The global apparel market, with economic currents and consumer trends, presents a complex scenario in early 2025. While certain regions saw good growth, others grappled with stagnation and reduction, signalling a period of significant recalibration, indicates Wazir Advisors latest ‘Apparel trade scenario in key global markets and India February 2025’.

Diverging import trends, a tale of two continents

The 2024 apparel import figures reveal a clear difference between the transatlantic markets. The US and EU showed modest growth, with a 2 per cent year-over-year (YoY) increase in imports, reaching $80.3 billion and $88.2 billion, respectively. This suggests sustained, albeit moderate, demand within these major markets.

However, the UK and Japan present a contrasting narrative. The UK experienced a significant 8 per cent YoY decline, with imports falling to $18.4 billion, while Japan saw a 5 per cent drop to $22.5 billion. These declines point to potential economic headwinds or shifting consumer preferences in these regions, necessitating closer observation.

Export dynamics, strength in the East

Apparel exports in January 2025, the data highlights the continued strength of major producing nations. Bangladesh maintained its dominant position, achieving a 6 per cent YoY increase to $3.7 billion. More notably, India showed good growth, with a 14 per cent YoY increase to $1.6 billion. This export performance suggests these countries are effectively capitalizing on global demand, potentially aided by factors such as competitive pricing and increased production capacity.

Retail realities, in-store vs. online

The retail landscape paints a mixed picture, particularly in the US and UK. In the US, traditional apparel store sales experienced a healthy 11 per cent YoY increase in January 2025, alongside a dramatic 25 per cent rise in home furnishing sales. This signifies a potential resurgence of in-store shopping, possibly driven by pent-up demand or evolving consumer preferences.

Conversely, US clothing and accessories e-commerce sales in 2024 fell by 2 per cent compared to 2023. This suggests a possible saturation of the online market, or a movement of consumers back to brick and mortar stores.

The UK presents a similar trend, with a striking 27 per cent YoY rise in apparel store sales in January 2025, reaching £3.8 billion. However, UK clothing e-commerce sales were flat in 2024, mirroring the US trend.

Macroeconomic Shadows: US Uncertainty

The US macroeconomic indicators cast a shadow over the otherwise positive retail figures. January 2025 witnessed a concerning rise in inflation for the fourth consecutive month, reaching 3 per cent. 1 Simultaneously, consumer confidence declined, albeit slightly, to 104.1. These factors raise concerns about potential future economic slowdowns, which could dampen consumer spending on apparel and other discretionary items.

Key highlights

Diverging regional performance: The disparity in import data underscores the importance of regional analysis in understanding global apparel trends.

Export strength: The continued growth of apparel exports from Bangladesh and India demonstrates their critical role in the global supply chain.

Retail resurgence?: The strong performance of physical apparel stores in the US and UK raises questions about the future of e-commerce in this sector.

Macroeconomic impact: The US macroeconomic indicators warrant close monitoring, as they could have significant repercussions for the apparel market.

Thus, the global apparel market is passing through a complex space at the moment marked by both opportunities and challenges. Moving forward, stakeholders must remain vigilant, adapting to evolving consumer preferences and macroeconomic fluctuations to ensure sustained growth.