The global apparel trade is showing a patchwork of resilience and volatility as the latest data from the Wazir Advisor’s ‘Global Apparel Trade & Retail Update Report for August 2025’. It highlights that while consumer demand remains robust in key markets, supply-side dynamics continue to shift, shaping the fortunes of exporters across Asia.

Imports show the West still hungry for fashion

June 2025 import figures show that major consuming markets particularly the US, the EU, the UK, and Japan are steadily raising their demand for apparel.

The US, still the world’s single largest consumer of fashion, imported $6.5 billion worth of apparel, marking a 5 per cent increase year-on-year. While modest compared to other markets, the growth signals steady demand despite economic uncertainty. The EU stood out with a sharp 21 per cent jump in apparel imports, totalling $7.4 billion. Analysts attribute this growth to stronger summer season buying and retailers replenishing stock amid robust consumer demand in Germany, France, and Italy. Japan posted a 7 per cent rise, importing $1.6 billion, reflecting its consumers’ steady return to discretionary spending. The UK saw perhaps the most striking trend, with imports climbing 29 per cent to $ 1.8 billion, a rebound linked to strong e-commerce growth and higher holiday-season purchases.

In exports, Bangladesh steals the spotlight

On the supply side, the July 2025 export data underscores how global sourcing patterns are continuing to evolve. China, the industry’s traditional powerhouse, shipped $14.7 billion worth of apparel, essentially flat compared to last year. While still dominant, China’s growth plateau highlights rising competition and diversification of sourcing. Bangladesh, in contrast, registered a 25 per cent jump in exports, reaching $4.0 billion. With its low-cost advantage and increasing compliance with sustainability standards, the country continues to cement its position as a reliable sourcing hub. India, however, reported $1.3 billion in exports, unchanged from a year earlier. This stagnation comes despite strong domestic retail demand, raising concerns about India’s competitiveness in the global supply chain. Vietnam clocked in $3.6 billion in exports, up 9 per cent, underscoring its reputation as a preferred destination for high-quality and diversified sourcing, particularly for US and Japanese buyers.

Retail Trends: Strong sales, e-commerce divergence

Retail performance presents a mixed picture. In the US, July 2025 apparel sales grew by 7 per cent, with home furnishings following close behind at 6 per cent. Yet the online marketplace told a different story, e-commerce sales of clothing and accessories dipped 3 per cent in Q2 2025, compared with the same period last year. Analysts suggest saturation in digital channels and a renewed tilt toward physical retail as consumers return to stores.

The UK, by contrast, reported a 2 per cent rise in online clothing sales in Q2 2025, mainly due to strong uptake of fast-fashion platforms and omnichannel shopping models. Closer to home, India’s apparel retail sales rose 10 per cent in June 2025 year-on-year, reflecting both festive pre-purchases and growing discretionary spending among middle-class households. This growth, industry insiders say, is being led by smaller cities and Tier-II markets, where consumers are increasingly shopping both online and offline.

The macroeconomic backdrop, US’ uneasy balance The US economy remains a critical barometer for global trade flows. In July 2025, the Consumer Confidence Index ticked up to 97.2 from 95.2 in June, showcasing optimism. But the labor market showed fragility as 73,000 jobs were added, while the unemployment rate edged up to 4.2 per cent from 4.1 per cent. Retailers remain cautiously optimistic, watching whether consumer demand will sustain momentum through the holiday season.

Table: Apparel imports in June 2025 ($ bn)

Table: Apparel exports in June 2025 ($ bn)

The August 2025 apparel update indicates a world in transition. Consumer demand in Western markets remains healthy, but sourcing shifts are increasingly favoring agile, low-cost, and sustainable producers like Bangladesh and Vietnam. India’s flat export performance, despite strong domestic demand, underscores the urgency for policy support and industry innovation if it is to capture a greater share of global apparel trade.

With festive seasons approaching in South Asia and the holiday shopping wave in the West around the corner, the next quarter will be critical in determining whether these growth trends hold firm or whether volatility in macroeconomic conditions begins to dampen momentum.