SL Apparel industry with half billion dollar export income eyes USA Fashion market
Sri Lanka Apparel manufacturers with half billion doll export earnings are planning to enter into the largest fashion marketplaces in USA displaying its manufacturing excellence with extensive operations in South Asia
, USA is the major export market for Sri Lanka apparel, with an export earnings of US$ 2.12 Bn in 2021 and accounting for 39% of the total apparel exports to the world and 69% of the total product exports to USA from Sri Lanka.
Sri Lanka Country pavilion with nine (9) Sri Lankan companies at “Magic Sourcing Exhibition” in Las Vegas, USA. has been able to attract the attention of US fashion buyers and brands who are looking to diversify their main supply source.
The fair showcased men’s and children’s apparel, footwear, accessories, and manufacturing resources around the world. Over 2,600 exhibitors from 45+ countries participated at MAGIC Las Vegas event in August 2022.
It has also offered opportunities for participants to expand their knowledge by taking part in over 50 free seminars and panels led by the industry experts.
The apparel industry has achieved its second back-to-back half-a-billion export haul in July propelling the first seven months’ performance to cross the $ 3 billion mark.
As per provisional data from the Joint Apparel Association Forum (JAAF), exports in July amounted to $ 522.14 million, up 22.64% from a year ago. Cumulative exports between January and July amounted to $ 3.3 billion, up 20.4% from the corresponding period of last year
The robust performance comes hot on the heels of the highest ever export of $ 537 million in June. The previous highest for any month was $ 504 million achieved in March 2019.
In July apparel exports to the US grew by 17% to $ 213.6 million, but lower in comparison to 67.6% YoY gain in June to $ 231.3 million. Exports to the EU grew by 32.3% to $ 154.29 million and to the UK by 29.3% to $ 75 million. In June exports to the UK grew by 16% to $ 69.5 million only. Exports to other markets were up 16% to $ 79 million.
In the first seven months of 2022, exports to the US grew by 27% to $ 1.4 billion, to the EU by 14.5% to $ 963 million and to the UK by 18% to $ 455.4 million. Exports to other markets were up 16.6% to $ 484.50 million.
Despite resilient performance so far in 2022, industry sources feared prospects for the remainder of the year were challenging. This is due to rising inflation in the EU and the US and existing inventory in the latter. Energy crisis ahead of the upcoming winter is also a factor that points to depressed market sentiments.
Last year apparel exports grew by 23% to $ 5.4 billion whilst in 2019 earnings amounted to $ 5.6 billion.