It is predicted that in the context of the crisis generated by covid-19, the demand for clothing in the local market will be affected mainly by a drop in sales of men's jeans.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies, depending on the country, sector or economic activity, during the coming months.
The impact that the crisis will have on companies related to the textile, leather and clothing sector in Central America is estimated to be explained, to a greater extent, by the expected drop in sales of carpets and curtains.
According to businessmen in the country's textile sector, as a result of the covid-19 pandemic, a reduction in work orders is expected during the second half of the year.
Representatives of the Nicaraguan Association of the Textile and Clothing Industry (Anitec), predict that with the closure of the stores of several of their clients, sales will be reduced considerably and inventory levels will increase.
Following the spread of the virus globally and the suspension of some production in China, several garment companies in the region have reported increases in their orders.
The spread of the epidemic has stopped much of the economic activity of the Asian giant, which is the largest exporter of textiles in the world.
From January to September last year, foreign purchases of clothing and accessories made by companies in Central America totaled $981 million, and 46% was imported from China and the United States.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
The American Aalfs Uno, which operated in the municipality of Sébaco, in Matagalpa, closed its operations in the country due to a reduction in the number of contracts.
The closure of the company was made official by directors of the Nicaraguan Association of Textiles and Apparel Industry (Anitec), who say it is the first company in the U.S. capital sector to close in the country.
Through geolocation tools and techniques for analyzing large volumes of information, the fashion firm H&M studied what users in a specific city were looking for on the Internet, in order to design a collection tailored to their preferences.
Although some think that the tools and techniques of Big Data, Artificial Intelligence and Machine Learning are only for some industries, the bet recently made by the famous fashion house H&M refutes those who use that argument, confirming that there are multiple markets and industries that are increasingly taking advantage of the great value that these tools have in optimizing processes and generating more and better business.
Last year, imports of garments and clothing accessories made by companies in Central America totaled $1.505 million, 3% more than what was purchased in 2017.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Between January and September of 2017, Central American countries imported $977 million worth of clothing and accessories, 14% more than in the same period in 2016.
Figures from the information system on theApparel and Clothing Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
In 2016 Central American countries imported $27 million worth of washing machines and parts from China, 14% more than in 2015.
Figures from the information system on the Washing Machine Market and its Parts in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic para interactuar con la gráfica"]
In 2016, the value of imported clothing and accessories totaled $1,279 million, 13% less than imports in 2015.
Figures from the information system on the Apparel and Clothing Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
On March 12nd Colombian entrepreneurs in the textile and clothing sector will be gathering in San Jose with Central American companies interested in offering products from the South American country.
It is expected that 70 Colombian entrepreneurs will take part in the event, to be held at the Hotel Real Intercontinental Multiplaza Mall, presenting their textile products to the Central American market. Before the business roundtable takes place, there will be a fashion show featuring underwear, swimwear, casual wear, jeanswear, accessories, footwear and uniforms, with the aim of showcasing to entrepreneurs from the region products on offer by the industry in Colombia.
High quality and well priced food and spirits are on the list of products for which demand has increased from Indian consumers with higher purchasing power.
From a statement issued by the Costa Rica Foreign Trade Promotion Office (PROCOMER):
The luxury market in India is growing, and it is estimated that by 2017 it will reach a value of $1.8 billion, showing a growth relative to the current level of $1.4 billion, with the categories of fashion, cars and food being the most dynamic. It follows a study by the Associated Chambers of Commerce and Industry of India, Assocham and Yes Bank.
Textile companies operating in free zones are preparing adjustments such as reductions in production lines in order adapt supplies in the event of the loss of tariff preference level, or TPL.
Although the timeframe for the expiration of the Tarriff Preference Level system with the United States is December 31, several companies are already starting to take steps to adjust their production in anticipation of the agreement not being renewed.
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