The apparel sector may have moved on from the pandemic
but uncertainty remains in the air with recession and concerns over pay
throughout the supply chain all bubbling beneath the surface.
It’s now over
three years since the Covid pandemic swept across the world causing disruption
like we’ve never seen before. But despite the fact life looks completely back
to normal and ‘rosy’ on the surface, the state of the apparel sector right now
indicates the world and the supply chain still hasn’t found its ‘new normal’.
US apparel imports hit a new
low due to the weakened economy in the first two months of 2023, according to
Professor Sheng Lu’s analysis of the Office of Textiles and Apparel (OTEXA)
data. And despite China completely reopening its doors earlier this year, concerns
over forced labour and the risks of being too overly reliant on one sourcing
destination means US fashion companies are still shifting the types of products
they import from China.
To put it frankly, the global
supply chain as we know it is still sitting on shaky ground with even port
workers in the US withholding their labour.
You know there’s a big problem
when the National Retail Federation along with 238 states, local and federal
trade associations have to write to the US President urging to help the
negotiating parties in LA, Long Beach reach a new agreement quickly.
And retail stores need these
apparel goods to arrive now more now than ever to ensure there is a big enough
choice to spark the interest of their customers who are plagued with higher
bills and rising inflation.
It’s not just the US that is
struggling, in the UK most public services are disrupted on a monthly, weekly
and sometimes daily basis due to concerns over pay and working hours – this
includes transport, which is vital to get customers into apparel retail stores.
It’s got to the point where
strikes have become the norm but we cannot forget these issues over pay mean
the apparel sector can’t be surprised when their faithful customers choose not
to spend their hard earned pennies on a new outfit or pair of shoes.
In fact, apparel retailer Superdry
had to admit defeat last week and revise its annual profit outlook for FY23
after its sales in February and March missed expectations. The company blamed
it on the cost of living crisis and poor weather driving down demand.
Revising a financial outlook
is one thing, but that doesn’t deal with the bigger problem. Is it now time for
all global apparel companies and everyone working within the supply chain to
consider what really needs to change to get the sector and indeed the entire
world moving again?
By Just Style