The global economy is down, and the warehouses of Bangladesh, a big garment country, are piled up like mountains

Inflation in Europe and the United States is still at a high level, layoffs in the technology industry continue to be heard, and consumers in major markets are gradually shrinking. Clothes are currently piled up in warehouses in Bangladesh, a major garment manufacturing country. However, the predicament of "high inventory of garments" may spread to China, the European Union, Vietnam, Turkey and other major garment manufacturing and exporting countries. It is predicted that major brand manufacturers will launch promotions at the end of the year to resolve the crisis.

 

European and American consumers shrank their hands, and warehouses in Bangladesh piled up like mountains

According to the 2020 data of the World Trade Organization (WTO), the global garment trade in 2020 will be 448 billion US dollars, a decline of 8.9% compared with 2019.

 

The world's largest garment exporter is still China, with an export value of US$141.6 billion, accounting for 31.6% of the global garment trade. After that, the European Union, Vietnam, Bangladesh, and Turkey ranked 2nd to 5th. Among the 10 ASEAN countries, in addition to Vietnam, Malaysia, Indonesia, Cambodia, Myanmar, and Thailand also entered the top 15.

 

Taiwan's garment industry belongs to the latter stage, ranking 35th in the world. Except for some domestic markets, garment factories mainly exporting mainly use high-quality and competitively priced gauze, and produce small quantities, complicated styles or short delivery times. The order is delivered to Taiwan for production.

 

The top three markets of global ready-made garments are the main importing countries, the European Union, the United States and Japan, with a total import of 195.2 billion US dollars, accounting for 39.7% of the global ready-made garment import trade. They have a key influence in their industries, and they are falling into the economic In the mud.

 

In particular, there are constant rumors of layoffs by companies in Europe and the United States, and consumers in major markets have begun to cut back on spending, causing clothes to pile up in warehouses in Bangladesh, an exporter of garments. Faruque Hassan, president of the Bangladesh Apparel Manufacturers and Exporters Association, said: "Everything is going up, and clothing budgets are being squeezed... This is the main reason why brands and importers have dropped orders."

 

Bangladesh also has other problems to contend with, with Prime Minister Sheikh Hasina's government grappling with soaring imported gas prices that have caused power outages and hit some garment makers. On the other hand, they also turned to the International Monetary Fund (IMF) and secured $2.3 billion in credit facilities, and $1.3 billion in resilience and sustainability programs.

 

The problem of high inventory may spread to many major garment countries

It is worth noting that, according to the report of the World Trade Organization, the high inventory problem of garment manufacturing in Bangladesh is expected to occur in China, the European Union, Vietnam, Turkey, Malaysia, Indonesia, Cambodia, Myanmar and Thailand in the future. country. Related textiles may also be affected.

 

According to WTO statistics, the global textile trade volume is US$354 billion, and the garment trade volume is US$448 billion, totaling US$802 billion, an increase of 0.7% from US$796.7 billion in 2019.

 

China is still the world's largest textile exporter, with an export value of US$154.1 billion, accounting for 43.5% of global textile trade, followed by the European Union, India, Turkey and the United States.

 

Compared with the export value of the top 5 suppliers in 2019, only China grew.

 

Vietnam surpassed South Korea for the first time and jumped to No. 6, with an export value growth of 11%. South Korea ranked No. 7, and Taiwan ranked No. 9, with an export value of US$7.1 billion. Although Taiwan ranks at the bottom of the list of total exports, it is an important global supplier of functional and environmentally friendly textiles.

 

In order to alleviate the problem of high inventory in various places, including NIKE and Adidas, they are trying to use up the inventory during the Christmas sales season at the end of the year. Ruhong and Juyang, Taiwan's leading functional textile manufacturers, both emphasized that brand owners continue to sell and promote, and they can observe the inventory depletion situation. However, it is also possible to grasp the popular trend of the consumer market next year from the sales process and grasp the order direction as soon as possible.