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The global apparel industry has entered the second quarter of 2025 with renewed momentum, marked by strong import demand, shifting export patterns, and evolving retail dynamics. Data from Wazir Advisors ‘Apparel trade scenario in key global markets and India’, reflects the trade and retail landscape in March and April 2025, and provides valuable insight into the changing contours of this consumer-driven sector.
Developed markets drive import growth
Apparel imports grew across developed markets in March 2025, underscoring a recovery in consumer demand and a broader stabilization of global supply chains. The US imported apparel worth $6.6 billion, registering a 12 per cent year-on-year (YoY) increase. The European Union led the charts with imports worth $8.7 billion, a 23 per cent jump YoY, highlighting strong retail restocking activity. The UK, too, saw an impressive 36 per cent YoY rise, with imports valued at $1.9 billion. Japan followed closely with a 29 per cent YoY growth, importing $2.2 billion worth of apparel.
These figures point to rising consumer confidence in these regions and reflect the industry’s preparation for upcoming seasons. The strong numbers also indicate a renewed reliance on global sourcing networks after pandemic-era supply disruptions and a rebound in brick-and-mortar retail activity.
Export patterns reflect regional shifts in competitiveness
While importers reported strong demand, the export scenario revealed diverging performances among the leading apparel manufacturing countries. China, still the largest global exporter, reported a marginal 1 per cent decline in April 2025, with total exports standing at $11.2 billion. This slight downturn reflects ongoing pressures, including increasing labor costs, trade tensions, and global buyers’ continued efforts to reduce dependence on a single country.
In contrast, South Asian and Southeast Asian countries fared better. India emerged as a strong performer with a 17 per cent YoY rise in apparel exports, totaling $1.4 billion. This increase reflects India’s growing competitiveness driven by policy support, favorable exchange rates, and increased buyer interest in sustainable sourcing. Vietnam continued its upward movement as well, with exports rising 15 per cent YoY to $3.1 billion. Meanwhile, Bangladesh maintained its performance with stable exports of $2.4 billion, showing resilience amid shifting market dynamics.
These trends underscore the gradual diversification of global sourcing patterns. Retailers are increasingly hedging risks by distributing their orders across multiple countries to ensure supply chain resilience, cost efficiency, and quicker turnaround times.
Retail growth returns, but online sales weaken
Retail performance in April 2025 reflects a positive sentiment in the apparel sector, particularly in physical retail channels. In the US, apparel store sales increased 6 per cent YoY, suggesting a rebound in in-person shopping experiences. Interestingly, however, the country’s online apparel sales witnessed a 6 per cent decline in Q1 2025 compared to the same quarter last year. This could point to a normalization of consumer behavior post-pandemic, as shoppers return to physical stores, seeking tactile engagement and immediate gratification.
The UK also posted a healthy 9 per cent YoY growth in apparel store sales in April 2025, reaching £3.6 billion. This suggests continued resilience in consumer spending despite broader macroeconomic uncertainties. In India, apparel retail sales in March 2025 rose by 6 per cent YoY, highlighting the country’s growing domestic consumption and urban retail expansion.
In contrast, the US home furnishings segment showed a 1 per cent decline in store sales, indicating a shift in discretionary spending priorities, possibly favoring fashion and lifestyle purchases over home improvement categories.
Macroeconomic indicators reflect mixed signals
April 2025’s macroeconomic indicators present a mixed backdrop for the apparel industry, particularly in the US. While inflation eased to 2.3 per cent, offering some relief to consumers and retailers alike, consumer confidence index dropped sharply to 86.0 from 92.9 in the previous month. This drop suggests rising consumer caution, possibly linked to broader economic concerns such as employment uncertainty, geopolitical risks, or slowing wage growth.
The decline in consumer confidence could temper future retail performance despite current positive trends in store sales. Retailers may need to adopt a more conservative approach to inventory planning and promotional strategies to navigate potential volatility in demand.
Resilience with caution in future
The data from early 2025 shows highlights an industry in recovery, yet one that remains sensitive to macroeconomic and geopolitical factors. Strong import demand from developed markets and encouraging export performances by countries like India and Vietnam point to sustained momentum. At the same time, the drop in US consumer confidence and declining online sales indicate that the path forward may not be entirely smooth.
The global apparel industry must now balance optimism with prudence. Retailers and suppliers alike will need to remain agile, focus on cost control, invest in digital transformation, and strengthen their sustainability credentials to remain competitive in an increasingly fragmented and dynamic global market.
The Hong Kong Research Institute of Textiles and Apparel (HKRITA) and Japan’s Seiko Epson Corporation have successfully developed a regenerated cellulose fiber with a silk-like sheen, using a new process that transforms waste cotton fabric into high-value textile material.
As global attention intensifies on textile waste, particularly in Europe where recycled fibers are being increasingly adopted, this innovation offers a promising solution. Since entering a joint development agreement in January 2024, HKRITA and Epson have been advancing fiber recycling technologies to tackle the growing environmental burden of discarded clothing.
The breakthrough comes from combining Epson’s patented Dry Fiber Technology, which mechanically defibrates waste textiles into a powder, with HKRITA’s solvent-based fiber-dissolution method. The process involves converting cotton fabric into a powder, dissolving it into a solution, and then reconstituting it into fibers using a wet spinning technique. This results in a regenerated cellulose fiber that is both silky in appearance and strong like cotton.
Designed for high-end applications such as scarves, neckties, and suit linings, the fiber also utilizes the short fibers typically discarded in similar processes thereby improving overall recycling efficiency.
“This collaboration reflects our commitment to addressing real-world problems through applied research,” said Jake Koh, CEO of HKRITA. “Working with Epson allows us to turn discarded cotton into high-grade yarns, opening up new possibilities for sustainable production.”
Satoshi Hosono, Executive Officer at Epson, stated, “The success of this project demonstrates how combining selective wet and dry processes can regenerate fibers from all types of cotton waste with reduced environmental impact.”
The new technology will be showcased at HKRITA’s booth (No. 2415) during the Textiles Recycling Expo 2025 in Brussels from June 4. The collaboration aims to accelerate global efforts in circular textile production.
In a $7 million deal signed between Egypt's Suez Canal Economic Zone (SCZONE) and China's Shaoxing BEIQI Textile Co, both the companies plan to establish a RMG manufacturing plant in the West Qantara Industrial Zone.
The plant will be set up across 16,000 sq m and generate 3,000 direct jobs. The facility will produce over 10 million garments annually, with 90 per cent slated for export and 10 per cent for the domestic market. This move highlights West Qantara's growing appeal for export-driven industries, particularly in the textile and garment sectors, according to media reports.
With the addition of this project, the West Qantara Industrial Zone now boasts 21 initiatives, representing a total investment of $603.5 million and creating over 30,600 direct jobs.
The zone's prime location, robust logistics infrastructure, and comprehensive support services make it an ideal hub for labor-intensive industries like textiles, boosting its competitive standing in the market.
Hosiery and textile industrialists in Ludhiana recently held a demonstration outside the Knitwear Club Office to protest against the growing threat to the domestic industry. Specifically targeting garments imports from Turkey and Bangladesh, these protestors highlighted the perceived lack of solidarity of these nations with India during its recent conflict with Pakistan.
The anger of these protestors stemmed not only from the economic threat posed by imports but also from Turkey and Bangladesh's stance during the India-Pakistan conflict, despite India having provided humanitarian aid to Turkey during its devastating earthquake in February 2023, said Vinod Thapar, Chairman, Knitwear Club.
Industrialists pointed out, garment imports from Bangladesh are duty-free under the South Asian Free Trade Area (SAFTA), making them cheaper due to lower labor costs. They also accused many Turkish brands of routing products through Bangladesh to avoid duties, further harming the local industry. This misuse of trade agreements is damaging Ludhiana’s textile ecosystem, where many units are struggling to survive, stated Sudarshan Jain, Knitwear and Apparel Manufacturers Association of Ludhiana (KAMAL).
Large Indian retail chains continue to stock garments from these countries, disregarding their geopolitical stance and the adverse impact on Indian businesses, he added.
With 12,000 textile and hosiery units employing over 500,000 people, Ludhiana's industry contributes an estimated Rs 40,000 crore annually to the domestic market and Rs 5,000 crore in exports. Facing rising imports, industry leaders are not only calling for a boycott of products from Turkey and Bangladesh but also urging citizens to refrain from leisure travel to Turkey and prioritize Indian-made brands.
Rising demand is expected to drive the cotton sewing thread market in the Middle East and North Africa (MENA) region to grow at a CAGR of 1.7 per cent and a value of $163 million by 2035.
In 2024, consumption of cotton sewing thread in the MENA region declined by 6.9 per cent approximately 12,000 tons, yet overall consumption has remained relatively flat. The consumption volume peaked at 16,000 tons in 2018 before settling at a lower figure from 2019 to 2024. The market value contracted by 26.7 per cent to $135 million in 2024 from the previous year. While overall consumption value had shown buoyant expansion historically, it peaked at $275 million in 2021 before declining to lower figures from 2022 to 2024.
Turkey, Saudi Arabia, and Israel emerged as the leading consumers of cotton sewing thread in in 2024, collectively accounting for 73 per cent of the total volume. Saudi Arabia exhibited the most significant growth among major consumers from 2013 to 2024, with a CAGR of +9.9 per cent. In terms of value, Turkey led with $79 million, followed by Saudi Arabia, and the Syrian Arab Republic.
Production of cotton sewing thread declined by 7.1 per cent to 12,000 tons in 2024 in the MENA region, maintaining a relatively flat trend overall. However, in value terms, production decreased to $131 million in 2024. Turkey, Saudi Arabia, and Israel emerged as the top producers in 2024, representing 80 per cent of total production. Saudi Arabia also recorded the largest production growth rate, with a CAGR of +12.6 per cent from 2013 to 2024.
Imports of cotton sewing thread declined by 10.2 per cent to 1.5000 tons in 2024, marking a deep setback. In value terms, imports decreased to $12 milllion in 2024 from $31 million in 2013. Tunisia, Iran, and Algeria emerged as the largest importers in 2024.
Exports of cotton sewing thread from MENA decreased by 15.9 per cent to 669 tons in 2024. In value terms, exports significantly reduced to $5.1 million in 2024. Turkey was the primary exporter, accounting for 58 per cent of total exports, followed by Egypt and the United Arab Emirates. Morocco demonstrated the fastest export growth with a CAGR of +12.9 per cent from 2013 to 2024.
German startup eeden secured €18 million in a Series A funding round to construct a plant in Munster to help recover pure cellulose and PET monomers from cotton-polyester textile waste, The company plans to also use these funds to establish commercial projects with key players across the textile industry.
Highlighting the potential of their solution, Steffen Gerlach, CEO and Co-founder, eeden states, over the past few years, the company has developed a proven solution with a potential to meet the industry’s long-term need for cost-efficient and high-performing circular materials.
Supported by both new and existing investors, the company plans to expand this technology to transform textile waste into valuable materials, he adds.
The funding round was led by Forbion, a prominent Dutch venture capital firm, through its BioEconomy Fund. New investors Henkel Ventures and NRW.Venture, the venture fund of North Rhine-Westphalia’s development bank, also participated. Notably, all existing investors chose to reinvest in this round, signaling strong confidence in eeden's capabilities.
Praising the pioneering solution, Alex Hoffmann, General Partner, Forbion, says, it promises to make large-scale textile recycling not only technologically feasible, but also commercially viable in the near future. He conveyed support to the eeden's team as they expand this breakthrough technology to an industrial level.
The racks of fast fashion outlets and the digital storefronts showcasing the latest apparel trends mask a change occurring behind the scenes. For decades, the mantra of sourcing has been simple: chase the lowest cost. But that era is drawing to a close. Today, the intricate play of global supply chains is increasingly dictated not by price tags, but by political fault lines. Sourcing is no longer a mere supply chain decision; it has morphed into a high-stakes geopolitical chess game where brands, in their pursuit of affordable production, now find themselves navigating a treacherous minefield of diplomatic flashpoints. The chilling question echoing through boardrooms and sourcing offices is: how long before geopolitical risk eclipses even the sacrosanct metrics of price and capacity in the vendor selection process?
The apparel industry in Asia, long the main stay of global fashion, is grappling with a reality far more complex than predicting next season’s hemlines. Tariffs, trade disputes, and unilateral political decisions are no longer abstract threats; they are tangible disruptions reshaping the very fabric of how and where brands procure their goods.
US as a major shuffling force
The Trump administration’s tariff imposition Chinese goods have acted as a major catalyst, forcing a widespread reshuffling of global sourcing strategies. These tariffs, initiated in 2018, targeted a wide range of products, including apparel and textiles, with the explicit aim of encouraging domestic production and altering trade balances. However, the primary outcome for the apparel sector has been a significant push towards diversification of sourcing away from China.
As per the United States International Trade Commission (USITC), the share of apparel imports from China into the US has seen a noticeable decline in recent years.
Table: China’s apparel exports to the US
|
Year |
Share of US apparel imports from China |
Source |
|
2015 |
38.20% |
USITC DataWeb |
|
2020 |
31.90% |
USITC DataWeb |
|
2023 |
28.50% |
USITC DataWeb |
This data clearly indicates a downward trend in reliance on China as a primary apparel sourcing destination for the US market. However, this shift has created ripple effects across other Asian manufacturing hubs. Countries like Vietnam and India, often touted as alternative sourcing destinations, have seen an increase in demand, leading to infrastructure bottlenecks, labor shortages, and ultimately, increased costs and longer lead times. This highlights the interconnectedness of global supply chains and the challenges of rapidly shifting sourcing strategies.
Negotiating a minefield of geopolitical flashpoints
The pursuit of alternative sourcing, a direct response to tariff pressures, has led to a new some geopolitical complexities. India’s reported disruptions to Bangladeshi access to key ports for third-country trans-shipment, shows how regional political decisions can have a major consequences for international supply chains. These disruptions impact lead times and increase transportation costs for apparel brands sourcing from Bangladesh, a major global garment producer.
Similarly, Vietnam's growing scrutiny over the potential re-routing of Chinese goods to evade US tariffs adds another layer of risk. While specific data on the volume of such re-routed goods is difficult to ascertain publicly, the increased vigilance from customs authorities in both the US and Vietnam creates uncertainty and potential compliance risks for apparel exporters and their international buyers. Brands now face the added burden of ensuring the true origin of their goods to avoid penalties and reputational damage.
The ban on Xinjiang cotton in several Western countries, due to ethical concerns, has further complicated sourcing decisions. This has mandated stringent traceability requirements, forcing brands to go beyond basic supplier information and ensure transparency from the fiber level upwards.
Reports suggest an increase in auditing expenses and the need for sophisticated supply chain management systems. Organizations like the Better Cotton Initiative (BCI) are playing a crucial role in establishing traceability standards, though challenges in verifying the origin of cotton remain.
The recent Red Sea crisis, triggered by geopolitical instability in the Middle East, has laid bare the vulnerability of global logistics. Data from maritime shipping companies and trade publications indicates a significant increase in shipping times and costs for goods destined for Europe. For example, Maersk reported in early 2024 an estimated 10-15 day increase in transit times for vessels rerouting around the Cape of Good Hope, along with substantial surcharges on shipments. This directly impacts apparel brands with European markets, leading to delays in product availability and increased operational expenses.
A reassessment of priorities
These geopolitical headwinds are forcing a fundamental reassessment of sourcing priorities. While cost remains a critical consideration, the tangible and potential costs associated with geopolitical instability – tariffs, shipping disruptions, compliance risks, and reputational damage – are increasingly factoring into decision-making processes.
Table: Shifting weighting of sourcing factors
|
Factor |
Pre-2018 (estimated) |
Current (Early 2025, estimated) |
Trend |
Influencing geopolitical events |
|
Price |
65% |
40-45% |
Decreasing |
US-China Tariffs, Increased Logistics Costs |
|
Capacity |
20% |
15-20% |
Decreasing |
Diversification pressures leading to bottlenecks elsewhere |
|
Lead Time |
10% |
15-20% |
Increasing |
Port disruptions, Red Sea crisis, longer alternative routes |
|
Geopolitical Risk |
<5% |
15-20% |
Increasing |
US-China Tariffs, Regional political instability, Trade disputes |
|
Compliance/Ethics |
<1% |
5-10% |
Increasing |
Xinjiang cotton ban, increased consumer awareness |
The above table, based on industry reports and expert opinions underscores the growing recognition that a purely cost-centric approach to sourcing is no longer sustainable in the face of increasing geopolitical volatility.
Resilience as the new competitive imperative
The evidence clearly suggests that geopolitical risk is fast becoming a primary filter in vendor selection, potentially even eclipsing traditional metrics like price and capacity. Brands that fail to proactively address these challenges risk significant disruptions to their supply chains, increased costs, and potential reputational damage.
The ability to build resilient and agile supply chains – characterized by diversification, risk assessment, and strong supplier relationships – will be the defining competitive advantage in the years to come. This requires a shift from simply seeking the cheapest production to prioritizing long-term stability and the ability to adapt to an increasingly complex and unpredictable global landscape. The geopolitical chess game is underway, and only those brands that can master its intricate moves will secure their position in the future of apparel sourcing.
New venue and format signal fresh start for Japan’s textile industry
The inaugural edition of Tokyo Textile Scope (TTS), organised by the Japan Fashion Week Organization (JFWO), concluded on May 16 with a successful three-day run at its new venue the Tokyo Metropolitan Industrial Trade Center Hamamatsucho-Kan. The event marked a strategic transformation from earlier iterations such as "Premium Textile Japan" (PTJ) and "JFW Japan Creation" (JFW-JC), now consolidated into a single comprehensive platform. The venue shift from the Tokyo International Forum and the extension of the event duration from two to three days were welcomed changes, reflecting JFWO’s commitment to innovation and evolution.
The new format was introduced in line with JFWO's 20th anniversary a timely milestone to launch a reimagined trade fair. The revamped event drew 83 exhibitors, an increase of about 20 per cent from PTJ’s previous spring edition. Among them were nine first-time participants, including four overseas companies making their Japan trade show debut, reflecting growing international interest. The visitor count also rose by 20 per cent, underscoring the show’s increased appeal. Organisers attributed this success to their philosophy of ‘constantly taking on new challenges’ and embracing change rather than repeating established formats.
Showcasing regional excellence and future innovations
A key highlight of TTS was the new ‘Focus on Textile Regions’ programme, which spotlighted Japan’s heritage in textile production. Based on insights from international luxury brands, the first instalment centred on denim a staple of Japanese textile excellence. Visitors experienced a virtual tour of denim factories through VR goggles, allowing them to immerse themselves in the production process, regardless of their geographical constraints. This novel approach received enthusiastic feedback and demonstrated how technology can bridge the gap between tradition and modernity.
Another new feature was the ‘What’s Next Scope’, a corner dedicated to innovation. It showcased emerging topics like Solament, a patented high-tech material by Sumitomo Metal Mining, and explored the role of Generative AI in fashion's future. The adjacent ‘What’s Next Seminar’ series featured five dynamic sessions, including ‘Scope on Denim: The Present and Future of Japan’s Denim Production Regions’ and a preview of ‘Premiere Vision Spring/Summer 2026 Fashion & Eco-Innovation.’ These sessions aimed to spark dialogue and encourage forward-thinking in the industry.
Sustainability and strategy take centre stage
The ‘What’s Next Textile’ exhibition, now in its fifth edition, featured 45 fabrics from 45 companies, drawing strong interest from buyers. Visitors were invited to vote for their favourite fabrics, which encouraged direct engagement and increased footfall at participating booths. Another continuing highlight was the ‘What’s Next Sustainable’ corner, which featured Mitsukoshi Isetan’s upcycling project ‘Peace de Mirai.’ These efforts reflect a broader industry trend: a shift from mere scale to meaningful storytelling and strategic content delivery.
As JFWO looks ahead, its focus remains on refining presentation techniques and enriching the visitor experience. With aspirations to rival international events like Premiere Vision in France and Milano Unica in Italy, TTS is poised to become a global textile hub. The next editions are scheduled for November 12–14, 2025, and April and October 2026, all at the same venue, signalling continuity and a strong foundation for future growth.
Bestseller is set to make a dynamic return to Copenhagen this August for CIFF 65, reaffirming its commitment to the Scandinavian fashion scene with a standout presence in Hall C Marking its third consecutive season at the fair, the Danish fashion group will spotlight six of its trend-forward brands: Pieces, Noisy May, JJXX, Object, Rouge Edit, and Y A S.
The curated collections will be revealed through immersive displays and engaging brand experiences, transforming Hall C into a high-energy space that fuses creativity with commerce. Bestseller’s return is expected to be a key highlight of CIFF 65, helping to shape upcoming seasonal trends and positioning the company as a central figure in Nordic fashion innovation.
Lars Pedersen, Regional Director and Executive Team Member at Bestseller, emphasized the importance of CIFF to the company’s European strategy, noting that it remains the only trade fair where Bestseller invests at such a scale. “It’s a strategic platform where we connect with partners, share our brand stories, and show our long-term commitment to this region,” he said.
CIFF Director Sofie Dolva welcomed the continued collaboration, highlighting the energy and innovation Bestseller brings to the event. “Their activation of space and ideas contributes to the fair’s creative and commercial pulse,” she said.
The partnership between CIFF and Bestseller reflects a shared vision to elevate the Nordic fashion community, offering a platform where inspiration, industry dialogue, and business growth converge under one roof.
Zalando has become an official member of Fair Wear, reinforcing its commitment to improving working conditions within its private label supply chain. The move marks a major step in the online fashion platform’s sustainability journey, aligning with global calls for greater accountability and systemic change in the fashion industry.
Fair Wear is a renowned multi-stakeholder organisation working to enhance labour rights across international supply chains. Zalando’s membership focuses specifically on its private label products, aiming to implement high standards of human rights due diligence and create real impact for garment workers.
“Zalando’s membership shows they’re committed to due diligence in their supply chain at a high-quality level, with actual impact for the people making our clothes,” said Alexander Kohnstamm, Director of External Affairs at Fair Wear.
Zalando's Sustainability Director, Pascal Brun, welcomed the partnership, emphasising that Fair Wear’s accountability framework complements Zalando’s values. The collaboration also provides access to tools like Fair Wear’s Human Rights Due Diligence (HRDD) Academy, which supports brands in developing effective practices to address labour rights challenges.
Beyond its private labels, Zalando is also encouraging partner brands on its retail platform to improve their own HRDD practices, fostering a ripple effect across the broader fashion ecosystem.
Fair Wear views Zalando’s membership as a catalyst for industry-wide collaboration and learning. As more fashion companies face pressure to act responsibly, Zalando’s decision signals a growing momentum toward ethical, transparent, and worker-centric supply chains.
