Make use of anti-China sentiments, and capture US apparel market: Textile forum tells India enterprises

COIMBATORE: With anti-China sentiments on the rise in the US and across the globe, the textile sector in the region sees an opportunity to capture the American apparel market.

Coimbatore-based textile forum Indian Texpreneurs Federation (ITF) has asked textile enterprises in the state to focus on the US market ‘aggressively’ now.

Prabhu Dhamodharan, ITF’s convenor, said China’s share in the US apparels was declining. “In 2019, China saw a loss in its market share to the tune of Rs 20,000 crore. In the first seven months of this year, US apparel imports dropped by 30%, of which the drop in Chinese apparels is 49%,” he said.

In addition, the US has also announced new restrictions on import of apparel from China’s Xinjiang region, citing human rights violations against the Uighur people.

This combination of factors, and the situations post the

Covid-19

outbreak, could accelerate the trend of decline in Chinese apparel imports by global countries, Dhamodharan said. “This trend may create a $10billion opportunity in the

US apparel market

for other countries including India,” he said in a communication.

“While India’s competitor Vietnam has a free trade agreement with the EU and Bangladesh has 'zero duty access' to the EU, the case is different with the US. Both India and its competitors don’t have free trade agreements with the US as of now. We have a level-playing field there, so it's the right time to step up efforts with US markets as a market diversification strategy,” he said.

Dhamodharan told TOI that over the past two to three months, there have been several inquiries from US people who used to buy from China.

“They send us samples saying they were buying them from China and inquire us whether we can supply the same to them. Right now, in regions like

Tirupur

, around 75% units focus on European markets. Focus on the US is less. It’s the right time for us to shift our focus. Groups of textile units can also form marketing alliances within themselves and can market their products in the US,” he said.