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.

A UK-based biotechnology company, Colorifix has secured an $18 million investment, with Inter IKEA leading the funding round. This significant capital injection is set to propel Colorifix's commercial expansion across the global market, particularly in Europe and Asia. A pioneer in developing the world's first biological textile dyeing process, Colorfix aims to boost its production capacity and strengthen commercial engagements with major brands and textile manufacturers worldwide.

A core part of Colorifix's strategy involves utilizing this new funding to further develop its proprietary bio-processes and microorganisms for creating colors. With ongoing support from the H&M Group, Colorifix employs engineered microorganisms to deposit colors directly onto fabric. This innovative method drastically reduces the need for harsh chemicals, resulting in substantial savings in water and energy—a critical advancement for an industry known for its environmental footprint.

Emphasizing on the importance of this investment, Orr Yarkoni, CEO, Colorifix, calls it a ‘critical milestone.’ The funding shifts Colorifix's narrative from simply proving its technology to delivering it at an industrial scale, he states. The combined investment from Inter IKEA and continued backing from H&M will be instrumental in introducing their biology-based dyeing solution across global supply chains, Yarkoni further highlights This technology is specifically designed to eliminate the reliance on petrochemicals in dyeing production, offering a truly sustainable alternative, he adds.

Since its last funding round in 2022, Colorifix has made considerable progress in establishing its dyeing technology across various countries. The company currently operates in Europe and Latin America, with licenses already granted to customers onboarding from India and Sri Lanka. Beyond the fashion industry, which remains its primary focus, Colorifix has also secured partnership agreements with key players in the cosmetic and homeware sectors, further diversifying its reach and impact.

India has extended the export obligation period for imports of viscose staple fiber (VSF) exempted from the Quality Control Order (QCO). The new period is now 18 months, a move that comes after persistent demands from the country's textile industry. This decision is expected to significantly ease the burden on exporters who import QCO-exempted VSF and are required to re-export it as finished goods. The Confederation of Indian Textile Industry (CITI) has publicly welcomed the government's announcement.

According to industry sources, the government has permitted Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorization holders to import VSF without needing to adhere to the QCO, provided they meet specific pre-import conditions. Under the standard Advance Authorization scheme, exporters are typically granted an 18-month window to re-export raw materials imported duty-free. While this 18-month timeline was initially applied to QCO-exempted VSF imports, it was later shortened to just 180 days.

Exporters had consistently appealed to the government to reinstate the original 18-month period, citing operational challenges. Responding to these appeals, the government has now agreed to restore the extended timeline, providing much-needed flexibility to the textile sector.

Türkiye's premier exhibition for apparel and ready-to-wear technologies, Garment Tech Istanbul welcomed an unprecedented number of visitors from 82 countries. The event features 249 companies and their representatives, establishing itself as a crucial meeting point for the global garment industry. Over four days, the exhibition in Istanbul will serve as a platform to showcase innovations, forge international collaborations, and illuminate the future of apparel production.

The opening ceremony for the Garment Tech Istanbul Garment, Embroidery Machines, Spare Parts, and Sub-Industry Exhibition was held at the Istanbul Fair Center. Organized by Teknik Fuarcılık AŞ in collaboration with the Apparel Automation Machinery Manufacturers Association (KOMID), the event attracted numerous sectoral associations, union and chamber presidents, along with top executives from both local and international companies and members of the press.

Spanning five halls this year, Garment Tech Istanbul brings together Türkiye’s leading garment machinery manufacturers and globally renowned brands. The exhibition presents a comprehensive array of products and solutions covering every stage of garment production. Its wide product range includes everything from advanced sewing machines and automated cutting systems to ironing and packaging solutions, and cutting-edge digital printing systems.

This year's event is particularly significant for its display of many innovative technologies making their debut. These highlights promise to inject fresh energy into the sector, featuring advancements such as AI-optimized production systems, cloud-based remote access and inventory control solutions, and fully automated fabric cutting and sewing systems. These innovations underscore the industry’s shift towards more efficient, intelligent, and interconnected manufacturing processes.

Beyond being a product showcase, Garment Tech Istanbul is designed to be a dynamic platform for establishing new business partnerships. Over the four-day event, international investors, manufacturers, suppliers, and brand representatives will have dedicated opportunities for one-on-one meetings. These interactions are expected to facilitate the formation of long-term business relationships and generate significant machine sales and partnerships, thereby contributing to the growth of both Türkiye’s economy and global trade volumes. The exhibition truly embodies its role as a nexus for the future of garment technology.