Will US-India Be the Next Big Deal?
Most of the deal making activity this year has been focused on Asia – either regional or bilateral.
However two big players have been absent from the field.
Both the U.S. and India have not jumped on board the major regional deals. Nor have they been active in establishing bilateral agreements.
China used to be India’s biggest trading partner, however since 2018-19 the U.S. has been the nation’s top partner. Trade between the two nations continued to grow in 2019-20.
A deal could be particularly impactful on garment exports.
Right now, the U.S. is India’s largest export market for readymade garments, accounting for 40% of the nation’s exports.
Indian garment exporters’ biggest competitor is Vietnam. As production diversifies out of China most of it is heading to Vietnam where efficiencies are continuing to improve.
Key Facts; Observations; Commentary
Part of the challenge in meeting this year’s holiday sales targets is simply getting the products into your warehouse.
TRADE ISSUES
If the UK and EU leaders don’t ratify a deal, the UK will be trading under the WTO’s tariff-heavy rules come Jan. 1 – when Britain formally leaves the EU’s economic embrace.
- A “no-deal” Brexit could drop 2021 UK GDP an additional 2% and put an extra burden on financial services and export-reliant manufacturers.
LOGISTICS
European Importers See Record High Rates; US Ports Face Heavy Delays
- The continued surge in Asia-US ocean freight is still causing congestion and delays for holiday shipments, making available shipping equipment scarce across the globe.
- The container shortage pushed Asia-North Europe rates up 29% this week to an incredible $3,470/FEU, marking a 64% increase over the past month, and a level 137% higher than this week last year, according to Freightos data.
PODCAST
Creating Malls that Consumers Want to Visit
In this episode I’m talking with Brandon Singer, CEO and co-founder of Retail by MONA. With nearly two decades of hands-on experience in retail property, he has a frontline view of what’s working – and what successful malls and high streets will look like.
MARKETS
China’s official manufacturing Purchasing Manager’s Index (PMI) rose to 52.1 in November from 51.4 in October. (National Bureau of Statistics)
- It was the highest PMI reading since September 2017 and remained above the 50-point mark that separates growth from contraction on a monthly basis.
- However, inadequate demand remains a problem.
COMPLIANCE
Boohoo (UK) has appointed Brian Leveson, the retired judge who led the Leveson inquiry into the activities of the media, to oversee the fast-fashion retailer’s overhaul of its supply chain after allegations of poor working practices. (The Guardian)
EXECS ON THE MOVE
L Brands Inc. (USA) has named Martin Waters as CEO of Victoria’s Secret Lingerie, effective immediately. He replaces John Mehas, who has served in the role since Feb. 2019.
Jack Wolfskin (Germany) has appointed Richard Collier as its new Chief Executive Officer, effective December 1, 2020.
COLLABORATIONS
Adidas (Germany) has teamed up with model Karlie Kloss for a new activewear collection.
- The collection includes high-performance workout bras and leggings, plus streetwear-inspired pieces featuring pants, parkas, shoes, shorts and t-shirts.
- The garments include materials from Parley Ocean Plastic made using upcycled plastic waste.
Under Armour (USA) has launched a new collection with NBA Basketball star Steph Curry.
- The collection will include apparel, accessories and footwear.
- Part of the collection’s annual sales will be donated to support young athletes from underprivileged communities.
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