The US apparel import landscape is changing, with Bangladesh, once a rising star, losing ground to competitors like India, Vietnam, and Pakistan. This shift is driven by factors like, changing US policies, economic conditions, and political instability in Bangladesh.

Emerging trends

Bangladesh's decline: Despite being the third-largest apparel supplier to the US, Bangladesh's exports have fallen for two consecutive years. This drop is attributed to a market correction following a pandemic-driven push in 2022, coupled with political unrest and labor issues within the country.

Competitors capitalize: India, Pakistan, Indonesia, and Vietnam have seized this opportunity to increase their apparel exports to the US. What works for these countries is political stability, strong supply chains, and competitive pricing.

China's slowdown: Even China, the largest apparel supplier to the US, has experienced a decline in exports. This is partly due to US tariffs and a shift towards higher-value products.

What’s driving the shift…

One major reason for the change in trend is US trade policies. The imposition of tariffs on Chinese goods has created an opportunity for other countries to compete in the US market. While Bangladesh enjoys lower tariffs than China, its competitors like Vietnam have established themselves as reliable suppliers with strong production capacities. Also, the global economic slowdown and high inflation have impacted consumer demand in the US, leading to reduced apparel imports overall. This has intensified competition among suppliers. And what has added to Bangladesh’s troubles is the political turmoil that has disrupted production and led to concerns about supply chain reliability. This has prompted some buyers to shift orders to other countries. At the same time, countries like Vietnam and Indonesia have focused on producing higher-value apparel items, commanding better prices and attracting US buyers seeking quality and diversification.

Table: Changing US apparel imports

Source: US Office of Textiles and Apparel – OTEXA

While Bangladesh hopes to regain its footing in the US market, it faces significant challenges. To succeed, it needs to address its political instability, improve labor conditions, and invest in upgrading its manufacturing capabilities to compete with countries offering higher-value products. The US apparel import market remains dynamic and competitive. Suppliers who can offer a combination of price competitiveness, quality, and supply chain reliability are best positioned to thrive in this evolving landscape.