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Chinas losing grip on US garment market has gains for competing countries

China's dominance in the US garment import market is waning. After reaching a peak around 2010, its market share, both in terms of value and the number of units, has been steadily declining. This trend has significant implications for both the US and Chinese economies, as well as the global garment industry.

Statistics clear the picture

China's share of US garment imports peaked around 2010, with nearly 40 per cent market share in value terms and over 45 per cent in units. Since then, there has been a consistent decline, with China’s share in 2024 estimated at around 25 per cent in value and 35 per cent in units. Interestingly, the decline is more pronounced in terms of value than units, suggesting a shift towards cheaper garments from other sources. The Office of Textiles and Apparel (OTEXA) data too supports the trend. For example, in 2010, China accounted for 39.5 per cent of US apparel imports by value. By 2023, this had fallen to 27.2 per cent.

There are several reason for this decline. For a start, rising labor costs in China is a major factor. As China's economy has grown, so have wages, making it less competitive as a source of low-cost garments. Meanwhile, US importers are increasingly diversifying their sourcing to reduce reliance on any single country, particularly in light of geopolitical uncertainties and supply chain disruptions. Growth of other manufacturing hubs like Vietnam, Bangladesh, and India has increased competition, attracting investment and market share. OTEXA data too reveals, Vietnam has been a major beneficiary of this shift. Its share of US garment imports by value has increased from 7.9 per cent in 2010 to 15.7 per cent in 2023. In fact, Nike, once heavily reliant on China, has significantly diversified its sourcing. In its 2023 fiscal year, Vietnam accounted for 31 per cent of its footwear production, surpassing China's 24 per cent reveals Nike Fiscal Year 2023 Impact Report.

Nearshoring is another factor as some US companies are shifting production closer home, to countries in Central America and the Caribbean, to reduce lead times and transportation costs.

Implications of the shift

For the US: The diversification of sourcing can enhance supply chain resilience and potentially create new opportunities for trade with other countries. However, it may also lead to higher prices for consumers in the short term.

For China: The decline in garment exports puts pressure on its economy to move up the value chain and focus on higher-value-added industries.

Global garment industry: The shift is creating a more dynamic and competitive global garment industry, with implications for labor standards, environmental sustainability, and trade policies.

While China is unlikely to lose its position as a major garment supplier to the US entirely, its dominance is clearly diminishing. The trend towards diversification and regionalization of production is likely to continue, shaping the future of the global garment industry. This presents both challenges and opportunities for all stakeholders, and it remains to be seen how these will play out in the years to come.

  

Eastman’s Naia Renew fibers are redefining sustainable fashion with their innovative circularity model, powered by the company’s carbon renewal technology. This process breaks down hard-to-recycle waste into molecular building blocks, transforming them into high-quality feedstock for Naia Renew fibers. The result is a versatile, biodegradable, and GRS-certified cellulosic fiber that blends sustainability with uncompromised style and comfort.

Naia Renew ES (Enhanced Sustainability), already available at scale, boasts 60 per cent GRS-certified recycled content. Its composition includes 40 per cent certified recycled waste material, 20 per cent certified recycled cellulose, and 40 per cent sustainably sourced wood pulp. Eastman aims to push these sustainability boundaries even further.

To highlight this innovation, Eastman has launched the ‘Recycled and Runway Ready’ campaign, blending photography and AI to showcase how waste can be transformed into striking garments. The campaign spans diverse styles, from formalwear to casual streetwear, reflecting the fibers versatility.

The garments, made with Naia Renew fibers, are not just conceptual, they are available globally in stores and online, featured in collections by top fashion brands. With Naia Renew, Eastman proves there’s no trade-off between responsibility and beauty. These fibers cater to countless fashion applications, enabling stylish, sustainable creations at scale.

  

Benefiting the textile industry, the UK Fashion and Textile Association (UKFT) has secured a six-year extension for the Climate Change Levy (CCL) rebate scheme. Starting on Jan 01, 2026, the new scheme will continue until Mar 2033. According to Adam Mansell, CEO, UKFT, the current scheme saves the textile industry around £5 million annually, so a new six-year extension is excellent news.

The CCL rebate offers discounts on energy taxes to textile companies in exchange for meeting energy reduction targets. This scheme specifically supports the wet processing sector, including dyeing, printing, coating, and drying activities, as well as spinning, weaving, and knitting operations. There have been no changes to the eligibility criteria, so companies already in the scheme that have met their targets or paid the buy-out fee are expected to be automatically enrolled in the new program.

While UKFT has retained the fundamental structure of the scheme as similar to previous schemes, it has made several other key changes. The new scheme will streamline reporting with targets set every two years and requirement of minimal annual reporting. Companies must also complete a mandatory annual self-certification on the 70/30 rule. The scheme will also introduce a new standardised target system to simplify energy reduction goals, eliminating confusion over previous 'relative' or 'novem' measures. Additionally, energy surpluses from the new scheme can be used to meet future targets, but surpluses from the current scheme cannot be carried over.

UKFT will continue to manage the scheme, assisting companies with paperwork, registration, and performance monitoring. To avail the benefits of this scheme, participants will have to pay a £185 fee to the Environment Agency, a £250 joining fee to UKFT, and an annual administration fee equivalent to 5 per cent of the savings achieved, which is reduced to 3 per cent for UKFT members or affiliates.

  

In the first 10 months of 2024, spanning Jan-Oct 24, Cambodia’s garments, textiles and footwear exports rose by double digits, as per a report by the General Department of Customs and Excise. Cambodia’s textile exports increased by 14.5 per cent Y-o-Y to $406 million during the Jan-Oct’24 period while garments exports rose by 23.6 per cent to $8 billion.

Additionally, Cambodia’s footwear exports also increased by 22 per cent to $1.33 billion to the international market, up 20.6 per cent, the report added.

Hoe Ee Khor, Chief Economist, Asean+3 Macroeconomic Research Office (AMRO), says, the garments, footwear and textile sector remains one of the major drivers for Cambodia's economic growth. Growth in this sector is projected to rebound in 2024, driven by the rising demand for consumer goods in major advanced markets, he adds.

The garment, textile and footwear industry is also the largest foreign exchange earner for Cambodia with about 1,538 factories, employing approximately 913,000 workers, mostly female, according to the latest report by the Ministry of Labor and Vocational Training.

  

The Eurasia Group has opened a garment factory in the Kashkar Kyshtak Village, Kyrgyzstan in partnership with the US Agency for International Development (USAID).

A part of the bigger textile and garment complex being developed in the region with an investment of over $27 million, the garment factory was built with a capital of over $3.5 billion with USAID providing technical assistance to improve product quality, create more efficient production processes, create a website and organise a fashion hackathon.

According to the US embassy in Bishkek, the unit will generate 600 jobs besides expanding the country’s presence in global markets.

Garments produced in the factory, on its being fully operational will be exported to the the Middle East and North Africa, the European Union, and the Commonwealth of Independent States.

  

In a meeting with 150 representatives of textile manufacturers and exporters in Panipat, Giriraj Singh, Union Textiles Minister urged the industry leaders to expand the textile market size to $350 billion and exports to $150 billion by 2030.

During the meeting, he addressed key issues impacting the Small and Medium Enterprises (SMEs) and manufacturing industries in the textile sector, particularly in Panipat, a key hub for textiles and handlooms in India.

Singh also emphasised on the need for development of new products by the industry with different blends, such as jute with bamboo, and recycled cotton with synthetic fibers, on floor-covering and carpet products.

The meeting was organised by the Handloom Export Promotion Council under the leadership of the Office of Development Commissioner for Handlooms, Ministry of Textiles, Government of India in coordination with the Panipat Exporters’ Association. It discussed policy matters concerning infrastructure development, export promotion strategies, Free Trade Agreements (FTAs), and policy support for SMEs in improving their growth and international competitiveness.

The meeting also highlighted d the importance of collaboration between the government and industry stakeholders to address these challenges and work towards the long-term growth of India's textiles and export sectors.

Singh also visited the factories of some of the leading handloom, home textiles and recycled manufacturing units in the region such as Mahajan Overseas, Excellent Fabtex, Shree Jee International, ASM Home furnishing and H R Overseas and emphasised on the need to utilise Green Energy for meeting 100 per cent of the energy requirements of these factories.

The Minister also recommended collaboration between the Panipat carpet and floor-covering industries, and the jute industry of Kolkata to promote the use of jute as a raw material in the textile industry.

  

ALLIED Feather + Down (AF+D), leaders in ethical and high-performance down insulation, has won the 2024 ISPO Award for its innovative 1000 Fill Power ExpeDRY down jacket.

Developed in collaboration with Japanese textile trading firm MN Inter-Fashion, the jacket showcases unmatched innovation with traceable, ultra-rare 1000-fill power down treated using AF+D’s ExpeDRY technology. This chemical-free, water-resistant treatment leverages Fuze Technology’s gold microparticles to ensure faster drying.

The jacket features Pertex 5d fabric, known for being one of the lightest textiles globally, in its shell and liner. The combination delivers unparalleled performance and comfort, creating a jacket described as ‘like wearing a cloud.’

“We aimed to blend peak performance with a fashion-forward aesthetic for both urban and alpine settings,” said Matthew Betcher, Creative Director at AF+D. “Receiving this recognition from ISPO highlights our innovative approach.”

ExpeDRY technology, already seen as a new standard in water-resistant down insulation, ensures the jacket remains lofty and effective in any environment. This award-winning parka exemplifies AF+D’s commitment to merging cutting-edge functionality with sleek design, aligning with the evolving trend where performance outerwear meets fashion.

The 1000 Fill Power jacket is part of AF+D’s forward-looking collection, now available in Japan and Europe. Visitors can view the jacket in the ISPO Award Exhibition Area (Hall B1) or at AF+D’s booth (A1.112).

  

Roica by Asahi Kasei, Lenzing, and Advance Denim have unveiled the LoopTy Collection, a revolutionary lifestyle stretch denim line that combines sustainability, comfort, and style. The collection debuts at Kingpins Hong Kong, November 21–22, 2024.

The LoopTy Collection features RoicaV550, a Cradle to Cradle-Certified degradable stretch fiber, paired with TencelLyocell fibers, crafted from sustainably sourced wood pulp using a closed-loop process. This blend is further enhanced by Advance Denim’s expertise, resulting in denim that balances eco-conscious innovation with superior performance.

Hiroaki Shinohe, Chief Marketing Officer of Roica Europe, stated, "This partnership allows us to create denim that aligns with consumers’ demand for sustainable, stylish, and comfortable apparel. It’s a step towards integrating circularity into fashion."

TencelLyocellfibers reduce water and carbon usage by 50 per cent while being biodegradable in various environments. Roica V550 offers exceptional stretch and breaks down into carbon dioxide and water under ISO14855-1 conditions, certified by OWS.

Amy Wang, General Manager of Advance Denim, highlighted, "Our collaboration with Tencel produced innovative collections, and Roica V550 completes the sustainable stretch element, enabling us to pioneer circular denim solutions."

The LoopTy Collection spans lightweight to heavy fabrics, catering to diverse designs, including gender-neutral and inclusive fashion. Dennis Hui of Lenzing emphasized, "This partnership signifies a transformative step in sustainable denim innovation, addressing eco-conscious consumer needs."

The collection can be explored at the Advance Denim booth No 22 and Lenzing booth No 24 during the Kingpins Hong Kong event.

  

The Karl Mayer Academy successfully conducted a comprehensive training program for employees of Accord Knits, a key Stoll customer, at its China branch. The program, held from October 21 to November 15, 2024, focused on the M1plus switchers and the Create Plus software.

Accord Knits, based in Madagascar, is the largest fully-fashioned knitwear manufacturer in the southern hemisphere, producing garments for men, women, and children. Established in 2001, the company employs 6,000 people and collaborates with global fashion brands. It boasts a cutting-edge production facility in Antsirabe and Antananarivo equipped with Stoll's advanced CMS and ADF flat knitting machines, enabling high flexibility and innovation.

The training covered knitting techniques like jacquard, intarsia, Stoll-multi gauge, and 1x1, along with new patterning features for fully-fashioned designs. Participants practiced their skills on the Academy's Stoll machines, experiencing a blend of theory and hands-on learning.

The benefits of Create Plus, including significant time savings in developing knitting programs, were immediately apparent. "We are proud of our 14-year partnership with Accord Knits and the progress achieved together," said Lutz Vogel, Stoll Area Sales Manager of Karl Mayer Group.

This initiative strengthens the collaboration between Karl Mayer’s Stoll business unit and Accord Knits, ensuring both are well-equipped to innovate and meet future industry demands.

  

The upcoming conference on March 12-13, 2025, in Cologne, Germany, promises to shape the future of sustainable textiles. Organized by the nova-Institute and supported by its Conference Advisory Board, the event will feature insights from experts across the fibre value chain. Selected from over 40 abstracts, presentations will spark discussions on industry innovation and sustainability.

A special session, ‘Biosynthetics- Replacing Traditional Synthetic Fibres,’ will highlight bio-based polymer fibres as alternatives to fossil-based synthetics. Derived from renewable sources such as lactic acid and sugarcane, biosynthetics combine technical performance with environmental benefits, offering transformative potential for the fashion and textile sectors.

Addressing the EU's climate goals, the conference will explore fibre-to-fibre recycling technologies. Transforming used textiles into virgin fibres can significantly reduce waste, but challenges like mixed-fibre management and scaling innovations remain critical. The session will discuss advancements, barriers, and strategies to foster circular production systems.

The event also tackles microplastic pollution from synthetic textiles. A dedicated session will examine marine biodegradability and explore fibres designed to prevent microplastic accumulation in oceans. Research institutes will present solutions balancing environmental impact and fibre functionality.

This dynamic conference aims to advance sustainable practices and innovations, setting pathways for a greener textile industry.

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