Bangladesh’s garment exporters are facing a slowdown in the US market amid a decline in overall apparel imports, but the country may also have an opportunity to capture new orders as American buyers increasingly diversify their sourcing away from China.
According to the latest data from the US Department of Commerce’s Office of Textiles and Apparel (OTEXA), the United States imported $41.83 billion worth of apparel from January to July this year, down 8.65% from the same period last year.
Bangladesh’s apparel exports to the US fell 6.50% year-on-year to $4.66 billion during the period. In July alone, exports declined 10.73%.
Despite the decline, Bangladesh performed relatively better than several major competitors. China’s apparel exports to the US plunged 34.21% during January-July, while India recorded a 25.77% decline. Pakistan’s exports fell 5.60%, and Vietnam’s decreased 1.03%.
Meanwhile, apparel exports from Indonesia and Cambodia increased by 2.76% and 10.48%, respectively.
In terms of shipment volume, Bangladesh’s exports declined 4.34%. China and India saw much sharper declines of 24.17% and 24.02%, respectively. Vietnam, Indonesia and Cambodia, however, maintained positive growth in shipment volumes.
Average apparel prices also declined for most major suppliers. China recorded the steepest drop, with its average unit value falling 13.24%. Bangladesh’s average unit value declined by 2.26%.
Industry insiders said the decline in US apparel imports is taking place alongside major changes in global supply chains. Many US retailers and brands are reducing their dependence on China and looking for alternative sourcing destinations.
Former Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Mohiuddin Rubel said the decline in both apparel imports and shipment volumes in the US had affected major suppliers, with China suffering the biggest setback.
“Bangladesh and Vietnam have also been affected by the slowdown, but the shift of orders from China to other countries is creating opportunities for countries such as Indonesia and Cambodia. Bangladesh could also benefit from this trend,” he said.
Rubel also noted changes in US consumers’ apparel-buying habits. Growing interest in environmentally friendly clothing, higher living costs and uncertainty over tariffs are influencing consumer behavior. The rising popularity of second-hand clothing could also affect demand for new apparel imports.
Entrepreneurs and market analysts said uncertainty over future US tariff policies and other policy issues is prompting retailers and brands to restructure their supply chains. To reduce risks, buyers are increasingly sourcing from multiple countries rather than relying heavily on a single market.
Against this backdrop, Bangladesh could attract more US orders if it can capitalize on the shift away from China. However, industry stakeholders said the country needs to strengthen its competitiveness, diversify products according to changing consumer demand and improve supply-chain capacity.
Overall, the decline in US apparel imports presents a challenge for Bangladesh’s garment industry. At the same time, the changing global sourcing landscape and the shift of orders away from China could create a significant new opportunity for Bangladesh to strengthen its position in the US market.
