innovation in Activewear propelling its steady growth

EDITOR’S NOTE
FROM THE EDITOR-IN-CHIEF’s DESK…
Holiday season brings
positive sentiments back, at
least for now!
Inventory gluts in major markets may or may not be
over but there is a clear indication that retailers are
delighted with the customers’ turnout, especially in
the North America market.
We have seen global fashion industry struggling
with massive inventory in 2022 that piled up in their
stores and warehouses, partly due to shipping delays
from sourcing countries and majorly due to retailers’
misjudgment of consumer demand, the ongoing
recessionary trends and many other factors such as
the ongoing Russia-Ukraine war.
The retailers in the USA and even EU kept giving
hefty discounts to consumers across apparel items,
yet inventory glut remained as the orders that they
placed in the beginning of 2022 are still being
shipped to the retailers!
However, as we move ahead in 2022, it’s becoming
clear that apparel retailers are all set to clear the
piled-up inventories in the coming holiday season.
All thanks to consumers who, even with persistent
inflation, rising interest rates and volatility in
the market, aren’t shying away from spending on
household priorities.
Even Brian Cornell, Chairman and CEO of Target
USA hinted at the expected robust growth in
consumer visit to the store “Economic slowdown
triggered inventory bulge but now we have left
inventory problem behind. Consumers are excited
about these seasonal holiday months and want
to celebrate with friends and family, therefore we
are focusing on making consumers ready for a big
holiday season.”
I’m not just speculating this or going by any random
report as I have data to back this up! After analysing
official US import data, I realised the country
imported apparel worth US $ 10.36 billion in August
alone – its highest import values in last 50 months.
This September, with the onset of holiday season,
the retail sales in the USA witnessed around 8.20
per cent growth on Y-o-Y basis out of which apparel
retail sales alone were up by over 4.50 per cent.
The positivity was reflected by the export figures
of various Asian countries as well. India, from April
to August ’22, shipped apparel to the US market
worth US $ 2.67 billion noting 25 per cent Y-o-Y
growth; Bangladesh’s shipment to the USA valued
US $ 4.16 billion, that grew by 48.79 per cent;
whereas Sri Lanka noted growth of 38.77 per cent
to clock US $ 1.21 billion export revenues. These
statistics and positive developments are a huge sigh
of relief for factories.
The retailers have actually planned in advance this
year for the busy holiday season and brought apparel
products in the market earlier than normal to avoid
ongoing supply chain disruptions.
Not just USA, even other markets such as Canada,
Japan are starting to see positivity in consumer’s
sentiments who are on streets to shop for upcoming
holiday season. It’s only the European countries
which are showing constraint due to aftereffects of
war and recession.
Though the sentiments are positive, the possibility
of another slowdown can’t be denied as indicated
by the retail industry and that can be only be
seen when official US custom data is released for
September month.
Deepak Mohindra
Editor-in-Chief
e-mail me at dmohindra@apparelresources.com
Deepak Mohindra
10 AO India | November 2022