Global Apparel Trade Splits As Europe And UK Surge, Bangladesh Rises, India Holds Steady
Global apparel trade is navigating diverging trends midway through 2025, as consumer demand shifts, supply chains recalibrate and exporters face rising competition. The latest report ‘Apparel Trade Scenario in Key Global Markets and India (August 2025)’, published by consulting firm Wazir Advisors, shows that Europe and the UK are powering import growth, while Bangladesh and Vietnam continue to gain ground on the export front. India, meanwhile, remains steady, balancing modest export gains with a resilient domestic retail market.
In June 2025, the European Union imported US$ 7.4 billion worth of apparel, a sharp 21% year-on-year increase, pushing its year-to-date growth to 22%. The UK market surged even higher, with imports of US$ 1.8 billion, marking a 29% year-on-year jump and 28% year-to-date growth. Japan also contributed to the upswing, with imports rising 7% to US$ 1.6 billion in June.
In contrast, the United States posted slower growth, with imports of US$ 6.5 billion in June, up just 5% year-on-year. The American market, still the largest single apparel importer, has shown signs of cooling demand amid inflationary pressures and weakening consumer confidence.
On the supply side, Bangladesh emerged as the star performer in July, exporting US$ 4.0 billion worth of apparel, up 25% year-on-year. Year-to-date, Bangladesh’s exports are up 7%, strengthening its position as a global sourcing hub. Vietnam followed with a 9% gain, shipping US$ 3.6 billion, driven by diversified sourcing strategies of global retailers. India’s apparel exports held at US$ 1.3 billion in July, showing no year-on-year growth, though cumulative exports for 2025 so far are 6% higher than the same period last year. The report notes that India is stable but faces stiff competition from its Asian peers. China, still the dominant global supplier, recorded US$ 14.7 billion in exports for July, but growth was flat, signaling maturity in its apparel trade trajectory.
Retail demand trends also highlight contrasts between regions. In the US, apparel store sales in July reached US$ 19.6 billion, a 7% increase over the previous year. However, e-commerce sales of clothing and accessories fell 3% in Q2, underscoring consumers’ cautious discretionary spending and a partial shift back to physical retail. The UK market remained more balanced, with apparel store sales up 2% in June (to £4.7 billion) and online clothing sales rising 2% in Q2. Analysts suggest that stable consumer spending and gradual recovery in household incomes are helping the UK sustain modest growth. In India, domestic apparel retail stood out, with sales rising 10% year-on-year in June 2025. The steady growth reflects resilient consumer demand and the continued expansion of organized retail, even as exports remain pressured by international competition.
The report also highlights shifting inventory strategies among major US retailers. Walmart increased its stock by 4% in Q1 2025, while Target raised inventories by 11%, suggesting preparation for upcoming seasonal demand. In contrast, VF Corp and Hanesbrands reduced inventories by 4% and 5%, respectively, pointing to cautious supply chain management in response to softer sales.
The data paints a clear picture of a global trade landscape in a flux. Europe and the UK are driving import demand, but sourcing patterns are becoming increasingly competitive. Bangladesh and Vietnam are expanding their export footprints, while India is maintaining steady progress without dramatic surges. For India, the dual picture of modest export performance and strong domestic retail growth suggests a need to strengthen competitiveness in global markets while capitalizing on local consumption. Wazir Advisors notes that apparel trade in the coming months will hinge on how retailers balance price pressures, sustainability compliance and shifting consumer preferences between offline and online channels.
