Home / Knowledge / News / Fashion / Optimism for fashion sector's 5-year outlook drops: USFIA
Optimism for fashion sector's 5-year outlook drops: USFIA
24
Jul '17
Courtesy: United States Fashion Industry Association
Courtesy: United States Fashion Industry Association
A majority of retail executives are optimistic about the 5-year outlook for the fashion industry, however, the percentage has fallen from 92.3 per cent in 2016 to 71 per cent in 2017, as per a recent study. The US fashion industry is most concerned about the impact of trade protectionism, risk management, and border adjustment tax proposal.

The USFIA released the fourth annual Fashion Industry Benchmarking Study, which is a survey of 34 executives from the leading fashion and apparel brands, retailers, importers, and wholesalers.

The decline in the optimism for the outlook could be explained by the rise of new challenges for the industry—specifically, the ‘protectionist trade policy agenda in the US,’ which executives rank as their top challenge this year, up from being ranked the number 10 challenge last year.

Conducted in conjunction with Dr Sheng Lu, Assistant Professor at University of Delaware Department of Fashion & Apparel Studies, the survey asked respondents about the business outlook, sourcing practices, utilisation of Free Trade Agreements and preference programmes, and views on trade policy.

Executives are more concerned about trade protectionism, market competition from e-commerce, and supply chain risk than they are about cost; ‘increasing production or sourcing cost’ dropped from the number 2 concern in 2016 to the number 7 concern in 2017, according to the study.

Only 36 per cent of executives expect to increase sourcing from Vietnam, compared to 56 per cent last year; this is likely due to the US’ withdrawal from the Trans-Pacific Partnership. The study also says that among all sourcing destinations examined this year, Bangladesh is considered the most competitive in terms of price—but also the riskiest in terms of trade compliance.

Free trade agreements remain underutilised; only the North American Free Trade Agreement (NAFTA) is utilised by more than 50 per cent of companies surveyed. Ethical sourcing and sustainability are given more weight in sourcing decisions, with 87.5 per cent saying these issues have become more important in sourcing decisions today versus five years ago; 100 per cent of companies surveyed audit their suppliers, notes the study. All respondents unanimously opposed the US border adjustment tax (BAT) proposal.

The survey was conducted between April 2017 and May 2017. In terms of business size, 68 per cent have more than 1,000 employees, including 58 per cent with more than 3,000 employees; an additional 19 per cent have 101-500 employees. This suggests the findings well reflect the views of the most influential players in the US fashion industry. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Frank Gossmann
Rotorcraft AG

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

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

February 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search