Tag: us imports

  • Is Indonesian denim apparel export struggling ?

    Is Indonesian denim apparel export struggling ?

    Indonesia, one of the most promising garment exporters in SEA, has been hit severely by the COVID-19 pandemic. Garment Export is one of the major contributors to the GDP of Indonesia, In FY 2019 the garment export alone contributed 11% to the total manufacturing exports and 5% to the total exports. This sector employs approx. 5.2 million workers and is one of the highest employment generators.

    The USA is the prime export destination for Indonesia. However, since the USA itself facing immense pressure on demand and reports suggest that in April, the retail sales in the USA dropped by 88% and all the major brands including H&M and GAP experienced a heavy fall in their sales. Since there is a problem on the demand side, the suppliers’ side had to suffer.

    Garment Imports in the USA and Japan — the two largest importers of clothing products from Indonesia — fell by 12 percent and 10 percent respectively compared to the same quarter in 2019.

    In recent times, the Indonesian government is trying very hard to bring the Indonesian Garment industry on track, and to boost the export, the government is working on an Indonesia-Turkey Comprehensive Economic Partnership Agreement(IT-CEPA) to remove the additional tarries between both the countries.

    In this report, we have analyzed the denim apparel exports for the month of October 2020, to understand the denim apparel export for the month of June 2020, click here.

    Particulars
    Tables and Graphs Showing Leading Denim Exporting Destinations
    Table And Graphs Showing Leading Denim Suppliers Of Indonesia
    Table and Graphs Showing Leading Denim Buyers

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    Leading Denim Exporting Destinations

    In the month of October 2020, Indonesia has exported approx. 2.98 million pcs of denim garments. This is approx. 35% lesser than what it exported in the month of June 2020.

    With 2.15 million pcs and 72.09% share, the USA ranked #1 export destination for Indonesia. The average price at which the USA bought the denim pieces was $6.45/pcs. Japan is the next biggest importer which imported 3.82 lacs pcs from Indonesia at an average price of $7.64/pcs.

    (Note: this data has been captured from various govt organizations including customs. the actual imports are likely to be higher than this figure .)

    Country of DestinationUnits(In 000)Avg Pcs Price($)% Share
    UNITED STATES21516.4572.09
    JAPAN3827.6412.82
    SOMALIA612.182.03
    UNITED KINGDOM608.712.01
    THAILAND485.441.62
    ITALY4610.051.53
    AUSTRALIA357.541.19
    PHILIPPINES300.331
    GERMANY2911.210.97
    CANADA257.160.85
    OTHERS1168.523.9
    TOTAL29836.68100

    Leading Denim Suppliers

    So far as the leading garment exporters are concerned, Eratex Djaja TBK and Glory Industrial Semarang are the two biggest garment exporters during Oct 2020.

    Eratex Djaja TBK exported 5.81 lacs pcs at an average price of $9.61 and Glory Industrial Semarang exported 5.17 lacs pcs at an average price of $2.84. There is a substantial difference in the average prices of the both the companies, the reason for the same we understand when we will analyse their buyers in detail at the end.

    SuppliersUnits(In 000)Avg Unit Price($)% Share
    ERATEX DJAJA TBK.5819.6119.48
    GLORY INDUSTRIAL SEMARANG5172.8417.32
    SAI GARMENTS INDUSTRIES3064.4010.27
    GUNUNG SALAK SUKABUMI2666.028.91
    DAEHAN GLOBAL2336.347.82
    TAINAN ENTERPRISES INDONESIA13212.664.43
    SANDANG ASIA MAJU ABADI11413.723.81
    SAN SAN SAUDARATEX JAYA1105.253.67
    LESTARI JAYA GARMINDO1031.823.47
    OTHERS6227.1820.83
    TOTAL29836.68100

    Leading Denim Buyers

    Walmart and Sojitz Corporation are the two biggest buyers of denim garment in Indonesia followed by Target and JC Penney. Walmart bought 3.85 lacs pcs at an average price of $1.89, all garments were bought from a single supplier – Glory Industrial Semarang. Sojitz Corporation from Japan which bought 3.21 lacs pcs, bought it entirely from Eratex Djaja TBK during October 2020.

    BuyersUnits(In 000)Avg Unit Price($)
    WAL-MART STORES INC3851.89
    SOJITZ CORPORATION3218.03
    TARGET2686.74
    JC PENNEY PURCHASING CORPORATION2584.21
    CFL DISTRIBUTION INC14714.55
    ANN TAYLOR INC1846.32
    FAMILY DOLLAR STORES,INC.,841.74
    THE WILLIAM CARTER COMPANY.825.08
    KOHLS DEPARTMENT STORE794.54
    OLD NAVY, LLC756.01
    OTHERS11017.39
    TOTAL29836.68

    ERATEX DJAJA TBK.

    Sojitz is the biggest buyer of Eratex during October 2020 which bought 3.20 lacs pcs , Ann Taylor from the USA is the next big buyer which bought 99.36 thousand pcs at an average price of $10.94/pcs.

    ADDRESS:
    AXA TOWER (KUNINGAN CITY) LT.43 JL. PROF DR. SATRIO KAV.18, KARET KUNINGAN, SETIABUDI, JAKARTA SELAT

    Consignee NameQuantityAv.Price($/Pcs)Country of Destination
    SOJITZ CORPORATION3,20,5168.03Japan
    ANN TAYLOR INC99,36010.94United States
    CFL DISTRIBUTION INC82,67113.39United States
    RL EUROPE SARL38,91410.23Italy
    OTHERS39,55010.65United States, Taiwan and Korea
    TOTAL5,81,0119.61 

    GLORY INDUSTRIAL SEMARANG

    Glory sold more than 50% of its garment to Wal Mart Stores in the USA, however price is unbelievably competitive. Kohls is the 2nd big retailer whom Glory exported 79.24 thousand pcs of denim at an average price of $4.54.

    ADDRESS
    DUSUN SECANG RT.01 RW.01 DESA SAMBAN RT. RW.,BAWEN

    Consignee NameQuantityAv.Price($/Pcs)Country of Destination
    WAL-MART STORES INC3,85,1681.89United States
    KOHLS DEPARTMENT STORE79,2424.54United States
    SDC-001747,9697.47United States
    SANMAR CORPORATION4,1885.44United States
    TOTAL5,16,5672.84 

    SAI GARMENTS INDUSTRIES

    More than 80% of garment exports by SAI Garment Industries went to JC PENNEY only during October 2020. JC Penney bought 2.58 lacs pcs of denim from SAI Garments at an average price of $4.21/pcs

    ADDRESS:
    KAWASAN BERIKAT JL. BRIGJEN SUDIARTO KM 12, PENGGARON KIDUL, PEDURUNGAN, KOTA SEMARANG, JAWA TENGAH

    Consignee NameQuantityAv.Price($/Pcs)Country of Destination
    JC PENNEY PURCHASING CORPORATION2,58,3564.21United States
    MAMIYE BROTHERS INC.,45,2465.69United States
    BRIARA TRADING COMPANY2,6531.56United States
    TOTAL3,06,2554.40

    GUNUNG SALAK SUKABUMI

    Gunung Salak exported all denim garments to Target USA only at an average price of $6.02/pcs.

    ADDRESS:
    JALAN BABAKANPARI BLOK PASIR DALEM RT/RW: , 001 / , 002, BABAKANPARI, CIDAHU, KAB. SUKABUMI, JAWA BA

    Consignee NameQuantityAv.Price($/Pcs)Country of Destination
    TARGET2,65,9026.02United States

    DAEHAN GLOBAL

    Old Navy USA is the biggest buyer for Daehan Gloabal during October 2020, the brand bought 98.65 thousand pcs of denim from the company at an average price of $6.07/pcs.

    ADDRESS:
    JL. MAYOR OKING 112B RT. RW.,CIRIMEKAR, CIRIMEKAR, CIBINONG, KAB. BOGOR, JAWA BARAT

    Consignee NameQuantityAv.Price($/Pcs)Country of Destination
    GAP (CANADA) INC3,9407.11Canada
    GAP (SHANGHAI) COMMERCIAL CO.,LTD2,9507.68China
    GAP (UK HOLDING) LIMITED3,8389.56United Kingdom
    GAP JAPAN K.K.5,6438.12Japan
    LANDS’ END EUROPE LIMITED4,0973.78United Kingdom
    OLD NAVY (CANADA) INC13,6546.56Canada
    OLD NAVY LLC98,6526.07United States
    OXFORD COLLECTIONS49,1695.81United States
    TARGET AUSTRALIA PTY LTD16,6285.36Australia
    THE GAP INC.,34,5897.73United States
    TOTAL233,166.34
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    We are regularly publishing reports on various aspects of the denim business globally including :

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

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

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

  • LESOTHO–Denim Buyers, Export Figures , Fabric Import etc.

    lesotho subscriberThe Kingdom of Lesotho is a unique country in Southern
    Africa. Completely surrounded by its only neighbour
    South Africa, land-locked and geographically small, Lesotho
    is classified as a Least Developed Country (LDC) by the
    United Nations. Together with Botswana, Namibia,  South
    Africa and Swaziland, Lesotho forms the Southern African
    Customs Union (SACU) – the oldest customs union in the
    world. 
    Historically, Lesotho’s export capacity has been small, and
    most of its exports were traditionally destined for the
    South African market. However, over the years, Lesotho
    has pursued an export-led development strategy as part of
    its overall goal for economic development and eradication
    of poverty. Part of this strategy involves utilisation of trade
    preference arrangements such as the United States’ African
    Growth and Opportunity Act (AGOA) and the European
    Union’s Everything But Arms (EBA) initiative. These have
    contributed to the diversification of export markets,
    especially to the US.

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    The formal garment industry started in Lesotho in the early 1980s. This was primarily as a response by South African-based clothing companies to avoid the sanctions imposed on South African manufactured goods by the US and Europe. Also, the Lesotho National Development Corporation offered incentives to the South African industrialists who set up in Lesotho.

    Most of these industrialists originally came from Taiwan in Southeast Asia. These entrepreneurs brought valuable capital, skills, and knowledge of the international textile market. Increasingly, South African companies are also investing in Lesotho, providing diversity of markets and products.

    How is Lesotho doing when it comes to manufacturing and exporting of denim garments to US . Lets see the data for the last 10 years .

    Exports of denim apparel from Lesotho to US.

    Year Qty (million pcs) Value (USD million) Av. Price (usd/pc)
    2001 9.74 63.08 6.48
    2002 9.28 61.16 6.59
    2003 11.48 72.64 6.33
    2004 13.57 94.06 6.93
    2005 17.31 108.93 6.29
    2006 15.80 92.21 5.84
    2007 15.84 92.79 5.86
    2008 16.29 96.69 5.94
    2009 14.43 82.45 5.72
    2010 15.64 91.76 5.87
    2011 15.84 114.07 7.2o

    The exports of denim apparel to US have not shown a fall in shipments during 2011 over 2010. This is phenomenal considering that the total shipments of denim apparel to US fell by over 14%. This shows the increased importance of Lesotho as an upcoming export centre.

    Also , it needs to be noted that on an average over 70% of denim apparel shipped to US are in the Mens/Boys category reflecting that the buyers are more inclined to place Men’s jeans and apparel orders into Lesotho.

    Lets see who are the major exporters of denim garments from Lesotho and to whom are they exporting .

    C&Y Garments (Pty) Ltd

    Contact Person: Factory Manager: Mr Leon Wang / Sales: Mr Jimmy Chou
    Tel: +266 22 316 621
    Fax: +266 22 322 752
    Email: jimmychou@nienhsing.com.tw
    Website
    :
    www.nht.com.tw

    Profile:
    Category: Denim bottoms (also twill and corduroy).
    Capacity: Approx 35,000 dozen per month (420,000 units).
    C & Y is a part of the Nien Hsing Textile Co. of Taiwan. Located in 15,000m², the factory employs approximately 2,000 workers. Most of the factory’s production is for the USA market, and main customers are Levi Strauss, The Children’s Place, Dress Barn, VF , Indigo Sportswear, Indigo Sportswear(LA) etc.

    CGM Group /Presitex Enterprises (Pty) Ltd)

    Contact Person: CEO: Mr Dalvi
    Tel: +266 22 32 6452
    Fax: +266 22 326 458
    Email: dalvi@cgmgroup.co.ls

    Website: www.cgmgroup.com

    Profile:
    Manufacturers Denim bottoms (also twill, corduroy and other woven fabrics).
    Capacity: About 42,000 dozen per month (500,000 units).
    CGM Industrial (Pty) Ltd, the biggest Jeans Manufacturer in South Africa, is a multi-national organization with vertical infastructure over 8 countries and area — the headquarters in Maseru, Lesotho and jeans manufacturer mainly in Maseru and Dimbaza as well as a fabric mill and sourcing office in Durban, South Africa,Located in 23,400 m², the factory employs approximately 4,200 workers. The company produces for both the USA and South African markets. Main US customers are Levi Strauss, Wal-Mart, K-Mart, Jones Apparel, Squeeze, Paco and Pepe; SA customers are Woolworths, Edgars, Mr Price, Ackermans and Pep.

    Global Garments Co. (Pty) Ltd

    Contact Person: Factory Manager: Mr David Huang / Sales: Mr Jimmy Chou
    Tel: +266 22 312 544
    Fax: +266 22 312 445
    Email: jimmychou@nienhsing.com.tw
    Website: www.nht.com.tw

    Profile:
    Category: Denim bottoms (also twill and corduroy).
    Capacity: 40,000 dozen per month (480,000 units).
    Another factory which is a part of the Nien Hsing group , it is Located in 22,000m² the factory employs 2,300 workers. Most of the factory’s production is for the USA market, and main customers are Levi Strauss, The Children’s Place, Fi-Fun, Paco, Primark, Contempo and C&Y.

    Nien Hsing International Lesotho (Pty) Ltd

    Managing Director: Mr Chin Yi Lin / Sales: Mr Jimmy Chou
    Tel: +266 22 326 655
    Fax: +266 22 326 649
    Email: jimmychou@nienshing.com.tw
    Website
    :
    www.nht.com.tw
    Profile:
    Manufactures :Denim bottoms (also twill and corduroy).
    Capacity: About 42,000 dozen per month (504,000 units).
    Nien Hsing Mexico is a part of the Nien Hsing Textile Co. of Taiwan. Nien Hsing Textile Co., Ltd. manufactures and sells denim fabrics, jeans wear, and casual wear in Taiwan.The company serves retailers, importers, and brand owners. Nien Hsing Textile Co. was founded in 1986 and is based in Taipei, Taiwan. Located in 20,000m² the factory employs 2,400 workers. Most of the factory’s production is for the USA market, and main customers are Gap Inc, The Children’s Place, Zana-di, Paco , C&Y .

    Shipments of Denim Fabric From India to Lesotho

    We are giving herewith details of the shipments made of denim fabrics by Indian denim mills to Lesotho buyers. The Image below gives an idea on the volume and prices of shipments made by Indian denim mills to Lesotho.. On an average over about 3-4 million mtrs of denim fabrics gets shipped to Lesotho from India annually . If we look at the trend, we will find that the average prices of fabrics shipped was highest in the second and third quarters of 2011 . However the prices slid back to about $3.3 showing the impact of reduced denim prices .

    image_thumb4_thumb

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  • How Much Were US Apparel And Textile Imports in 2011?

    What is really the quantum of apparel and textile imports into US ?
    How do these imports compare to those made in 2009 and 2010 ?
    Did the recessionary conditions affect the imports of textile and apparel in 2011 ?
    How much of these imports were under Free Trade Agreements ?
    Lets find answer to these questions in the following  table :

    Import From 2011 (Jan –Nov) 2010 (Jan-
    Nov)
    2009 (Jan- Dec) 2010 (Jan – Dec)
    World $106.1 billion $96.7 billion $90.5 billion $104.6 billion
    Under Free Trade Agreements $15.7 billion $13.99 billion $13.6 billion $15.2 billion
    % under Free Trade Agreements 14.8% 14.46% 15.02% 14.53%

    Source: Otexa

    The total textile and apparel imports into US in 2010 were about $104 billion and those in 2011 (Jan-Nov) have touched $106 billion. Also when we compare with 2009, the imports increased from $90.5 billion significantly rose to $104 billion in 2010 and continue to rise in 2011. This reflects the inherent strength of the US market that  inspite of the economic recession the textile and apparel imports continue to rise .Though the increased cotton prices may have played some role in increasing the value of these imports, still the sentiment for imports seems positive for the entire industry..

    Also, it is interesting to note that almost 15% of all imports fall under the various Free Trade Agreements like CAFTA, AGOA etc. The govt. has been maintaining this figure at around 15% for last 2 years .

    What is the % of denim apparel imports out of these total imports ??
    Its around 4% !. Though it looks small, denim is still an important apparel category when viewed in comparison to other categories.

  • Imports Of Women’s Denim Jeans Into US : 2007-2009

    In a previous report we mentioned that Imports of Women’s/Girls Jeans into US in the period from Jan-June 2009 increased over 6.34% over the same period in the year 2008. Lets see how this category fared over the entire last year and whether the same trend continued towards the end of the year or not.

     

    From 2007
    (million pcs)
    2008
    (million pcs)
    2009
    (million pcs)
    % inc. in 2009 over 2007 % inc. in 2009 over 2008
    World 249.59 269.54 278.91 +11.74% +3.35%
    China 43.75 60.63 115.80 +164.70% +47.63%
    Mexico 38.97 30.49 27.10 -30.45% -12.53%
    Bangladesh 15.77 18.47 23.13 +46.71% +20.18%
    Vietnam 7.62 12.83 16.32 +114.18% +21.39%
    Egypt 13.35 15.77 14.73 +10.37% -7.05%
    Cambodia 12.96 15.75 11.07 -14.52% -42.17%
    Jordan 9.00 9.56 8.06 -10.35% -18.47%
    Nicaragua 5.51 9.00 6.97 +26.58% -28.95%
    Pakistan 8.41 7.61 6.92 -17.76% -9.97%
    Indonesia 7.56 7.02 6.31 -16.51% -11.11%
    Sri Lanka 7.96 7.67 6.05 -24% -26.80%
    Madagascar 6.82 8.00 5.97 -12.57% -34.08%
    Lesotho 5.91 5.59 5.96 +0.85% +6.23%
    Kenya 3.64 6.15 5.04 +38.52% -22.12%
    India 2.93 4.76 4.18 +42.39% -13.96%

    Source:US Customs

    It is very interesting to see that the trend of increase in imports of women’s/girls jeans continued even in the second half of the year and a net increase of about 3.35%  was achieved on year on year basis (2009 over 2008). The undertone of imports is very strong and indicates a strong market for the women’s denim jeans in the US . This tone is expected to continue even in the current year.

    Winners :


    China , Vietnam and Bangladesh emerge as strong winners – improving their export performance continuously and in great volumes .China has specially increased its share dramatically.All of these three destinations are strong denim production centers providing low priced jeans. This does indicate that the buyers are definitely getting more and more price concious where denim buying is concerned. However, they also want a quality product and some cheaper destinations which could not probably provide the same –eg Cambodia- have emerged as losers. India has also improved its exports but the overall volumes are quite limited. Lesotho seems to have gained whereas as its sub-saharan fellow country Madagascar is losing its share. Out of the two, Lesotho is a cheaper producer of denim jeans and a number of denim factories(garments) have been established there by reputed manufacturers from around the world including Taiwan.

    Losers :

    Mexico and South American countries are among the biggest losers . Whereas in earlier years, these countries had captured a large % share of US imports of denim jeans, their importance is slowly reducing on account of increased costs of production . This is despite various advantages provided by the US government to them. Jordan is also losing its cost competitiveness and has lost some share to Egypt. Pakistan, Sri Lanka and Indonesia are surprise losers – even though being important denim centers and being low cost countries.

  • Rebound in US Men’s Jeans import in second quarter


    As I mentioned in my previous report, there was a fall of about 10% in the first quarter for the total jeans imported into US. However, we now see a decent 7% improvement in the second quarter corresponding to the same quarter last year.. Here is a chart comparing the two years data by quarter..

    Mens Jeans Imports into US 2007 & 2008 – Quarter wiseNew Page 1

    Quarter 2007(million pcs) 2008(million pcs) Fall/Rise(%)
    First 49.26 43.99 -10.69%
    Second 68.56 73.60 +7.29%
    Third 84.62
    Fourth 71.44

    The third and the fourth quarters are the main quarters when we see the volumes jumping. We will have a much better idea only at the end of the third quarter. But if my guess is correct , the imports in the third quarter may register a fall and the improvement that we see in the second quarter is temporary.

    Related Posts:

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  • Men’s Jeans experience fall in imports into US – 6.82% in 2007

    As Compared to 2006 , the imports of Men’s Jeans into US has fallen 6.82% from 293 million pieces to about 273 million pieces in 2007.
    The fall was consistent through the various quarters of 2007(as I mentioned last year) . The table below shows the figures of imports from various countries
    IMPORTS OF MEN’S JEANS INTO USA (IN 2007) FROM DIFFERENT COUNTRIES

    Country

    Country Million Pcs Percentage Share
    Mexico 97.71 35.66
    Bangladesh 24.04 8.77
    Pakistan 15.02 5.48
    Honduras 14.35 5.23
    China 13.32 4.86
    Egypt 12.79 4.66
    Cambodia 11.88 4.33
    Costa Rica 11.79 4.30
    Lesotho 9.90 3.61
    Hongkong 6.54 2.38
    Nicaragua 6.31 2.30
    Guatemala 5.47 1.99
    India 1.84 0.67
    Jordan 1.57 0.57

    Total Imports of Mens Jeans in 2007:: 273.93 million pcs
    Source:US Customs

    Some points are worth noting from the table:
    a)Mexico still retains its position as number 1 exporter despite falling share.But that is expected to fall.
    b)China is yet to make a significant mark in the US men’s jeans market.Though it will definitely.
    c)Bangladesh has continued to make progress and has aquired a sizeable 9% share of the market.
    However, its neighbour India still has an insignificant share of 0.67% and it shows that India is absolutely uncompetitive in Men’s Jeans.
    d)Small countries like Lesotho have made great use of Sub-saharan treaties to increase exports to US
    e)Egypt has gained a great share at the cost of Jordan due to benefits extended to it. Jordan has lost the share due to its rising costs.This is continue to grow and more and more of factories are expected to shift to Egypt.

    The fall in the jeans imports is perhaps consistent with the fall in growth rate of denim consumption..

    Related Posts: Imports of Jeans continues to decline in 2008.

                                  Rebound in US Men’s Jeans Imports in second qarter.

                                 Imports of Jeans in US –2007 and 2008