─── An Analysis of Malaysian Apparel Performance from USA Import
the United States is the dominant consumer of imported apparel, with an
estimated 29% of world imports. Germany, Japan and France together account
for the next 25% of import consumption
the last 10 years from 1992 to 2002, there were 201 countries
worldwide exporting clothing to USA. (Please refer to Statistic for full context) show that
Malaysia rank as the 15th supplier of apparel to USA in year 1992
in terms of value. We are maintaining our sales for the past 10 years.
Unfortunately, compared with the double digit market growth, our ranking
fell to no. 23 as at May 2002. Are we striving hard for breakthroughs ? Or
are we lagging behind letting go our opportunities? Are
Malaysia Apparel industries doing well? Where is our future?
Table One : Apparel Exports to USA : Malaysian share
Competitors : Who
have by pass Malaysia?
2 indicates the significant rising stars of apparel
suppliers. Cambodia has the fastest
times). In 2001,
apparel export to USA rose 41.36% in quantity and 1.66% in value
compared with year 2000 and accounted for 2.23% of USA textile and apparel
imports. The ranking also rose from 21 to 16. El Salvador
(6.5 times) and Honduras (4.5 times) also emerge rapidly as key suppliers.
Table 2 Supplier of Apparel to USA : 1992 vs 5/2002
Our Challengers : Who are still behind Malaysia
and impose potential threat?
3 listed out countries that are dynamic suppliers of apparel to USA posing
great threat to Malaysia. Among which Vietnam
gained MFA status last year is expected to
by pass Malaysia within a year or two.
Table 3 : Major Potential Apparel Suppliers to USA
Our Neighbours : Asean Ranking
Table 4 shows that besides Malaysia, Singapore,
Philippines and Laos, all other 6 Asean countries are gaining a larger share
of the American apparel market.
Table 4 Asean ranking and May import figure
Our Mirror: Changes in Export Performance
Table 5 reveal
the export performance for the last 10 years following the reshaping of
sourcing. Strong upward growth shown in Latin America since 1993. The
influence of NAFTA and the CBI is evident.
Combined imports from CBI countries account for a major share of US
Combined imports from CBI countries account for a major share of US imports.
Table 5 : Export Sales Performance
Losers : Where
is our potential opportunity?
Despite of the NAFTA influence, Mexico is loosing their market share for the last 2 years. In, 2001, shipments from the country fell by almost 10%. South Korea, Taiwan and Italy are having higher labor cost than Malaysia. It is notable that Japan, Hong Kong, Taiwan and South Korea apparel manufacturers are shifting to China and other Asian countries for offshore manufacturing. We may take advantage of this opportunity to develop potential products.
The most significant expansion of apparel manufacturing is still in Asia. Despite of the intense competition and pressures, Asia is still having competitive advantage for US buyers. Lets continuously explore & develop the niche of Malaysia Products together. To prevent breakdown, let’s breakthrough.