UK’s fashion brands and retailers are gradually reducing imports from China and diversifying their sourcing base. At one time China was the largest apparel sourcing destination for UK fashion companies. Affected by a mix of factors ranging from the increasing cost pressures, intensified competition to serve the needs of speed-to-market better, the market share of China in the UK apparel import market dropped significantly from its peak of 37.2 per cent in 2010 to a record low of 21.4 per cent in 2018.

The value of UK’s apparel imports has only grown marginally over the past decade. Specifically, between 2010 and 2018, the compound annual growth rate of UK’s apparel imports was close to zero.

Despite Brexit, trade and business ties between the UK and the rest of the EU for textile and apparel products are strengthening. Thanks to the regional supply chain, EU countries as a whole remain a critical source of apparel imports for UK fashion brands and apparel retailers. More than 33 per cent of the UK’s apparel imports came from the EU region in 2018, a record high since 2010. On the other hand, the EU region also is the single largest export market for UK fashion companies.