In 2020 several new trade patterns emerged in the global textile and apparel industry, as per the new World Trade Statistical Review 2021 report released by the World Trade Organization (WTO). A new course material from Fash455 course shows, some of these patterns were a continuation of earlier trends while others evolved with companies’ shifting production and sourcing strategies in response to the changing business environment.

Textile exports rise while apparel exports decline

The first trend was a 16.1 rise in global textile exports against a 9 per cent decline in apparel exports. Driven by an increased demand for personal protective equipment (PPE), global textile exports grew to $353 billion during the year. In comparison, affected by recurrent lockdowns, reduced discretionary spending and a declining economy, apparel exports fell to $448 billion from 2019.

Apparel exports rebounded to 95 per cent of pre-COVID levels by 2020-end as economic activities returned to normal. However, resurgence of COVID-19 case in the mid-year caused an uneven balance in the recovery of global textile and apparel trade.

China, EU and India export 65.8 per cent of world’s textiles

Textile exports from China, the European Union and India gained a new momentum during the pandemic. Together these three countries exported 65.8 per cent of the world’s textiles in 2020. Exports by China and Vietnam grew 28.9 and 10.7 per cent during the year. Exports by the US dropped during the year leading its position dropping from fourth to fifth largest textile exporter in 2020. The country exported 3.2 per cent of the world’s textiles during the year. Around 67 per cent of its exports were directed to the Western Hemisphere including 48 per cent for USMCA (US-Mexico-Canada trade agreement) members.

China’s share rebounds

Efforts to diversify apparel sourcing from China slowed during the year as its share in the global apparel market rebounded to 31.6 per cent in 2020 from 30.7 per cent in 2019. Even in the US, China’s market share recorded a marginal decline from 30.8 per cent in 2019 to 29.8 per cent in 2020 as the sourcing criteria of brands and retailers matched China’s competitiveness during the year. Also, China faced a shorter lockdown period compared to other nations and resumed production sooner. By July 2020, Chinese textile and apparel factories had resumed 95 per cent of their operational capacity.

Nevertheless, fashion companies remain determined in their efforts to reduce China sourcing. They are being pushed in their resolve by non-economic factors, particularly the concerns about forced labor in China’s Xinjiang region, Post COVID-19, China’s share is likely to be picked up jointly by its Asian competitors like Bangladesh and Pakistan.

Textile imports by developing countries decline

Driven by increasing demand for PPE, textile imports by developed economies, including EU members, the US, Japan, and Canada, surged over 30 per cent in 2020. Meanwhile, though developing countries imported more textile raw materials like yarns and fabrics, their textile imports declined during the year.

Apparel imports by the world’s three largest importers the European Union, the United States, and Japan reached a record low in the past 10 years. Imports by these three countries combined dropped to 58 per cent during the year. On the other hand, China’s apparel imports increased 6.5 per cent from 2019. From 2010 to 2020, China’s apparel imports grew by 15 per cent annually. Of this, around 30 per cent constituted luxury items made in the EU.

By Fashionating World
https://www.fashionatingworld.com/new1-2/china-s-share-in-global-textile-and-apparel-trade-rebounds-as-exports-surge