By Sanjay Arora, Wazir Advisors (sanjay@wazir.in)
Germany is one of the largest importer of Textile and Apparel (T&A) category with import value of ~US$ 54 billion in 2019. Germany exported ~US$ 39 billion in 2019, growing with a CAGR of 6% from 2015 to 2019. The negative trade balance of Germany with ~US$ 15 billion value in 2019, shows Germany as a major market of T&A.
Top suppliers of Textile and Apparel to Germany
China is the largest supplier of T&A products with exports worth US$ 11.7 billion, representing 23% of the total imports by Germany. China is followed by Bangladesh and Turkey with a share of 12% and 9%, respectively. India stands at 5th position in the list of top supplier countries accounting for ~4% market share.
Apparel category dominates Germany’s overall imports of T&A category having a share of ~74%. Manmade textiles, Cotton Textiles and Carpets accounts for 12%, 8% and 4% share, respectively.
Jerseys, T-shirts, Trousers of both cotton and man-made fibres are the top imported categories in apparel. While carpets, terry towels and kitchen linens are the top made-up articles imported by Germany.
India has a potential to increase share in man-made Textile and Apparel market of Germany
India exported textile and apparel worth ~US$ 2.2 billion in 2019, which has increased from US$ 2.0 billion in 2015 at a CAGR of 2%. India’s share in Germany’s imports was 4% in the 2019, which regained the status quo of 4% after a dip of 1% in 2018. Apparel imports from India accounted for ~US$1.6 billion in 2019, which is 73% of India’s total T&A exports to Germany.
Presently, India’s share of apparel and cotton textiles in Germany’s market is 73% and 11%, respectively. The share of man-made textiles (8%), however can be strengthened by increasing the exports of the highlighted potential categories and establishing long term relationships with German apparel brands. Currently, jerseys, T-shirts, blouses and dresses are major categories exported by India to Germany. The Indian manufacturers can increase their share in Germany’s textile imports by focusing on woven fabrics made of high tenacity yarns and textured yarns of polyester which are currently in demand in Germany, with India having good potential in manufacturing these categories. India will take a lead in Germany’s market, if potential categories are targeted and advanced technology will be adopted by Indian manufacturers.
Wazir Advisors, your trusted business advisor in Textile and Apparel sector can assist you in strategy formulation and implementation, forming alliances and joint ventures, investments, market understanding, sector analysis and due diligence, thereby providing end-to-end solutions spanning the complete business cycle in textile value chain. Wazir can also help you in understanding and strategizing your business to align with the need of German buyers.