Fashion industry: an assessment of world sales in the first half of 2023
Despite the economic slowdown, a heterogeneous picture in the dynamics at sector and market level
Published by Marcello Antonioni. .
Slowdown Fashion Conjuncture Check performance Export markets Uncertainty Global economic trends
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Q2 2023 world trade data (pre-estimates), available at ExportPlanning, make it possible to take stock of the first part of the year for world sales of the Personal Fashion System.
In the first half of 2023, world exports of personal fashion products1, if measured at constant prices2, highlighted a overall trend contraction (-9.5% compared to the first half of 2022), with a second quarter of the year (-9.7% compared to corresponding period 2022) which confirmed the previous signs of decline (-9.2%).
In a context of general slowdown, "patchy" sector performances can be noted
Although in an overall context of downsizing of world exports in the sector, some sectors are showing a positive countertrend.
In the first half of the year, world sales of jewellery, handbags and other leather goods and perfumes and cosmetics were still in growth trend...
This is the case, above all, of the handbags, suitcases and wallets sector, which in the first half of 2023 showed a growth trend of world exports measured at constant prices of +10.6%, with a slightly more dynamic second quarter of the year (+11.5%) than the first (+9.6%).
Furthermore, the case of the jewellery, watch and costume jewelery sector should be noted, which in the first half of the year showed a growth trend in exports measured at constant prices of +5.7%.
Last but not least, we note the case of the perfumes and cosmetics sector, which in the first six months of the year recorded a growth trend of world exports measured at constant prices of +4.4%.
.. against the "minus" signs highlighted by outerwear, underwear and hosiery, footwear and other personal-fashion products
On the other hand, in the first half of 2023, the declining trends of world exports, measured at constant prices, of the underwear and hosiery sectors (-6%), outerwear (-3%), footwear (-1.3%, penalized by the decline in the second quarter of the year) and, last but not least, by the aggregate other fashion products (-9.5%)3.
World Exports of Fashion Products
| Levels 2022 | % Y-o-Y changes at constant prices | ||||
| Sector | (Bn €) | 2022 | Q1-2023 | Q2-2023 | H1-2023 |
| Outerwear | 326.5 | +14.9 | - 1.5 | - 4.4 | - 3.0 |
|---|---|---|---|---|---|
| Jewellery, watches and costume jewellery | 278.3 | +22.4 | + 6.9 | + 4.6 | + 5.7 |
| Footwear | 160.7 | +22.0 | + 2.7 | - 5.0 | - 1.3 |
| Underwear and hosiery | 142.4 | +14.4 | - 3.6 | - 6.0 | - 4.8 |
| Perfumes and cosmetics | 110.4 | +12.6 | + 5.7 | + 3.0 | + 4.4 |
| Bags, suitcases and wallets | 83.8 | +30.5 | + 9.6 | +11.5 | +10.5 |
| Other fashion products | 395.1 | + 2.0 | - 9.2 | - 9.7 | - 9.5 |
| TOTAL | 1 461.2 | +14.2 | - 0.5 | - 2.8 | - 1.7 |
Source: ExportPlanning-World Trade Datamart
Despite a context of overall downsizing, in the first half of 2023 the world trade in fashion products showed a slight, but significant, majority of markets in a positive countertrend
In particular, in the first half of the year, despite a tendential contraction in world exports of personal fashion products of almost 2 percentage points in the measurement at constant prices, a majority of international markets (56%) showed positive performance against the trend in terms of trend dynamics at constant prices.
The markets that offered the greatest contributions to the growth of world exports of personal fashion products in the first half of the year were, in order, those of Hong Kong, Singapore, United Arab Emirates , Vietnam, Kazakhstan, Russia (rebounding compared to the first half of 2022: +21.3% at constant prices), Turkey and Philippines.
Outerwear
The evolution of world exports, measured at constant prices, of outerwear4 shows the beginning of a downward phase already in the last quarter of 2022 and a worsening in the most recent quarter, as documented by the graph below.
Despite the overall result of trend reduction, in the first half of the year a majority (54%) of international markets showed positive trend dynamics in the measurement at constant prices of world exports intended for them.
The most interesting cases, as they have offered the greatest positive contributions to the growth of world exports of outerwear, are the markets of Vietnam, Kazakhstan, Malaysia, Singapore, South Korea and Poland.
Jewellery, watches, costume jewellery
The evolution of world exports at constant prices of jewellery, watches and costume jewelery5, documented in the graph below, signals a downsizing of the highly expansive phase (post-pandemic), which made it possible to close last year with growth of more than 22 percentage points.
However, the overall performance of the first six months of 2023 is still positive.
In an overall context of (albeit moderate) growth trends, in the first half of the year 60% of international markets showed positive dynamics in the measurement at constant prices of world exports intended for them.
The most interesting cases, as they have offered the greatest positive contributions to the growth of world exports of jewellery, watches and costume jewellery, are the markets of Hong Kong and United Arab Emirates, together with Singapore, Turkey, Taiwan, Qatar and China.
Footwear
In the second quarter of the year, world exports of footwear6, measured at constant prices, showed a downward trend, thus interrupting the expansionary phase which had lasted uninterruptedly for eight consecutive quarters.
In an overall context of (albeit moderate) downward trend, in the first half of the year 57% of international markets nevertheless showed positive dynamics in the measurement at constant prices of world exports intended for them.
The most interesting cases, as they have offered the greatest positive contributions to the growth of world footwear exports, are the markets of Philippines, Kazakhstan, Russia (rebounding from first half of 2022: +21.7% at constant prices), Malaysia, Kyrgyzstan (under expansion for several quarters now) and Vietnam.
Underwear and hosiery
In the first half of the year, world exports, measured at constant prices, of underwear and hosiery7 confirmed the interruption of the growth phase that occurred up to the 3rd quarter of 2022 (which had allowed the sector to record an average increase of +14.4% last year.
In an overall context of trend declines, in the first half of the year 60% of international markets showed positive dynamics in the measurement at constant prices of world exports intended for them.
The most interesting cases, as they have offered the greatest positive contributions to the growth of world exports of underwear and hosiery, are the markets of Vietnam, Kazakhstan, Singapore, Russia (rebounding compared to the first half of 2022: +20.8% at constant prices), Malaysia and Saudi Arabia.
Perfumes and cosmetics
In the first half of 2023, exports of perfumes and cosmetics8 were able to confirm a positive tone, as documented by the graph below.
In the first half of the year 65% of international markets showed positive dynamics in the measurement at constant prices of world exports at intended for them.
The most interesting cases, as they have offered the greatest positive contributions to the growth of world exports of perfumes and cosmetics, are the markets of Germany, Russia (rebounding compared to the first half of 2022: +34.9% at constant prices), United States, France, Spain, Hong Kong and Singapore.
Bags, suitcases and wallets
World exports of bags, suitcases and wallets9 have, among all the main sectors of the fashion industry, shown the best performance trends, continuing to grow, when measured at constant prices, even in the most recent quarters.
As shown in the graph below, these are nine consecutive quarters in which world sales in the sector continued to grow, measured at constant prices.
In the first half of the year well 70% of international markets showed positive dynamics in the measurement at constant prices of world exports at intended for them.
The most interesting cases, as they have offered the greatest positive contributions to the growth of world exports in the sector, are the markets of Singapore, France, Hong Kong and China, Japan, Malaysia, Philippines and Australia.
Conclusions
International trade data for the first half of 2023 document, after a particularly dynamic 2022 (+14.4% at constant prices), a significant slowdown in world sales of personal-fashion products.
However, a majority of international markets continue to show positive dynamics in the sales of personal fashion products (measured at constant prices), with their particular concentration in the bags, suitcases and wallets, perfumes and cosmetics and jewellery, watches, costume jewellery.
The need for exporting companies to monitor
the evolution of demand in the markets of interest
for their specific business area
For exporting companies in the home supply chain (but not only) it therefore appears strategic to be able to identify the most resilient international markets for their specific business area, on which to (re-)orient own marketing and business development actions.
With the aim of allowing constant monitoring of the reference foreign markets, ExportPlanning provides Market Insights, a new series of information services aimed at specifically supporting the market intelligence and budgeting processes of exporting companies.
1) For a description of the sectors included therein, see the related industry profile.
2) The measure Quantities at constant prices (Q). This measure includes a deflation operation, in which the historical series of monetary values (V) has been transformed into an analogous series of values expressed at constant prices, with a reference to a given year, known as the base year. For a description of the methodology applied, please refer to Methodological Note on the World Trade Datamart.
3) Within the aggregate other fashion products, it is worth noting, in particular, the downward trend in the first half of the year of world exports, measured at constant prices, of bicycles (-25%), sports articles and musical instruments (-15.1%), clothing accessories (-14.8%) and personal items (-11.9%); on the other hand, there was a positive counter-trend performance of world exports, measured at constant prices, of lenses and eyewear (+5.1%).
4) For a description of the products included therein, see the relative sector profile.
5) For a description of the products included therein, see the relative sector profile.
6) For a description of the products included therein, see the relative sector profile.
7) For a description of the products included therein, see the relative sector profile.
8) For a description of the products included therein, see the relative sector profile.
9) For a description of the products included therein, see the relative sector profile.
