIM LIMITED 2 STAR EXPORT HOUSE,, JADAYAMPALAYAM,, METTUPALAYAM,INDIA

    b)KASSIM TEXTILES (P) LTD PLOT 62, 65 KM,, MAIN NAT"L HIGH,LANDHI,, KARACHI, PAKISTAN

    6)Orient Garment Ltd.

    image_thumb50_thumb

    Orient Garments has a garment manufacturing capacity of about 10,000 garments per day and is a supplier to different divisions of Polo Ralph Lauren in US , among other buyers.

    It has been buying denim fabrics recently from :
    a)SOORTY ENTERPRISES PVT LTD. H.O. 2-A, S.M.C.H.S. OFF, SHAJUSH E, FAISAL, KARACHI 74000, PAKISTAN
    b)KG FABRICS LTD SOWRIPALAYM COIMBATORE,, INDIA
    c)KASSIM TEXTILES (P) LTD PLOT 62, 65 KM,, MAIN NAT"L HIGH,LANDHI,, KARACHI, PAKISTAN

    [/private_special]

  • Report on Import of Denim Fabrics into US – 2006 to 2008

    In this report, we will have a look at the  imports of denim fabrics into US for the last  four  years ie from the year 2005 to 2008 . As you will note from the report, the imports had peaked in the year 2005 when the premium denim trend had caught on very strongly resulting in a increase in jeans manufacturing activity in the US. The following two years –2006 and 2007 show a fall in imports which indicates that the US denim mills caught up a little with the Italian and Japanese denim mills in terms of quality which could be used by the Premium denim brands – though the imports could not be substituted to a large extent.

    The year 2008 has again shown a drop of over 10% over 2007 and the net imports stand at 41 million mtrs. Perhaps a sign of times to come in this era of recession..

    Year Imports in million sq. meters
    2008 41
    2007 46
    2006 45
    2005 58
     
  • Denim Jeans in the U.S wardrobe – a report

    Report on denim consumption in US
    Report on denim consumption in US 2008

    A report by CottonInc brings out the latest facts and trends in the jeans consumption in the US. It corroborates our previous report that the consumption and imports of Jeans in the US in 2008 was about 5% more than that in 2007.

    Here are some interesting facts from the report:

    a) US consumers:Own about 15 denim garments each on an average.
    Out of these are 7 pairs of jeans.
    Of all apparel purchased , denim formed 17% ( remember ,denim is the highest selling
    clothing item in the world.
    Are buying more of denim especially now since denim is more value for money.

    b)Brand loyalty: Brand loyalty is quite high across genders,income levels and age groups.
    73% of the consumers preferred to buy the same brand of jeans they owned.
    64% of men and 45% of women preferred the same brand of jeans for 6 years.
    What is interesting to note is that brand loyalty has been generated due to product
    features rather than brand name. 66% consumers listed fit as the most important factor
    for buying a jeans rather than its name (1%)

    c)Price  sensitivity:Price senstivity is going to increase in the year 2009. Though only  9% respondents
    mentioned price as the reason to buy a brand, over 26% mention price will be the most
    imp factor in the next purchase. With the economy slowing down, we should not be
    surprised  if this figure increases further.
    Average price that a consumers were willing to pay for a good fitting jeans fell down from
    $36.10 in January 2008 to $ 32.13 in October 2008.

    d) Denim Imports:Mexico , China and Bangladesh remained the top three exporters of jeans to US in
    2008.They exported (till September 2009) the following million units of jeans :
    Mexico – 92.8 million units
    China – 55.6 million units
    Bangladesh – 39.1 million units
    Egypt – 23.4 million units
    Hongkong – 23.2 million units
    Out of these, Bangaldesh had the lowest average price of jeans exported – $5.07 against
    a world average export price  of $ 7.45

    Going by these figures and previous reports coming in regarding denim consumption in the US, we get the indications that the consumption of denim/jeans would perhaps not experience the serious fall in consumption as expected in other clothing (esp fashion products) items. The reason is clear – consumers want to invest in jeans as – it lasts longer, can be worn at wide variety of occasions, offers wide price ranges and remains its fashion appeal. Will we  see the  market share of some clothing items cannabalised by
    Jeans ?.

    Another lesson , oft repeated, for jeans producers is that FIT IS THE MOST IMPORTANT factor consumers . Identify your target consumers and give them the best fits possible.Though quality of denim, wash, brand name all are important, they are secondary to THE FIT ..

    Download the full report on denim jeans consumption in US here – right click and ‘Save link as’

  • Effect of rupee appreciation on exports of Mens,Boys jeans to USA in 2007

    The appreciation of the Rupee against the USD has taken its toll on the exports of all textile and apparel products from India. There has been a general fall in exports of apparel items across the board..
    Lets have a look at how the rupee appreciation has affected the exports of Mens and Boys jeans from India to USA.. I have also taken comparative figures from Bangladesh to see how it fares vis-a-vis India..

    Exports of Mens/Boys jeans from India and Bangladesh to USA in 2006 and 2007

    2006(doz pcs) 2007(doz pcs) Change(%)
    India
    Ist quarter 24000 22000 -8
    2nd quarter 24000 33000 37
    3rd quarter 55000 63000 14
    4th quarter 33000
    Bangladesh
    1st quarter 205000 312000 52
    2nd quarter 390000 454000 16
    3rd quarter 599000 739000 23
    4th quarter 570000

    Source :US customs

    From the figures given above , we can see that the exports of jeans from India registered a fall of 8% in the first quarter of 2007 compared to the first quarter of 2006. However, the second and the third quarter have seen a steady increase in exports of jeans to US inspite of the appreciation of rupee.
    On the other hand, the exports from Bangladesh continue to register a robust increase in all the three quarters of 2007..Bangladesh,in any case, has a huge lead over India in exports of Jeans and it seems to be increasing the gap further.
    What is interesting is that the exports from India have not registered a fall despite the huge appreciation of rupee. This signifies that the additional capacities of jeans manufacturing have been created in India and the increase in exports would have been very significant, had the rupee not appreciated so much.
    However, the next 2 quarters would show whether the Indian companies can sustain the growth in exports despite rupee appreciation or not – though i believe that the exports may grow stably given the excess capacities available in the industry..

  • Exports of Denim fabrics from Japan to USA (Years 2000-2007)

    It may be interesting to see how much Japan exports to the US and the EU. I did an analysis and here are the results.The results are not very surprising because exports to both the markets show some similar trends.
    The year 2004 & 2005 have been the best for exports to both EU and US. Though for exports to US , 2006 has also been the best
    The prices have been more or less stable over a period of time . In EU also the prices /kg have been more or less stable and so is the case in US. However, US shows an increase in average prices in 2007
    The decline in exports of denim fabrics is visible in 2006 in EU and in 2007 in USA
    If we extrapolate the figures of 5 months of 2007 for USA, then approximately 5.5 million square mtrs will be exported to US in 2007 against 6.2 million sq mtrs in 2006.
    Lets have a look :

    Year Quantity(Sq.Mtrs) Value(1000 Yen) Value(million USD) Price(USD/Sq.Mtr)
    2000 765045 379121 3.13 4.09
    2001 600841 323281 2.67 4.44
    2002 2047052 1013449 8.37 4.09
    2003 3534981 1768710 14.61 4.13
    2004 7987713 3943224 32.58 4.07
    2005 6132694 3137537 25.93 4.22
    2006 6219223 3441724 28.44 4.57
    2007(Jan-May) 2230106 1272908 10.51 4.71

    Source: The Customs Deptt of Japan

    Note: The exchange rate of USD to Yen has been taken as the current rate of
    121 Yen/USD

  • Denim imports into US and exports to US from EU

    Everyone knows that the US denim industry has been sliding continuously due to rising costs due to which the US denim is becoming uncompetitive.
    But while this is true for the competition coming from the Asian countries, where does US stand against the EU ? EU fabric is not cheap and the American fabric should be able to compete with them. But it does not ….
    US Denim fabric loses out to the denim from EU on fashion. The US denim mills are not fashion oriented and are not able to compete with the EU on this count. Specially fabrics from countries like Italy has been making its mark in the US with niche high street brands going for either Japanese Denim or the Italian denim fabrics. The figures below will tell the story:

    Imports of Denim from USA in EU25
    Year Kgs Amount(Euro) Linear Mtrs Av.Price(Euro/kg) Av.Price(Euro/Mtr)
    2000 12155100 69153986 17364429 5.69 3.98
    2001 12826500 72871055 18323571 5.68 3.98
    2002 11576500 66774079 16537857 5.77 4.04
    2003 6162600 31563427 9480923 5.12 3.33
    2004 729000 3263745 1121538 4.48 2.91
    2005 181900 754907 279846 4.15 2.7
    63108165
    Total Imp. from USA = Approx 63 million mtrs
    Exports to USA = from EU25
    Year Kgs Amount(Euro) Linear Mtrs Av.Price(Euro/kg) Av.Price(Euro/Mtr)
    2000 3315900 17394492 4737000 5.25 3.67
    2001 1893600 17664059 2705143 9.33 6.53
    2002 2471500 24918142 3530714 10.08 7.06
    2003 2949000 25715051 4536923 8.72 5.67
    2004 5332000 45405347 8203077 8.52 5.54
    2005 5169400 45306088 7952923 8.76 5.7
    31665780
    Total Exp. to USA = Approx. 32 million mtrs

    Major points to note :
    a)Till the year 2000, EU and the US were almost neck to neck in terms of the prices of their fabrics.However, US was leading by a big margin in volumes.
    b)The graph of USA started to fall from the year 2003 – when both prices and volumes fell sharply.
    c)When we come to the year 2005 , we find that the US exports have become almost a trickle and even with these small volumes , the prices are less than 50% of that of EU prices.
    d)However, EU has not been able to achieve the kind of volume exports that US was able to do in previous years – mainly because EU deals more in fashion items which are used in smaller quantities.

  • EU Imports Tariffs for Denim Fabrics from all major countries

    Here is a list of tariff schedule for import of denim fabrics into the EU from various countries of the world.

    Import Tariffs in Eu for Denim Fabric (HS Code -520942)
    Country Tariff Pref. Code
    Argentina 6.40% SPGL
    Bangladesh 0% SPGA
    Brazil 6.40% SPGL
    Cambodia 0% SPGA
    China 8%
    Colombia 0% SPGE
    Dominican Republic 0% LOMA
    Egypt 0% EG
    Hong Kong 8%
    India 8%
    Indonesia 6.40% SPGL
    Israel 0% IL
    Jordan 0% JO
    Japan 8%
    Kazakhastan 6.40% SPGL
    Kuwait 6.40% SPGL
    Lebanon 0% LB
    Madagascar 0% LOMA
    Nepal 0% SPGA
    Pakistan 6.40% SPGL e
    Philippines 6.40% SPGL
    Russia 6.40% SPGL
    South Africa 0% ZA
    South Korea 8%
    Sri Lanka 0% SPGE
    Tajikistan 6.40% SPGL
    Taiwan 8%
    Thailand 6.40% SPGL
    Tunisia 0% TN
    Turkey 0% TR
    Turkmenistan 6.40% SPGL
    Ukraine 6.40% SPGL
    UAE 6.40% SPGL
    Uzbekistan 6.40% SPGL
    Vietnam 6.40% SPGL

    [ad#for-post-top]