Almost every supplier country gained a handsome growth of 11% to 210% in June this year when compared to previous month May
The US apparel market is showing signs of recovery as its imports from the top ten supplier countries surged in June compared to previous month.
Almost every country gained a handsome growth of 11 percent to 210 percent during this period.
However, when compared to the corresponding period of the previous year, the market scenario tells a different tale. Exports have slumped from every country due to the impact of the Covid-19 pandemic.
Several US retail groups such as Tailored Brands, Ascena Retail Group, J Crew, Camaieu, Sears, Cielo and JCPenney declared bankruptcy this year. As a result, suppliers to the US apparel market are struggling to regain their previous business volume, said industry insiders.
Some two dozen Bangladeshi apparel factory owners have sued the American buyer Sears Holdings after it allegedly refused to settle more than $55 million of outstanding debt, they added.
Data from the US Department of Commerce's Office of Textiles and Apparel (OTEXA) reveals that Bangladesh, third-largest apparel supplier to the USA, experienced a 36 percent growth to 83 million SME (square metre equivalent) in June compared to previous month.
But the country's shipment volume saw about 53 percent year-on-year drop in June this year, which was 176m SME.
Bangladesh's total apparel product shipment to the US market was 1,820.73m SME in the July 2019-June 2020 period. Of the shipment, 929.53m SME was delivered in the first half and 891.19m SME in the last half of that fiscal year.
However, Bangladesh's apparel sector export earnings from the US declined by 19.73 percent to $2471.20 million in the first half of 2020, which was $3,078.46 million a year ago.
According to the OTEXA data, the total US imports of apparel items also declined by 30.37 percent to $38,616.40 million during January-June period of 2020, which was $53,500.42 million in the same period last year.
"We have lost a part of our business in the US market during the pandemic, as three US buyers – Sears, Cielo and Camaieu – have filed for bankruptcy," said Mesbah Uddin Khan, managing director of Windy Group.
"We already took legal action against the American buyer Sears Holdings for our outstanding payment," said the managing director of the company.
Vietnam, second largest exporter to the US after China, has gained about 65 percent to 267m SME in June compared to previous month May.
While the country's US market recovery rate is the second highest among the top ten suppliers' countries, as it saw only 11.88 percent gap in June compared to the corresponding period of last year, which was 303m SME.
China, the world's largest exporter of apparel goods, also registered about 65 percent growth to 650m SME in June compared to previous month May. It also saw a fall of about 33 percent in June this year, compared to the same month last year, which was 963m SME.
Central American country Honduras performed exceptionally well and posted a 210 percent gain to 31m SME, which was 10m SME in May. However, the country's apparel product shipments to the US market were61m SME in July 2019.
Pakistan apparel export saw 100 percent growth in June compared to the previous month. It has the lowest gap of 9 percent in June, compared to the same month last year, which was 44m SME.
India also posted a 40 percent growth to 28m SME in June, which was 20m SME in May. The country's apparel shipments to the US market were 86m SME in June 2019.
Mexico, El Salvador and Indonesia also posted 61 percent, 50 percent and 11 percent growth respectively in June compared to May this year. But those countries' apparel exports also dropped by 14 percent, 86 percent and 46 percent respectively compared to June 2019.