Recent Eurostat data reveals a significant downturn in the EU's apparel imports in the first seven months of 2024. The data shows a drop of 5.22 per cent compared to the same period last year highlighting a broader shift in the global apparel market. In the EU traditional suppliers like Bangladesh and China are facing headwinds while emerging players like Cambodia and Pakistan are gaining ground. Eurostat data reveals a dip in imports, shifting market shares, and a dynamic landscape influenced by economic factors, consumer preferences, and geopolitical considerations.

Declining imports and shifting market shares

Overall, EU apparel imports decreased by 5.22 per cent in the January-July 2024 period compared to the same period in 2023. This decline is reflected in the performance of major suppliers like China (-7.34 per cent), Turkey (-8.55 per cent), and Bangladesh (-4.84 per cent).

Table: EU apparel imports

Source: Eurostat

Key highlights

Economic slowdown: The overall decline in apparel imports reflects the broader economic slowdown in the EU, with rising inflation and energy costs squeezing consumer spending.

Shifting sourcing strategies: The contrasting fortunes of different suppliers suggest a shift in sourcing preferences. Cambodia and Pakistan, with their competitive labor costs and growing manufacturing capabilities, have registered significant growth. This could indicate a move by EU buyers to diversify their supply chains and reduce reliance on traditional sources like China and Bangladesh.

Sustainability concerns: Consumers are increasingly conscious of the environmental and social impact of their fashion choices. This is driving demand for sustainable and ethically produced apparel, which could be benefiting countries with stronger environmental and labor regulations. Nearshoring trend: Rising transportation costs and geopolitical uncertainties are encouraging some EU brands to source closer to home, potentially benefiting countries like Turkey and Morocco.

Eurostat data reflects that despite a relatively moderate decline, Bangladesh faces challenges due to rising production costs, energy shortages, and shipment delays. These factors are eroding its competitiveness and could lead to further loss of market share. Addressing these issues, along with improving infrastructure and enhancing sustainability practices, will be crucial for Bangladesh to retain its position in the EU market.

Similarly, the decline in Chinese apparel imports is likely due to factors like, rising labor costs, trade tensions with the EU, and the emergence of competitive alternatives.

Future outlook

In coming years, the EU apparel import market is expected to remain dynamic and competitive. In fact, with economic uncertainty looming, price will remain a crucial factor in sourcing decisions. And a growing emphasis on sustainability and ethical production practices will reward suppliers who can demonstrate strong compliance and transparency. The trend towards nearshoring and diversification of sourcing locations is likely to continue. At the same time aautomation and digitalization in the apparel industry will play an increasingly important role in enhancing efficiency and competitiveness.