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    The Changing Direction Of The Global Garment Import Market Still Depends On China.

    2015/8/18 10:08:00 22

    ClothingImportsFashionUSAItalyKoreaFabricsTPP

    When it comes to the world

    clothing

    In the import market, people will first think of the two dominant States, the United States and the European Union.

    Imported

    The other countries and regions are ranked second.

    Recently, however, the United States is well known.

    fashion

    Commentator David Bourne Baum (DavidBirnbaum) analyzed and pointed out that in the past 15 years, the global pattern of clothing imports has changed quietly, and the leading position of the United States and the European Union is being gradually eroded.

    The increase in gross domestic product and the fall in FOB price are the main reasons for the pformation of global garment import pattern.

    GDP to boost import growth

    In 2000,

    U.S.A

    The European Union and the EU account for 54% of the total imports from the global market.

    If trade is included in the European Union, for example, from Germany.

    Italy

    The proportion of imported garments increased to 76%.

    In the same year, imports from the four largest markets from the European Union, the United States, Japan and Canada accounted for 66% of the total global clothing imports.

    And by 2013, the latest WTO data available, the share of the US and EU in the clothing import market has dropped from 54% to 40%, and the share of the four largest market has dropped from 66% to 50%.

    What causes this?

    Obviously, the growth of GDP in some countries has changed the pattern of world garment import market.

    For example, from 2000 to 2013, Russia imports from almost zero imports to about $9 billion a year, and imports increased by 2000% in 13 years.

    In the same period,

    The Republic of Korea

    Imports of clothing increased by 148%, the United Arab Emirates increased by 102%, and China increased by 92%.

    David Bourne Baum pointed out that imported clothing from developing countries will not increase significantly in the future, except China.

    "The direction of the global garment industry is still determined by China," he said.

    Over the same period, the share of the United States in the clothing import market dropped by 42%, which was not caused by the growth of domestic clothing production in the United States.

    In fact, in the past 20 years, domestic production in the United States has been declining.

    FOB will not decline forever.

    David Bourne Baum said that the decline in total imports of clothing in the United States was closely related to the fall in FOB prices of clothing products.

    According to statistics, from 2000 to 2013, the average FOB value of clothing products per square meter fell from 3.57 US dollars to 3.21 US dollars.

    This trend continued until March of this year, and the average FOB price of American Apparel products was 3.12 US dollars, down 12.5% compared with 2000.

    David Bourne Baum pointed out that the era of FOB fall will eventually be over. The ten years before the review were caused by some specific causes of price declines.

    He said: "the economic crisis in 2008 is an important reason for forcing the decline in FOB prices of clothing products.

    Although the recovery will take a long time, the FOB will eventually increase as a result of the growth of demand.

    He also believes that China is another factor contributing to the fall in FOB prices of global apparel products.

    "China's efficient productivity and dominant global market share not only reduces the prices of" made in China "products, but also forces factories around the world to lower prices in order to compete with China.

    But everything has its limits. When the cost growth exceeds the limit of productivity, then the higher productivity can not balance the cost pressure.

    So people began to choose clothes that are of lower value, such as cheaper ones.

    Fabric

    Materials, reduce sewing technical standards, etc.

    Of course, the cost is reduced, and the FOB price naturally goes down.

    In fact, according to the survey, consumers are not willing to accept low value clothing, even though the price of these garments is lower. "

    David Bourne and Baum said so.

    Trade agreements are the trend of development

    The increase of gross domestic product stimulated the growth of clothing imports in some countries, especially in developed countries, followed by the vigorous development of garment export industry in other countries.

    In recent years, garment processing plants can even be seen everywhere in some developing countries.

    In order to protect their clothing industry, countries have set up trade barriers. Clothing can be said to be one of the most highly protected products in the world.

    David Bourne and Baum said: "under the existing free trade system, both the garment exporting countries and the garment importing countries have vested interests, so no one wants to try to completely break this trade barrier.

    Garment exporting enterprises in developing countries regard the tax exemption agreement signed with industrialized countries as a right, hoping to obtain economic benefits through export duty garments.

    At the same time, the clothing importing countries believe that the tax exemption agreement is a good treatment for each other, and is also a means to maintain stable relations.

    For example, the European Union provides tax relief for many democratic countries; the United States gives tax concessions to Middle East strategic partners and Western Hemisphere neighbours.

    No one is in favour of the global free trade clothing agreement, because this agreement will undermine the social and political advantages of the existing system.

    Therefore, many countries and regions have begun to conclude free trade agreements based on regional factors.

    For example, the p Pacific Trade Agreement.

    TPP

    ) it will play a positive role in the clothing trade of almost all member countries.

    The only exception is the United States.

    David Bourne Baum believes that the US's import market share is no longer able to increase theoretically, and that the FOB price to the US has begun to stabilise according to the latest data.

    According to statistics, the garments manufactured locally in the United States now occupy only 2% of the market share, and the retail sales of imported garments occupy 98% of the US market share.

    In the European Union, more than 50% of the clothing products are from the EU.

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