On a 4 February deadline, Sourcing Journal discusses changes in denim sourcing trends:
Arthur Friedman | February 4, 2021
The following is an excerpt...
Predicting future sourcing patterns in any business segment during the time of coronavirus is daunting—even for the all-American denim jeans market. And because the global pandemic came on the heels of the U.S.-China trade war and uncertainty over the transition from the North America Free Trade Agreement to the United States-Mexico-Canada Agreement (USMCA), that has clouded the outlook even more. Denim imports have been hit hard, thanks to retail’s pandemic-prompted pause and the effects that had on trade.
“But we also see another important trend—a shift of sourcing from China to other suppliers, which is part of the industry response to the trade wars,” said Julia Hughes, president of the United States Fashion Industry Association (USFIA). “Imports from China dropped substantially [in 2020] down by 49 percent for men’s denim jeans and down by 47 percent for women’s denim jeans.”
Asian denim suppliers outside of China have benefitted the biggest from the fallout. “Vietnam and Cambodia, in particular, are selling more denim to the U.S. today,” Hughes said. “Outside Asia, women’s denim imports from Turkey are growing, and the largest surge in denim imports comes from duty-free AGOA supplier Ethiopia. Imports of men’s denim jeans grew by 297 percent and women’s denim jeans grew by 128 percent. We see this growth as a positive indicator for the rebound in consumer demand.”