Overview
Growing global demand for textiles is increasingly being fed by the dynamic south east Asian economies, especially Bangladesh, Vietnam and Sri Lanka. Meanwhile, the market share of cotton has been declining, as synthetic alternatives take over. Producers prefer them because they cost less, mix better with other fibres and are less harmful to the environment.
Strengths and weaknesses
Despite the fall in cotton’s overall market share, worldwide consumption is predicted to rise by 4% in 2017/18. Even in China, which has large stocks of low grade cotton, the appetite for higher quality cotton will be met by imports. One of the strongest drivers for the growth in textile demand around the world is the growth of “fast fashion” brands such as Uniqlo, H&M and Zara. This increase in demand is enabling fashion companies to recover from some difficult recent years, and look forward to a much better 2018 and beyond.
Fashion is fickle almost by definition. Without the protection of Coface credit insurance and the constant flow of market intelligence that accompanies it, business can be very risky indeed.
Related resources
Resources
View Resource
Trade Credit Insurance for Small to Large Businesses
Credit insurance protects you against bad debt. So if the worse happens, you still get paid.
04 October, 2022
Resources
View Resource
Country & Sector Risk Barometer: Q1 2021 Quarterly Update
More than a year after the onset of the COVID-19 pandemic, uncertainties about its evolution continue to shape trends in the global economy. Despite the acceleration of the vaccination process, the prospects for a return to normal
14 May, 2021
Resources
View Resource
Trade Credit Insurance Explained – with working examples
Credit insurance protects you against bad debt. So if the worse happens, you still get paid.
20 April, 2021