China is expected to overtake the US as the largest apparel market by 2023, according to industry experts.
The superpower is reporting store sales returning to 80-100% of pre-Covid-19 trading levels, according to GlobalData retail analyst Vijay Bhupathiraju.
GlobalData previously forecast Covid-19 will wipe off US$297bn from the global apparel market in 2020, a 15.2% decline on 2019. The US (largest apparel market) will account for 42% of all lost spend, which will contribute to more major chains filing for Chapter 11 over the next few months. APAC markets, on the other hand, are expected to be in a better position to counter the CovidD-19 impact compared to their American and European counterparts driven by the growth in domestic demand.
The ten worst impacted markets, in terms of value, will represent 85% of this total loss with mature markets suffering the hardest.
“Though the recovery has already started across the APAC markets, apparel sales will take some time to rebound amid dampened consumer confidence, the slump in tourism, the threat of an impending global recession and high unemployment rates,” says Bhupathiraju
“However, some of the lost sales will be compensated by the level of ‘revenge buying’ – the sudden release of pent up demand from those willing and able to spend.”