Apparel trade Satuation

According to the US Department of Commerce, the total value of garment exports from the US in February 2021 was $3.2 billion. This was a decrease of 4.2%!f(MISSING)rom the same period in 2020. The top five countries that imported US garments in February 2021 were Mexico ($717 million), Canada ($619 million), the United Kingdom ($541 million), Germany ($521 million), and Japan ($420 million).

There are two situations in garment export trade. One is that the exporter designs and makes samples for the importer to choose and order. In this way, we can determine the clothing varieties, specifications, styles, materials, processes and so on. In this form of production, enterprises can organize production or supply of goods according to the existing resources and take the initiative to strive for their own target market, but they will also directly face the market risks brought by this. Theoretically, under the premise of this production mode, enterprises can determine production according to their own conditions, and determine production factors and production organization according to market conditions. However, in the overall “supply exceeds demand” of the international clothing market, this situation is only suitable for the strong market analysis and forecasting ability, but also has a strong design ability and business decision-making ability, familiar with the international market. The other is that the importer provides samples of clothing, even clothing materials, and the exporter organizes production according to the samples. In this case, the export of clothing is determined by the customer based on the analysis and judgment of the market information he has mastered, and confirmed through the form of contract. The garment export enterprises are basically free from the direct pressure from the market.


However, in the overall “supply exceeds demand” of the international clothing market, this situation is only suitable for the strong market analysis and forecasting ability, but also has a strong design ability and business decision-making ability, familiar with the international market. The other is that the importer provides samples of clothing, even clothing materials, and the exporter organizes production according to the samples. In this case, the export of clothing is determined by the customer based on the analysis and judgment of the market information he has mastered, and confirmed through the form of contract. The garment export enterprises are basically free from the direct pressure from the market. However, each batch of exported clothing may be different, which may not only be reflected in the scale and quantity of clothing production, but also in the variety, specifications, materials, styles, processes and quality standards of clothing. Therefore, strong market response and production capacity are required in the production or source organization. To ensure that the quality, quantity, on time to complete the customer specified production tasks.


According to the different sources of clothing fabrics, the garment export heavy mat trade can be divided into export trade of domestic fabrics purchased by the exporter; Export trade in which the importer designates and the exporter imports fabrics from abroad; And export trade where the importer supplies the fabric and the exporter processes it. The procurement of domestic fabrics is more convenient, the cycle is shorter, and the price is lower. The export of garments made of imported fabrics will encounter problems such as long purchasing cycle, high price and easy to be affected by exchange rate. The export of garments processed from raw materials is relatively simple, but the profit is low, and the production schedule will be restricted to a certain extent.

Apparel trade Satuation


Post time: Feb-18-2023