Strategic Sourcing Report

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The BirnbaumStrategic SourcingStrategic Sourcing

ReportStrategic Sourcing for Garment Importers

November 2019

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The Birnbaum Report(Strategic Sourcing for Garment Importers)

The Birnbaum Report is a newsletter written and researched byEmma and David Birnbaum.Published by:Birnbaum & Father LTD. www.birnbaumandfather.comCopyright © 2019 Birnbaum & Father LTD. Hong KongAll rights reserved.No part of this publication may be reproduced or transmitted in any form or byany means, including, but not limited to, mechanical, electronic, photocopying,or any information storage or retrieval system, without prior written permissionof Birnbaum & Father LTD. Birnbaum & Father LTD cannot accept responsibilityfor the accuracy or completeness of any information in this publication, or forloss or damage caused.

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Contents

The Future of the Bangladesh Garment Export Industry 5

World Broad Trends

2222

U.S. 27

Greater China (China, Hong Kong & Macau)China

3742

Mexico and DR-CAFTAMexicoDR-CAFTA

Honduras El SalvadorNicaraguaGuatemala

DR-CAFTA Conclusion

4449546267727782

South AsiaIndiaBangladeshSri LankaPakistan

Conclusion South Asia

839197

101106111

ASEANVietnamIndonesiaCambodiaThailandPhilippines

CONCLUSION ASEAN

112120125130135140145

CONCLUSIONS & MISCELLANEOUS DATA 146

Appendix I: Product Analysis 150

APPENDIX II: Market Share Data as of YTD 19-06 155

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Article

The Future of the Bangladesh Garment Export Industry

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The Future of the Bangladesh Garment Export Industry

by David Birnbaum

I: INTRODUCTION

This report is the result of an article together with a series of nine posts published on LinkedIn during the period 7 October to 7 November in which I tried to explain that the Bangladesh garment industry, despite its position as the world’s 2nd largest garment exporter faced serious problems, challenges and obstacles that if left unsolved and overcome may cause serious harm not only to the industry but more importantly the country and its people. The nine posts received 157,000 hits.

Regrettably, recent events have overtaken us. The latest data for the 1st quarter of 2019 shows that Bangladesh garment exports declined by 6.67%. At this point, we do not know if this was but a short-term aberration or the first step of a serious long-term decline.

In any case, it is now imperative that we make an honest effort to understand the problems facing the Bangladesh garment export industry and take immediate action to solve those problems

The first step to understanding the problem is to put things in the perspective of time and size.

a. TIME: The Bangladesh garment industry dates back to the mid 1970s. As a result, any changes must be seen in the context of 40 years. For example, while it is true that Bangladesh today is less reliant on exports of basic-commodity garments than in the past, we should consider that after two generations this may well be a case of too-little-too-late particularly when we see that Bangladesh is more committed to basic commodities than any country in Asia. What is true of basic commodities is equally true of wages, where Bangladesh workers’ wages are second lowest in Asia (only higher than Myanmar) as well as productivity, which is among the lowest among all major garment exporting countries.

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b. SIZE: We must recognize that at a guess Bangladesh is home to 6000 garment factories. i. On the positive side the efforts of a few good factories have little

effect on the industry or its reputation among its customers unless their efforts are a catalyst for positive change. In this regard 20-50 first class operations count little when describing the industry, just as 10-20 sustainability superstars does not make the industry more compliant;

ii. The tragedy is that on the negative side the actions of a few bad factories have serious negative impact on the entire industry and its reputation among its customers. The Rana-Plaza catastrophe, was a single building among thousands yet the effects on the entire industry remain to this day. More recently consider, The Existential Threat (1-g below) and Transparency vs Façade (2-c below)

The report is divided into the following sections:

1. Operationsa. Total garment Exports 2001-2018b. Basic Commodity Datac. Minimum Wage Datad. Productivitye. Branding the Industry: Comparative FOB price Data (by product and Asian

country)f. Rising FOB and Declining Factoriesg. The existential Threat

2. Corporate Social Responsibility (CSR) and Ethicsa. Complianceb. Sustainabilityc. Transparency

3. The Bangladesh World View

4. Perception Bangladesh based

5. Perception Customer based

6. The Future

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II: DATA AND INFORMATION

1. Operations

1-a: Bangladesh Total Garment Exports 2001-2018Bangladesh is the world’s second largest garment exporter, and was each year both in Dollars and Market Share up to the end of 2018. As I write this report, information published by Just-Style shows a reversal as of 1st quarter 2019. The following is a direct quote from the Just-Style article

The export of readymade garments (RMG) from Bangladesh during the first quarter of the fiscal year fell 6.67% to US$10.5bn.

Knitwear exports for the three months to October fell 5.73% to $5.5bn and woven garments exports fell 7.67% to $5bn.

Bangladesh is the world’s second-largest ready-made garment exporter, and the textile and apparel sector contributes around 20% to Bangladesh’s GDP. It employs around 20m people in the country and is the major driving force of the country’s economy.

The following graphs show garment exports both by value and market share from 2001-2018

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1-b: Basic Commodity Data:

Bangladesh is heavily reliant on cheap basic commodity garments for mass market retailers. For the past decade, Bangladesh exports of basic commodity garments has increased

While cheap commodities as a percent of total exports have been falling from 65% to 54%, the fact remains that Bangladesh is still locked into the commodity garment market

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Bangladesh’s reliance on cheap commodity garment exports has not only placed their garment industry in a tenuous position, it represents a serious risk to the entire country. As of 2018 garments totaled 86.4% of Bangladesh’s total exports, 54% of which were cheap commodity goods. At the same time garment making is virtually the only industry in the country. Bangladesh is a poor country with a growing population. A serious drop in garment exports for any reason will have a severe impact on the country and its people.

2018 Garment Exports (US$ 1000) as a PCT of Total Exports Total Garment PCT

World 19,284,580,098 479,268,535 2.5%Indonesia 180,215,034 8,568,820 4.8%India 323,056,409 15,687,116 4.9%China 2,494,230,195 144,973,534 5.8%Vietnam 242,969,228 28,183,288 11.6%Pakistan 23,630,893 5,444,501 23.0%Myanmar 16,671,612 4,116,116 24.7%Cambodia 20,852,032 12,881,372 61.8%Bangladesh 45,126,993 38,983,440 86.4%

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1-C Comparative Minimum Wage DataWith the exception on Myanmar, Bangladesh has the lowest minimum wage among Asian garment exporting countries

Minimum Wage/MonthChina $354Indonesia $260Cambodia $182Vietnam $168India $136Pakistan $96.40Bangladesh $95Myanmar $82.28

1-d Productivity We think of labor cost of a garment as something directly related to labor rate (wages). The less you pay a worker, the lower the labor cost. This is not true. Labor cost is based on wages and productivity. In cheap labor countries such as Bangladesh, productivity is far more important than wages because increased productivity not only reduces the labor cost per unit but also overhead per unit; and in low wage countries, where overhead can be 300%-600% of labor, reducing overhead is the way to go.

As of 2018, Productivity in Bangladesh was between 40%-50%. The same garment made-in-China requiring 20 minutes, would require 40+ minutes when made in Bangladesh.

For example, a worker in Bangladesh earning $100 per month would be paid 0.64¢ per minute based on a 26-day month, 10 working hours per day. As a result, a 40-minute garment would cost as follows:

50% Productivity 40 minutes70% Fabric $7.0010% Trim $1.0020% CM $2.00 Labor $0.26 FOB $10.00 Profit (5% of FOB) $0.50

Overhead $1.24

If we could increase productivity from 50% to 67%, or 40 minutes to 30 minutes, the cost would change as follows:

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67% Productivity 30 minutes70% Fabric $7.00 10% Trim $1.00 20% CM $2.00 Labor $0.19 FOB $10.00 Profit (9.7% of FOB $0.97

Overhead $0.83

You will note that the overhead per unit at 30 minutes is 67% of the overhead at 40 minutes. You will also note that the factory’s net profit has risen from 5% to 9.7%.

Furthermore, if the factory increases wages proportionately from 0.64¢ to 0.86¢ per unit (from $100 to $133 per month), net profit would still be 9% of FOB.

The lesson is very simple. Increased productivity equals greater profit.

1-e Branding the Industry: Comparative FOB price Data (by product and Asian country)Just as retailers and designer labels are branded so too are garment exporting countries. Those at the top are premium brands, such Italy, France, Germany and Spain and can charge their customers more for their garment. Those at the bottom, are discount brands and must charge less for their garments. Among the discount-brand countries, three stand out. Cambodia, Myanmar and Bangladesh.

Cambodia’s problem is political. Their industry is quite successful. Quality is good. Wages are rising. However, government’s poor human-rights record may well cost their industry free trade access to the EU.

Myanmar’s problem is also political. They too have a good industry. They export quality goods at reasonable prices. However, ethnic cleansing, organized murder and rape have alienated both governments and consumers.

Bangladesh is different. Their problem is the industry, particularly with regard to consumers. We live in a consumer dominated market. Today’s consumers, particularly millennials insist on high levels of corporate social responsibility. Retailers and brands are all rushing to that they are responsible citizens particularly with regard to compliance, sustainability and transparency. In this regard, as we will see below, Bangladesh has become an embarrassment.

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BabywearProduct Market Share FOB

Value UnitsWorld $19.53 PCT +/-Thailand 3.7% 2.4% $30.04 53.8%Vietnam 2.8% 2.3% $24.41 25.0%Indonesia 0.8% 0.7% $23.37 19.6%India 10.7% 9.3% $22.56 15.5%China 11.3% 10.7% $20.52 5.1%Bangladesh 11.9% 12.2% $19.03 -2.6%Myanmar 8.8% 9.1% $18.98 -2.8%Cambodia 39.5% 43.7% $17.66 -9.6%

MMF SweaterProduct Market Share FOB

Value Units World $5.02 PCT +/-Italy 1.1% 0.2% $24.81 393.9%Turkey 1.1% 0.1% $9.17 82.6%India 0.2% 0.2% $9.00 79.2%Indonesia 1.1% 0.8% $6.69 33.2%Vietnam 2.8% 2.5% $5.65 12.4%China 75.8% 80.9% $4.71 -6.3%Bangladesh 6.7% 7.6% $4.41 -12.2%

MMF Jackets W&GProduct Market Share FOB

Value Units World $10.86 PCT +/-Italy 1.8% 0.4% $49.48 355.7%Indonesia 5.4% 4.0% $14.58 34.3%Vietnam 27.0% 21.7% $13.49 24.3%India 0.9% 0.8% $11.78 8.5%Bangladesh 3.4% 3.9% $9.53 -12.2%China 47.7% 58.8% $8.81 -18.9%Cambodia 1.0% 1.3% $8.39 -22.7%

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Knit Shirts (HTS 6105)Product Market Share FOB

Value Units World $4.84 PCT +/-Vietnam 20.7% 18.9% $5.30 9.6%China 10.4% 9.9% $5.05 4.4%India 19.1% 22.7% $4.06 -16.1%Cambodia 5.5% 7.3% $3.59 -25.7%Indonesia 5.9% 8.2% $3.49 -27.9%Pakistan 5.9% 9.1% $3.15 -34.9%Bangladesh 5.9% 9.6% $2.94 -39.1%

Knit Blouses (HTS 6106)Product Market Share FOB

Value Units World $4.18 PCT +/-India 13.7% 10.3% $5.57 15.2%China 18.8% 14.6% $5.40 11.6%Bangladesh 4.9% 5.1% $3.99 -17.4%Indonesia 16.1% 18.0% $3.74 -22.6%Vietnam 19.8% 28.0% $2.96 -38.8%Cambodia 6.5% 10.7% $2.55 -47.3%Pakistan 1.5% 2.7% $2.34 -51.6%

Jeans W&G (HTS6204.62.15.11 6204.62.15.41 6204.62.80.11 6204.62.80.41)

Product Market Share FOB Value Units

World $7.72 PCT +/-India 0.8% 0.6% $10.07 30.3%Indonesia 4.4% 3.5% $9.67 25.2%China 39.1% 34.6% $8.73 13.0%Vietnam 15.4% 14.4% $8.27 7.0%Cambodia 4.5% 4.6% $7.61 -1.4%Pakistan 6.9% 7.7% $6.93 -10.3%Bangladesh 12.8% 15.1% $6.54 -15.3%

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Jeans (M&B) (HTS 6203.42.07.11 6203.42.07.36 6203.4240.11 620342.45.11 6203.42.45.36)

Product Market Share FOBValue Units

World $8.17 PCT +/-Cambodia 1.4% 1.3% $9.15 18.4%China 9.3% 8.4% $9.01 16.7%Vietnam 4.6% 4.2% $8.95 16.0%India 1.5% 1.4% $8.92 15.5%Indonesia 1.1% 1.1% $8.06 4.4%Bangladesh 15.8% 19.7% $6.57 -15.0%Pakistan 5.3% 7.1% $6.14 -20.4%

1-f: Rising FOB Prices and Declining Factory Numbers

The latest data for the US Government OTEXA shows substantial increases in FOB prices for Bangladesh garment imports, while BGMEA shows a severe drop in FOB prices for the same period.

Advocates on each side agree only on one point: The other side is wrong.

However, it may well be that both sides are right, which would be far more serious. The current situation in Bangladesh is unusual but not unique. 35 years ago, China was in the same position. Everybody wanted to work in China, but not with Chinese factories that were seen to be unreliable. Customers placed orders with China branches of Hong Kong, Korean and Taiwanese factories. Yes, they paid a premium, but the customers slept well at night

Bangladesh may well be stuck in a new China Syndrome. Customers want to work in Bangladesh, but with a few important exceptions, not with Bangladesh factories. They are migrating from B class local factories to A class branches of foreign owned factories. Yes, they pay a premium but once again the customers sleep well at night.

For the A class factories upward migration leads to increased orders and higher FOB prices, while simultaneously reduced orders to the class B and lower FOB prices.

The situation is unstable. Continued rise in FOB prices mean increased levels of migration upward as more customers reject class B in favor of class A factories The greatest concern is that the reasons that forced customers to move away in the first place, such as consumers’ ethical concerns will result in ever more stringent definition of A class, pushing factories down from A to B finally impacting on the entire industry

1-g The Existential Threat

2012 and 2013, the years of the Tazreen fire and the Rana Plaza building collapse, were wake-up calls to both the Bangladesh garment factories and their customers. It was recognized that the factors that led to these catastrophes had been known to both customers and the suppliers for a very long time. On the supplier side, factories routinely flaunted both building codes and safety regulations, while at the same time customers knowing of the irregularities allowed them to continue. Compliance and inspections were jokes.

Following the Rana-Plaza building collapse, customers both on the U.S. and EU side set up organizations to inspect factories to ensure worker safety. The Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety were both serious operations staffed

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by knowledgeable and experienced professionals committed to carrying out their work free from outside interference.

Both the Accord and the Alliance ran into opposition by Bangladesh factories, the BGMEA, the Bangladesh Courts and the Government. In the end, both organizations were forced to close. In their place in March 2019, the Alliance set up a new Bangladesh based organization, Nirapon, to continue inspection work. Regrettably the Bangladesh High Court has now ordered Nirapon to cease operations for the next six months, following complaints from factory owners. The court declared: “There is no need for another organization in addition to the existing RMG Sustainability Council, the factory safety body run by the Bangladeshi garment industry, with representation from global brands and trade unions, which is set to take over all Accord Bangladesh operations in the country, some time next year.

The existential question remains: Is Bangladesh still home to factories that disregard building codes and worker safety regulations?

The answer may well lie in an article published by Just-Style on 31 October. The article quoted a Wall Street Journal investigation . . . named Amazon and Walmart as platforms through which third-party retailers are selling garments that have been produced in factories not certified by either the Accord on Fire and Building Safety in Bangladesh or the Alliance for Bangladesh Worker Safety. According to its investigation, the WSJ claims Amazon offers “a steady stream of clothing from dozens of Bangladeshi factories that most leading retailers have said are too dangerous to allow into their supply chains.” The newspaper also found apparel for sale on Amazon made in Bangladeshi factories whose owners have refused to fix safety problems identified by the two safety-monitoring groups, such as crumbling buildings, broken alarms, and missing sprinklers and fire barriers. Some garments reportedly found on Amazon were also listed on Walmart.com, mostly by third parties. The investigation also alleges Sears, which owns Kmart and whose previous parent company was a member of a safety-monitoring group, have resumed importing from banned factories.Just Style interviewed personnel at BGMEA who stated:

. . .that while the factories mentioned in the report were not members of the Accord or Alliance – initiatives set up to monitor the suppliers to leading brands and retailers – “most of these establishments are bona fide manufacturers with incrementally improving safety standards.”

It also notes these small factories serve a niche by supplying smaller batches and quantities.

The BGMEA adds it is not the intention of factory and worker safety initiatives to “blacklist and close down factories.” Instead, the goal is to drive “further reforms and corrections of such small manufacturers, which are the new gazelles of the manufacturing era for they hold much promise.”

The BGMEA comment does not make sense. The customers involved — Walmart, Kmart and Sears are all mass market retailers. They would not do business directly with “small factories serving a niche by supplying small batches and quantities.” Rather, just as in the case of Rana-Plaza these small factories are subcontractors to large well-established factories, who have the necessary clout to flout worker safety standards and regulations.

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The 2013 Rana Plaza catastrophe has left an indelible mark. Today, six years after, the event when both customers and consumers think of Made-in-Bangladesh garments the first image that comes to mind are the 1100+ mangled bodies being dragged out of the wrecked factory building.

In today’s world, factory working conditions and worker safety are primary considerations for both customers and consumers. Every Retailer and Brand is fighting to show the highest level of social responsibility.

Bangladesh cannot afford a Rana-Plaza II. Yet it appears now that this may now be a real possibility, in which case once again the 6000+ factories of the Bangladesh garment exporting industry will pay the price for the damage caused by a very powerful group, who subcontract.

2. Corporate Social Responsibility (CSR) and Ethics

This is a particularly serious problem. For a very long time, the industry operated well outside Ethical and CSR norms, which was known and accepted not only by the factories but by their customers. The 2012 Tazreen factory fire (117 dead + 200 injured) and the 2013Rana Plaza factory collapse (1134 dead) changed everything.

2-a Compliance The dual catastrophes forced the customers to ensure worker safety; however, excessive overtime, poor working conditions, and denial of worker’s rights to organized remain endemic. As with other ethical standards many local factories as well as the branches of transnational factory groups have outstanding records and compare favorably with factories anywhere in the world. Once again they will pay the price for the damage caused by the wrong-doers

2-b Sustainability This is one area where Bangladesh is moving in the right direction. Some factories are on the cutting edge of sustainability. While the numbers of Platinum Class factories remain small, it is a great selling point not only to customers (retailers and brands) but also to consumers. Hopefully this will be a catalyst for the industry to move forward.

2-c Transparency This might well be the most serious CSR problem facing Bangladesh.Bangladesh has a history of confusing transparency with façade. Witness the Taj Mahal factory. You cannot miss it. It is the factory with the marble entrance hall and well-lit working areas. The one that is spotlessly clean and where sewers have considerable space. It is the one with reasonable working hours and no excessive overtime. This indeed is the way a factory should be organized and run. Of course, professionals see other points, not included in the tour. For example, they count the number of sewing machines and divide that number into garments shipped per month, and reach two possible answers:

a. This is the world’s most efficient factory, with productivity of 400% of China

b. 85% of the goods are being produced elsewhere, in the factory without the marble floor; the one where sewers work 16-hour days, 7 days a week.

Yet again it is the small minority of the large and powerful operators that are dragging down the overwhelming majority

3. The Bangladesh World View

Bangladesh’s view of the global industry, on the customer side, the supplier side and the consumer side is highly insular, which should be a source of worry

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It is assumed that the global industry operates on the race-to-the-bottom principal, whereby success is based on low wage rates.

The reality is very much different. As we can see from the chart below, according to data from ITC the top-10 garment exporters account for 85% global market share, EU plus China and Turkey, the high and mid labor rate countries for 61% of global garment exports, while the seven major low-labor rare countries account for 24%.

Given the data where high and mid-labor rate countries account 61% of world garment exports a race-to-the-top might well be a better description of the direction the industry has taken

Global Market Share (2018)High Labor Rate EU 28.0% 28.0%

Mid Labor Rate China 30.2% 33.4% Turkey 3.2%

Low Labor Rate Bangladesh 8.1% 23.7% Vietnam 5.9% India 3.3% Cambodia 2.7% Indonesia 1.8% Sri Lanka 1.1% Myanmar 0.9%

It is assumed that low FOB price is the primary goal of all customers.

Again, the global reality is far different

In today’s market where retail prices are 4-8 times FOB, FOB prices account for 12.4%-25% of retail price

Add to this that we now live in a sourcing world, where customers negotiate material and trim prices directly leaving only CM as areas of negotiation. The factory accounts for only 3.5%-7.5% of retail.

Finally since the factory cannot negotiate labor or overhead in the short term, factory profit is the only area of negotiation, all that all that remains is0.63%-1.25% retail.

The problem is that many customers working in Bangladesh still follow the low-FOB-Price determinant. These customers will push to save 10¢-20¢ on a garment retailing for $20.

If Bangladesh factories are to move forward, they have but three optionsa. Increase productivity in which case they can accept the 10¢-20¢ reduction

and still make good profitb. Develop services that will allow them to find new and better customersc. Do nothing and face the consequences

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The first step must be to change Bangladesh’s world-view.

III: CONCLUSIONS AND OPINIONS

1. Bangladesh based Perception

I am not an expert in the Bangladesh Industry. I must therefore rely on second-hand information, notably from comments made by Bangladeshi professionals to my posts. I welcome critiques

Based on the above, it appears that Bangladesh people have three views of the problems facing their garment industry

a. There is no problem. Indeed, the problem lies with the ignorant and stupid liars who criticize our industry

b. There are problems. However, they are small and easily solved by us, if only the ignorant and stupid liars would leave us alone long enough to effect the correct solutions

c. There are problems. However, there is nothing we can do to solve the problems

Yesterday, I published a 10th post on LinkedIn, which up to this minute has received 18,900 hits. The comments offer a 4th view

d. There are problems. We cannot will not solve the problems. WE NEED HELP!

2. Customer based Perception

This is an area where I do have expertise, experience and most importantly access. I can assure you that almost all customers working in Bangladesh have a detailed understanding of its industry and the problems facing that industry. They have but two views

a. The view from the mass market retailers. Get the lowest prices. Companies such as Walmart simply hold reverse auctions, with the orders going to the factory offering the lowest price. The good news, from their point of view, is that as these B class factories lose business, FOB prices will invariably fall.

b. The view from the better factories. This country is strictly short term. With very few exceptions no factory will ever reach strategic-supplier status. The best strategy is to find replacement suppliers elsewhere, to minimize the problems when we have to pull out

3. The Future

At this moment, when the most recent data shows Bangladesh’s industry moving into serious decline, the future does not look good. Much depends on the data for 2nd quarter 2019.

In any case the problems, challenges and obstacles will not disappear by themselves. At this point doing nothing cannot no longer be an option. Time and circumstances permitting, the industry and the country have but three options, none of which look good.

a. Change from within.

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Industry leaders, together with Government and the Judiciary move towards real strategic change. No more blame-the-customers, blame-the-workers, blame-the-foreign-owned-branch-factories. Take responsibility, effect real positive change OR ELSE.

b. Change imposed from without: Customers and stakeholders come together to force change. Either the industry will follow a new path or the customers will leave. The problem here is that the customers having previously lived through the failed post Rana-Plaza era, might not want a repetition.

c. Do nothing and let nature take its course.

At the end of the day, the issue is not, and has never been, can problems be overcome, the challenges met, and the obstacles torn down. Indeed, the skill sets exist, the technology exists and the professionals exist to bring about a true Bangladesh Renaissance, all within a limited period of time: IF ONLY THE BANGLDESH PEOPLE AND ITS INDUSTRY LEADERS WOULD SUPPORT CHANGE.

The alternatives are not good.

From the customers’ point of view, the end of the Bangladesh garment industry will indeed cause serious problems, for about six months. Finding or developing factories to produce commodities is not an extraordinary problem. The few difficult products are for the most part in the hands of the Transnational-factory-branches, that will be forced to increase production in their other branches and due to circumstances beyond their control will have to raise prices and make greater profit.

From the point of view of Bangladesh, the end of their industry will be a catastrophe beyond comprehension. Garments is the country’s only industry, accounting for 20% of GDP and 86% of total product exports.

Bangladesh should and can be home to a great and long-term successful industry. With the right attitude, the time will come when all of us — overseas customers, Bangladesh factories. Workers and the people of Bangladesh will look back at this moment as the first day of the new industry and economy

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NOTES

This reports is based on two sources

1. Information received from customers and professionals working in Bangladesh (for obvious reasons these sources will remain confidential).

2. Data from reputable national and global sources:a. US Government Department of Commerce Office of Textiles and Apparel

(OTEXA). Beside providing accurate information on U.S. garment imports by country, category and HTS number, OTEXA is the only reputable source on imports by unit and aggregate FOB prices. Calculating FOB price should be a simple procedure: One divides quantity measured in units into quantity measured by value; e.g., US dollars, Euro, Japanese Yen etc. Value is easy. The problem is with units. Garments is not a single product but rather approximately 2500 products from handkerchiefs to overcoats and from men’s women’s. From boys’ to girls’ to babies’. The question remains that for the purpose of aggregate FOB calculation, how do we compare to an overcoat. OTEXA has a solution: All products are reduced to square meter equivalents (SME) for both value and units. As a result, a handkerchief = 1.4 SME per dozen while an overcoat = 43.5 SME per dozen. FOB prices based on SME is good way to compare the same product from different countries or average FOB prices from different countries. For the purpose of this report, all FOB prices are based on OTEXA U.S. import data.

b. International Trade Centre (ITC) a joint venture between the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO). ITC lists between 200-300 countries and/or territories and all 6-digit HTS products imports-exports-reexports, with the result that it can calculate exports either directly or indirectly by the total of all imports. For Bangladesh this is indispensable since export data for 2016-2018 was either unavailable or unreliable. ITC has overcome this problem by calculating global garment imports (country by country) from Bangladesh. ITC provides a number of services, among the most valuable are projects to assist development for national garment industries. In the past, I have worked for ITC on several projects and have reason to believe I will be doing so again in the near future. I suggest every professional should sign up for ITC. No cost if you are located in a developing country.

Products defined as basic commodities

We define commodity garments as woven shirts (HTS 6205), Cotton pants M&B (HTS 6203.42), Cotton pants (HTS 6204.62), Woven cotton underwear M&B (HTS 6207.11), woven MMF underwear M&B (HTS 6207.19), woven cotton underwear W&G (HTS 6208.91), Woven MMF underwear W&G (HTS 6208.92), T-Shirts (HTS 6109), knit cotton underwear W&G (HTS 6108.21), knit MMF underwear W&G (HTS 6208.22), knit cotton underwear M&B (HTS 6107.11), knit MMF underwear M&B (HTS 6107.12), knit shirts (HTS 6105) and knit blouses (HTS 6106).

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AUG 2019 Report

Table of Contents

World Broad Trends page 2U.S. Data page 6 Conclusion page 13Greater China page 14

China page 19Conclusion page 23

Mexico and DR-CAFTA page 24 Mexico page 29 DR-CAFTA page 33

Honduras page 42El Salvador page 46Nicaragua page 51Guatemala page 55

Conclusion page 60South Asia page 61 India page 69 Bangladesh page 73

Sri Lanka page 78Pakistan page 82

Conclusion page 88ASEAN page 89 Vietnam page 97 Indonesia page 101

Cambodia page 106 Thailand page 110

Philippines page 115Conclusion page 120

Conclusions & Miscellaneous Data page 121APPENDIX I: Product Analysis by Region page 124APPENDIX II: Market share data as of YTD AUG 2019 page 129

ReportOCTOBER 2019

Report

November 2019

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World Broad Trends

Aug 2019: US IMPORTS MONTH TO MONTH CHANGE

U.S. Imports All Garments Monthly Data 2018 vs 2017

Units ValueJanuary 0.2% 0.9%February 9.2% 6.9%

March -4.4% -2.9%

April 0.7% 5.2%

May 1.9% 3.0%June -0.9% 0.5%July 2.1% 5.3%August 1.2% 1.3%

September 5.0% 5.6%

October 14.4% 11.5%

November -3.3% -2.4%

December 9.2% 8.7%


Units Value

January 7.7% 7.4%

February -0.5% 1.7%

March 4.8% 7.6%

April 2.6% 3.9%

May 4.8% 5.9%

June 2.4% 5.0%

July 8.5% 8.4%

August 1.7% 1.1%

September

October

November

December

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UNITS AND VALUE AUG 2018 VS AUG 2019

Total U.S. Garment Imports: YTD 08-2018 Compared with YTD 08-2019Item Description Units Value

2018 2019 % +/- 2018 2019 % +/-Total U.S. Garment Imports: 18,267,285 19,014,188 4.1% 54,523 57,308 5.1%

338/339 Cotton T-shirts 240,818 250,724 4.1% 7,913 8,528 7.8%347/348 Cotton Trousers 136,384 131,266 -3.8% 8,334 8,359 0.3%340 Cotton Shirts 21,397 20,884 -2.4% 1,769 1,747 -1.3%352/652 Underwear 167,895 171,024 1.9% 2,438 2,552 4.7%

FOB PRICES AUG 2018 VS AUG 2019

FOB Prices for U.S. Imports from all Source YTD AUG

2018 2019 % +/-Total $2.98 $3.01 1.0%338/339 $2.74 $2.83 3.5%347/348 $5.09 $5.31 4.2%340 $6.89 $6.97 1.2%352/652 $1.21 $1.24 2.8%

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Six-Year Chart

Yr on Yr FOB Price Changes 2014-2018

Month 2014 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019Jan $3.20 $3.18 $3.04 $2.89 $2.91 $2.90 -0.4% -4.6% -4.9% 0.8% -0.3%Feb $3.15 $3.13 $2.99 $2.93 $2.87 $2.93 -0.6% -4.7% -2.0% -2.1% 2.2%Mar $3.22 $3.07 $3.12 $3.01 $3.06 $3.14 -4.8% 1.6% -3.5% 1.5% 2.6%Apr $3.15 $3.12 $3.02 $2.86 $2.98 $3.02 -1.0% -3.2% -5.3% 4.4% 1.3%May $3.08 $3.01 $2.96 $2.86 $2.89 $2.92 -2.3% -1.7% -3.3% 1.1% 1.0%Jun $3.13 $3.14 $2.99 $2.92 $2.96 $3.04 0.3% -4.8% -2.2% 1.4% 2.5%Jul $3.32 $3.26 $3.08 $3.03 $3.13 $3.13 -1.8% -5.6% -1.4% 3.2% -0.1%Aug $3.26 $3.13 $3.04 $3.05 $3.05 $3.04 -4.0% -3.0% 0.5% 0.0% -0.6%Sep $3.15 $3.08 $2.92 $2.92 $2.94 -2.0% -5.4% 0.1% 0.6% Oct $3.27 $3.20 $2.97 $3.07 $3.00 -2.1% -7.0% 3.3% -2.5% Nov $3.18 $3.12 $2.92 $3.02 $3.04 -2.0% -6.4% 3.3% 0.9% Dec $3.09 $3.07 $2.89 $2.90 $2.89 -0.7% -5.9% 0.4% -0.5%

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MARkET ShARE TRENDS By REGION AND COUNTRy

i. Sub-Saharan Africa: units up 13.9% and value up 13.0%ii. South Asia: units up 1.0% and value up 3.8%iii. ASEAN: units down -0.2% and value up 2.6% iv. Mexico/DR-CAFTA: units down -4.9% and value down -3.3%v. Greater China: units up 0.1% and value down -3.9%

a. Winners: 6 Countries i. Jordan: 22.8% increase in units, and 12.8% increase by value ii. Egypt: 4.2% increase in units, and 11.8% increase by value iii. Haiti: 16.1% increase in units, and 9.1% increase in value iv. Vietnam: 3.4% increase in units, and 6.1% increase by value v. Bangladesh: 0.8% increase in units, and 6.0% increase by value

vi. Pakistan: 0.2% increase in units, 2.7% increase by value vii. India: 1.4% increase in units, and 2.0% increase by value viii. Sri Lanka: 2.2% increase in units, 1.4% increase by value

b. Middlers: 5 Couuntriesi. Nicaragua: -3.1% decrease in units, and 5.5% increase in value ii. Honduras: -1.4% decrease in units, and 5.3% increase by value iii. Cambodia: -3.1% decrease in units, and 3.1% increase by valueiv. Thailand: -6.3% decrease in units, and -1.3% decrease in value

c. Losers: 7 Countriesi. Dominican Republic: -4.3% decrease in units, and -4.4% decrease by valueii. Philippines: -6.9% decrease units, and -5.1% decrease by value iii. Indonesia: -6.6% decrease in units, and -6.0% decrease by value iv. Guatemala: -8.4% decrease in units, and -6.4% decrease by valuev. El Salvador: -3.6% decrease in units, and -6.8% decrease in value

vi. Mexico: -9.7% decrease in units, and -10.0% decrease by value

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All Garment Products All Garment ProductsMarket Share in Units - YTD 19-08 Market Share by Value - YTD 19-08

Units 2018 2019 % +/- Value 2018 2019 % +/-SSA 1.1% 1.3% 13.9% SSA 1.5% 1.6% 13.0%S. Asia 15.0% 15.1% 1.0% S. Asia 15.5% 16.1% 3.8%ASEAN 24.4% 24.4% -0.2% ASEAN 26.1% 26.8% 2.6%MX/DR-CAFTA 14.1% 13.4% -4.9% MX/DR-CAFTA 14.3% 13.8% -3.3%G.China 40.2% 40.2% 0.1% G.China 31.9% 30.8% -3.5%

Jordan 1.0% 1.2% 22.8% Jordan 1.8% 2.1% 12.8%Egypt 0.9% 1.0% 4.2% Egypt 1.0% 1.1% 11.8%Haiti 1.3% 1.5% 16.1% Haiti 1.1% 1.2% 9.1%Vietnam 13.8% 14.2% 3.4% Vietnam 14.9% 15.8% 6.1%Bangladesh 7.3% 7.4% 0.8% Bangladesh 6.7% 7.1% 6.0%Nicaragua 2.1% 2.0% -3.1% Nicaragua 1.9% 2.0% 5.5%Honduras 3.6% 3.5% -1.4% Honduras 3.0% 3.2% 5.3%Cambodia 3.6% 3.5% -3.1% Cambodia 2.9% 3.0% 3.1%Pakistan 2.0% 2.1% 0.2% Pakistan 1.7% 1.7% 2.7%India 4.2% 4.3% 1.4% India 5.0% 5.1% 2.0%Sri Lanka 1.4% 1.4% 2.2% Sri Lanka 2.1% 2.1% 1.4%Thailand 1.1% 1.1% -6.3% Thailand 1.1% 1.1% -1.3%Dom Rep 1.0% 1.0% -4.3% Dom Rep 0.9% 0.9% -4.4%Philippines 1.0% 0.9% -6.9% Philippines 1.0% 0.9% -5.1%Indonesia 4.4% 4.2% -6.6% Indonesia 5.6% 5.2% -6.0%Guatemala 1.5% 1.3% -8.4% Guatemala 1.8% 1.7% -6.4%El Salvador 2.8% 2.7% -3.6% El Salvador 2.3% 2.2% -6.8%Mexico 3.3% 2.9% -9.7% Mexico 4.2% 3.8% -10.0%

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U.S. Data

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Cat 338/339, cotton T-shirts

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30

THE BIRNBAUM REPORT

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Cat 347/348, cotton trousers

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32

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33

Cat 340, woven cotton shirts

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34

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35

Cat 352/652 underwear

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36

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37

Greater China (China, Hong Kong & Macau)

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38

Cotton T-shirts

THE BIRNBAUM REPORT

39

Cotton Trousers

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40

Cotton Woven Shirts

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41

Underwear

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China

U.S. Garment Import Growth: China Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

Jan 5.5% -7.8% 11.3% 13.3% -6.2% 10.3% -10.3% -10.3% 2.7% 4.6% -7.3% 7.7%Feb -3.2% -3.3% 16.6% -1.8% 4.1% 4.3% -3.7% -6.2% 8.9% -8.6% 1.0% 2.6%Mar -0.2% 10.0% -1.6% 1.7% 3.6% 0.3% -0.5% 4.9% -5.9% -5.5% 0.8% -1.1%Apr 0.9% 5.0% 0.7% 4.7% -0.7% 1.4% -0.2% 1.1% -4.3% -3.5% -2.2% -0.4%May 0.1% 5.2% 0.7% 5.1% -1.0% 2.3% -0.8% 1.0% -3.9% -2.9% -2.4% -0.1%Jun 2.2% 5.4% -0.3% 4.0% -1.2% 2.5% 0.6% 1.7% -5.2% -3.7% -2.0% 0.3%Jul 2.2% 5.9% -0.7% 2.7% -0.5% 4.3% -0.3% 2.3% -6.4% -4.2% -0.8% 1.9%Aug 2.5% 8.3% -2.3% 1.7% -0.3% 4.4% -0.3% 4.7% -7.7% -4.5% -1.0% 1.6%Sep 3.9% 7.2% -3.3% 2.3% 0.6% 0.3% 3.8% -8.6% -3.9% 0.0% Oct 4.5% 5.7% -2.2% 1.8% 2.7% 0.7% 2.4% -8.3% -3.7% 1.6% Nov 4.2% 5.7% -2.0% 2.0% 2.1% 0.2% 2.3% -8.4% -3.1% 0.9% Dec 4.0% 5.6% -1.9% 1.7% 2.7% 0.0% 2.5% -8.6% -3.2% 1.30%

China YTD 19-08 China YTD 19-08 China YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 7,305 7,624 4.4% Total 17,278 17,551 1.6% Total $2.37 $2.30 -2.7%338/339 32,329 33,179 2.6% 338/339 1,491 1,429 -4.2% 338/339 $3.84 $3.59 -6.6%347/348 39,518 33,394 -15.5% 347/348 2,062 1,797 -12.9% 347/348 $4.35 $4.48 3.1%340 4,149 3,437 -17.2% 340 364 283 -22.1% 340 $7.30 $6.87 -5.9%352/652 34,196 34,838 1.9% 352/652 540 583 7.8% 352/652 $1.32 $1.39 5.8%

MARKET SHARETotal Garments YTD

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Total Garments Month to Month

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Mexico and DR-CAFTA

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45

Cotton T-shirts

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46

Cotton Trousers

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47

Cotton Woven Shirts

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48

Underwear

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Mexico

U.S. Garment Import Growth: Mexico Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 1.4% -4.9% -6.8% -1.1% 2.5% -1.6% 2.4% -3.8% -8.6% 1.7% 12.1% -13.2%Feb 0.7% -2.7% -0.2% -7.1% 3.4% -4.3% 0.7% -2.8% -3.8% 1.6% 4.2% -10.8%Mar 1.9% 1.3% -3.0% -6.7% 3.9% -4.1% 1.8% -0.2% -7.6% 4.8% -1.8% -5.8%Apr 0.1% 3.3% -3.5% -9.5% 6.3% -4.6% 0.0% 0.7% -7.7% 1.0% -0.2% -4.3%May 0.1% 2.6% -3.5% -7.9% 5.8% -4.4% -0.6% -0.2% -7.6% 3.9% -3.1% -3.1%Jun 1.1% 2.0% -2.8% -7.2% 4.8% -5.1% 0.3% -0.2% -7.2% 4.3% -3.3% -4.1%Jul 0.9% 0.3% -3.7% -5.4% 4.2% -5.5% 0.3% -1.8% -8.5% 5.7% -2.5% -5.0%Aug 0.1% -0.5% -2.8% -5.5% 4.4% -6.0% 0.3% -2.7% -7.7% 5.6% -2.3% -5.4%Sep 0.2% -0.6% -2.4% -5.8% 3.6% 0.8% -3.1% -7.2% 6.0% -2.8% Oct 0.7% -1.5% -2.3% -5.5% 3.3% 1.4% -4.1% -6.7% 6.2% -3.7% Nov 0.5% -1.3% -2.2% -5.0% 1.8% 1.0% -3.9% -5.4% 5.8% -5.5% Dec 0.9% -2.0% -2.1% -4.6% 1.3% 1.4% -4.7% -4.4% 5.3% -6.1%

Mexico YTD 19-08 Mexico YTD 19-08 Mexico YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 595 559 -6.0% Total 2,294 2,170 -5.4% Total $3.86 $3.88 0.6%338/339 10,067 10,020 -0.5% 338/339 249 268 7.6% 338/339 $2.06 $2.23 8.2%347/348 7,144 6,895 -3.5% 347/348 742 758 2.1% 347/348 $8.65 $9.16 5.8%340 300 284 -5.6% 340 43 49 13.5% 340 $12.03 $14.46 20.2%352/652 2,581 2,313 -10.4% 352/652 54 53 -2.4% 352/652 $1.74 $1.90 8.9%


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FOB PRICES

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EXCHANGE RATES – FOB PRICES – MARKET SHARE

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YTD MARKET SHARE

YTD Unit Market Share: Mexico YTD Value Market Share: MexicoPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019

Jan 3.3% 3.3% 2.9% 2.6% 2.6% 2.4% Jan 4.1% 4.1% 3.7% 3.5% 3.9% 3.2%Feb 3.5% 3.5% 3.1% 2.9% 2.9% 2.7% Feb 4.3% 4.3% 3.8% 4.1% 4.1% 3.5%Mar 3.8% 3.6% 3.5% 3.2% 3.3% 3.0% Mar 4.6% 4.4% 4.2% 4.4% 4.3% 3.8%Apr 3.9% 3.8% 3.7% 3.2% 3.4% 3.1% Apr 4.7% 4.6% 4.3% 4.4% 4.3% 3.9%May 3.9% 3.8% 3.7% 3.3% 3.4% 3.2% May 4.8% 4.6% 4.4% 4.6% 4.3% 4.0%Jun 3.9% 3.8% 3.6% 3.3% 3.4% 3.2% Jun 4.8% 4.6% 4.4% 4.6% 4.4% 4.0%Jul 3.8% 3.6% 3.5% 3.3% 3.3% 3.0% Jul 4.7% 4.4% 4.2% 4.5% 4.3% 3.9%Aug 3.7% 3.4% 3.4% 3.2% 3.3% 2.9% Aug 4.6% 4.3% 4.1% 4.4% 4.2% 3.8%Sep 3.6% 3.3% 3.3% 3.1% 3.1% Sep 4.5% 4.2% 4.1% 4.4% 4.2% Oct 3.6% 3.3% 3.3% 3.1% 3.1% Oct 4.5% 4.2% 4.1% 4.4% 4.1% Nov 3.6% 3.3% 3.3% 3.1% 3.1% Nov 4.5% 4.2% 4.2% 4.4% 4.1% Dec 3.6% 3.3% 3.3% 3.1% 3.1% Dec 4.6% 4.2% 4.2% 4.5% 4.1%

Mexico Market ShareDescription Units Value

Cat Product YTD 18-08 YTD 19-08 YTD 18-08 YTD 19-08 Total 3.3% 2.9% 4.2% 3.8%338/339 Cotton T-Shirts 4.2% 4.0% 3.1% 3.1%347/348 Cotton Pants 5.2% 5.3% 8.9% 9.1%340 Cotton Shirts 1.4% 1.4% 2.5% 2.8%352/652 Underwear 1.5% 1.4% 2.2% 2.1%

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DR-CAFTA

U.S. Garment Import Growth: DR-CAFTA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 4.4% 7.3% 2.4% -1.4% 9.9% -1.3% 0.7% 8.1% 2.1% -1.9% 7.8% 5.1%Mar 5.5% 1.5% 3.2% -1.7% 4.0% -3.6% 4.8% 4.9% 1.4% -3.2% 5.3% 2.6%Mar 3.0% 2.4% 0.2% 3.6% -1.9% -1.7% 3.3% 5.6% -1.7% 1.0% 1.8% 3.9%Apr 3.9% 0.7% 2.6% 0.7% -1.7% 0.6% 4.0% 3.8% -0.4% -1.1% 1.9% 6.3%May 0.6% 0.3% 3.4% 0.9% -1.5% -0.6% 1.3% 3.0% 0.6% -0.3% 2.0% 4.7%Jun 1.4% 0.4% 3.7% -1.2% -1.8% 0.6% 2.4% 2.4% 1.4% -2.0% 1.3% 5.8%Jul 1.9% 1.4% 2.2% -2.4% -1.7% 2.3% 2.8% 3.1% -0.7% -2.0% 1.3% 7.1%Aug 2.0% 1.8% 1.7% -1.6% -1.5% 0.5% 2.8% 3.1% 1.6% -0.9% 2.0% 4.6%Sep 2.3% 1.9% 2.0% -3.4% -0.6% 3.1% 3.2% -1.5% -2.5% 3.1% Oct 3.0% 1.6% 0.7% -3.4% 0.5% 3.7% 2.6% -2.7% -1.9% 4.4% Nov 2.7% 2.2% 1.5% -3.5% -0.7% 3.4% 3.0% -2.4% -1.8% 3.3% Dec 2.5% 1.9% 1.6% -4.3% 0.7% 3.6% 2.3% -2.2% -2.5% 4.8%

CAFTA YTD 19-08 CAFTA YTD 19-08 CAFTA YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 1,987 1,997 0.5% Total 5,487 5,742 4.6% Total $2.76 $2.88 4.2%338/339 80,914 80,259 -0.8% 338/339 1,835 1,947 6.1% 338/339 $1.89 $2.02 7.0%347/348 6,964 6,763 -2.9% 347/348 326 346 6.0% 347/348 $3.90 $4.26 9.1%340 809 808 -0.1% 340 89 99 11.2% 340 $9.19 $10.23 11.3%352/652 37,530 38,157 1.7% 352/652 478 539 12.8% 352/652 $1.06 $1.18 10.9%


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FOB PRICES

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57

Strategic Categories by Country

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58

Cotton T-shirts

THE BIRNBAUM REPORT

59

Cotton Trousers

THE BIRNBAUM REPORT

60

Cotton Woven Shirts

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61

Underwear

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62

DR-CAFTA by Country

Honduras

U.S. Garment Import Growth: HONDURAS Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 6.8% 17.7% -16.8% 1.2% 13.9% -9.8% 3.9% 10.3% -8.9% 0.6% 14.1% -2.1%Feb 6.3% 3.5% -8.1% -1.0% 0.9% -6.1% 4.3% 7.0% -5.6% -3.5% 5.4% 3.2%Mar 3.5% 5.0% -9.6% 4.6% -6.7% -1.5% 2.4% 8.9% -8.7% 0.0% 0.6% 8.3%Apr 2.8% 4.2% -6.8% 3.9% -8.1% 2.6% 2.9% 7.0% -7.2% 0.4% -0.4% 12.3%May -3.4% 4.8% -5.4% 4.2% -7.8% 2.6% 0.7% 5.6% -5.2% 1.0% 0.0% 10.8%Jun -2.9% 3.9% -4.0% 1.6% -7.0% 2.0% 1.5% 4.2% -3.0% -0.7% -0.6% 4.6%Jul -2.0% 4.5% 6.0% 0.2% -7.2% 3.5% 1.5% 4.7% 0.2% 0.0% -1.7% 12.0%Aug -1.3% 4.9% -5.1% 1.1% -7.9% 2.6% 1.5% 5.4% -5.7% 1.5% -1.6% 10.7%Sep -0.1% 3.8% -3.3% -2.0% -6.5% 2.4% 5.0% -4.1% -1.9% 0.3% Oct 1.9% 2.2% -4.4% -2.5% -5.3% 4.3% 3.4% -5.3% -1.6% 2.0% Nov 0.9% 3.1% -3.2% -2.5% -6.0% 3.1% 4.4% -4.7% -1.5% 1.6% Dec 1.1% 2.7% -3.0% -4.6% -3.9% 3.4% 3.5% -4.5% -3.4% 4.2%

Honduras YTD 19-08 Honduras YTD 19-08 Honduras YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 650 667 2.6% Total 1,658 1,836 10.7% Total $2.55 $2.75 7.8%338/339 25,065 24,781 -1.1% 338/339 583 605 3.9% 338/339 $1.94 $2.04 5.1%347/348 2,006 2,294 14.3% 347/348 57 74 28.7% 347/348 $2.38 $2.68 12.6%340 196 235 19.9% 340 30 37 26.5% 340 $12.58 $13.27 5.5%352/652 12,898 13,249 2.7% 352/652 119 154 29.4% 352/652 $0.77 $0.97 26.0%

MARKET SHARE Total garments YTD

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FOB PRICES


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65

YTD MARKET SHARE

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66

YTD Unit Market Share: Honduras YTD Value Market Share: HondurasPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Honduras Market ShareDescription Units Value


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El Salvador

U.S. Garment Import Growth: EL SALVADOR Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan -1.9% 10.7% 14.3% -9.9% 0.2% 1.7% -1.6% 20.6% 3.0% -7.1% -0.6% 1.4%Mar -5.4% 8.8% 7.7% -7.2% -2.7% 0.3% 0.4% 12.8% 2.5% -6.5% 0.7% -1.8%Mar -3.8% 4.9% 3.1% 0.7% -4.9% -2.2% 1.3% 9.1% -0.7% 1.1% -1.3% -4.2%Apr 0.2% -1.9% 10.3% -5.7% -5.1% 1.7% 4.6% 3.4% 4.9% -4.7% -1.1% -0.7%May -1.5% -2.6% 8.9% -5.5% -3.8% -0.1% 2.1% 2.3% 4.3% -3.3% -0.8% -1.8%Jun -0.7% -0.9% 7.2% -7.5% -2.2% 0.1% 2.5% 2.6% 4.5% -5.3% 1.0% -2.1%Jul 0.1% 0.5% 5.0% -8.4% -2.6% 2.3% 4.0% 3.1% 2.0% -5.2% 0.2% -0.1%Aug -0.3% 0.8% 4.9% -6.7% -2.8% 0.3% 4.0% 2.4% 2.3% -3.4% -0.4% -2.0%Sep -0.8% 2.2% 3.4% -7.6% -1.6% 3.0% 3.2% 0.6% -3.8% 1.1% Oct -0.9% 3.0% 1.5% -7.2% -0.3% 2.3% 3.4% -0.7% -2.9% 1.7% Nov -0.7% 3.2% 1.8% -5.8% -2.6% 2.4% 3.2% -0.3% -1.3% -1.0% Dec -1.0% 3.1% 1.4% -5.4% -2.1% 2.4% 2.4% -0.4% -1.0% -0.8%

El Salvador YTD 19-08 El Salvador YTD 19-08 El Salvador YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 507 508 0.3% Total 1,268 1,242 -2.0% Total $2.50 $2.44 -2.4%338/339 12,713 12,472 -1.9% 338/339 312 297 -4.9% 338/339 $2.05 $1.98 -3.0%347/348 1,708 1,580 -7.5% 347/348 36 34 -5.3% 347/348 $1.77 $1.82 2.3%340 264 202 -23.4% 340 18 14 -18.8% 340 $5.57 $5.90 6.0%352/652 13,592 14,672 8.0% 352/652 166 189 14.3% 352/652 $1.02 $1.08 5.9%


THE BIRNBAUM REPORT

68


THE BIRNBAUM REPORT

69

FOB PRICES

THE BIRNBAUM REPORT

70


THE BIRNBAUM REPORT

71

YTD MARKET SHARE

YTD Unit Market Share: El Salvador YTD Value Market Share: El SalvadorPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


El Salvador Market ShareDescription Units Value


THE BIRNBAUM REPORT

72

Nicaragua

U.S. Garment Import Growth: NICARAGUA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 15.3% -15.5% 18.5% 14.6% 15.3% -7.0% 7.0% -18.5% 15.7% 6.4% 10.2% 7.4%Mar 25.9% -11.2% 12.5% 12.0% 10.1% -7.2% 16.9% -11.1% 8.0% 5.3% 10.5% 2.5%Mar 14.1% -5.3% 11.3% 11.1% 6.0% -4.4% 9.2% -5.5% 5.5% 4.3% 9.8% 5.7%Apr 12.7% -3.7% 8.8% 9.7% 6.1% -4.6% 8.4% -5.3% 2.7% 3.7% 8.9% 7.6%May 10.8% -5.1% 12.1% 7.6% 6.7% -5.4% 4.8% -5.5% 5.0% 2.6% 8.8% 7.0%Jun 13.5% -4.5% 13.6% 6.0% 1.2% -0.3% 7.1% -5.5% 5.9% 1.1% 3.9% 13.0%Jul 12.9% -2.7% 11.1% 4.9% 1.2% 2.8% 4.8% -3.9% 3.3% 0.9% 4.9% 14.6%Aug 11.7% -2.0% 10.5% 5.1% 2.6% 0.8% 6.8% -4.4% 2.0% 1.9% 7.2% 10.9%Sep 10.8% -1.6% 11.3% 3.2% 2.8% 5.3% -4.4% 2.3% 1.3% 6.8% Oct 10.6% -0.6% 8.8% 3.2% 3.7% 5.8% -3.9% 0.4% 1.6% 8.3% Nov 9.9% 1.5% 8.5% 1.7% 3.3% 5.5% -2.4% -0.2% 1.0% 7.8% Dec 9.6% 0.6% 9.4% 0.3% 5.1% 5.8% -3.0% 0.4% 0.7% 9.7%

Nicaragua YTD 19-08 Nicaragua YTD 19-08 Nicaragua YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 375 378 0.8% Total 1,060 1,175 10.9% Total $2.83 $3.11 9.9%338/339 23,603 22,880 -3.1% 338/339 454 509 12.1% 338/339 $1.60 $1.85 15.7%347/348 2,448 2,034 -16.9% 347/348 176 181 3.2% 347/348 $5.99 $7.44 24.2%340 297 320 7.8% 340 36 42 17.3% 340 $10.01 $10.89 8.8%352/652 1,670 1,746 4.6% 352/652 27 35 29.0% 352/652 $1.37 $1.68 23.3%

MARKET SHARETotal Garments YTD.

THE BIRNBAUM REPORT

73


THE BIRNBAUM REPORT

74

FOB PRICES

THE BIRNBAUM REPORT

75


THE BIRNBAUM REPORT

76

YTD MARKET SHARE

YTD Unit Market Share: Nicaragua YTD Value Market Share: NicaraguaPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Nicaragua Market ShareDescription Units Value


THE BIRNBAUM REPORT

77

Guatemala

U.S. Garment Import Growth: GUATEMALA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 4.9% 16.1% 10.2% 1.0% 3.6% 12.4% -2.4% 25.0% 2.6% -0.8% 3.8% 14.1%Mar 9.6% 10.6% 9.3% -2.2% 4.6% -2.4% 4.1% 13.7% 2.7% -2.9% 2.8% 4.9%Mar 8.0% 7.4% 5.2% 5.0% 0.6% -2.5% 4.7% 9.7% 1.3% 3.2% 0.4% 1.1%Apr 6.9% 5.3% 7.2% 0.1% 5.0% -1.1% 2.2% 9.9% 2.7% -0.4% 3.2% 2.5%May 6.4% 3.4% 8.5% 0.7% 4.7% -3.7% -0.3% 8.9% 3.4% 0.1% 3.6% -0.2%Jun 6.4% 3.4% 7.2% -0.4% 4.6% -1.5% 0.9% 7.2% 2.7% -1.1% 3.3% 1.3%Jul 5.8% 3.6% 6.0% -3.0% 7.0% -1.5% 0.8% 7.9% 0.2% -2.6% 4.9% 2.0%Aug 4.2% 4.7% 5.2% -3.5% 8.9% -4.6% 0.8% 8.6% -1.4% -2.8% 7.4% -1.6%Sep 5.0% 4.7% 4.6% -3.7% 8.6% 1.8% 8.8% -2.2% -3.5% 7.6% Oct 5.0% 4.1% 3.8% -4.0% 10.5% 1.5% 7.6% -3.3% -3.0% 8.9% Nov 5.5% 4.0% 3.6% -4.5% 9.5% 1.9% 7.2% -3.8% -2.7% 8.0% Dec 4.8% 3.5% 4.1% -3.9% 10.2% 1.9% 6.6% -3.3% -3.2% 9.3%

Guatemala YTD 19-08 Guatemala YTD 19-08 Guatemala YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 267 255 -4.6% Total 991 975 -1.6% Total $3.71 $3.83 3.2%338/339 12,589 12,727 1.1% 338/339 371 415 11.7% 338/339 $2.46 $2.72 10.5%347/348 687 786 14.5% 347/348 48 51 5.9% 347/348 $5.84 $5.40 -7.5%340 5 6 11.6% 340 1 1 32.9% 340 $8.12 $9.68 19.2%352/652 539 719 33.3% 352/652 12 13 14.2% 352/652 $1.82 $1.56 -14.3%

MARKET SHARETotal garment YTD

THE BIRNBAUM REPORT

78


THE BIRNBAUM REPORT

79

FOB PRICES

THE BIRNBAUM REPORT

80


THE BIRNBAUM REPORT

81

YTD MARKET SHARE

YTD Unit Market Share: Guatemala YTD Value Market Share: GuatemalaPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Guatemala Market ShareDescription Units Value


THE BIRNBAUM REPORT

82

DR-CAFTA Conclusion

YTD Unit Market Share: DR-CAFTA YTD Value Market Share: DR-CAFTAPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019Jan 8.0% 8.9% 8.6% 7.7% 8.4% 7.7% Jan 6.7% 7.6% 7.6% 7.1% 7.6% 7.4%

Feb 13.7% 10.5% 9.6% 9.6% 9.5% 8.9% Feb 12.7% 9.1% 8.5% 8.7% 8.8% 8.6%

Mar 11.4% 11.0% 10.9% 11.1% 10.8% 10.2% Mar 9.3% 9.5% 9.5% 9.8% 9.8% 9.7%

Apr 11.7% 11.2% 11.5% 11.3% 11.0% 10.6% Apr 9.6% 9.7% 9.9% 10.0% 9.9% 10.1%

May 12.0% 12.0% 11.8% 11.6% 11.3% 10.8% May 10.0% 10.0% 10.2% 10.3% 10.3% 10.2%

Jun 12.1% 11.5% 11.9% 11.6% 11.2% 10.9% Jun 10.1% 10.0% 10.4% 10.4% 10.3% 10.3%

Jul 12.1% 11.5% 11.8% 11.3% 11.0% 10.8% Jul 10.1% 9.9% 10.3% 10.2% 10.1% 10.2%

Aug 12.0% 11.2% 11.5% 11.2% 10.9% 10.5% Aug 10.0% 9.7% 10.0% 10.1% 10.1% 10.0%

Sep 11.7% 11.0% 11.4% 10.9% 10.7% Sep 9.9% 9.7% 10.0% 9.9% 10.0%

Oct 11.6% 11.0% 11.3% 10.8% 10.5% Oct 9.8% 9.7% 9.9% 9.8% 9.9%

Nov 11.6% 11.2% 11.4% 10.9% 10.6% Nov 9.9% 9.8% 10.0% 9.9% 9.9%

Dec 11.7% 11.2% 11.5% 10.9% 10.7% Dec 10.0% 9.8% 10.1% 9.9% 10.1%

DR-CAFTADescription Units Value


THE BIRNBAUM REPORT

83

South Asia

U.S. Garment Import Growth: SOUTH ASIA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 4.7% -2.4% 3.8% 5.5% 4.6% 5.7% 3.1% 0.3% 2.5% 2.1% 3.9% 8.1%Feb 1.7% 3.4% 8.0% 0.0% 1.5% 5.8% 2.0% 5.0% 6.3% -4.2% 1.8% 8.9%Mar 3.5% 7.1% 3.8% -0.9% -2.5% 10.6% 4.4% 7.9% 2.0% -3.7% -2.0% 13.0%Apr 2.5% 8.4% 1.0% -2.5% 2.2% 7.1% 3.5% 8.3% -0.4% -4.5% 2.3% 10.3%May 1.7% 8.2% 1.4% -1.7% 2.9% -6.4% 2.5% 7.8% 0.4% -4.0% 2.6% 2.5%Jun 1.5% 9.2% 1.6% -1.8% 2.3% 6.6% 2.5% 9.8% -0.4% -3.8% 2.4% 10.9%Jul 1.0% 8.9% 0.3% -0.5% 1.5% 5.5% 2.1% 9.1% -1.3% -3.1% 2.7% 9.6%Aug 0.6% 8.8% -0.4% -0.4% 1.4% 5.1% 2.1% 8.3% -1.6% -2.4% 2.1% 9.1%Sep 0.3% 10.2% -0.3% -0.5% 1.7% 1.6% 9.1% -1.5% -2.6% 2.7% Oct -0.1% 10.8% -2.1% 0.4% 1.9% 1.5% 9.2% -2.9% -1.5% 3.1% Nov -0.9% 11.2% -1.2% 0.8% 0.4% 0.7% 9.4% -2.5% -1.0% 1.9% Dec 0.3% 11.3% -1.4% -0.1% 1.2% 1.5% 9.5% -2.9% -1.6% 2.7%

South Asia YTD 19-08 South Asia YTD 19-08 South Asia YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 2,736 2,877 5.1% Total 8,460 9,226 9.1% Total $3.09 $3.21 3.7%338/339 40,670 44,657 9.8% 338/339 1,358 1,509 11.1% 338/339 $2.78 $2.82 1.2%347/348 37,365 38,720 3.6% 347/348 2,289 2,469 7.9% 347/348 $5.10 $5.31 4.1%340 9,592 9,752 1.7% 340 603 616 2.3% 340 $5.23 $5.27 0.6%352/652 38,674 38,409 -0.7% 352/652 599 599 -0.1% 352/652 $1.29 $1.30 0.6%


THE BIRNBAUM REPORT

84


THE BIRNBAUM REPORT

85

FOB PRICES

THE BIRNBAUM REPORT

86

Strategic Categories by Country

THE BIRNBAUM REPORT

87

THE BIRNBAUM REPORT

88

THE BIRNBAUM REPORT

89

THE BIRNBAUM REPORT

90

THE BIRNBAUM REPORT

91

India

U.S. Garment Import Growth: INDIA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 7.5% 4.4% 1.2% 8.6% 10.9% 2.9% 6.2% 5.3% 2.7% 4.3% 5.4% 10.4%Mar 8.3% 7.4% 8.1% -0.4% 3.3% 6.7% 5.2% 7.7% 9.5% -5.1% 4.9% 8.3%Mar 13.2% 7.6% 4.9% 0.9% -2.6% 10.4% 9.3% 9.4% 4.3% -3.0% -0.8% 11.9%Apr 10.2% 8.5% 2.5% -0.6% 1.5% 8.6% 7.0% 9.8% 1.4% -3.3% 3.8% 9.5%May 8.2% 7.9% 2.6% 0.4% 3.0% 1.0% 5.6% 8.7% 2.0% -1.8% 4.8% 3.0%Jun 8.8% 7.5% 2.5% 0.6% 2.4% 7.0% 5.9% 10.0% 0.9% -1.1% 3.8% 9.3%Jul 8.6% 6.9% 1.5% 2.4% 1.9% 6.0% 5.8% 9.6% -0.3% 0.2% 3.9% 8.5%Aug 7.3% 6.8% 1.9% 2.7% 1.7% 5.5% 5.8% 9.1% 0.1% 1.0% 3.9% 7.3%Sep 7.6% 7.2% 2.0% 2.6% 1.8% 5.6% 8.6% -0.1% 0.9% 3.8% Oct 8.7% 6.2% 1.4% 3.9% 1.9% 6.2% 7.5% -0.5% 2.0% 4.1% Nov 7.9% 6.9% 2.0% 3.3% 1.0% 5.7% 7.7% -0.4% 2.1% 2.8% Dec 8.1% 7.0% 2.0% 2.0% 2.0% 5.9% 7.8% -0.7% 1.2% 3.0%

India YTD 19-08 India YTD 19-08 India YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 771 814 5.5% Total 2,741 2,940 7.3% Total $3.55 $3.61 1.7%338/339 16,709 18,037 7.9% 338/339 650 700 7.7% 338/339 $3.24 $3.23 -0.2%347/348 3,191 3,663 14.8% 347/348 213 241 13.0% 347/348 $5.58 $5.49 -1.6%340 2,502 2,166 -13.4% 340 177 160 -9.6% 340 $5.88 $6.14 4.4%352/652 11,598 11,813 1.8% 352/652 212 210 -0.9% 352/652 $1.52 $1.48 -2.7%

MARKET SHARE

Total Garments YTD

THE BIRNBAUM REPORT

92


THE BIRNBAUM REPORT

93

FOB PRICES

THE BIRNBAUM REPORT

94


THE BIRNBAUM REPORT

95

YTD MARKET SHARE

YTD Unit Market Share: INDIA YTD Value Market Share: INDIAPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


India Market ShareDescription Units Value


THE BIRNBAUM REPORT

96

Bangladesh

U.S. Garment Import Growth: BANGLADESH Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 2.8% -8.4% 15.5% 0.8% 6.5% 5.8% 3.8% -7.2% 13.3% -3.2% 2.5% 8.4%Feb -3.5% 1.6% 12.8% -0.6% 3.5% 5.7% -2.1% 2.8% 8.5% -5.7% 1.1% 10.8%Mar -2.9% 6.9% 8.4% -1.0% -0.1% 11.6% -0.2% 6.3% 4.3% -5.9% -0.9% 15.9%Apr -3.5% 9.0% 4.6% -1.7% 4.1% 8.1% -0.8% 7.0% 1.7% -6.3% 2.8% 13.7%May -3.8% 9.5% 4.2% -0.6% 4.8% 5.4% -1.7% 6.8% 1.9% -5.5% 3.8% 9.2%Jun -3.7% 11.7% 4.3% -0.9% 4.2% 7.7% -1.4% 9.5% 1.5% -5.5% 4.8% 14.0%Jul -4.0% 11.2% 3.0% -0.8% 4.1% 4.9% -1.8% 8.5% 1.1% -5.8% 5.6% 11.1%Aug -4.0% 11.1% 1.7% -1.1% 3.8% 4.9% -1.8% 7.3% 0.9% -5.6% 4.5% 11.4%Sep -4.6% 13.8% 1.5% -1.2% 4.7% -2.1% 9.7% 0.6% -5.6% 5.8% Oct -5.8% 15.9% -1.2% -0.6% 5.1% -2.5% 11.1% -1.7% -5.0% 6.7% Nov -6.5% 15.9% -0.2% 0.0% 3.6% -3.5% 11.4% -1.2% -4.3% 5.9% Dec -4.9% 16.2% -0.4% -0.4% 4.3% -2.3% 11.7% -1.8% -4.5% 6.6%

Bangladesh YTD 19-08 Bangladesh YTD 19-08 Bangladesh YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 1,334 1,399 4.9% Total 3,664 4,083 11.4% Total $2.75 $2.92 6.3%338/339 13,980 15,028 7.5% 338/339 356 407 14.6% 338/339 $2.12 $2.26 6.6%347/348 27,933 28,538 2.2% 347/348 1,571 1,692 7.7% 347/348 $4.69 $4.94 5.4%340 6,269 6,695 6.8% 340 352 379 7.6% 340 $4.68 $4.72 0.8%352/652 17,962 17,577 -2.1% 352/652 188 190 0.9% 352/652 $0.87 $0.90 3.1%


THE BIRNBAUM REPORT

97


THE BIRNBAUM REPORT

98

FOB PRICES

THE BIRNBAUM REPORT

99


THE BIRNBAUM REPORT

100

YTD MARKET SHARE

YTD Unit Market Share: BANGLADESH YTD Value Market Share: BANGLADESHPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Bangladesh Market ShareDescription Units Value


THE BIRNBAUM REPORT

101

Sri Lanka

U.S. Garment Import Growth: SRI LANKA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan -2.8% 25.3% -11.0% 12.7% -12.2% 12.2% 0.5% 24.8% -9.9% 10.8% -3.0% 1.7%Mar 6.7% 12.6% 4.4% -1.7% -10.5% 5.5% 11.6% 12.8% 4.0% -1.3% -5.6% 5.8%Mar 10.7% 16.7% -2.2% -1.6% -16.8% 9.7% 14.7% 15.3% -0.8% -1.4% -10.3% 7.9%Apr 6.1% 16.7% -2.6% -3.8% -11.0% 1.0% 12.8% 13.8% -0.4% -3.8% -6.6% 3.0%May 6.3% 16.2% 0.1% -6.2% -13.2% 7.1% 10.1% 14.3% 1.5% -5.8% -8.9% 10.3%Jun 4.0% 16.7% 1.0% -5.8% -12.5% 1.6% 8.9% 16.5% 0.1% -4.9% -9.5% 5.5%Jul 3.7% 16.6% -0.5% -3.2% -15.2% 6.1% 8.2% 16.1% -0.9% -3.8% -10.6% 7.7%Aug 4.3% 18.0% -2.8% -2.4% -15.9% 6.4% 8.2% 17.1% -2.8% -2.5% -11.1% 6.6%Sep 4.2% 17.6% -1.2% -3.5% -15.3% 7.3% 16.3% -1.6% -3.4% -9.6% Oct 3.7% 17.4% -2.6% -0.9% -16.3% 7.1% 15.4% -2.9% -0.6% -10.4% Nov 3.4% 18.2% -1.4% -0.8% -19.2% 5.9% 16.2% -2.3% 0.3% -12.6% Dec 4.7% 17.2% -2.7% 2.0% -18.1% 6.7% 15.8% -3.4% -0.7% -11.3%

Sri Lanka YTD 19-08 Sri Lanka YTD 19-08 Sri Lanka YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 257 273 6.4% Total 1,152 1,228 6.6% Total $4.49 $4.50 0.2%338/339 1,104 1,266 14.7% 338/339 84 88 4.7% 338/339 $6.33 $5.78 -8.7%347/348 1,913 1,919 0.3% 347/348 185 192 4.1% 347/348 $8.05 $8.36 3.8%340 749 800 6.7% 340 71 74 4.2% 340 $7.88 $7.69 -2.4%352/652 7,578 7,579 0.0% 352/652 172 177 2.6% 352/652 $1.89 $1.94 2.6%


THE BIRNBAUM REPORT

102


THE BIRNBAUM REPORT

103

FOB PRICES

THE BIRNBAUM REPORT

104


THE BIRNBAUM REPORT

105

YTD MARKET SHARE

YTD Unit Market Share: SRI LANKA YTD Value Market Share: SRI LANKAPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Sri Lanka Market ShareDescription Units Value


THE BIRNBAUM REPORT

106

Pakistan

U.S. Garment Import Growth: PAKISTAN Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 11.7% -11.3% -14.4% 11.6% 2.3% 5.7% -2.8% -10.1% -12.5% 7.3% 16.8% 7.1%Mar 4.6% -4.5% -4.4% -1.7% 0.7% 4.7% -1.1% -3.9% -7.7% 1.2% 6.6% 7.2%Mar 2.9% -0.3% -7.8% -3.6% 1.7% 7.7% -2.6% 0.1% -9.7% 0.7% 2.9% 11.4%Apr 5.1% 0.0% -10.1% -8.3% 9.3% 5.4% -0.3% 1.6% -13.7% -2.0% 9.8% 9.2%May 4.5% -0.9% -8.6% -6.0% 9.7% 11.1% 1.0% 1.0% -12.1% -1.6% 9.2% 12.4%Jun 3.5% 0.0% -8.2% -6.6% 8.3% 5.6% 0.7% 1.8% -11.8% -2.8% 6.7% 10.3%Jul 2.3% 0.5% -9.6% -3.4% 5.8% 5.9% 0.4% 1.7% -13.6% -0.3% 6.8% 8.8%Aug 1.6% -1.1% -9.6% -2.7% 7.3% 4.3% 0.4% -0.7% -13.6% 1.1% 6.5% 8.0%Sep 0.9% 0.4% -9.3% -2.1% 5.0% -1.2% -0.3% -12.7% 0.8% 4.7% Oct 0.8% 0.1% -10.7% -1.6% 6.2% -1.3% -1.2% -13.9% 1.1% 6.8% Nov -0.7% 0.7% -9.7% -0.3% 4.9% -1.8% -1.7% -12.7% 2.2% 6.0% Dec 0.4% 0.8% -9.5% -1.0% 5.5% -1.1% -1.8% -11.9% 1.0% 7.1%

Pakistan YTD 19-08 Pakistan YTD 19-08 Pakistan YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 374 391 4.3% Total 903 975 8.0% Total $2.41 $2.50 3.5%338/339 8,877 10,326 16.3% 338/339 269 314 16.8% 338/339 $2.52 $2.53 0.4%347/348 4,328 4,600 6.3% 347/348 320 343 7.4% 347/348 $6.16 $6.22 1.1%340 72 91 26.3% 340 3 4 37.4% 340 $3.18 $3.46 8.8%352/652 1,536 1,439 -6.3% 352/652 27 22 -17.8% 352/652 $1.47 $1.29 -12.3%


THE BIRNBAUM REPORT

107


THE BIRNBAUM REPORT

108

FOB PRICES

THE BIRNBAUM REPORT

109


THE BIRNBAUM REPORT

110

YTD MARKET SHARE

YTD Unit Market Share: PAKISTAN YTD Value Market Share: PAKISTANPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Pakistan Market ShareDescription Units Value


THE BIRNBAUM REPORT

111

Conclusion South Asia

YTD Unit Market Share: SOUTH ASIA YTD Value Market Share: SOUTH ASIAPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019Jan 15.8% 16.1% 15.4% 15.0% 15.7% 15.4% Jan 15.3% 16.1% 16.2% 15.7% 16.2% 16.3%Feb 15.4% 16.3% 15.6% 15.6% 15.2% 15.5% Feb 15.3% 16.5% 16.3% 16.3% 16.0% 16.7%Mar 16.3% 16.3% 17.0% 16.6% 15.9% 16.9% Mar 16.1% 16.8% 17.5% 17.2% 16.6% 17.7%Apr 16.4% 16.9% 17.1% 16.3% 16.4% 17.0% Apr 16.3% 17.1% 17.5% 17.0% 17.0% 17.8%May 16.2% 16.6% 16.8% 16.1% 16.3% 16.8% May 16.1% 16.8% 17.2% 16.8% 16.8% 17.8%Jun 15.6% 16.1% 16.4% 15.8% 16.0% 16.5% Jun 15.5% 16.4% 16.8% 16.5% 16.5% 17.4%Jul 15.2% 15.7% 15.8% 15.5% 15.5% 15.7% Jul 15.1% 15.8% 16.3% 16.1% 16.1% 16.6%Aug 14.8% 15.1% 15.2% 15.0% 15.0% 15.1% Aug 14.8% 15.3% 15.7% 15.6% 15.5% 16.1%Sep 14.6% 14.6% 14.8% 14.6% 14.6% Sep 14.3% 14.9% 15.4% 15.2% 15.2% Oct 14.0% 14.6% 14.5% 14.4% 14.3% Oct 14.1% 14.8% 15.2% 15.1% 15.0% Nov 13.9% 14.5% 14.5% 14.5% 14.0% Nov 14.0% 14.7% 15.1% 15.0% 14.9% Dec 13.9% 14.6% 14.5% 14.4% 14.2% Dec 14.0% 14.7% 15.1% 14.9% 14.8%

South Asia Market ShareDescription Units Value


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112

ASEANThe Association of Far East Nations (ASEAN) includes ten countries, of which five are important garment exporters — Vietnam, Indonesia, Cambodia, Thailand, and Philippines. Singapore and Malaysia are home to important garment suppliers, who like their counterparts in Hong Kong, Korea and Taiwan own factories overseas. One — Laos — has just begun building a garment industry, while the remaining two — Myanmar and Brunei — are not yet relevant to the industry.

U.S. Garment Import Growth: ASEAN Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 0.2% -2.7% 5.1% 16.7% 3.3% 7.6% 3.1% -3.4% 3.8% 11.2% 2.4% 9.5%Feb 0.1% -5.3% 18.6% 1.3% 5.7% 4.2% 2.8% -4.8% 14.2% -1.3% 4.6% 6.9%Mar 4.2% 3.0% 2.0% 4.1% 1.0% 7.5% 6.4% 2.2% 0.5% 1.3% 1.4% 9.9%Apr 3.7% 5.1% -2.0% 5.3% 2.2% 5.8% 5.9% 3.9% -2.7% 1.7% 3.4% 8.3%May 2.4% 6.8% -1.2% 4.8% 2.8% 5.3% 4.6% 5.7% -1.7% 0.1% 4.6% 8.1%Jun 3.6% 7.8% -1.4% 3.9% 2.6% 4.6% 5.2% 7.3% -2.7% 0.0% 4.3% 8.0%Jul 2.3% 7.7% -1.1% 4.4% 2.6% 4.3% 3.9% 7.2% -2.7% 0.6% 4.5% 8.3%Aug 2.8% 8.5% -0.5% 3.3% 2.8% 3.9% 3.9% 7.7% -2.5% 0.5% 4.3% 7.8%Sep 4.0% 8.3% -1.1% 3.4% 2.8% 5.6% 7.6% -3.4% 1.2% 4.3% Oct 4.4% 7.9% -0.4% 3.1% 4.0% 5.8% 6.9% -3.2% 1.8% 5.3% Nov 4.2% 8.1% 0.0% 2.8% 3.1% 5.0% 7.3% -3.0% 2.3% 4.2% Dec 4.5% 8.0% -0.1% 2.6% 3.0% 4.8% 7.5% -3.2% 2.2% 4.2%

Total ASEAN YTD 19-08 Total ASEAN YTD 19-08 Total ASEAN YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 4,459 4,633 3.9% Total 14,254 15,367 7.8% Total $3.20 $3.32 3.8%338/339 57,315 61,696 7.6% 338/339 2,094 2,402 14.7% 338/339 $3.04 $3.24 6.6%347/348 34,436 34,103 -1.0% 347/348 1,941 1,990 2.6% 347/348 $4.70 $4.86 3.6%340 5,033 4,978 -1.1% 340 448 467 4.2% 340 $7.42 $7.82 5.4%352/652 49,149 50,491 2.7% 352/652 632 623 -1.5% 352/652 $1.07 $1.03 -4.2%


THE BIRNBAUM REPORT

113


THE BIRNBAUM REPORT

114

FOB PRICES

THE BIRNBAUM REPORT

115

Categories by Country

THE BIRNBAUM REPORT

116

THE BIRNBAUM REPORT

117

THE BIRNBAUM REPORT

118

THE BIRNBAUM REPORT

119

THE BIRNBAUM REPORT

120

Vietnam

U.S. Garment Import Growth: VIETNAM Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan 11.6% 0.8% 17.2% 23.5% 1.0% 14.4% 16.2% 1.3% 16.5% 18.0% 1.2% 14.4%Mar 9.1% -0.3% 27.2% 6.6% 6.4% 10.4% 14.0% 0.9% 23.0% 4.1% 6.1% 10.9%Mar 12.5% 13.0% 7.6% 10.2% 1.8% 12.2% 16.6% 12.1% 5.7% 7.2% 3.4% 13.1%Apr 12.7% 14.6% 4.1% 12.0% 2.3% 11.1% 16.6% 13.1% 3.4% 8.2% 4.1% 12.4%May 11.3% 15.4% 5.0% 11.7% 3.5% 9.7% 11.5% 14.1% 4.1% 7.0% 6.1% 11.6%Jun 12.9% 15.9% 4.9% 10.6% 3.4% 8.1% 15.5% 15.4% 3.2% 5.5% 6.2% 11.1%Jul 11.3% 15.4% 5.6% 11.1% 3.3% 8.6% 13.8% 14.9% 3.2% 6.3% 6.4% 12.4%Aug 11.8% 15.9% 6.4% 9.2% 3.0% 7.6% 13.8% 15.8% 3.0% 5.8% 5.8% 11.5%Sep 13.1% 15.2% 5.2% 9.2% 3.5% 15.6% 15.0% 1.6% 6.4% 6.1% Oct 13.6% 14.0% 6.5% 8.3% 4.8% 15.6% 13.9% 2.1% 6.7% 7.3% Nov 13.3% 14.2% 6.7% 8.1% 3.6% 14.6% 14.0% 2.2% 7.4% 5.8% Dec 13.2% 14.0% 6.9% 7.4% 3.5% 14.1% 14.0% 2.3% 7.0% 5.7%

Vietnam YTD 19-08 Vietnam YTD 19-08 Vietnam YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 2,514 2,705 7.6% Total 8,125 9,063 11.5% Total $3.23 $3.35 3.7%338/339 32,364 35,785 10.6% 338/339 1,189 1,399 17.6% 338/339 $3.06 $3.26 6.3%347/348 19,224 20,083 4.5% 347/348 1,099 1,180 7.4% 347/348 $4.76 $4.90 2.8%340 2,594 2,520 -2.9% 340 208 217 3.9% 340 $6.69 $7.16 7.0%352/652 29,554 31,403 6.3% 352/652 396 386 -2.5% 352/652 $1.12 $1.02 -8.2%

MARKET SHARE

Total Garments YTD

THE BIRNBAUM REPORT

121


THE BIRNBAUM REPORT

122

FOB PRICE

THE BIRNBAUM REPORT

123

EXCHANGE RATES1 – FOB PRICES – MARKET SHARE

1 Exchange rates are based on official interbank rates and may differ appreciably from unofficial open market rates.

THE BIRNBAUM REPORT

124

YTD MARKET SHARE

YTD Unit Market Share: VIETNAM YTD Value Market Share: VIETNAMPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019Jan 11.1% 11.7% 12.9% 14.4% 14.5% 15.4% Jan 11.5% 12.2% 14.0% 15.6% 15.7% 16.7%Feb 11.3% 11.5% 12.9% 13.9% 14.2% 15.1% Feb 11.6% 12.0% 13.7% 14.9% 15.3% 16.2%Mar 11.3% 12.0% 12.8% 13.9% 14.0% 15.0% Mar 11.5% 12.4% 13.4% 14.6% 14.9% 15.9%Apr 11.3% 12.4% 12.9% 14.1% 14.2% 15.2% Apr 11.5% 12.6% 13.4% 14.7% 15.0% 16.0%May 11.3% 12.4% 12.9% 14.1% 14.3% 15.1% May 11.5% 12.7% 13.5% 14.6% 15.1% 16.0%Jun 11.1% 12.2% 12.8% 13.9% 14.2% 14.8% Jun 11.4% 12.7% 13.5% 14.5% 15.0% 15.9%Jul 10.9% 11.9% 12.6% 13.8% 14.1% 14.6% Jul 11.3% 12.5% 13.4% 14.5% 15.0% 16.0%Aug 10.7% 11.6% 12.8% 13.5% 13.8% 14.2% Aug 11.3% 12.4% 13.4% 14.4% 14.9% 15.8%Sep 10.6% 11.5% 12.3% 13.3% 13.5% 14.2% Sep 11.3% 12.4% 13.3% 14.3% 14.8% 15.8%Oct 13.6% 11.5% 12.4% 13.3% 13.5% Oct 15.6% 12.4% 13.4% 14.4% 14.9% Nov 10.7% 11.5% 12.4% 13.3% 13.4% Nov 11.3% 12.4% 13.4% 14.4% 14.8% Dec 10.7% 11.5% 12.4% 13.3% 13.4% Dec 11.3% 12,4% 13.4% 14.4% 14.7%

Vietnam Market ShareDescription Units Value


THE BIRNBAUM REPORT

125

Indonesia

U.S. Garment Import Growth: INDONESIA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan -4.3% -12.3% -2.1% 11.9% -5.7% -0.9% -8.7% -8.7% -4.6% 6.1% -2.2% 1.0%Mar -4.4% -11.5% 14.7% -2.1% -4.0% -2.0% -7.6% -8.3% 9.0% -5.9% -0.4% -1.1%Mar 0.1% -7.9% 3.4% 0.0% -8.3% 4.7% -3.3% -4.9% -0.5% -2.8% -5.7% 4.7%Apr -1.7% -5.1% -0.4% 0.3% -4.5% 0.1% -3.8% -2.9% -4.2% -3.0% -1.9% 0.9%May 5.9% -4.1% 1.5% -0.5% -5.3% 0.4% 6.9% -1.5% -2.7% -4.3% -1.6% 0.5%Jun -2.2% -1.8% 0.2% -0.4% -5.4% 0.2% -4.1% 0.4% -3.7% -3.8% -2.8% 1.5%Jul -3.5% -1.5% 0.6% -1.8% -6.5% -1.4% -4.6% 0.1% -3.5% -4.8% 3.7% -0.5%Aug -3.6% -2.1% 1.7% -2.2% -5.1% -2.8% -4.6% -0.6% -3.0% -4.6% -2.2% -1.2%Sep -2.1% -0.5% 1.1% -1.8% -5.1% -3.0% 0.7% -3.4% -4.0% -2.3% Oct -1.3% -0.3% 0.7% -1.7% -4.3% -2.3% 0.4% -4.2% -2.8% -1.5% Nov -1.8% 1.1% 0.5% -2.5% -5.0% -3.2% 1.5% -4.2% -2.9% -2.4% Dec -1.2% 1.4% 0.3% -3.1% -4.5% -2.9% 2.2% -4.7% -3.0% -2.0%

Indonesia YTD 19-08 Indonesia YTD 19-08 Indonesia YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 812 790 -2.8% Total 3,039 3,003 -1.2% Total $3.74 $3.80 1.6%338/339 11,687 11,382 -2.6% 338/339 449 461 2.6% 338/339 $3.20 $3.37 5.3%347/348 8,679 7,768 -10.5% 347/348 426 388 -8.9% 347/348 $4.09 $4.16 1.8%340 1,821 1,847 1.4% 340 156 164 5.0% 340 $7.14 $7.39 3.5%352/652 1,586 1,441 -9.1% 352/652 39 37 -4.6% 352/652 $2.02 $2.13 5.0%


THE BIRNBAUM REPORT

126


THE BIRNBAUM REPORT

127

FOB PRICES

THE BIRNBAUM REPORT

128


THE BIRNBAUM REPORT

129

YTD MAKET SHARE

YTD Unit Market Share: INDONESIA YTD Value Market Share: INDONESIAPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Indonesia Market ShareDescription Units Value


THE BIRNBAUM REPORT

130

Cambodia

U.S. Garment Import Growth: CAMBODIA Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan -9.1% -6.3% -6.9% 12.7% 20.1% -3.1% -4.0% -8.5% -7.3% 4.5% 17.6% 8.3%Mar -3.1% -13.6% 10.7% -6.0% 19.9% -8.8% -0.5% -15.2% 7.3% -8.0% 14.9% 3.9%Mar 2.4% -6.5% -9.4% -2.3% 12.8% -3.9% 5.1% -10.9% -8.4% -5.4% 12.6% 6.0%Apr -0.2% -3.7% -14.7% -0.5% 13.7% -6.4% 2.2% -6.7% -13.0% -4.8% 15.8% 2.5%May 4.4% -1.4% -14.6% -1.6% 13.6% -3.9% 3.4% -3.0% -13.1% -5.5% 15.3% 6.0%Jun -2.2% 0.0% -15.3% -3.1% 12.3% -1.0% 0.3% -1.5% -14.2% -6.2% 14.3% 8.2%Jul -3.6% 1.1% -15.5% 0.4% 13.8% -3.3% -1.7% -0.2% -14.2% -3.5% 15.5% 6.2%Aug -4.4% 5.5% -16.4% 0.2% 11.9% 0.9% -1.7% 2.2% -14.8% -2.5% 14.3% 8.4%Sep -3.8% 4.2% -14.5% 0.2% 9.2% -2.0% 1.7% -14.4% -1.6% 13.0% Oct -4.0% 4.1% -13.9% 0.5% 10.7% -2.0% 0.9% -13.6% -1.9% 13.5% Nov -4.0% 2.3% -13.0% 1.5% 8.9% -2.6% -0.4% -12.9% -0.9% 12.2% Dec -4.2% 3.0% -14.1% 3.0% 8.3% -3.0% 0.1% -13.6% 0.3% 12.0%

Cambodia YTD 19-08 Cambodia YTD 19-08 Cambodia YTD 19-08Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 662 668 0.9% Total 1,595 1,728 8.4% Total $2.41 $2.59 7.4%338/339 10,047 11,073 10.2% 338/339 294 358 21.8% 338/339 $2.44 $2.70 10.6%347/348 4,986 4,926 -1.2% 347/348 306 325 6.0% 347/348 $5.12 $5.49 7.3%340 114 63 -44.9% 340 11 7 -39.7% 340 $7.98 $8.74 9.6%352/652 1,521 1,394 -8.3% 352/652 34 37 10.9% 352/652 $1.85 $2.24 20.9%


THE BIRNBAUM REPORT

131


THE BIRNBAUM REPORT

132

FOB PRICES

THE BIRNBAUM REPORT

133

EXCHANGE RATES2 – FOB PRICES – MARKET SHARE

2 Exchange rates are based on official interbank rates and may differ appreciably from unofficial open market rates

THE BIRNBAUM REPORT

134

YTD MARKET SHARE

YTD Unit Market Share: CAMBODIA YTD Value Market Share: CAMBODIAPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Cambodia Market ShareDescription Units Value


THE BIRNBAUM REPORT

135

Thailand

U.S. Garment Import Growth: THAILAND Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan -9.2% 0.6% -1.5% -4.9% 18.3% 1.1% -4.4% -0.5% -13.5% -14.9% 16.8% 5.6%Mar -9.8% 3.7% 14.1% -10.8% 10.0% -3.3% -9.1% -4.2% 3.2% -18.3% 9.1% 0.9%Mar -0.5% 2.4% 3.2% -8.9% 2.0% 3.7% -3.0% -1.7% -6.2% -13.0% 2.4% 6.8%Apr 1.6% 5.5% -4.9% -6.7% 2.4% 4.7% -2.1% -0.6% -10.5% -12.5% 6.9% 6.7%May 1.3% 4.7% -3.6% -8.2% 6.4% 2.0% 1.3% -1.1% -8.0% -11.8% 6.2% 7.0%Jun 1.8% 3.8% -3.6% -9.1% 5.8% 1.5% -1.8% 0.1% -8.2% -12.2% 6.9% 4.4%Jul -0.4% 1.9% -3.5% -8.4% 4.3% 2.6% -3.7% -1.2% -7.9% -10.3% 5.6% 5.8%Aug 1.0% 0.4% -2.6% -11.2% 10.3% -2.5% -3.7% -1.8% -8.1% -10.7% 7.1% 3.7%Sep 0.3% 0.0% -3.6% -12.0% 12.5% -2.4% -2.7% -8.8% -10.8% 7.5% Oct -0.1% 2.1% -5.4% -10.7% 11.8% -2.8% -1.5% -10.7% -8.7% 7.0% Nov -0.6% 2.7% -4.3% -11.8% 14.0% -3.1% -0.5% -11.5% -7.8% 7.3% Dec 0.9% 2.2% -3.7% -11.8% 13.7% -2.7% -0.1% -11.4% -7.7% 7.6%

Thailand YTD 19-08 Thailand YTD 19-08 Thailand YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 207 202 -2.5% Total 600 622 3.7% Total $2.89 $3.07 6.3%338/339 891 551 -38.1% 338/339 33 31 -4.4% 338/339 $3.08 $4.75 54.4%347/348 233 298 28.0% 347/348 10 13 29.5% 347/348 $3.61 $3.65 1.2%340 34 19 -42.7% 340 6 3 -39.9% 340 $14.12 $14.81 4.9%352/652 11,360 11,291 -0.6% 352/652 115 108 -6.6% 352/652 $0.85 $0.80 -6.0%


THE BIRNBAUM REPORT

136


THE BIRNBAUM REPORT

137

FOB PRICES

THE BIRNBAUM REPORT

138


THE BIRNBAUM REPORT

139

YTD MARKET SHARE

YTD Unit Market Share: THAILAND YTD Value Market Share: THAILANDPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019

Jan 1.1% 1.2% 1.1% 1.0% 1.1% 1.1% Jan 1.3% 1.4% 1.2% 1.0% 1.1% 1.1%Feb 1.1% 1.2% 1.2% 1.1% 1.1% 1.1% Feb 1.3% 1.3% 1.2% 1.0% 1.1% 1.0%Mar 1.3% 1.2% 1.3% 1.1% 1.1% 1.1% Mar 1.4% 1.3% 1.2% 1.1% 1.1% 1.1%Apr 1.3% 1.3% 1.2% 1.1% 1.1% 1.2% Apr 1.4% 1.3% 1.2% 1.1% 1.1% 1.1%May 1.3% 1.3% 1.2% 1.1% 1.2% 1.1% May 1.4% 1.3% 1.2% 1.1% 1.1% 1.1%Jun 1.3% 1.3% 1.2% 1.1% 1.1% 1.1% Jun 1.3% 1.3% 1.2% 1.1% 1.1% 1.1%Jul 1.3% 1.2% 1.2% 1.1% 1.1% 1.1% Jul 1.3% 1.2% 1.2% 1.1% 1.1% 1.1%

Aug 1.3% 1.2% 1.2% 1.0% 1.1% 1.1% Aug 1.3% 1.2% 1.2% 1.1% 1.1% 1.1%Sep 1.2% 1.2% 1.1% 1.0% 1.1% Sep 1.3% 1.2% 1.1% 1.0% 1.1% Oct 1.2% 1.2% 1.1% 1.0% 1.1% Oct 1.2% 1.2% 1.1% 1.0% 1.1% Nov 1.2% 1.2% 1.1% 1.0% 1.1% Nov 1.2% 1.2% 1.1% 1.0% 1.1% Dec 1.2% 1.2% 1.2% 1.0% 1.1% Dec 1.2% 1.2% 1.1% 1.0% 1.1%

Thailand Market ShareDescription Units Value


THE BIRNBAUM REPORT

140

Philippines

U.S. Garment Import Growth: PHILIPPINES Units Value

Period 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019Jan -13.2% 14.2% -17.8% -5.1% 6.6% 0.1% -0.8% -4.7% -16.9% -3.0% -8.1% 8.1%Mar -14.2% -2.1% -10.5% -6.0% -5.9% 4.6% -3.7% -8.5% -9.2% -7.5% -10.2% 7.2%Mar -11.8% 2.9% -14.5% -9.2% -6.0% 4.8% 2.4% -6.3% -9.3% -11.4% -9.4% 3.8%Apr -9.5% 4.7% -17.9% -14.5% -4.0% 7.9% 2.8% -4.4% -13.9% -14.6% -5.9% 5.8%May 1.4% 12.0% -18.4% -13.4% -5.0% 3.5% 1.5% 0.4% -13.2% -15.1% -4.0% 2.4%Jun -9.6% 9.8% -15.1% -15.0% -4.3% -2.5% -1.7% 2.2% -14.4% -15.6% -4.5% -1.0%Jul -10.3% 8.9% -16.6% -16.2% -1.1% -1.2% -4.5% 1.5% -14.3% -17.7% -2.2% 0.4%Aug -5.9% 6.5% -16.0% -15.3% -0.8% -3.1% -4.5% 0.2% -12.6% -17.2% -4.6% -0.2%Sep -4.3% 5.2% -15.7% -15.3% -1.3% -0.4% -0.6% -14.3% -15.5% -6.3% Oct -4.5% 4.8% -14.2% -14.8% 1.8% -1.5% -0.4% -12.7% -14.8% -4.3% Nov -4.1% 5.5% -13.2% -16.2% 2.7% -2.4% 0.6% -12.3% -15.2% -3.3% Dec -2.7% 4.4% -14.0% -16.1% 2.3% -2.2% 0.6% -13.3% -15.2% -3.4%

Philippines YTD 19-08 Philippines YTD 19-08 Philippines YTD 19-08 Units (1,000 Dozens) Value ($ Millions) FOB

2018 2019 %+/- 2018 2019 %+/- 2018 2019 %+/-Total 177 171 -3.1% Total 533 532 -0.2% Total $3.02 $3.11 3.0%338/339 889 846 -4.8% 338/339 50 55 10.2% 338/339 $4.72 $5.46 15.8%347/348 623 382 -38.7% 347/348 36 25 -30.5% 347/348 $4.77 $5.41 13.4%340 162 133 -17.7% 340 20 17 -15.2% 340 $10.51 $10.83 3.1%352/652 3,585 3,623 1.1% 352/652 24 32 33.9% 352/652 $0.56 $0.74 32.5%


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FOB PRICES

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YTD MARKET SHARE

YTD Unit Market Share: PHILIPPINES YTD Value Market Share: PHILIPPINESPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


Philippines Market ShareDescription Units Value


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CONCLUSION ASEAN

YTD Unit Market Share: ASEAN YTD Value Market Share: ASEANPeriod 2014 2015 2016 2017 2018 2019 Period 2014 2015 2016 2017 2018 2019


ASEAN Market ShareDescription Units Value


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CONCLUSIONS & MISCELLANEOUS DATAIMPORTS BY MONTH: YEAR-TO-YEAR CHANGE


Units ValueJanuary 7.7% 7.4%February -0.5% 1.7%Mar 4.8% 7.6%Apr 2.6% 3.9%May 4.8% 5.9%June 2.4% 5.0%July 8.5% 8.4%Aug 1.7% 1.1%Sep Oct Nov Dec

FOB PRICES CHANGES

Annual 1997 to YTD JUL 2019

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Monthly Year to Year Change 2013 to 2019

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SOURCING DECISIONS

U.S. Garment Imports — Top Suppliers:

U.S. GARMENT IMPORTS TOP SUPPLIERS

Country Rank YTD 19-08

US Imports by Value Market Share

2005 2019 2018 2019 +/-

WORLD 68713 573078

Jordan 1 1083 11758 1.82% 2.05% 12.5%

Egypt 2 444 6568 1.03% 1.15% 11.3%

Haiti 3 1849 6823 1.08% 1.19% 9.8%

Nicaragua 4 716 11748 1.92% 2.05% 6.6%

Vietnam 5 2725 90631 14.92% 15.81% 6.0%

Honduras 6 2622 18355 3.03% 3.20% 5.8%

Bangladesh 7 2372 40830 6.74% 7.12% 5.7%

Cambodia 8 1713 17279 2.94% 3.02% 2.7%

Pakistan 9 1259 9747 1.66% 1.70% 2.6%

India 10 2976 29402 5.02% 5.13% 2.3%

Sri Lanka 11 1650 12278 2.11% 2.14% 1.5%

Peru 12 800 4606 0.80% 0.80% 0.0%

Italy 13 1354 9335 1.63% 1.63% -0.1%

Thailand 14 1808 6218 1.10% 1.09% -1.1%

China 15 15143 175510 31.76% 30.63% -3.6%

Dominican Republic 16 406 5011 0.92% 0.87% -4.8%

Philippines 17 1830 5317 0.98% 0.93% -5.3%

Indonesia 18 2875 30032 5.56% 5.24% -5.8%

El Salvador 19 1619 12421 2.31% 2.17% -6.0%

Guatemala 20 1816 9748 1.82% 1.70% -6.7%

Mexico 21 6078 21702 4.15% 3.79% -8.8%

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FOB Prices

AVERAGE FOB PRICE COMPARISON FOB Price +/- to Avg

YTD 18-08 YTD 19-08 Change YTD 18-08 YTD 19-08

China $2.37 $2.30 -2.8% -17.9% -25.1%

El Salvador $2.50 $2.39 -4.5% -13.3% -22.4%

Haiti $2.49 $2.44 -1.9% -13.6% -20.5%

Dominican Republic $2.40 $2.50 3.8% -16.6% -18.9%

Cambodia $2.41 $2.59 7.4% -16.5% -15.9%

Pakistan $2.66 $2.68 0.9% -7.8% -12.8%

Honduras $2.54 $2.75 8.2% -11.8% -10.5%

Bangladesh $2.75 $2.92 6.0% -4.5% -5.1%

World $2.98 $3.01 1.0% 3.5% -2.0%

Thailand $2.88 $3.07 6.7% 0.0% 0.0%

Philippines $3.01 $3.11 3.1% 4.6% 1.0%

Nicaragua $2.81 $3.11 10.4% -2.3% 1.1%

Vietnam $3.23 $3.35 3.6% 12.2% 8.9%

Egypt $3.26 $3.52 8.2% 13.0% 14.6%

India $3.55 $3.61 1.7% 23.2% 17.5%

Indonesia $3.74 $3.80 1.7% 29.7% 23.6%Mexico $3.71 $3.83 3.2% 28.7% 24.5%Guatemala $3.81 $3.88 1.9% 32.3% 26.3%Sri Lanka $4.49 $4.50 0.1% 55.8% 46.3%Jordan $5.68 $5.27 -7.2% 97.0% 71.3%Peru $9.50 $9.75 2.6% 229.7% 217.0%

Italy $26.35 $24.92 -5.4% 814.3% 710.3%

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Appendix I: Product Analysis

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APPENDIX II: Market Share Data as of YTD 19-08

All Garment Products All Garment ProductsMarket Share in Units - YTD 19-08 Market Share by Value - YTD 19-08

Units 2018 2019 % +/- Value 2018 2019 % +/-SSA 1.1% 1.3% 13.9% SSA 1.5% 1.6% 13.0%S. Asia 15.0% 15.1% 1.0% S. Asia 15.5% 16.1% 3.8%ASEAN 24.4% 24.4% -0.2% ASEAN 26.1% 26.8% 2.6%MX/DR-CAFTA 14.1% 13.4% -4.9% MX/DR-CAFTA 14.3% 13.8% -3.3%G.China 40.2% 40.2% 0.1% G.China 31.9% 30.8% -3.5%Jordan 1.0% 1.2% 22.8% Jordan 1.8% 2.1% 12.8%Egypt 0.9% 1.0% 4.2% Egypt 1.0% 1.1% 11.8%Haiti 1.3% 1.5% 16.1% Haiti 1.1% 1.2% 9.1%Vietnam 13.8% 14.2% 3.4% Vietnam 14.9% 15.8% 6.1%Bangladesh 7.3% 7.4% 0.8% Bangladesh 6.7% 7.1% 6.0%Nicaragua 2.1% 2.0% -3.1% Nicaragua 1.9% 2.0% 5.5%Honduras 3.6% 3.5% -1.4% Honduras 3.0% 3.2% 5.3%Cambodia 3.6% 3.5% -3.1% Cambodia 2.9% 3.0% 3.1%Pakistan 2.0% 2.1% 0.2% Pakistan 1.7% 1.7% 2.7%India 4.2% 4.3% 1.4% India 5.0% 5.1% 2.0%Sri Lanka 1.4% 1.4% 2.2% Sri Lanka 2.1% 2.1% 1.4%Thailand 1.1% 1.1% -6.3% Thailand 1.1% 1.1% -1.3%Dom Rep 1.0% 1.0% -4.3% Dom Rep 0.9% 0.9% -4.4%Philippines 1.0% 0.9% -6.9% Philippines 1.0% 0.9% -5.1%Indonesia 4.4% 4.2% -6.6% Indonesia 5.6% 5.2% -6.0%Guatemala 1.5% 1.3% -8.4% Guatemala 1.8% 1.7% -6.4%El Salvador 2.8% 2.7% -3.6% El Salvador 2.3% 2.2% -6.8%Mexico 3.3% 2.9% -9.7% Mexico 4.2% 3.8% -10.0%

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Cotton T-Shirts 338/339 Cotton T-Shirts 338/339Market Share in Units - YTD 19-08 Market Share by Value - YTD 19-08

Units 2018 2019 % +/- Value 2018 2019 % +/-SSA 0.3% 0.5% 59.8% SSA 0.4% 0.6% 63.7%ASEAN 23.8% 24.6% 3.4% ASEAN 26.5% 28.2% 6.4%S. Asia 16.9% 17.8% 5.5% S. Asia 17.2% 17.7% 3.1%MX/DR-CAFTA 37.8% 36.0% -4.7% MX/DR-CAFTA 26.3% 26.0% -1.4%G.China 13.5% 13.3% -1.6% G.China 18.9% 16.8% -11.2%Egypt 0.6% 0.9% 41.0% Egypt 0.7% 1.0% 42.8%Cambodia 4.2% 4.4% 5.9% Cambodia 3.7% 4.2% 13.1%Vietnam 13.4% 14.3% 6.2% Vietnam 15.0% 16.4% 9.1%Pakistan 3.7% 4.1% 11.7% Pakistan 3.4% 3.7% 8.3%Bangladesh 5.8% 6.0% 3.2% Bangladesh 4.5% 4.8% 6.3%Nicaragua 9.8% 9.1% -6.9% Nicaragua 5.7% 6.0% 4.0%Guatemala 5.2% 5.1% -2.9% Guatemala 4.7% 4.9% 3.6%Philippines 0.4% 0.3% -8.5% Philippines 0.6% 0.7% 2.3%India 6.9% 7.2% 3.7% India 8.2% 8.2% -0.1%Mexico 4.2% 4.0% -4.4% Mexico 3.1% 3.1% -0.1%Haiti 4.7% 4.8% 1.5% Haiti 2.5% 2.5% -1.6%Dom Rep 2.9% 3.0% 2.3% Dom Rep 1.5% 1.4% -2.4%Sri Lanka 0.5% 0.5% 10.2% Sri Lanka 1.1% 1.0% -2.9%Honduras 10.4% 9.9% -5.0% Honduras 7.4% 7.1% -3.6%Indonesia 4.9% 4.5% -6.5% Indonesia 5.7% 5.4% -4.9%Jordan 0.6% 0.4% -37.3% Jordan 0.9% 0.8% -9.3%Thailand 0.4% 0.2% -40.6% Thailand 0.4% 0.4% -11.3%El Salvador 5.3% 5.0% -5.8% El Salvador 3.9% 3.5% -11.7%

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Cotton Pants 347/348 Cotton Pants 347/348Market Share in Units - YTD 19-08 Market Share by Value - YTD 19-08

Units 2018 2019 % +/- Value 2018 2019 % +/-SSA 2.4% 3.0% 24.5% SSA 2.6% 3.0% 12.4%S. Asia 27.4% 29.5% 7.7% S. Asia 27.5% 29.5% 7.5%MX/DR-CAFTA 10.3% 10.4% 0.6% MX/DR-CAFTA 12.8% 13.2% 3.0%ASEAN 25.2% 26.0% 2.9% ASEAN 23.3% 23.8% 2.3%G.China 29.1% 25.5% -12.3% G.China 24.9% 21.6% -13.4%Jordan 1.4% 1.8% 28.9% Jordan 1.9% 2.5% 33.1%Thailand 0.2% 0.2% 33.0% Thailand 0.1% 0.2% 29.1%Honduras 1.5% 1.7% 18.8% Honduras 0.7% 0.9% 28.3%India 2.3% 2.8% 19.3% India 2.6% 2.9% 12.7%Bangladesh 20.5% 21.7% 6.1% Bangladesh 18.8% 20.2% 7.4%Pakistan 3.2% 3.5% 10.4% Pakistan 3.8% 4.1% 7.1%Vietnam 14.1% 15.3% 8.5% Vietnam 13.2% 14.1% 7.1%Egypt 1.6% 1.7% 5.0% Egypt 2.2% 2.4% 6.7%Cambodia 3.7% 3.8% 2.6% Cambodia 3.7% 3.9% 5.7%Guatemala 0.5% 0.6% 19.0% Guatemala 0.6% 0.6% 5.6%Sri Lanka 1.4% 1.5% 4.2% Sri Lanka 2.2% 2.3% 3.8%Nicaragua 1.8% 1.5% -13.7% Nicaragua 2.1% 2.2% 2.8%Mexico 5.2% 5.3% 0.3% Mexico 8.9% 9.1% 1.8%El Salvador 1.3% 1.2% -3.9% El Salvador 0.4% 0.4% -5.6%Indonesia 6.4% 5.9% -7.0% Indonesia 5.1% 4.6% -9.2%Haiti 1.1% 1.1% 1.9% Haiti 0.7% 0.6% -13.0%Philippines 0.5% 0.3% -36.3% Philippines 0.4% 0.3% -30.7%Dom Rep 0.1% 0.1% -38.3% Dom Rep 0.1% 0.1% -40.8%

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Cotton Shirts 340 Cotton Shirts 340 Market Share in Units - YTD 19-08 Market Share by Value - YTD 19-08

Units 2018 2019 % +/- Value 2018 2019 % +/-SSA 4.1% 5.1% 24.0% SSA 5.5% 6.8% 22.6%MX/DR-CAFTA 5.2% 5.2% 0.8% MX/DR-CAFTA 7.5% 8.5% 13.4%S. Asia 44.8% 46.7% 4.2% S. Asia 34.1% 35.3% 3.6%ASEAN 23.5% 23.8% 1.3% ASEAN 25.3% 26.8% 5.6%G.China 20.1% 16.5% -17.5% G.China 21.7% 16.4% -24.6%Pakistan 0.3% 0.4% 29.4% Pakistan 0.2% 0.2% 39.2%Guatemala 0.0% 0.0% 14.3% Guatemala 0.0% 0.0% 34.6%Honduras 0.9% 1.1% 22.8% Honduras 1.7% 2.1% 28.1%Egypt 0.7% 0.6% -1.7% Egypt 0.6% 0.7% 24.4%Nicaragua 1.4% 1.5% 10.5% Nicaragua 2.0% 2.4% 18.8%Mexico 1.4% 1.4% -3.2% Mexico 2.5% 2.8% 14.9%Bangladesh 29.3% 32.1% 9.4% Bangladesh 19.9% 21.7% 9.0%Indonesia 8.5% 8.8% 3.9% Indonesia 8.8% 9.4% 6.3%Sri Lanka 3.5% 3.8% 9.4% Sri Lanka 4.0% 4.2% 5.5%Vietnam 12.1% 12.1% -0.5% Vietnam 11.8% 12.4% 5.3%India 11.7% 10.4% -11.3% India 10.0% 9.1% -8.5%Dom Rep 0.2% 0.2% -1.6% Dom Rep 0.3% 0.3% -13.2%Philippines 0.8% 0.6% -15.7% Philippines 1.2% 1.0% -14.1%El Salvador 1.2% 1.0% -21.5% El Salvador 1.0% 0.8% -17.7%Cambodia 0.5% 0.3% -43.6% Cambodia 0.6% 0.4% -38.9%Haiti 0.4% 0.3% -30.6% Haiti 0.3% 0.2% -38.9%Thailand 0.2% 0.1% -41.3% Thailand 0.3% 0.2% -39.1%Jordan 0.2% 0.0% N/A Jordan 0.2% 0.0% N/A

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Underwear 352/652 Underwear 352/652Market Share in Units - YTD 19-08 Market Share by Value - YTD 19-08

Units 2018 2019 % +/- Value 2018 2019 % +/-SSA 0.3% 0.7% 131.9% SSA 0.5% 0.9% 101.2%MX/DR-CAFTA 23.9% 23.7% -0.9% MX/DR-CAFTA 21.8% 23.2% 6.3%G.China 20.5% 20.5% -0.1% G.China 22.4% 23.0% 2.8%S. Asia 23.0% 22.5% -2.5% S. Asia 24.6% 23.5% -4.5%ASEAN 29.3% 29.5% 0.9% ASEAN 25.9% 24.4% -5.9%Philippines 2.1% 2.1% -0.8% Philippines 1.0% 1.3% 27.9%Honduras 7.7% 7.7% 0.8% Honduras 4.9% 6.0% 23.7%Nicaragua 1.0% 1.0% 2.6% Nicaragua 1.1% 1.4% 23.2%Haiti 2.2% 2.5% 12.4% Haiti 2.3% 2.6% 14.4%El Salvador 8.1% 8.6% 6.0% El Salvador 6.8% 7.4% 9.2%Guatemala 0.3% 0.4% 30.9% Guatemala 0.5% 0.5% 9.1%Cambodia 0.9% 0.8% -10.0% Cambodia 1.4% 1.5% 5.9%Jordan 0.1% 0.1% -13.2% Jordan 0.3% 0.3% 4.4%Egypt 0.4% 0.4% -7.8% Egypt 1.1% 1.1% -1.9%Sri Lanka 4.5% 4.4% -1.8% Sri Lanka 7.1% 6.9% -2.0%Bangladesh 10.7% 10.3% -3.9% Bangladesh 7.7% 7.4% -3.6%India 6.9% 6.9% 0.0% India 8.7% 8.2% -5.3%Mexico 1.5% 1.4% -12.0% Mexico 2.2% 2.1% -6.7%Vietnam 17.6% 18.4% 4.3% Vietnam 16.2% 15.1% -6.8%Indonesia 0.9% 0.8% -10.8% Indonesia 1.6% 1.4% -8.9%Dom Rep 5.3% 4.5% -13.6% Dom Rep 6.3% 5.7% -9.2%Thailand 6.8% 6.6% -2.4% Thailand 4.7% 4.2% -10.7%Pakistan 0.9% 0.8% -8.0% Pakistan 1.1% 0.9% -21.5%

Documents

Strategic Sourcing Report