- 13 Jul 2022
- ICICIdirect Research
Global retailers ask Indian apparel exporters to reduce prices
News: Global garment retailers are asking Indian exporters to reduce apparel prices as cotton prices have dropped 16% and the rupee has got devalued against the dollar. Global apparel retailers want Indian apparel exporters to provide apparel at pre-Covid prices.
Views: If the recessionary trend in the key markets of the US and Europe continues, there could be a reduction in apparel exports for Spring 2023, which can negatively impact the order book of Indian apparel exporters. India exported clothing worth $16 billion in FY22 and is targeting $19 billion for FY23, which could be missed if the current trend prevails. However, Indian exporters are trying to mitigate the impact by looking to enter newer markets in Latin America, Australia, Japan and UAE. Also, Indian exporters can look to fill the vacuum left by competing apparel exporting countries such as Sri Lanka, Pakistan, and Myanmar who are facing some internal problems. Over the longer term , China +1 strategy of global retailers is expected to be beneficial for Indian exporters.