Amidst several negatives in Indian apparel export industry, there is a positive development also. Enquiries from US market are increasing,which can, importantly,get converted into more orders too.
Garment exporters and leading buying houses have accepted that in last one and half month there have been 20 to 25 per cent more enquiries from their US-based clients.
These high enquiries hold significance considering India’s apparel export to USA in Feb 2021 went downwards. Indian apparel export to USA was down by 21 per cent in value, while it was 15 per cent down in volume in Feb.’ 21 compared to Feb.’20.
Apparel Resources recently reported that USA apparel imports (in Feb. ’21) increased 3.70% in volume terms – first time in 17 months!
“US-based buyers’ sentiments are very good.Our company has seen 20-25 per cent increase in the enquiries in last one month. We are hopeful that order will also be more and India will have good business after the negative experience of 2020,” shared a top level professional of Gurugram-based leading buying house on the request of not disclosing his identity.
He further added that higher enquiries are more from big brands and retailers as medium and small brands hesitate to take any risk.
Few other apparel exporters catering to the US market also agreed on these observations and said that they are hopeful that India’s apparel export to US will grow in next few months.
With regard to apparel sourcing, the US is supporting India and Vietnam, so that it can reduce its dependency on China. From trade war to all the recent developments in China like China’s Uyghur ‘genocide’, and the recent China’ retail nationalism on the issue of Xinjiang cotton are pushing US clothing giants to reduce sourcing from China.
As far as positive consumer sentiments in US are concerned, there are few strong reasons for the same. Despite the US having maximum cases of COVID-19, compared to any other country in the world, there has been no lockdown – not to mention the fast pace at which vaccination drive is going on in the country; also the US Government has overall been very supportive.
Regarding yarn price or allied challenges in India, US-based buyers are well aware that yarn issue more or less exists with all apparel manufacturing countries be it India, Bangladesh or China.