The global apparel industry, often a reliable barometer of consumer confidence and trade health, is passing through a delicate recalibration. The June 2025 update of ‘Apparel trade scenario in key global markets and India’ from Wazir Advisors doesn’t just present numbers—it tells a story of shifting gears, stubborn resilience, and subtle pivots in the world’s wardrobes. While imports and exports increase, retail narratives in some major economies hint at deeper consumer moods, platform fatigue, and structural change.

West’s import appetite returns

April 2025 brought a visible hunger for fashion back to the fore in developed economies. In the US, apparel imports climbed to $6.2 billion, a 9 per cent year-on-year (YoY) increase. Retailers, perhaps bracing for a summer resurgence, or simply replenishing post-holiday inventories, seemed ready to restock.

But it was Europe that truly led the resurgence. The EU posted 26 per cent YoY growth, hitting $7.8 billion in apparel imports—a clear sign that the bloc’s fashion sector is powering back with force. The UK, not far behind, logged $1.8 billion, marking a 13 per cent rise that may reflect early signs of consumer thaw post a challenging winter.

Even Japan, traditionally conservative in retail behavior, registered $2.1 billion in apparel imports—a 17 per cent YoY increase. It seems like from Tokyo to Berlin, shop floors and online carts were restocking with new collections and consumer hope.

Asia’s export engines steady and strong

While the West bought more, Asia continued to produce—relentlessly, and in some cases, spectacularly.

China, still the world’s largest garment manufacturer, posted $13.1 billion in exports in May 2025—a modest 5 per cent YoY growth. While that may seem subdued, it reflects quiet dominance in a climate of shifting sourcing preferences and global supply chain recalibrations.

More dynamic was Vietnam, moving ahead with $3.1 billion in apparel exports—up 19 per cent YoY. Its lean manufacturing model, trade alliances, and rising productivity seem to be positioning it as a preferred alternative to China.

Bangladesh, known for its mass-market efficiency, held its ground with $3.9 billion in exports, a healthy 11 per cent growth. And India, steadily expanding its global apparel footprint, notched $1.5 billion, up 7 per cent YoY. Not dramatic, but steady—as if laying the foundation for bigger moves.

Bright spots in retail recovery

If trade numbers suggested movement and momentum, retail data offered a more grounded—and in some cases, sobering—view of the consumer endgame.

In the US, apparel store sales in May 2025 inched up just 1 per cent from the year before. While that’s still positive territory, it suggests hesitation or perhaps a shift in spending toward other categories. Even more telling: online clothing sales were down 6 per cent in Q1 2025 compared to Q1 2024. In fact, for last several quarters, several major retailers in the US including Walmart, Target, VF Corp, Gap among others have reported lower inventory levels compared to same period in the previous year Could this be digital fatigue or just consumers adjusting their wardrobes after years of online splurges?

The UK, grappling with economic uncertainty, didn’t fare well. May’s apparel store sales dropped 3 per cent YoY, landing at £3.6 billion—a reflection, perhaps, of high inflation and cautious wallets.

By contrast, India continued to show domestic strength. April 2025 saw a 5 per cent YoY growth in apparel retail—buoyed by rising urban disposable income, lifestyle shifts, and deeper retail penetration into smaller cities. The pulse of Indian consumers remains optimistic, and their closets are expanding.

Macroeconomic undercurrents, the US paradox

Zooming out, the broader US macroeconomic climate added complexity to the narrative. Inflation in May rose to 2.4 per cent, a factor that typically cools spending. But strangely, consumer confidence jumped to 98.0 from 86.0 in April—a sign that sentiment might be outrunning numbers.

This divergence paints a curious picture: consumers feeling better, even as price pressures linger. For apparel brands and retailers, it means strategizing around perception as much as reality.

A story still being sewn

Wazir Advisors' June 2025 report reveals a global industry at a point of delicate transition. The data is clear—trade is picking up, Asia remains the backbone, and consumer behavior is cautiously optimistic in some markets while cooling in others.

But the real story lies between the lines: of shifting sourcing allegiances, digital retail fatigue, and an increasingly segmented global consumer base. The apparel industry, like the garments it produces, is constantly being reshaped—by taste, by economics, and by time.

As the threads tighten and loosen across markets, one thing is certain: fashion remains both mirror and motor of global change.