Home / Knowledge / News / Apparel/Garments / Rebounding global economies good news for apparel makers
Rebounding global economies good news for apparel makers
08
Nov '13
After several years of strong revenue growth, the Global Apparel Manufacturing industry suffered weak demand conditions in 2009. As the global recession hit, demand for high-priced apparel declined in markets such as Europe, the United States and Japan.

While demand for apparel in emerging markets, such as China, continued to grow during this period, it did little to buffer the industry from the effects of the global recession. As a result, revenue dropped 13.8% in 2009 and has declined at an annualized rate of 0.2% over the five years to 2013. IBISWorld estimates that industry revenue will total $577.5 billion by the end of the year.

According to IBISWorld Industry Analyst Brandon Ruiz, “Revenue has grown since then, as demand from key markets has inched back up.” The United States is the single largest market for the Global Apparel Manufacturing industry, accounting for 16.7% of revenue in 2013. US GDP, 70.0% of which is consumer spending, is anticipated to grow 1.6% in 2013 and 2.6% in 2014. IBISWorld anticipates that this will support industry revenue growth of 1.8% and 4.7% in the two respective years.

International trade is a key characteristic of this industry. For example, imports are expected to account for 76.2% of domestic demand and exports are expected to account for 75.4% of industry revenue in 2013. Industry participants are continuously shifting manufacturing operations to low-wage countries or sourcing their products from independent contractors to minimize costs. China is the world's primary source of apparel; the country accounts for 38.0% of total industry exports.

“However, wages in China are rising, and despite its well-established manufacturing infrastructure, industry operators are slowly moving production activities out of the country,” says Ruiz. Other emerging countries, including India and Bangladesh, are growing their presence as key manufacturing regions.

Rebounding global economies will bring good news to the Global Apparel Manufacturing industry over the five years to 2018. Rising per capita disposable incomes, coupled with the steady upward trend in population, will give way to greater demand for apparel. Industry revenue is projected to grow over the five-year period.

IBIS World

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search