Chinese, Indian, Mexican Tourists Will Not Give A Fillip To US Apparel Retailers

Chinese, Indian, Mexican Tourists Will Not Give A Fillip To US Apparel Retailers

The US has the largest number of tourist arrivals in the world, and the highest international tourist expenditures. According to US government figures, the country received over 75 million tourists in 2015. Country-wise break-up shows that tourists from China, India, Mexico, etc., are among the top 20, and more importantly, these and tourist arrivals from some other apparel producing countries are registering high growth rates.

While tourists spend money on shopping in the US, those from the apparel producing countries would not want to buy clothes that have been produced in their countries, at prices that have been significantly marked up.

So the US apparel retail segment, especially the mid-priced segment has been unable to take advantage of the high tourist arrivals in the country. As mentioned earlier, US citizens are spending more on experiences, rather than on products, and this holds true for international tourists too. One will also need to look at the design schools, and how well coordinated they are with the industry needs. Again, in the mid-priced apparel segment, this is even more important.