COVID-19 will wipe off $297 billion from the global apparel market in 2020, a 15.2 per cent decline over 2019, according to UK-based data analytics company GlobalData, which expects developing Asia-Pacific (APAC) markets, including China, India and South Korea, to raise their position in the top 10 global apparel markets by 2023, as mature Western markets lose out. China is expected to surpass the United States as the largest apparel market by 2023, it said.
The United States will account for 42 per cent of all lost spend, which will contribute to more major chains filing for Chapter 11 over the next few months, the company said in a press release.COVID-19 will wipe off $297 billion from the global apparel market in 2020, a 15.2 per cent fall over 2019, according to GlobalData, which expects developing Asia-Pacific markets to rise in the top 10 global apparel markets ranking by 2023, as mature Western markets lose out. China is expected to surpass the US as the largest apparel market by 2023, it said.#
APAC markets, on the other hand, are expected to be in a better position to counter the COVID-19 impact compared to their American and European counterparts driven by the growth in domestic demand, it forecast.
The 10 worst impacted markets, in terms of value, will represent 85 per cent of this total loss with mature markets suffering the hardest.
According to Vijay Bhupathiraju, retail analyst at GlobalData, though the recovery has already started across APAC markets, apparel sales will take some time to rebound amid dampened consumer confidence, slump in tourism, threat of an impending global recession and high unemployment rates.
“However, some of the lost sales will be compensated by the level of ‘revenge buying’ (sudden release of pent up demand from those willing and able to spend). Some brands across China for instance are seeing store sales return to 80-100% of pre-COVID-19 trading levels as the country relaxes lockdown measures,” he added.
Fibre2Fashion News Desk (DS)
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