Table of contents

We analyse the exports of jeans from Morocco to see how the country is faring in the current year compared to the last few years. The signs have not been very good in the first two quarters and we see a fall in exports by over 30% if compared with the first two quarters pro rata. The average prices in Morocco being almost as high as those from Turkey is one of the reasons for the same as Turkey has a much more developed base of skill , technology and knowledge when it comes to denim industry and with lead times not as good as those of Turkey. However, of course , there are other major factors including the falling market in EU which makes is making it necessary for buyers to find alternative locations for sourcing.  Lets look at the figures below : [private_special]

1. Morocco Exports Of Denim Apparel To EU

The imports of denim apparel for the  year 2014 was 11.86 million pcs  into EU, while the imports in 2015 was 10.13 million pcs which were almost the same . However, in 2016  there was a increase of 30 % in imports from Morocco to 13.22 million pcs. All these were encouraging trends till 2016 , however, 2017 does not paint such a rosy figure. The first six months only reflected exports of about 4 million pcs and if taken pro rata, it may take the figures to 8 million pcs in end 2017. These may actually be over 40% lesser than last year .

a. Men’s Denim Jeans

To break up the exports in Men’s and Women’s jeans, we try to analyze  which of these two segments has affected overall sales.  Six months figures show exports on ONLY 2.31 million pieces against expected 4 million pieces – thus a shortfall of about 40% . Average prices have also been falling over the years and even they have not been able to hold the volumes.

b. Women’s Denim Jeans

The imports of Women’s jeans in the year in 2017 was only 1.65 million pcs . If we take out pro rata quantity of 2016 for two quarters , the quantity would come out to 2.6 million pcs. Thus there is actually a shortfall of about 35-40% . This clearly shows that there is overall fall in EU jeans sourcing from Morocco in the current year which may be a trend which may continue as the EU market does not look like bouncing back strongly any time soon. This also shows that the countries like Morrocco and Tunisia which mainly had the benefit of near sourcing are losing out Asian countries and also to countries like Turkey who have technologically and skill wise so advanced themselves that even higher prices from them are justified.

c. Denim Fabrics

Morocco also exports some very small quantities of denim fabrics to EU. Though negligible , it is quite interesting to note that there is a sudden huge spurt in exports from Morocco to EU in 2017 first two quarters and it surpasses the total exports in last three years combined ! This may be temporary as one or two mills in Morocco may have sold their fabrics to EU buyers as clearance stocks but this may also be reflecting that since the local consumption of fabrics has fallen due to reduced exports, the denim fabpric producers have no choice but to export the fabrics.

[/private_special]

Even after the cancellation of much awaited TPP between USA and Vietnam , Vietnam is still an important player in exporting apparel to USA . In fact it is now the second largest exporter of apparel to US.   Though there are no hopes for TPP to re-emerge in its original form, we see a number of initiatives being taken on bilateral basis between US and Vietnam and in the coming months during President Trump’s travel in November, we might find some agreements emerging. On the other hand the FTA with EU is almost final and if all goes well, we might see it being implemented from 1st Jan 2018.

Though denim is still not as big as exports for the nation, it is steadily picking up as a category .Vietnam is increasingly focusing on it looking at the potential of exports and also with spillovers coming from China and other countries. The two quarters of 2017 show a very encouraging 50% increase in exports in this segment over 2016 figures and it may well pick up further in the coming months. It may also be mentioned that there is a vibrant local market for jeans which was being served by Chinese exports for many years. This is being replaced by Vietnamese local products and will help give further impetus to the productions.

In this report , we did a detailed analysis of Import of Denim , which includes Denim Apparel for both Men and Women) ,  into USA from Vietnam from the year 2015 up to the second quarter of 2017.                                                 

[private_special]

1. Imports of All Denim Apparel

The first six month of year 2017 looks promising as 9.18 million pcs of denim apparel at an average price of USD 8.3/PC has been exported to USA and if this trend will follow till year end , the figures will be closed to 19 million pcs of denim apparels which will be at least 50% higher than last year. The imports in 2016 were disappointing and that may be attributed to the setback of TPP . The imports dropped to 13.38 million pcs which is approx. 30% lesser that what it exported in the year 2015.

2. Men’s / Boys Jeans.

Segregating Denim Apparels into both Men and Women , we found Women jeans cheaper than Men’s one . The average price for Men’s jeans for the year 2017 is USD 9.2/Pc however for the women’s jeans , it is USD 8.0/pc . However,   export of Women jeans is approx. two and half times to the export of Men’s Jeans in the first half of 2017 . First six month of 2017 is showing an increasing trend with 2.56 million pcs for Men’s Jeans and 6.53 million pcs for Women’s jeans . The year 2016 was disappointing for both the category as both segments suffered a decline in import close to 30% .

b. Women’s / Girls Jeans

The figures below show that we can perhaps look at the figures of over 13 million pcs in women’s jeans alone in the current year. This is very encouraging trend and it may be actually become an inflexion point for the exports to take off next year as treaties set in. One also needs to remember that US market is not really growing , so whatever growth is there , it might be in form of shifting of exports from countries like China. We also see a number of new denim apparel projects coming up in Vietnam and this may give further fillip to the exports. Another point to be remembered is that the figures mentioned do not capture denim shirtings – which still fall in the overall shirting categories . Hence those are additional exports. All in all, we feel there is a strong future for the denim exports market from Vietnam.

[/private_special]

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

[/private_special]

In this report , we are bringing information on important buyers of denim fabrics from India . Bangladesh is a big market and most of the countries ship their fabrics to this country. Hence , it is always interesting to see what is happening here and how the sellers and buyers are interacting .

                                                                                         Table of Content.

List of Top 10 Buyers of Fabrics from Bangladesh.

[private_special] Kenpark Bangladesh Apparel Pvt Ltd is a leading Buyer of  Fabrics , who bought 1,928,652.78 Yards of Fabrics at an Average price  (USD/YARDS) of 2.4. Refat Garments Ltd bought 1,502,567.08 Yards at an Average price(USD/YDS) of 2.6  . Pearl Garments Ltd bought 994,117.98 Yards at an Average price (USD/YDS) of 2.5 .  Tusuka Jeans Ltd bought 915,043.33 Yards at an Average price(USD/YDS) of 2.3. Standard Stiches Ltd bought 906,775.52 Yards at an Average price(USD/YDS) of 2.3 .

1. KENPARK BANGLADESH APPAREL PVT LTD.

The leading Supplier to Kenpark Bangladesh Apparel Pvt Ltd is Arvind Ltd who sold 1,039,702.41 Yards at an Average price (USD/YDS)of 2.5 . The lowest Supplier to Kenpark Bangladesh is Oswal Wollen Mills Ltd  who supplied 125,686.66 Yards at an Average price(USD/YDS)  of 1.9.

2.REFAT GARMENTS LTD.

Arvind Ltd is again a leading Supplier to Refat Garments Ltd who supplied 590,341.14 Yards at an Average price (USD/YDS) of 2.5 .  Suryalakshmi Cotton Mills Ltd is a least Supplier who supplied 60,381.94 at an Average price(USD/YDS)  of 2.1.

3.PEARL GARMENTS COMPANY LTD.

Arvind Ltd is again leading supplier to Pearl Garments Company Ltd who supplied 666,291.65 Yards at an  Average price (USD/YDS)  2.4 . Others is the least Supplier with 95,342.56 Yards at an Average price (USD/YDS) 2.3.

4.TUSUKA JEANS LTD.

Arvind Ltd , as usual, is a leading Supplier who supplied 504,923.68 Yards at an Average price (USD/YDS) 2.5 . The least is supplied by Suryalaksmi Cotton Mills Ltd with 58,116.94 Yards at an Average price (USD/YDS) of 1.9.

5.STANDARD STITCHES LTD. (WOVEN UNIT).

Expectedly Arvind  is the leading supplier with 631,539.29 Yards at an Average price (USD/ YDS) of 2.4. Modern Denim Ltd is a  least Supplier with 56,172.94 Yards at an Average price (USD/YDS) of 1.7.

6.MARK WEAR LTD.

Arvind Ltd is once again the leading Supplier with 360,561.37 Yards at an  Average price (USD/YDS) of 2.7. Raymond UCO Denim Pvt Ltd is a least supplier with 96,429.46 at an Average price(USD/YDS) 2.8.

7.OPEX INDUSTRIES LTD.

Arvind Ltd is a leading supplier with  301,723.43 Yards at an Average price (USD/YDS) 2.7 .  Oswal Wollen Mills Ltd is a least supplier with 60,297.40 Yards at an Average price (USD/YDS) 1.8 .

8.THE CIVIL ENGINEERS LTD.

9.SNOWTEX OUTERWEAR LTD.

Bhaskar Industries Pvt Ltd is a leading  Supplier with 151,462.85 Yards at an Average price (USD/YDS) of 2.1. The least is supplied by Raymond UCO Denim Pvt Ltd, with 54,483.95 at an Average price (USD/YDS) 3.2.

10.TIP TOP FASHIONS LTD

The leading Supplier to Tip Top Fashions Ltd is Arvind  Ltd with 188,397.86 Yards at An Average price (USD/ YDS) of 2.6. The least is Bhaskar Industries Ltd with 51,033.95 Yards at an Average price (USD/YARDS) of 1.9.

[/private_special]

Denim has one of the main booming textile segments in India in the last one decade. Where the capacity of Indian mills to produce denim fabrics was only about 300 million meters in 2005, it has risen over 300% to reach about 1.3 billion and India stands second only to China globally. There is also decent exports of denim apparel and some fabrics from India to EU . The last three year trend of export to EU has been  encouraging and this has raised the expectations for upcoming years. The average growth rate of exports of Denim Fabric during the period of 2014-16 to EU is 17.16%  and garment exports have also grown in volume in good numbers. The averages prices are quite decent compared to other exporting countries but the volumes are also correspondingly lesser.  This report explains all such changes during the period of 2014-16 in detail.

                                                                                                                 TABLE OF CONTENT

1.Imports of Denim Fabrics Into EU from India.

[private_special] In the year 2014,  India exported 2.91 Million Sq. Meter of denim fabrics at an average price of Euro 1.61/Sq.Meter and as compared to the export of 2013 which was 2.41 Million Sq.Meter , the export of 2014 registered a growth of 20.75 %  . However ,In the year 2015, the growth rate dips to 18.56 % but in terms of  volume , it was still in upwards direction with 3.45 Million Square Meter with an average price of Euro 1.80/Sq.Meter. The Year 2016 showed a marginal growth in volume however the growth rate was still diminishing. In the year 2016 , the total export was 3.87 Million Sq Meter at an average price of Euro 1.78/Sq.Meter and the growth rate was merely 12.17% as compared to the year 2015 .

2.Imports of Men’s Jeans Into EU from India.

In the year 2014, India exported 4.28 million pcs of Men’s Jeans at an average price of Euro 9.34/pc . As compared to the year 2013 , In 2014 , the export has a growth of 16.94 %. There is marginal change in the export volume for the year 2015 and it stood at 4.26 Million Pcs at an average price Euro 9.67/Pc . The year 2016 has encouraging growth rate of 19.72% with export volume of 5.1 million pcs of Men’s jeans at an average price of Euro 9.18/Pc.

3.Imports of Women’s/Girls Jeans Into EU from India.

In the year 2014, India exported 1.64 million pcs of women’s Jeans at an average price of Euro 8.21/pc . As compared to the year 2013 , In 2014 , the export has a negative growth of (5.75) %. There is marginal change in the export volume for the year 2015 and it stood at 1.87 Million Pcs at an average price Euro 9.03/Pc . The year 2016 has encouraging growth rate of 12.82% with export volume of 2.11 million pcs of women’s jeans at an average price of Euro 8.8/Pc.

Hence if we look at in a summary, the exports of denim jeans to EU is growing from India. The prices are also much higher as the country is dealing in value added products as it cannot compete with countries like Bangladesh and Pakistan who have GSP . The chances of Indian exports becoming huge in coming years seem minimal but there might be constant growth as buyers want to keep alternative production bases. [/private_special]Denimsandjeans coming to two destinations in coming quarter !

In our previous report , we did a detailed analysis of Major Buyers Of Columbian Denim Industry for the period of October’16- December’16 . In this report we have done the same analysis for the period of JANUARY’17 – MARCH’17 . During the period of three months, Colombia has imported 6.15 Million Square Meter of denim fabric worth USD 10.60 million at an average price of USD 1.72/Sq Meter.                       

Below is the list of Top 10 buyers of Colombian Denim Industry fro the aforesaid period. [private_special]

The list is topped by Comertex SA which bought  735,627 square meter of denim fabric during the period of Jan’17-March’17 at an average price of USD 1.08/Sq Mtr and also holds 18 % share in the top buyers’ list. The second major buyer company is Colombian Trade which bought 662,236 square meter of denim fabric during the same period at an average price of USD 1.08/Sq Mtr and accounts for 15% in the top 10 list . Marketing and Fashion bought at the highest price of USD 3.27/Sq Mtr while SurtiJeans bought at the least price of USD 0.97/Sq Mtr.

TOP 10 DENIM FABRIC BUYERS

1. Comertex SA

Sangam from India is the the major supplier to Comertex  which is the biggest buyer of denim fabric in the Colombian Denim Industry for the period of Jan’17- March’17 . The company exported 261,146.66 Sq. Meter of denim fabric to Comertex at an average price of USD 0.99/Sq Mtr . Sangam is also the least expensive supplier which supplied fabrics at an average price of USD .99/Sq Mtr while Lanxi Yonggxin Weave is the most expensive supplier with an average price of USD 1.62/Sq Mtr.

2.Colombian Trade SA

With 662,236.65 square meter of denim fabric , Comertex SA is the second largest buyer . Sangam (India) Limited  is the major supplier to Colombian Trade  S.A and during the period of Jan’17-March’17, the company has supplied approx. 585,618 square meter of denim fabric at an average price of USD 1.04/Sq Mtr .

3.STF Group

Fashtex PTE Ltd is the the biggest supplier to STF during the period of Jan-Mar’17 and they supplied 292,157.51 square meter of denim fabric at an average price of USD 1.96/Sq.Meter . Center of Turkey is the most expensive supplier which supplied at an average price of USD 3.39/Sq.Meter and Kassim Textiles from Pakistan is the least expensive which supplied at an average price of USD 1.63/Sq.Meter

4. Jeans International

USA is dominating the list of suppliers of Jeans International . Denim North America which is also the biggest supplier , supplied 238,082.58 Sq.Meters of denim fabric at an average price of USD 2.73/Sq.Meter . Vicunha from brazil found to be the least expensive supplier which supplied at an average price of USD 1.15/Sq.Meter.

5. FLORA

 

6 Permoda LTDA

7. Stilotex SA

8.Surti Jeans

9. COMMERCIALIZADORA ARTURO

10. Marketing and Fashion SA

[/private_special]

Two Back To Back Shows followed by series of exciting events . Top sourcing heads along with Global Denim Community at one place . Don’t miss the chance For Our India Show , Please register at https://lnkd.in/fvsdfak and for Our Bangladesh Show , Please register at https://lnkd.in/by7xA_r

Table of Content

Below is the list of Top exporting countries to whom Mexico exported Denim for the period of Jan –Dec 2016 . [private_special]The list is topped by Nicaragua to which  15,467,014 square meters of denim exported by Mexico at an average price of USD 1.78/Sq Mtr and also holds 37% share in the list. The second is USA to which 10,906,325 square meter of denim fabric exported  during the same period at an average price of USD 1.94/Sq Mtr and accounts for 26% in the list . Guatemala imported at the highest price of USD 2.61/Sq Mtr.

Below is the list of Top importing countries from whom Mexico imported Denim for the period of Jan –Dec 2016 . The list is topped by  USA  from which  60+ million square meters of denim were imported by Mexico and it also also holds 30% share in the list. China comes distant second at about 10% of import share. India , Pakistan and Italy are the countries which come next in terms of volumes of denim fabrics imported into Mexico. If we go by these figures, it is clear that where Mexico is importing 200+ million sq mtrs of denim fabrics, it is exporting only about 41 million sq mtrs. Thus Mexico is net importer of over 160 million sq mtrs . Imports from US are the highest because of the duty free imports for conversion and resale to US. Mexico has also a sizeable local production of denim fabrics and alongwith the imported fabrics, the local as well as export market is served.

[/private_special]