The consumer price index of the Eurozone rose 2.9% year-on-year in October, down from 4.3% in September and dropping to its lowest level in more than two years. In the third quarter, the GDP of the Eurozone decreased by 0.1% month on month, while the GDP of the European Union increased by 0.1% month on month. The biggest weakness of the European economy is Germany, its largest economy. In the third quarter, Germany’s economic output shrank by 0.1%, and its GDP has hardly grown in the past year, indicating a real possibility of recession.
Retail: According to Eurostat data, retail sales in the Eurozone decreased by 1.2% month on month in August, with online retail sales decreasing by 4.5%, gas station fuel decreasing by 3%, food, beverage and tobacco decreasing by 1.2%, and non food categories decreasing by 0.9%. High inflation is still suppressing consumer purchasing power.
Imports: From January to August, EU clothing imports amounted to $64.58 billion, a year-on-year decrease of 11.3%.
Import from China reached 17.73 billion US dollars, a year-on-year decrease of 16.3%; The proportion is 27.5%, a year-on-year decrease of 1.6 percentage points.
Import from Bangladesh reached 13.4 billion US dollars, a year-on-year decrease of 13.6%; The proportion is 20.8%, a year-on-year decrease of 0.5 percentage points.
Imports from Türkiye reached US $7.43 billion, down 11.5% year on year; The proportion is 11.5%, unchanged year-on-year.
Japan
Macro: According to a survey conducted by the Ministry of General Affairs of Japan, due to sustained inflation, the actual income of working families has decreased. After deducting the impact of price factors, the actual household consumption in Japan decreased for six consecutive months year-on-year in August. The average consumption expenditure of households with two or more people in Japan in August was approximately 293200 yen, a year-on-year decrease of 2.5%. From the actual expenditure perspective, 7 out of the 10 major consumer categories involved in the survey experienced a year-on-year decrease in expenditure. Among them, food expenses have decreased year-on-year for 11 consecutive months, which is the main reason for the decline in consumption. The survey also showed that, after deducting the impact of price factors, the average income of two or more working families in Japan decreased by 6.9% year-on-year in the same month. Experts believe that it is difficult to expect an increase in actual consumption when the actual income of households continues to decline.
Retail: From January to August, Japan’s textile and clothing retail sales accumulated 5.5 trillion yen, a year-on-year increase of 0.9% and a decrease of 22.8% compared to the same period before the epidemic. In August, the retail sales of textile and clothing in Japan reached 591 billion yen, a year-on-year increase of 0.5%.
Imports: From January to August, Japan’s clothing imports amounted to 19.37 billion US dollars, a year-on-year decrease of 3.2%.
Import from China of 10 billion US dollars, a year-on-year decrease of 9.3%; Accounting for 51.6%, a year-on-year decrease of 3.5 percentage points.
Import from Vietnam reached 3.17 billion US dollars, a year-on-year increase of 5.3%; The proportion is 16.4%, an increase of 1.3 percentage points year-on-year.
Import from Bangladesh reached 970 million US dollars, a year-on-year decrease of 5.3%; The proportion is 5%, a year-on-year decrease of 0.1 percentage points.
Britain
Retail: Due to the unusually warm weather, consumers’ desire to buy autumn clothing is not high, and the decline in retail sales in the UK in September exceeded expectations. The UK Office for National Statistics recently stated that retail sales increased by 0.4% in August and then decreased by 0.9% in September, far exceeding economists’ forecast of 0.2%. For clothing stores, this is a bad month because the warm autumn weather has reduced people’s desire to buy new clothes for cold weather. However, the unexpected high temperatures in September have helped drive food sales, “said Grant Fisner, Chief Economist at the UK Office for National Statistics. Overall, the weak retail industry may lead to a 0.04 percentage point decrease in quarterly GDP growth rate. In September, the overall consumer price inflation rate in the UK was 6.7%, the highest among major developed economies. As retailers enter the crucial pre Christmas season, the outlook seems to remain bleak. A report released by PwC Accounting Firm recently shows that nearly one-third of Britons plan to cut their Christmas spending this year, mainly due to rising food and energy costs.
From January to September, the retail sales of textile, clothing, and footwear in the UK totaled 41.66 billion pounds, an increase of 8.3% year-on-year. In September, the retail sales of textile, clothing, and footwear in the UK were £ 5.25 billion, a year-on-year increase of 3.6%.
Imports: From January to August, UK clothing imports amounted to $14.27 billion, a year-on-year decrease of 13.5%.
Import from China reached 3.3 billion US dollars, a year-on-year decrease of 20.5%; The proportion is 23.1%, a year-on-year decrease of 2 percentage points.
Import from Bangladesh reached 2.76 billion US dollars, a year-on-year decrease of 3.9%; The proportion is 19.3%, an increase of 1.9 percentage points year-on-year.
Imports from Türkiye reached 1.22 billion US dollars, down 21.2% year on year; The proportion is 8.6%, a year-on-year decrease of 0.8 percentage points.
Australia
Retail: According to data from the Australian Bureau of Statistics, retail sales in the country increased by approximately 2% year-on-year and 0.9% month on month in September 2023. The month on month growth rates in July and August were 0.6% and 0.3% respectively. The Director of Retail Statistics at the Australian Bureau of Statistics stated that the temperature in the early spring of this year was higher than in previous years, and consumers’ spending on hardware tools, gardening, and clothing increased, resulting in an increase in the revenue of department stores, household goods, and clothing retailers. He said that although the month on month growth in September was the highest level since January, spending by Australian consumers has been weak for most of 2023, indicating that the trend growth in retail sales is still at a historical low. Compared to September 2022, retail sales in September this year increased by only 1.5% based on trend, which is the lowest level in history. From an industry perspective, sales in the household goods retail sector have ended three consecutive months of month on month decline, rebounding by 1.5%; The sales volume in the retail sector of clothing, footwear, and personal accessories increased by approximately 0.3% month on month; Sales in the department store sector increased by approximately 1.7% month on month.
From January to September, the retail sales of clothing, clothing, and footwear stores totaled AUD 26.78 billion, a year-on-year increase of 3.9%. The monthly retail sales in September were AUD 3.02 billion, a year-on-year increase of 1.1%.
Imports: From January to August, Australian clothing imports amounted to 5.77 billion US dollars, a year-on-year decrease of 9.3%.
Import from China reached 3.39 billion US dollars, a year-on-year decrease of 14.3%; The proportion is 58.8%, a year-on-year decrease of 3.4 percentage points.
Imports from Bangladesh amounted to 610 million US dollars, a year-on-year decrease of 1%, accounting for 10.6%, and an increase of 0.9 percentage points.
Import from Vietnam reached $400 million, a year-on-year increase of 10.1%, accounting for 6.9%, and an increase of 1.2 percentage points.
Canada
Retail: According to Statistics Canada, the total retail sales in Canada decreased by 0.1% month on month to $66.1 billion in August 2023. Out of the 9 statistical sub industries in the retail industry, sales in 6 sub industries decreased month on month. Retail e-commerce sales in August amounted to CAD 3.9 billion, accounting for 5.8% of the total retail trade for the month, a decrease of 2.0% month on month and a year-on-year increase of 2.3%. In addition, approximately 12% of Canadian retailers reported that their business was affected by the strike at British Columbia ports in August.
From January to August, the retail sales of Canadian clothing and apparel stores reached CAD 22.4 billion, an increase of 8.4% year-on-year. The retail sales in August were CAD 2.79 billion, a year-on-year increase of 5.7%.
Imports: From January to August, Canadian clothing imports amounted to 8.11 billion US dollars, a year-on-year decrease of 7.8%.
Import from China reached 2.42 billion US dollars, a year-on-year decrease of 11.6%; The proportion is 29.9%, a year-on-year decrease of 1.3 percentage points.
Importing 1.07 billion US dollars from Vietnam, a year-on-year decrease of 5%; The proportion is 13.2%, an increase of 0.4 percentage points year-on-year.
Import from Bangladesh reached 1.06 billion US dollars, a year-on-year decrease of 9.1%; The proportion is 13%, a year-on-year decrease of 0.2 percentage points.
Brand dynamics
Adidas
The preliminary performance data for the third quarter shows that sales decreased by 6% year-on-year to 5.999 billion euros, and operating profit decreased by 27.5% to 409 million euros. It is expected that the decline in annual income will narrow to a low single digit.
H&M
In the three months to the end of August, H&M’s sales increased by 6% year-on-year to 60.9 billion Swedish kroner, gross profit margin increased from 49% to 50.9%, operating profit surged by 426% to 4.74 billion Swedish kroner, and net profit surged by 65% to 3.3 billion Swedish kroner. In the first nine months, the group’s sales increased by 8% year-on-year to 173.4 billion Swedish kroner, operating profit increased by 62% to 10.2 billion Swedish kroner, and net profit also increased by 61% to 7.15 billion Swedish kroner.
Puma
In the third quarter, revenue increased by 6% and profits exceeded expectations due to strong demand for sportswear and the recovery of the Chinese market. Puma’s sales in the third quarter increased by 6% year-on-year to about 2.3 billion euros, and operating profit recorded 236 million euros, exceeding analysts’ expectations of 228 million euros. During the period, the brand’s footwear business revenue increased by 11.3% to 1.215 billion euros, the clothing business decreased by 0.5% to 795 million euros, and the equipment business increased by 4.2% to 300 million euros.
Fast Selling Group
In the 12 months to the end of August, the sales of Fast Retailing Group increased by 20.2% year-on-year to 276 trillion yen, equivalent to approximately RMB 135.4 billion, setting a new historical high. The operating profit increased by 28.2% to 381 billion yen, equivalent to approximately RMB 18.6 billion, and the net profit increased by 8.4% to 296.2 billion yen, equivalent to approximately RMB 14.5 billion. During the period, Uniqlo’s revenue in Japan increased by 9.9% to 890.4 billion yen, equivalent to 43.4 billion yuan. Uniqlo’s international business sales increased by 28.5% year-on-year to 1.44 trillion yen, equivalent to 70.3 billion yuan, accounting for more than 50% for the first time. Among them, the Chinese market revenue increased by 15% to 620.2 billion yen, equivalent to 30.4 billion yuan.
Post time: Nov-20-2023