Clothe Market Review 2008, Emerging Clothe Trends 2009, Upcoming Clothing Trends, Fibre2fashion

The scope of marketing isbroadened whenever a country sells its products in the international market.Here the culture and activities of one country meets the others. To remainsuccessful, every country, and organization participating in the global race hasto take care of the enduring components of marketing; namely 'customer value','focus', and 'competitive advantage'. Apparel market is competitive andchallenging both in terms of manufacturing and retailing. The year 2008 hascaused a mixed reaction in the global market for clothing. Looming recessionand a resulting economic slowdown has weakened the consumer's confidencethereby considerable influencing the overall apparel sales for 2008.

Asian markets played a key roleduring 2008. The demographic evolution in Asian countries like India and China,and increasing brand awareness, have caused a drastic change in the preferencesof consumers who had began to shift their choice towards branded apparels,boosting the growth of organized clothing sector. US has started an'anti-subsidy' war against the import of Chinese clothing. Effects of Obama'strade policies and its influence in the US apparel market are yet; unknown.Performance of Bangladesh and Vietnam ascertained to be strong, with Vietnam proving to be a 'rising star' in the global forefront.

China:

China is currently a dominantplayer in the global clothing market. The country is able to gain a competitiveadvantage in the global forefront due to its positive economic transformation,Government support, and raw material cost. Despite a fall in the export figuresduring 2008 due to economic slowdown, China's dominance in the global clothingindustry will remain unaffected. Exports increased by 11% during the first halfof the year.

China depends more on EU and USfor its clothing exports. Chinese apparel prices in the EU market rose for somecategories. However, with the spreading recession, increase in labor costs, andfalling Euro, export figures showed a declining trend during the third quarterof 2008. With the removal of quotas and rising currency value in EU, China is positively expecting an upturn.

India:

Like every other country, plaguedby recession, India is also badly hit, its apparel exports to US and EU slowingdown. US and EU comprise of 64% of the global trade, and changes in theirfunctioning affect the global market as a whole. Rising labor andtransportation costs affect the apparel exports for the year. Analysts predictthat the export prices will further be reduced.

India is an imperative tradeassociate for EU and has a growing economic power that will reshape the globaleconomy in the years to come. Establishment of a comprehensive and wide-rangingfree-trade agreement between EU and India is proposed, which is expected tobring positive consequences for textile and clothing segments. This would favorIndian apparel exports into EU, and simultaneously attract more investmentsfrom EU into the retail industry of India.

US:

Apparel imports of US, whichconstitute a major share in the world market showed a declining trend with anoverall decrease of 3.3% during 2008. However, in December, with the removal ofquotas, textile and apparel imports surged from China. Central America wasmainly affected by China's performance. Imports into the US markets from Vietnam and Bangladesh remained strong.

US started its 'anti-subsidy'battle against China's textile and apparel imports during December; a few daysprior to the expiry of quotas. Earlier the Bush regime attempted to restrictthe clothing inflow from China. As the economic turmoil is pressing the countryharder, US is now under the pressure to opt a fair trade with China. Obama's policies will disclose what is in store for China's clothing imports into US.

Vietnam:

Vietnam is the fourth most attractive market in the world next to India, China and Russia. Potential growth opportunities, increasing demand for consumer goods, and a gradual increase in the disposable income fuel its performance. Exports to EU and US surged, showing a positive growth during the first ten months of 2008. The slowdown had its impact in the country's market, causing a dent in its trade revenues. Their products encountered a sturdy competition with garments from countries like India, and China especially in the supermarkets.

Bangladesh:

Bangladesh performed well among the South Asian countries in the post-quota era, though it faced a tough competition from India and China. During the first half, clothing exports rose by 16.2% due to its low priced products. Low rates of inflation and abundant availability of raw materials for a cheaper cost provide strong opportunities for Bangladesh to perform in the global market. However, in the second half, the economic slowdown that hit US and EU caused a slight decrease in demand.

UK:

Clothing market, which has been the main source of trade in UK, is being dominated mainly by price for the past ten years. It is now witnessing a declining trend for the past two years due to indefensible debts and rising costs. Menswear showed a stable performance, while womens wear market showed a slight increase of 3.2%, and childrenswear market experienced a downtrend. Consumers' likeness for clothing is seeing a declining trend.

Sri Lanka:

Clothing industry in Sri Lanka is progressively shifting towards the process of making higher value added products. Clothing exports grew by 3.7% during the first quarter of ' 08. Their exports were adversely affected in the second half of the year due to the global turmoil, and their unsustainable currency peg. Despite the decline in exports to US and EU, the country did not lose its competiveness due to the duty free access of clothing into EU.

Pakistan:

With the advent of global crisis, many plants in Pakistan were shut down. Along with other facts such as energy shortages, high inflation, and currency appreciation, overall performance of the country witnessed a downward drooping trend. Woven exports went down by 19%. Weak economy in US and EU caused a decline of 2.3% in Pakistan's clothing exports.

Upcoming Trends:

Consumers drive the clothing business. Industry analysts predict about a raging textile trade protectionism, decline in the exports in countries like Asia. The 'buy American' strategy introduced by Obama for restricting the purchase of certain uniforms is likely to create a controversial situation.

Market leaders positively assert that the global market for textile and apparels will stop shrinking by 2009, despite the deep scars of recession. Raw material costs in Asian countries would not decrease. Low inflation rates will prevail in these countries thereby not manipulating a rise in the manufacturing costs.

Drastic changes in the value of European currency will affect the imports of EU. Chinese currency is not expected to appreciate against the US dollar. A decline in the Turkish Lira and the Korean won is anticipated. Frequently changing currency values will affect the purchasing habits of the consumers.

People always feel inclined by buy clothes. Despite the economic slowdown, and resulting job losses, apparel sales in the global market remained steady, though there were minor fluctuations. The ultimate secret of success in the clothing market is to manufacture clothes according to the preference of the consumers and sell it to them in the way they desire.

References:

Clothe Market Review, '08 & Emerging Trends for '09

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Clothe Market Review, '08 & Emerging Trends for '09

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