Amman: A member of the Board of Directors of the Amman Chamber of Commerce (ACC), Asaad Qawasmi, announced that Jordan's garment sector is poised for a significant upswing with the arrival of the summer, Hajj, and Eid Adha seasons.
According to Jordan News Agency, Qawasmi noted in a statement to "Petra" that apparel prices remain "stable and declining" due to "intense" competition, discounts, and the prevalence of online sales. He expressed optimism that sales of clothing items would see an uptick with the start of the Hajj season, Eid Adha, the summer period, and the return of Jordanian expatriates, potentially offsetting the weaker demand experienced during the past Ramadan and winter seasons.
Qawasmi highlighted that traders in the sector have imported goods valued at JD118 million, marking an increase of approximately JD10 million compared to the same season last year. The majority of these shipments originated from China, the Far East, Turkey, Egypt, and the European Union.
Despite the current demand being "better" compared to the last Ramadan season, Qawasmi mentioned that it still falls short of the levels observed in previous years. He pointed out that competition with e-commerce parcels remains a significant challenge for the garment sector due to the discrepancy in tax and customs duties on these inbound parcels.
To address these issues, Qawasmi urged for a reduction in sales tax to capitalize on the return of expatriates who are increasingly purchasing clothing items from abroad. Additionally, he identified other challenges such as the unplanned expansion of markets and the proximity of shopping malls.
Emphasizing the sector's role in the economy, Qawasmi stated that Jordan's clothing and footwear industry is the "primary" supporter of Jordanian employment, accounting for 95% of the total industry's workforce. It also serves as the largest employer of young university students on a part-time basis, providing support to over 300,000 Jordanian households through jobs in 11,000 stores across the Kingdom.