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.

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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.

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.

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

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:

• Men’s Jeans imports in 2007
• Countrywise imports of Men’s Jeans into US
• Effect of Rupee appreciation on jeans imports

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Country

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