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The recent announcement of a 10 per cent tariff hike on Chinese imports by the US could create a significant opportunity for India to capture a larger share of the US market.
However, India's ability to fully capitalize on this situation is limited by factors such as its production capacity, which cannot match China's scale, and competition from other exporting nations also vying for a bigger piece of the US market.
Acknowledging the temporary benefit, Indian textile industry leaders however, advocate caution. N Thirukkumaran, General Secretary, Tiruppur Exporters Association (TEA) emphasizes on enhancing long-term competitiveness over short-term gains while Sanjay K Jain, Textiles Committee, Chairman, ICC Textiles Committee opines, India should aggressively pursue this opportunity Highlighting the importance of the US market for the country’s textile industry, Ashish Gujarati, Past President, SGCCI notes, India can strengthen its position there.
Offering a more nuanced perspective, Rahul Mehta, Chief Mentor, CMAI states, while high tariffs protect domestic industries, they also increase production costs for those relying on imports. He raises concerns about the potential impact on US consumers and the feasibility of relocating industries to the US. A massive increase in tariffs may not be in the US's best interest, he opines.
The US administration had also planned a 25 per cent tariff hike on goods from Mexico and Canada but postponed it after both nations agreed to address illegal immigration and drug trafficking.
Currently, China holds a 25 per cent share in the US textile and apparel import market. As per OTEXA data, China supplied 24.23 per cent of the total $99.125 billion in US textile and apparel imports during January-November 2024. The 10 per cent tariff increase will make Chinese textiles and apparel more expensive for US consumers, potentially slowing imports from China and creating opportunities for other suppliers, including India.
Second-largest garment supplier to the US after China, Bangladesh faces challenges recovering from political instability in late 2024. This situation could further enhance India's prospects in the US market.
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
|
Country |
Apparel exports to US (Jan-Nov 2024) |
Year-on-year change |
|
Bangladesh |
$6.76 billion |
-0.44% |
|
China |
$15.22 billion |
-0.30% |
|
India |
$4.36 billion |
4.49% |
|
Pakistan |
$1.97 billion |
6.57% |
|
Vietnam |
$13.77 billion |
4.48% |
|
Indonesia |
$3.92 billion |
0.14% |
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.
Despite a wave of garment factory closures in Bangladesh, export earnings from the sector continue to increase, as per the data from the Export Promotion Bureau (EPB).
In the first six months of the current fiscal year, Bangladesh’s export earnings from the garment sector increased by approximately 13 per cent compared to the same period last year. Exports in December increased by 18 per cent with exports of woven garments rising by 20 per cent.
At tributing the factory closures to labor unrest and banking difficulties, entrepreneurs also noted this paradoxical increase in export income. They observed a gradual decrease in the crisis of confidence among garment sector business owners. According to economic analysts, this export growth offers some relief to the country's economy, which has faced challenges like a dollar shortage.
Bangladesh's primary source of export earnings, the RMG sector has been struggling due to worker unrest and other issues. The sector experienced four months of instability following the August government change, leading to a crisis of confidence among foreign buyers.
Despite efforts by the interim government and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to rebuild trust, numerous factories closed down. Data indicates, over 100 factories closed operations in the last six months, with 83 companies shutting down completely and at least 10 others suspending operations. Businesses attribute these closures to the political transition.
Mohiuddin Rubel, Former Director, BGMEA explains, export earnings from the sector continue to increase due to a rise in the workers’ skilling which has boosted productivity in garment factories. While many small and medium-sized factories closed due to issues like lack of banking support, larger, more efficient factories have expanded production, states Rubel.
Other factors that contributed to the rise in export earnings include a rising US dollar against the Bangladeshi taka, scaling of production by larger factories, production of more value-added, premium garments, brands concentrating on fewer and larger facilities, diversification of raw material sources that helped manufacturers main production despite global disruptions.
The European Commission has acknowledged the growing risks of direct-to-consumer imports, particularly through online marketplaces, in its latest communication on e-commerce. Non-compliant and unsafe products threaten consumer safety, environmental standards, and fair competition.
A recent Reach for textiles project found that 16 per cent of 400 tested products violated EU regulations, highlighting the need for stronger enforcement. The Commission aims to tighten oversight under the Digital Services Act (DSA) and Digital Markets Act (DMA), ensuring e-commerce platforms take legal responsibility for the products they sell.
Key measures include removing the de minimis rule and fast-tracking Customs Code reforms to close loopholes that allow non-compliant goods to enter the EU unchecked. Strengthening coordination with Member States and industry stakeholders will enhance enforcement, while investment in digital tools like the Digital Product Passport will improve transparency and consumer trust.
Euratex welcomes the Commission’s crackdown, including joint action with the Consumer Protection Cooperation Network against Shein. It also supports efforts to develop a Digital Fairness Act to bolster consumer rights in e-commerce.
“With billions of garments entering the EU each year, we need a stronger system to ensure compliance,” said Euratex Director General Dirk Vantyghem. “We look forward to working with the Commission to create a fairer and safer market.”
The Commission’s push for stricter enforcement aims to level the playing field, protect consumers, and promote sustainable trade in Europe’s digital economy.
The International Textile Manufacturers Federation (ITMF)’s 30th Global Textile Industry Survey for January 2025 reveals cautious optimism in the textile value chain. While the global business balance remains negative at -15 percentage points (pp), there has been a steady improvement since November 2024.
South America leads with a positive balance of +21pp, and garment manufacturers have also seen a turnaround, reporting +3pp.
Looking ahead, 43 per cent of participants expect conditions to improve within the next six months, lifting the global outlook to a positive balance of +29pp. South America and spinners are particularly optimistic, with balances of +46pp and +45pp, respectively.
Order intake continues to recover, with January 2025 figures showing a balance of -6pp after 14 months of progress. South Asia and South America perform strongly, and the global order backlog has increased to 2.5 months.
However, challenges remain, including a global capacity utilization rate of 72 per cent, weak demand, and geopolitical risks. Despite these pressures, order cancellations are low, and inventory levels have remained stable.
Fashion for Good has unveiled an innovative initiative, ‘Closing the Footwear Loop,’ aiming to tackle the footwear industry’s circularity challenges. The project brings together 14 leading brands to rethink the traditional "take-make-dispose" model, shifting towards circularity and innovation across the entire value chain. Brands participating include adidas, Martens, Inditex, lululemon, Puma, Zalando, and others.
The global footwear industry produces 23.8 billion pairs of shoes annually, with around 90 per cent of them ending up in landfills. The complexity of footwear, which often includes over 60 different materials per shoe, makes recycling and circular practices difficult. This complexity, combined with insufficient reverse logistics infrastructure, has hindered circular innovations in footwear, unlike in other areas of fashion.
‘Closing the Footwear Loop’ aims to change this by addressing key issues such as lack of end-of-life infrastructure, multi-material designs, and the need for unified circular approaches. The project includes detailed mapping of European footwear waste streams, which will inform solutions for recyclability and rewearability. In addition, it will produce guidelines for circular footwear design and assess end-of-use innovations, with the goal of driving industry-wide change.
Fashion for Good’s initiative aligns with its broader efforts to reimagine the lifecycle of footwear, creating a blueprint for future industry practices. This collaboration marks a critical turning point for the sector, as brands work together to create more sustainable solutions and reduce environmental impact.
Katrin Ley, Managing Director of Fashion for Good, emphasizes, "We’re not just addressing a challenge we’re creating a blueprint for systemic change.”
A key exhibitor at Bharat Tex 2025, WFX (World Fashion Exchange) will showcase its next-generation software solutions designed to digitally transform apparel and textile operations.
Attendees can explore WFX's comprehensive suite of cloud-based solutions, including Fashion ERP, Production Planning, Product Lifecycle Management (PLM), Traceability Software, Manufacturing Execution System (MES), and Virtual Showroom at Booth 12-A11. These tools are designed to enhance efficiency, transparency, and innovation across the fashion and textile industry.
WFX has established a strong presence in India's textile and fashion landscape, partnering with leading companies like Gokuldas Exports, Shahi, and Zivame. The company also serves globally recognized fashion brands and manufacturers, including Timex, Texport, Inqube, Indochine, Aquarelle, Steve Madden, Crossline, River Island, Benetton, Sarita Handa, XTM, Forever New, Mexx, TC, Asmara, and WTS.
At Bharat Tex 2025, WFX's industry experts will demonstrate how fashion technology is revolutionizing apparel and textile businesses. The organization will stage live demonstrations of ERP, PLM, PPC, and Traceability Software, showcasing how these tools can help brands optimize supply chains and streamline production. WFX will also offer exclusive insights into its latest product innovations, demonstrating how they can help companies stay competitive in today's dynamic, tech-driven market.
WFX's comprehensive suite of cloud-based solutions addresses the specific challenges faced by fashion brands and manufacturers. Their Apparel ERP & MES systems provide real-time insights into inventory, production, and resource management, enabling enhanced productivity, cost optimization, and improved decision-making. The cloud-based PPC solution offers dynamic capacity planning, integrated time and action milestone tracking, and real-time material availability, leading to a smoother, more efficient production flow.
WFX's Fashion PLM system streamlines product development from concept to production, improving collaboration and reducing time-to-market. With increasing demand for ethical sourcing, the company’s Traceability Software allows brands to track raw materials, manage certifications, and monitor supplier compliance. Finally, the Virtual Showroom digitizes the B2B buying experience, allowing brands to showcase collections to global buyers with multimedia visuals and detailed product specifications. By integrating PLM, Traceability, ERP, MES, and Virtual Showroom into a single ecosystem, WFX empowers businesses to achieve operational excellence and digital transformation.
Moda x Pure, the exclusive fashion destination at Spring Fair, launched on Sunday, drawing buyers from across the UK, including John Lewis, M&S, TJX, The House of Bruar, and more. The event showcased an exciting mix of new and returning brands across Womenswear, Footwear, Accessories, and Jewellery.
Tiago Silva of Yumi highlighted the show's strong footfall and trend-focused buyers, while Karen Caroll of South Beach remarked, “We’ve been busy all morning with new customers and solid orders.” Jay Chawla of Nova of London called the Moda x Pure merger a win, simplifying efforts for exhibitors and buyers alike.
For TRIXXI Clothing, Moda x Pure marked its European debut. “Our Californian vibe stands out, and the interest has been fantastic,” said Victoria Taylor.
The Moda x Pure Catwalk drew large crowds, unveiling the Pure Edit with standout collections from Angeleye, City Goddess/Goddiva, Trixxi, and AX Paris. Key trends included floral maxis, vibrant minis, crochet, fine knits, and classic Breton stripes. Graduate Fashion Week designers Rosie Brown, Shaunah Ivers, and Eli Hijink left a lasting impression.
Event Director Soraya Gadelrab summed up the success: “The energy has been fantastic, reaffirming Moda x Pure’s importance in uniting the fashion industry.”
Source Home & Gift 2025, the UK’s premier responsible sourcing event, is open until February 5, featuring global manufacturers and artisans alongside industry experts offering insights.
Top retailers, including John Lewis, Wayfair, Morrisons, and British Heart Foundation, have explored responsibly made products at the show. Laura Ashley’s VP, Poppy Marshall-Lawton, highlighted the event’s value in discovering non-UK manufacturers and licensing opportunities. Andrew Goodacre, CEO of BIRA, praised the creativity and craftsmanship on display.
‘Ask the Experts’ sessions covered key retail trends, sustainability, and compliance. Retail strategist Ami Rabheru discussed seasonal buying and product strategies, while CMA’s Mike Coates addressed regulatory changes and greenwashing. Kat Graham, MD of Scout & Swan, explored innovation and digital product passports, noting the impressive sustainable suppliers from Egypt, Tanzania, and Ethiopia.
Event Director Suzanne Ellingham shared top picks, including Peruvian brand Sumaq Qara’s handcrafted accessories, Kendaka. Upcycles’ textiles made from bin bags, and Kerala’s Cananor Guild, supporting traditional weaving. The new Egyptian Pavilion introduced sustainable products like VeryNile. shop’s gifts made from Nile plastic waste. Ethiopian brand Sabahar showcased fair-trade textiles, earning praise for quality and sustainability.
Louis Vuitton has named skateboarding champion Tyshawn Jones as its newest brand ambassador.
A native of the New York City, Jones is considered one of the most influential skateboarders of his time, having earned the Skater of the Year title in both 2018 and 2022. He is known for his ability to seamlessly merge skateboarding culture with his unique personal style.
The partnership between Jones and Louis Vuitton strengthened when Jones attended the luxury company’s men's Fall-Winter 2025 show as a guest of Pharrell Williams, Creative Director. A longtime admirer of Jones' contributions to skate culture and streetwear, Williams shares a strong connection to skateboarding himself.
Louis Vuitton's connection to skateboarding goes back to the era of Virgil Abloh, Former Men's Artistic Director, who championed the skateboarding community through collaborations and inspired designs.
This announcement follows Louis Vuitton's naming of actor Callum Turner as a brand ambassador in November. Jones joins a roster of other prominent figures representing the French luxury brand, including football star Jude Bellingham, Korean music superstar Lisa, and rapper Pusha T.
