EU Market Watch (APR-JUL 17)

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1.0 Introduction: 

 

The EU is considered as the largest T&C market of the world followed by US with an import of about $ 269.99 Bn during 2016. The import consists of trade among the member countries (Intra trade) and from Rest of World (RoW). It is important to note that the EU import of T&C has been growing by 1.38% CAGR during 2012-2016 and by 2.34% in 2016 as compared to previous year.

As such, the EU has contributed additional $ 17.87 Bn to T&C market during last five years including $6.18 Bn in 2016 alone. In view of its important import share in the global T&C trade, the EU market plays a crucial role in the overall export performance of the most of the textiles producing & exporting countries like India.                                                                

    Source: Eurostat

Being the largest market, the major T&C exporting countries like India, need to study month-wise trend and composition of the export both at aggregate and product levels so as to facilitate proper decision making/business strategy at the level of government and the trade & industry. The major highlights of the Market Report are as follows:

 

 

 

2.0 EU as an export destination (Apr-Jul’ 2017):

 

The EU T&C market is mainly driven by imports from (a) Rest of the World (RoW) and (b) Intra EU trade among the member countries. The inclusion of the members like Bulgaria, Poland, Czech Rep., Croatia etc has enhanced the strength of EU as a major textile producing and exporting union. Even if, the extra EU trade determines the trend and composition of the trade within the

 

union, the intra EU trade among the member countries has been growing during last few years. 

i.          The key trends of trade in T&C during April to July, 2017 indicates that the EU T&C import including both intra trade among the members and import from the rest of the Rest of World (RoW) was $ 81.96 Bn during the period in Apr-Jul’ 2017 as compared to $ 80.29 Bn during the same period in 2016 and have registered a positive growth of 2.09%.

ii.         Intra EU trade of textiles has grown from $128.50 Bn in 2012 to $133.45 Bn in 2016 with a CAGR of 0.76%. 

iii.        Extra EU on the other hand has also grown from $123.62 Bn in 2012 to $136.54 Bn in 2016 with a CAGR of 2.01% during the same period. The month wise growth trajectory of the intra-EU and extra EU trade during the period is also provides a similar trend. 

The detailed intra & extra trade in T&C during April-July’ 2017 is as follows:

 

2.1 Extra-EU:

 

       EU T&C import from the extra EU was $ 41.89 Bn in Apr-Jul’ 2017. The major chapters contributing to this import basket are Chapter-61 (Knitted apparel) with a share of 35.47%, Chapter-62 (Woven apparel) with 35.52% and Chapter-63 (Other made-ups) with 9.59% during the period. These three chapters alone have contributed $ 33.76 Bn (80.59%) during Apr-Jul’ 2017. The imports of these three chapters have experienced 2.31% growth during the period as compared to previous year.

       The imports of textiles (Chapter 50 to 60) have contributed $ 8.13 Bn (19.41%) and experienced 0.73% growth during the period as compared to previous year. Among the textile chapters, the chapter-54 (Manmade filaments) has contributed significantly. 

       The growing import of value added products like apparel & made-ups provide a positive and favorable condition to the countries having export interest to this destination. 

       China was leading exporter to EU with $ 13.21 Bn of export with 31.53 percent share followed by Bangladesh $ 5.91 Bn (14.10%), Turkey $ 5.48 Bn (13.08%), India $ 3.18 Bn (7.60%) and Pakistan $ 2.01 Bn (4.79%) during Apr-Jul’ 2017. While Chinese export has grown by 2.70% during the period as compared to previous year, export growth of other countries was -0.29%, -0.69%, -0.43% and 8.13% respectively during the period as compared to previous year.Pakistan’s export of T&C to EU has experienced highest growth during the period.

       India’s export of T&C on the other hand increased to $9.26 bn in 2016 from $8.39 bn in 2012 with a growth of 1.99% during 2012-16. When the EU market has grown by 2.34% as compared to previous years, India’s growth of -0.43%, indicates that India is losing its market share to competitors particularly to Pakistan, Bangladesh, and Vietnam etc. Pakistan has performed extremely well in the EU, perhaps due to GSP Plus scheme offering zero tariff export to EU market.

 

2.1.1 Product level Performance: 

 

       The rest of the world has exported 1152 products at 8 digit HS level during the period, out of which 22 products have contributed significantly with a share of 40.26% during the period to the basket. 

       The major products are T-shirts, singlets and other vests of cotton(61091000), T-shirts, singlets and other vests of artificial fibres (61099020),Women's jerseys, pullovers, cardigans, waistcoats of man-made fibres

(61103099), Men's or boys' trousers and breeches of cotton denim (62034231) and Women's blouses, shirts and shirt-blouses of man-made fibres (62064000).

       Among the top 22 performing products, China has a presence in almost all products; where as India’s export is less than China in 20 products.  While 2 products T-shirts, singlets and other vests, knitted or crocheted - Of cotton (61091000) and Toilet linen and kitchen linen, of terry toweling of cotton (63026000) are out performing China in EU market.

       Out 22 products, the export growth of 6 products i.e. T-shirts, singlets and other vests of artificial fibres (61099020), Women's jerseys, pullovers, cardigans, waistcoats of man-made fibres (61103099), Brassieres, girdles, corsets, braces, suspenders, garters: Other (62121090), Men's or boys' jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, (61102091), Women's anoraks, windcheaters, wind jackets of man-made fibres (62029300) and Men's anoraks, windcheaters, wind jackets and similar articles, of man-made fibres (62019300) is positive.

       At the same time the negative growth in the top products like T-shirts, singlets and other vests of cotton (61091000), Men's or boys' trousers and breeches of cotton denim  (62034231) and Women's blouses, shirts and shirt-blouses of man-made fibres (62064000) etc, may have dragged the overall performance of India’s T&C export to EU. A detailed products wise trend is enclosed in Annexure-I.

 

2.2 Intra-EU:

 

       The 28 EU members are not only trading with Rest of World (RoW) but also trading with each other for T&C products.

       The intra EU trade of T&C was $ 40.07 Bn in Apr-Jul’ 2017. The major contributions to the import basket are Chapter-61 (Knitted apparel), Chapter-62 (Woven apparel) and Chapter-63 (Other made-ups) during the period. The trade in these chapters has experienced a growth of 2.51% during the period as compared to previous year. 

       These three chapters have contributed $ 26.97 Bn (67.31%) and textiles (Chapter 50 to 60) contributed $ 13.10 Bn (32.69%) during April-July’2017.

       Germany was the leading exporter in intra EU market with $ 7.98 billion and contributed 19.92 percent among the member countries followed by Italy $ 5.79 Bn (14.45%), Netherlands $ 3.62 Bn (9.04%), France $ 2.97 Bn (7.41%) and Spain $ 2.86 Bn (7.15%) during Apr-Jul’ 2017. The major T&C products exported by the member countries are T-shirts, singlets and other vests of cotton (61091000), T-shirts, singlets and other vests of artificial fibres (61099020), Men's or boys' trousers and breeches of cotton denim  (62034231), Women's shirts and shirt-blouses of man-made fibres (62064000) and Brassieres of all types of textile materials, whether or not elasticated, (62121090) etc.

 

 

Top exporters to EU (Extra & Intra) during Apr-Jul’ 2017 ($ Bn)

Source: Eurostat

 

 

3.0 India’s T&C Export to EU Market (Apr-Jul’ 2017):

       India exported $ 12.30 Bn of T&C to the World during Apr-Jul’ 2017 out of which the export to EU is about $ 3.18 Bn. The EU contributed about 25.86% to the aggregate export basket of T&C of India and hence played a crucial role for the country. 

It may be noted here that India’s export has declined to $3.18 Bn from $ 3.20 Bn during the same period of the previous year. Even if, our T&C export to the rest of world has increased slightly, the decline in export to EU indicates that India may be loosing its presence in this important destination to competitors like China, Bangladesh, Vietnam and Pakistan etc.

 

       India’s aggregate export of Textiles to EU (HS Chapter 50 to 60) was $ 0.65 billion during Apr-Jul’ 2017, which is 13.97 percent of India’s total textiles exports to the world. The export of textiles has experienced a growth of 3.97% during the period as compared to previous period.

       India’s aggregate export of Clothing to EU (HS Chapter 61 to 63) was $ 2.53 billion during Apr-Jul’ 2017 which is 33.07 percent of India’s total clothing exports to the world. The export of clothing has experienced a negative growth of 1.49% during the period as compared to previous period.

       Top 20 Products (whose share is more than 1%) has contributed 50.02 percent to the export basket in EU market during Apr-Jul’ 2017.

       The share of these top 20 products was 50.20 percent in the same period of 2016.

Table-2

India’s T&C Exports to EU (Mn. $)

Fig-1

Change in the exports

Month

April-July

 

2016

2017

%

Change

April

893.59

772.09

-13.60%

May

779.62

845.53

8.45%

June

783.58

774.19

-1.20%

July

740.63

790.31

6.71%

Apr-July

3197.43

3182.12

-0.48%

Source: Eurostat

 

Comments

       India’s export to EU has experienced highest negative growth (-13.60%) in April, 2017 as compared to the same period in 2016, but reversed in the subsequent month.

       The month wise fluctuation of the export from India is visible in the trend.

       Some of the policy issues like granting New EU GSP Plus scheme to Pakistan, signing up of FTA by EU with Vietnam and growing intra EU trade may be influencing the T&C export performance of India.

 

 

3.1 India’s Top Performing Products in EU market (Apr–Jul’ 2017)

       The major 8 products have experienced positive growth in India’s export basket during April–July’ 2017 as compared to the same period during

2016 are as follows

                                                                                                                                            

Table-3: Top performing products of India (Mn.$)

Products

Descriptions

Apr-Jul’ 2016

Apr-Jul’ 2017

% change

62063000

Women's or girls blouses, shirts of cotton, not knitted

108.20

114.01

5.37%

63053219

Flexible intermediate bulk containers, for packing of goods, of polyethylene or polypropylene strips, (excl. knitted or crocheted)

73.21

88.94

21.50%

62044200

Women's or girls dresses of cotton, not knitted

59.72

63.26

5.93%

62044300

Women's or girls dresses of synthetic fibres , not knitted

60.51

62.01

2.48%

61099020

T-shirts, singlets of artificial fibres, knitted

48.59

52.63

8.31%

52052300

Single cotton yarn, of combed fibres, containing >=85% cotton by weight 

23.90

32.22

34.83%

61071100

Men's or boys underpants and briefs of cotton, knitted

30.88

31.56

2.19%

61072100

Men's or boys nightshirts of cotton, knitted or crocheted

25.94

30.22

16.49%

Total

430.96

474.87

10.19%

Source: Eurostat

 

The export of products like 63053219, 61099020, 52052300 and 61072100 have increased with a growth of 21.50%, 8.31%, 34.83% and 16.49% respectively; which is quite promising from the export perspective of the country.

 

3.2 India’s Top Products having negative growth (Apr–Jul’ 2017)

       Major 12 products have experienced negative growth during April –July’ 2017 as compared to the same period during 2016

 

Table-4: Top Products having negative growth (Mn $)

Products

Descriptions

Apr-Jul’ 2016

Apr-Jul’ 2017

% change

61091000

T-shirts, singlets and other vests of cotton, knitted

279.23

277.07

-0.77%

62064000

Women's or girls blouses, shirts of manmade fibres, not knitted

169.94

160.71

-5.43%

61112090

Babies' garments accessories, of cotton,

113.89

111.37

-2.21%

Products

Descriptions

Apr-Jul’ 2016

Apr-Jul’ 2017

% change

 

knitted 

 

 

 

62052000

Men's or boys shirts of cotton, not knitted 

99.25

93.74

-5.56%

61046200

Women's or girls trousers, bib and brace overalls of cotton, knitted 

74.34

73.29

-1.42%

62044400

Women's or girls dresses of artificial fibres, not knitted

76.32

60.01

-21.37%

63026000

Toilet linen and kitchen linen, of terry towelling  of cotton

61.36

58.23

-5.11%

61051000

Men's or boys shirts of cotton, knitted or crocheted

50.39

49.65

-1.47%

61083100

Women's or girls  nightdresses  of cotton, knitted 

48.86

46.41

-5.01%

62114390

 Women’s or girls’ other garments of manmade fibres, not knitted

49.45

39.34

-20.45%

61044200

Women's or girls' dresses, of cotton, knitted 

36.39

32.61

-10.40%

62034235

Men's or boys' trousers of cotton, woven

32.22

31.09

-3.48%

Total

1091.65

1033.52

-5.33%

Source: Eurostat

 

Even if, most of these 12 products have grown positively during last five years prior to 2016 except Men's or boys shirts of cotton, not knitted (62052000), Toilet linen and kitchen linen, of terry toweling  of cotton (63026000) & Men's or boys shirts of cotton, knitted or crocheted (61051000), these product have experienced negative growth during last five year. Countries like Cambodia, Pakistan, Bangladesh, Vietnam, Spain, Poland & Myanmar have gained market share in the EU during last five years. The surge in the export from these countries may be the key factor for the decline in the India’s export to EU. 

 

Further, out of 12 products, 9 are cotton based products, in which India has traditionally been performing well in most of the export destinations. The negative growth in these cotton based products may be one of the reasons for decline in the export of T&C in EU, and decline in the cotton based products may be a concern for the India’s export basket for achieving desirable growth in future. 

 

It may be noted that while China is able to maintain its position as number one exporter of T&C, India has fallen down to 4th position from 2nd position during last few years, which may be matter of concern for the Indian textiles sector & may create difficulties in future in accelerating export growth to these destinations needed for bolstering our T&C exports to the world. 

 

 

Annexure-I

Table-1: Top Importing Products of EU from Extra-EU ($ millions)

 

Products

Descriptions

Apr-Jul' 2016

Apr-Jul' 2017

%change

61091000

T-shirts, singlets and other vests of cotton, knitted or crocheted: Of cotton

2386.07

2420.67

6.11%

61099020

T-shirts, singlets and other vests of textile materials, knitted or crocheted (excl. cotton): Of artificial fibres

1127.75

1061.78

2.68%

61103099

Women's  jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres,

946.82

906.38

2.29%

62034231

Men's  trousers and breeches of cotton denim

895.83

855.23

2.16%

62064000

Women's blouses, shirts and shirt-blouses of manmade fibres (excl. knitted or crocheted and vests): Of man-made fibres

795.29

813.52

2.05%

62052000

Men's  shirts of cotton (excl. knitted or crocheted, nightshirts, singlets and other vests): Of cotton

865.43

804.03

2.03%

62046231

Women's cotton denim trousers and breeches 

701.38

793.16

2.00%

62034235

Men's trousers and breeches of cotton

797.62

721.88

1.82%

62121090

Brassieres of all types of textile materials, whether or not elasticated

707.68

716.12

1.81%

61102099

Women's  jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton,

624.02

637.14

1.61%

62046239

Women's trousers and breeches, of cotton

651.13

621.82

1.57%

61046200

Women's  trousers, bib and brace overalls, breeches and shorts of cotton

611.44

601.81

1.52%

63079098

Made-up articles of textile materials, incl. dress patterns, n.e.s.

520.63

566.82

1.43%

61112090

Babies' garments and clothing accessories, of cotton, 

562.80

561.36

1.42%

61102091

Men's jerseys, pullovers, cardigans, waistcoats  of cotton, 

497.41

531.95

1.34%

62029300

Women's anoraks, windcheaters, wind jackets of man-made fibres

521.59

528.24

1.33%

62019300

Men's anoraks, windcheaters, wind jackets of manmade fibres 

485.19

525.58

1.33%

61051000

Men's  shirts of cotton, knitted or crocheted 

490.82

516.51

1.30%

62044300

Women's dresses of synthetic fibres 

465.47

478.03

1.21%

61159500

Full-length or knee-length stockings, socks of cotton

443.22

450.67

1.14%

62034290

Men's or boys' shorts of cotton

446.00

442.66

1.12%

Total

15543.59

15555.37

0.08%

Source: Eurostat

 

 

 

 

Table-2: Performance of China and India in EU’s top imported products from Extra-EU ($ millions)

 

Products

China in EU market

India in EU market

Apr-Jul' 2016

Apr-Jul' 2017

%Change

Apr-Jul' 2016

Apr-Jul' 2017

%Change

61091000

154.32

159.11

3.11%

279.23

277.07

-0.77%

61099020

217.56

211.08

-2.98%

48.59

52.63

8.31%

61103099

422.50

410.92

-2.74%

7.73

8.28

7.12%

62034231

70.66

61.56

-12.88%

15.09

12.79

-15.21%

62064000

217.49

229.37

5.46%

169.94

160.71

-5.43%

62052000

141.00

129.57

-8.11%

99.25

93.74

-5.56%

62046231

106.30

112.29

5.64%

6.87

5.56

-19.01%

62034235

101.31

89.66

-11.50%

32.22

31.09

-3.48%

62121090

343.10

334.99

-2.37%

5.82

7.24

24.37%

61102099

201.46

196.94

-2.24%

27.62

26.78

-3.05%

62046239

146.51

136.84

-6.60%

17.10

14.15

-17.23%

61046200

83.34

77.66

-6.81%

74.34

73.29

-1.42%

63079098

336.48

385.08

14.44%

15.53

15.11

-2.73%

61112090

191.19

179.32

-6.21%

113.89

111.37

-2.21%

61102091

148.92

159.45

7.07%

23.79

26.14

9.87%

62029300

356.42

358.30

0.53%

2.41

2.74

13.70%

62019300

309.67

324.82

4.89%

0.51

0.95

84.25%

61051000

54.83

59.91

9.26%

50.39

49.65

-1.47%

62044300

228.79

241.43

5.52%

60.51

62.01

2.48%

61159500

147.12

167.75

14.02%

9.48

9.29

-1.97%

62034290

59.79

56.88

-4.87%

20.80

20.01

-3.79%

63026000

46.87

47.71

1.78%

61.36

58.23

-5.11%

Total

4085.61

4130.63

1.10%

1142.49

1118.84

-2.07%

Source: Eurostat

 India’s Product wise Performance vis-à-vis Competitors (Apr-Jul’ 2017) over previous year is as follows:

1.     T-shirts, singlets and other vests of cotton, knitted or crocheted (61091000)


2.     Women's or girls blouses, shirts of man-made fibres, not knitted (62064000)

3.     Women's or girls blouses, shirts of cotton, not knitted (62063000)  

 

4.     Babies' garments & accessories, of cotton, knitted (61112090)


 
 

5.     Men's or boys shirts of cotton, not knitted (62052000)

6.     Flexible intermediate bulk containers, for packing of goods, of polyethylene or polypropylene strips (excl. knitted or crocheted)  (63053219) 

7.     Women's or girls trousers bib and brace overalls of cotton, knitted (61046200)

 8.Women's or girls dresses of cotton, not knitted (62044200)

  

9.     Women's or girls dresses of synthetic fibres, not knitted (62044300)

 

  

10.  Women's or girls dresses of artificial fibres, not knitted (62044400)


 

 

11.  Toilet linen and kitchen linen, of terry towelling of cotton (63026000)

12.  T-shirts, singlets of artificial fibres, knitted (61099020)

     

13.  Men's or boys shirts of cotton, knitted or crocheted (61051000)


14. 
Women's or girls nightdresses of cotton, knitted (61083100) 


15. 
Women's or girls' other garments of manmade, not knitted or crocheted (62114390) 
  

 

16.  Women's or girls' dresses of cotton, knitted or crocheted, excl petticoats (61044200)

 

17.  Single cotton yarn, of combed fibres, containing >=85% cotton by weight

(52052300)

 

18.  Men’s or boys underpants and briefs of cotton, knitted (61071100)


 

19.  Men's or boys' trousers of cotton, woven (62034235)


 
 

20.  Men's or boys nightshirts of cotton, knitted or crocheted (61072100)

 


 
 

 

 

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