The German clothing industry was able to breathe a sigh of relief again in 2021. The overall economic situation was satisfactory last year, summarized German Fashion at a press conference on Thursday. The industry organization also looked to the future and to Russia.
Sales in the clothing industry – including leather and other clothing – rose by three percent year-on-year from EUR 5.05 billion to EUR 5.2 billion.
“We can report a slight increase in sales of three percent for the whole of 2021. In view of the severe losses in the previous year, this is certainly a good sign, but the previous year’s level of 2019 has not yet been reached again,” said German Fashion President Oliver Seidensticker.
Compared to the previous year, sales growth of 1.3 percent was achieved for work and professional clothing and 2.6 percent for “other clothing”. In the hosiery segment, there was a 10.6 percent increase in sales. The development in the laundry sector was less positive. Sales there fell by 10.5 percent.
Seidensticker: Business relations with Russia come to a standstill
In terms of exports, the German clothing industry was able to achieve growth of 7.84 percent from 20.08 billion euros to 21.66 billion euros in 2021 compared to the previous year. Switzerland, Poland, Austria, France, the Netherlands, Italy, Belgium, Spain, the Czech Republic and the United Kingdom continued to be among the most important export countries for the industry. However, exports to Poland fell by 3.83 percent and to the United Kingdom by 12.53 percent due to Brexit. “Business between Europe and Great Britain is not going well,” said Thomas Lange, general manager at German Fashion.
Since the start of the war between Russia and Ukraine, the industry has also been paying particular attention to these markets. Seidensticker is certain that business relations with Russia will come to a standstill. Brands in particular as “sensitive entities” would have to think carefully about whether they “want to be associated with deliveries to Russia in the future”, the German Fashion President continued.
In 2021, the export value for clothing to Russia was around 380 million euros. Exports fell by 0.17 percent compared to 2020. Russia ranks 13th among the most important export countries.
Lange: Bangladesh is the winner in production
When it comes to imports, Bangladesh is one of the winners. The country ranks second among the top importing countries in the industry and has achieved year-on-year growth of 22.29 percent in 2021.
“The winner in production is Bangladesh […]. On the one hand, this is a result of the problems that our members are currently having in China, and on the other hand, a lot has happened in the factories in Bangladesh,” said Lange. “Sustainability is shown and German manufacturers have also invested in factories there.”
China was able to record an increase of 4.41 percent in 2021 compared to the previous year. The country thus remains in first place in the ranking of the most important importing countries, but no longer at the level of previous years.
In addition to China and Bangladesh, Turkey, Italy, India, Vietnam, Pakistan, Cambodia, the Netherlands and Poland are among the most important importing countries. The import value from the Dutch neighbors grew by 21.89 percent in 2021 compared to the previous year.
The prospects of the industry organization for 2022 are generally quite positive. “Apart from the dramatic and uncertain situation in Russia and Ukraine, German manufacturers are approaching 2022 with cautious optimism and hope to be able to reach the level of 2019 again towards the end of this year,” says Seidensticker.