US textiles and apparel imports in 2013

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US Textiles and Apparel Imports in 2013 Overall Textile and Apparel Import Scenario The total imports of textiles and apparel by USA in 2013 stood at US$ 105 billion. After crossing the US$ 100 billion mark first time in 2011, US textiles and apparel imports registered a minor de-growth in 2012. However, in 2013 it increased by 3.8% in value terms over 2012 indicating revival in consumer demand. Figure 1: US Textile and Apparel Imports (1989-2013) In volume terms, the textile and apparel imports increased by 4.6% over last year which is more than value growth. This implies that the average unit price (at consolidated level) has decreased from 2012. An analysis of value and volume change of US imports in last 10 years indicates that barring 2006, 2007, 2008 and 2011; the average prices (at consolidated level) have reduced from previous year. Figure 2: Import Volume and Value Change (2004-2013) 12 12 13 15 16 17 18 19 23 26 29 33 33 38 42 47 51 52 53 50 47 55 54 54 57 27 28 29 34 36 40 44 46 54 60 64 72 70 72 77 83 89 93 96 93 81 93 101 101 105 Volume (Bn. Sq. M.) Value (US$ bn.) 11% 8% 3% 2% -5% -7% 19% -3% 1% 5% 8% 7% 5% 3% -3% -13% 15% 9% 0% 4% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Volume change over last year Value change over last year 1 | Page

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An analysis by Wazir Advisors- "US Textiles and Apparel Imports in 2013"

Transcript of US textiles and apparel imports in 2013

Page 1: US textiles and apparel imports in 2013

US Textiles and Apparel Imports in 2013

Overall Textile and Apparel Import Scenario

The total imports of textiles and apparel by USA in 2013 stood at US$ 105 billion. After crossing the US$ 100 billion mark first time in 2011, US textiles and apparel imports registered a minor de-growth in 2012. However, in 2013 it increased by 3.8% in value terms over 2012 indicating revival in consumer demand.

Figure 1: US Textile and Apparel Imports (1989-2013)

In volume terms, the textile and apparel imports increased by 4.6% over last year which is more than value growth. This implies that the average unit price (at consolidated level) has decreased from 2012. An analysis of value and volume change of US imports in last 10 years indicates that barring 2006, 2007, 2008 and 2011; the average prices (at consolidated level) have reduced from previous year.

Figure 2: Import Volume and Value Change (2004-2013)

12 12 13 15 16 17 18 19 23 26 29 33 33 38 42 47 51 52 53 50 47

55 54 54 57

27 28 29 34 36 40 44 46

54 60 64

72 70 72 77

83 89 93 96 93

81 93

101 101 105 Volume (Bn. Sq. M.)

Value (US$ bn.)

11%8%

3% 2%

-5%-7%

19%

-3%

1%

5%8% 7%

5% 3%

-3%

-13%

15%

9%

0%

4%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Volume change over last year Value change over last year

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Page 2: US textiles and apparel imports in 2013

A long term analysis of average unit prices (at consolidated level) throws an interesting trend that in last two decades the prices have come down tremendously. In 1989, the average unit prices at consolidated level was US$ 2.2 / sq. m. equivalent whereas in 2013 they were US$ 1.85 / sq. m. equivalent – a reduction of 15% in absolute terms.

Figure 3: Average Unit Price Change (1989-2013)

Major Supplier Countries

China was the leading supplier to US with a mammoth value share of ~40% whereas Vietnam emerged as the distant second with 8% share. Vietnam also emerged as the fastest growing large supplier nation (with trade >US$ 5 billion) registering 15% growth over last year.

Table 1: Top 5 Textile and Apparel Exporting Nations to USA

S. No. Country 2013 Exports (US$ billion) Share Change over

last year 1 China 41.7 40% 3% 2 Vietnam 8.8 8% 15% 3 India 6.3 6% 7% 4 Indonesia 5.2 5% 1% 5 Bangladesh 5.1 5% 10%

2.202.29 2.27

2.352.28

2.312.40 2.41

2.36 2.33

2.232.18

2.14

1.891.83

1.77 1.75 1.79 1.811.85

1.741.68

1.89 1.87 1.85

US$

/ sq

. m

4% -1% 4% 12% -1% -1% 4% -2% -1% -4% -2% -3% -1% 2% 1% 2% -6% -3% -2% -12% -3% -3% 2% 0%

YoY price movement

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Page 3: US textiles and apparel imports in 2013

Category Wise Break-up

Apparel was the largest imported category by USA with a share of 76%. Fabrics, Yarn and others (including Home Textiles) had a share of 6%, 1% and 17%; respectively.

Figure 5: Growth of US T&A Imports in 2013 over 2012

Apparel Imports

Among the top 5 apparel exporters to US, supplies from Vietnam and Bangladesh have grown in doubling digits in 2013 over 2012 whereas that from Indonesia and Mexico have plateaued. China with maximum share of 37% grew at 2%.

Table 2: Top 5 Apparel Exporting Nations to USA

S. No. Country 2013 Exports (US$ billion) Share Change over

last year 1 China 29.8 37% 2% 2 Vietnam 8.1 10% 14% 3 Indonesia 5.0 6% 1% 4 Bangladesh 5.0 6% 11% 5 Mexico 3.7 5% 0%

Overall import of apparel by US in 2013 was US$ 81 billion which was 4% more than that in 2012. In volume terms the growth registered was 5% in 2013 over 2012.

75% of US apparel imports (value terms) is concentrated in top 10 categories. All these categories registered positive growth in 2013, except Women’s/Girl’s suits, dress, category which was down by 0.4%.

Knitted category with a share of 53% (value terms) is bigger than woven apparel category and in 2013 it has grown at a rate faster than woven too.

4%

4%

3%

1%

Others

Apparel

Fabrics

Yarn

Yarn1%

Fabrics6%

Apparel76%

Others17%

Figure 4: Category wise Break-up of US T&A Imports (2013)

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Table 3: Break-up of US Apparel Imports (2012-2013)

HS # Category Value data Volume data

Value (US$ Bn.) YoY change

Share (2013)

Volume (Bn. sq. m.) YoY change

Share (2013) 2012 2013 2012 2013

6110 Knitted jersey, pullovers, etc. 13.8 14.4 4% 18% 2.6 2.8 5% 11%

6204 Woven suits, dress, skirt, etc. (W/G)

10.8 10.7 -0.4% 13% 2.5 2.5 0% 10%

6203 Woven suits, jackets, trousers, etc. (M/B)

8.4 8.8 4% 11% 1.4 1.5 11% 6%

6104 Knitted suit, dress, skirt, etc. (W/G) 5.1 5.5 8% 7% 2.1 2.2 7% 9%

6109 Knitted T-shirts, singlets, etc. 5.3 5.3 2% 7% 1.9 1.9 4% 8%

6205 Woven shirts (M/B) 3.5 3.7 6% 5% 0.8 0.9 10% 4%

6108

Knitted underwear, nightwear, etc. (W/G)

2.8 3.0 6% 4% 2.7 2.7 3% 11%

6206 Woven shirts, blouses (W/G) 2.3 2.8 19% 3% 0.4 0.5 21% 2%

6212 Brassieres, girdles, corsets, etc. 2.4 2.6 9% 3% 0.3 0.3 4% 1%

6115 Knitted pantyhose, tights, hosiery, etc.

2.0 2.2 7% 3% 1.4 1.5 7% 6%

Other apparel categories 21.0 21.6 3% 27% 7.1 7.4 4% 31%

Total 77.5 80.6 4% 23.0 24.2 5% Knitted Categories 41 43 5% 53% 15 15 5% 65% Woven Categories 37 38 3% 47% 8 8.4 5% 35%

Cotton based apparel is the largest sub-segment with a value of US$ 43 billion in 2013 which has grown 2% over 2012. Manmade Fiber based apparel is the second largest sub-segment with a value of US$ 32 billion in 2013 which has grown at a much higher rate of 7% over 2012. Others (including Home Textiles) with a value of US$ 5 billion in 2013 was down by 3% over 2012.

Figure 6: Fiber wise Break-up of US Apparel Imports (2013)

Total US Apparel ImportsUS$ 80 bn

(+4%)

Cotton BasedUS$ 43 bn

(+2%)

MMF BasedUS$ 32 bn

(+7%)

OthersUS$ 5 bn.

(-3%)

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Page 5: US textiles and apparel imports in 2013

China and Vietnam are the top suppliers for both cotton and MMF based garments to US. However for cotton garments Bangladesh is the third largest supplier whereas for MMF garments Indonesia holds the 3rd rank.

Table 4: Top 3 cotton and MMF based Apparel Supplier Nations (2013)

Cotton Based Apparel MMF Based Apparel

Country 2013 Exports (US$ billion) Share Change over

last year Country 2013 Exports (US$ billion) Share Change over

last year

1 China 13.7 32% 2% China 13.7 43% 5%

2 Vietnam 4.1 10% 14% Vietnam 3.8 12% 16%

3 Bangladesh 4.0 9% 12% Indonesia 2.1 7% 2%

Imports from India

Indian textiles and apparel exports to US were US$ 6.3 billion in 2013, up 7% from that in 2012.

Apparel was the largest category with a share of 51% followed by others (including Home Textiles) which had a share of 43%. Though maximum growth in 2013 was registered by fabric segment but the trade value is small to make any sizeable impact.

Figure 8: Category wise Growth of US T&A Imports from India (2013)

Cotton based apparel is the largest sub-segment in Indian apparel exports to US with a value of US$ 2.3 bn. in 2013 which suffered de-growth by 3% over 2012. Manmade Fiber based apparel exports is the second largest sub-segment with a value of US$ 0.7 billion in 2013 grew at a much higher rate of 15% over 2012.

9%

6%

10%

7%

Others

Apparel

Fabrics

Yarn

Yarn1%

Fabrics5%

Apparel51%

Others43%

Figure 7: Category wise Break-up of US T&A Imports from India (2013)

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Figure 9: Fiber wise Break-up of US Apparel Imports from India (2013)

80% of Indian apparel exports to US (value terms) are in top 10 apparel categories. In 2013, the category of knitted men’s/boy’s underwear registered an exceptionally high growth rate. In addition, knitted jerseys and women’s shirts were the two categories with double digit growth rates. However, India’s largest exported apparel category to US – women’s woven suits, dresses, skirts, etc. along with knitted t-shirts and track suits suffered appreciable de-growth. On an overall basis the apparel export from India to US grew by 6% to reach US$ 3.2 billion.

Table 5: Break-up of US Apparel Imports from India (2012-2013)

HS # Category Value data Volume data

Value (US$ Mn.) YoY change

Share (2013)

Volume (Mn. sq. m.) YoY change

Share (2013) 2012 2013 2012 2013

6204 Woven suits, dress, skirt, etc. (W/G)

556 503 -10% 15% 168 151 -10% 17%

6110 Knitted jersey, pullovers, etc. 375 439 17% 13% 52 63 21% 7%

6206 Woven shirts, blouses (W/G) 326 414 27% 13% 51 66 29% 7%

6203 Woven suits, jackets, trousers, etc. (M/B)

260 257 -1% 8% 35 34 -3% 4%

6205 Woven shirts (M/B) 221 236 7% 7% 51 56 10% 6%

6109 Knitted T-shirts, singlets, etc. 204 185 -9% 6% 52 49 -4% 6%

6105 Knitted Shirts (M/B) 175 183 4% 6% 21 25 19% 3%

6211 Track suits, ski suits & swimwear 174 160 -8% 5% 43 41 -6% 5%

6108

Knitted underwear, nightwear, etc. (W/G)

146 145 -1% 4% 139 135 -3% 15%

6107

Knitted underwear, nightwear, etc. (M/B)

87 130 49% 4% 68 97 43% 11%

Other apparel categories 565 604 7% 19% 157 171 9% 19%

Total 3089 3256 5% 836 886 6% Knitted Categories 1255 1383 10% 42% 416 462 11% 52% Woven Categories 1834 1873 2% 58% 420 424 1% 48%

Indian Apparel Exports to USA

US$ 3.2 bn(+6%)

Cotton BasedUS$ 2.3 bn

(-3%)

MMF BasedUS$ 0.7 bn

(+15%)

OthersUS$ 0.2 bn.

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