Consumers in the US leaning more in denim in recent months. And most denim retailers and brands in the US have seen a change in pattern in the pandemic period. A data showed that US denim users lean toward basic denim rather than high-end denim. And prices of denim have drastically gone down. As per the UVR Comparison of Denim Apparel Shipment to the USA from Major Destinations data, denim price was $93.95 in January to September period of 2021. Which was $95.10 in the same period of 2020 and $98.26 in 2019. Meaning a 4.38% decline in the 2 years.
This shows that the consumer buying trend shifted from high-end denim to basic jeans merchandise and looking for low-cost sourcing countries.
As per the OTEXA data, the USA exported denim worth $520.16 from Bangladesh in January to September 2021 calendar period. Registering a whopping 31.40% yearly increase. Becoming the top denim supplier in the country. But UVR Comparison of Denim Apparel Shipment to the USA from Major Destinations data shows that per-unit prices of Bangladesh made denim was $78.33 per dozen in January to September period of 2021 – down by 2.46% from the pre-COVID period.
While unit prices of denim made in Mexico were $111.80 – grew by 1.25% from the pre-pandemic time. and denim export from Mexico was $471.78 million from January to September 2021. Although Mexico’s unit prices of denim are growing, it is becoming clear that Bangladesh is becoming the apparent sourcing choice for US denim consumers.
In Mexico’s case, high and growing UVR from Mexico as contrary to USA’s average UVR for per dozen denim apparel import is undeniably hurting its exports in spite of being the closest sourcing destination to the USA and receiver of ‘zero’ duty rates for denim exported to the USA under USMCA.
The denim sourcing trend also vividly showed that China’s dominance as one of the top denim sourcing countries has diminished significantly. Despite the fact that the country offers one of the bottommost unit prices among the top 5 denim exporting countries all because the brands are dipping their reliance on Chinese cotton.
The data also revealed that January to September period of 2021, China’s average UVR of the exported denim was $75.24 per dozen. Reducing by 22.54% – which was $97.14 per dozen back in 2019. And other prominent denim exporters are grabbing this opportunity.