The global apparel trade continues to reflect the delicate balance between recovery and restraint, as revealed in the October 2025 ‘Global Apparel Trade & Retail Update’ by Wazir Advisors. Despite signs of retail stability in the West, uneven import demand and a cooling export momentum across Asia underscore the complexities of post-pandemic consumption patterns and global sourcing realignments.

Import markets hold mixed fortunes

The apparel import data for August 2025 paints a fragmented picture of global consumer appetite. The US, traditionally the world’s largest apparel importer, saw inbound shipments fall to $7.7 billion, marking a 3 per cent year-on-year (YoY) decline. This drop signals a continuing inventory correction cycle among American retailers, who have been trimming orders amid cautious consumer spending and subdued apparel inflation.

In contrast, the European Union maintained a more stable path, with imports rising 1 per cent YoY to $9.1 billion, driven by stronger performance in southern and eastern European markets. Retailers in Spain, Italy, and Poland reported steady sell-through rates, aided by rising domestic fashion production and renewed consumer confidence in mid-tier brands.

Japan, often considered a barometer of mature fashion markets, mirrored this marginal growth with imports touching $2.2 billion, up 1 per cent YoY. The country’s aging demographic and shift toward sustainable and functional fashion categories such as lightweight outdoor wear and home-living apparel continue to redefine its sourcing patterns, with increasing focus on Vietnam and Indonesia.

The standout performer, however, was the UK, where apparel imports rose 17 per cent YoY to $2.2 billion. This sharp rise is linked to the rebound of high-street retail and the ongoing influence of digital-native fashion labels. The UK’s import acceleration also indicates pre-winter inventory buildup and improved port logistics after months of supply disruptions.

Asian exporters face issues as global demand evens out

On the export front, the September 2025 data highlights persistent headwinds for major Asian suppliers. China’s apparel exports, while still the world’s largest at $12.0 billion, recorded an 8 per cent YoY decline, continuing its gradual downtrend as Western buyers diversify sourcing bases. Rising domestic labor costs, coupled with lingering US trade pressures and sustainability compliance costs, have eroded China’s cost advantage in basic garment categories.

Bangladesh, the world’s second-largest apparel exporter, reported shipments worth $2.8 billion, down 7 per cent YoY. While its country’s knitwear segment remains strong woven garment orders particularly from the US and Germany have slowed. Buyers are tightening lead times and increasingly demanding traceability certifications, posing challenges for mid-sized factories that are yet to digitize their operations.

India, despite its growing reputation for value-added fashion and cotton-based products, faced one of the sharper declines, with exports dropping 10 per cent YoY to $1 billion. The slowdown is attributed to lower demand from the EU and the US, along with raw material price volatility. However, industry analysts expect a rebound in the final quarter of FY26, as festive-season shipments and sustainability-linked orders pick up.

Vietnam emerged as the only bright spot among the top Asian exporters, with exports up 3 per cent YoY to $3.9 billion (as of July 2025). Vietnam’s steady growth underscores its competitive advantage in flexible manufacturing, stable policies, and preferential trade access through multiple free trade agreements (FTAs), particularly with the EU and CPTPP partners.

The Shifting Dynamics: From volume to value

A closer look at these numbers reflects a deeper structural shift in global fashion trade, from volume-led growth to value-driven resilience. Western retailers are no longer chasing low-cost bulk sourcing; instead, they are prioritizing speed, traceability, and nearshoring. This is prompting Asian producers to recalibrate their export strategies, investing in automation, recycled fibers, and digital compliance systems.

According to Wazir Advisors, retailers in major markets are likely to favor agile sourcing ecosystems that can balance cost efficiency with transparent production practices. This trend benefits countries like Vietnam and Turkey, which offer vertically integrated setups and quicker turnaround times compared to traditional export powerhouses.

Retail outlook is stabilization, not expansion

The broader implication of Wazir’s October 2025 report is that the global apparel sector is in a stabilizing phase rather than a recovery sprint. Retailers are focusing on inventory normalization, while suppliers are navigating price-sensitive yet sustainability-aware buyers. Analysts suggest that unless new trade agreements or fiscal stimuli reinvigorate consumer demand in the US and EU, the next two quarters will likely remain moderate in growth. However, as energy prices stabilize and inflationary pressures ease, apparel trade could regain momentum heading into 2026, albeit at a slower, more balanced pace.

Navigating the new normal of global fashion trade

The October 2025 ‘Global Apparel Trade & Retail Update’ reaffirms that the industry is transitioning into a new normal where agility and transparency outweigh pure scale. While short-term challenges persist, the long-term fundamentals of apparel trade remain intact, supported by evolving consumer preferences, technology-led efficiency, and sustainable material innovations. For exporters across Asia and retailers in the West alike, the key question is no longer about ‘how much’ to trade, but ‘how responsibly’ and ‘how quickly’ they can deliver fashion in a world recalibrating its consumption ethos.