According to the latest data from the Danish Fashion and Textile Association (Dansk Mode & Textil), the industry’s total turnover in 2020 was 43 billion Danish kroner (approximately US$6.9 billion), of which more than 60% came from exports. In the first five months of 2021, export sales reached 13 billion crowns, which has returned to pre-epidemic levels, an increase of 20% and 4% respectively compared with the same period in 2020 and 2019. According to Michael Hillmose, manager of the association, the past year and a half has been challenging, with the industry affected by lockdowns, retail bankruptcies, travel restrictions and consumers being unable to go out to spend in both export and domestic markets. However, businesses quickly adjusted their operating models to restore exports to pre-epidemic levels. Manager H emphasized that in the first five months of this year, EU customers purchased products worth 10.6 billion kroner from Danish manufacturers. The EU has become the most important market for the industry. However, the UK, which has been an important market for many years, has been affected by factors such as increased administrative procedures for Brexit customs clearance and tariffs. , export sales in the first five months of this year were less than 5 billion crowns, a 32% drop from the same period in 2019.
Manager H also warned that it is too early to talk about a comeback at this time. Currently, the industry is facing the dual challenge of sharp increases in freight costs and raw material prices. Manager H pointed out that the apparel industry is a global industry. When freight rates increase by 3-5 times, it will have a wide impact on the production and sales of the industry, and will also put pressure on the industry’s revenue. Manager H believes that overall, industry operations will enter a growth mode this year, but there are still uncertainties, and industry players need to pay attention to response.
