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August 5, 2021updated 12 Apr 2022 10:31am

The suppliers side of the apparel industry – why them and not us?

The apparel industry is undergoing existential change. To survive, factories, suppliers and their national industries must recognise, accept and deal with that change.

If you want to explore the changes taking place within the suppliers side of the apparel industry you must first start with accurate data.

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How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

These are the ten most important garment exporters:

 

Apparel industry professionals are finally beginning to accept that our global garment industry is dominated by two tier-1 players — China and the EU that together account for 58.7% of global garment exports.  Everyone else has been relegated to tier-2, tier-3 or tier-4 status.

However, as we can see from the graph below the relative position between China and the EU has changed, with China’s market share declining and the EU’s market share rising. It would seem that in the near future the EU will become the world’s largest garment exporter, which leads us to the fundamental question:

 

The suppliers of the apparel industry - Why them and not us?

Clearly those who still believe that customers want low Free on Board (FOB) above all else and that low FOB prices can be achieved by low worker wages, excessive overtime, and poor working conditions must finally recognise their beliefs are no longer based on reality. Low FOB prices no longer equal more business and that business is moving to a place where wages are 20 times higher.

 

 

The industry has moved from commodities to fashion.

Fashion garment production is not limited to China and EU. As we can see below others are playing an increasing role in this higher-value-added sector.

 

 

The mass-market commodity sector is being squeezed

 

Where once commodity producers were the big winners, they have become the big losers.

 

 

Put it all together and the data is clear,

 

While it is too early to suggest that the entire commodity sector will be marginalised but when fashion now accounts for 70% of global garment exports compared to 17% for commodities, there is indeed an existential problem.

Why them and not us? Because you are in a dying sector?

Click here to read David's comment piece on why Singapore could be the ultimate winner post-Covid-19. 

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Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

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