MAY 2023
Vietnamese manufacturers are faced with a sharp decline in orders as global demand has shrunk by over 60 percent, resulting in a contraction of up to more than $63 billion in the global textile market.
THE SITUATION IN MAY
Well into Q2 and still most brands and retailers are increasingly uncertain as to how 2023 will pan out. It seems that the pandemic years were actually easier to forecast than now that things have gotten back to ‘normal’. That alone has companies perplexed.
In response, order sizes have been reduced to the bare minimum – even for brands that have already cleared up inventory stockpiles from 2022.
Not knowing what going to sell – but facing ongoing interest rate hikes – has led to brands taking a very conservative approach to buying. Now that logistics are more reliable – and far less expensive – quick response and just in time models are back in play.
The conundrum now is Holiday 2023 as we head into peak season for exports.
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“This downturn in orders is not as drastic as the global economic crisis, but it is a gradual weakening of the economy, which has led to a gradual decline in orders.”
