American Apparel Buyers Shift Focus to India Amid Bangladesh's Political Turmoil

New Delhi, Oct 21 (KNN) In light of ongoing political upheaval in Bangladesh, American apparel buyers are increasingly turning their attention to India, which is perceived as a more stable sourcing option.

This shift reflects concerns over the instability in Dhaka, prompting brands to prioritise reliable production and delivery capabilities.

A recent report from the U.S. International Trade Commission (ITC) highlighted that brands are more inclined to source high-value or fashion items from India due to their confidence in the country’s ability to deliver products consistently.

“Brands are more willing to source from India compared to less politically stable countries,” the ITC noted, indicating a clear trend towards building trust in Indian suppliers.

Both India and Bangladesh play significant roles in the global ready-made garment market, but the current political climate in Bangladesh has inadvertently benefited India.

Following the assumption of power by Nobel laureate economist Muhammad Yunus, who leads the interim government since August 8, uncertainty continues to loom over Bangladesh's economic stability.

The ITC report also indicates that Indian manufacturers are optimistic about future prospects, with expectations of increased orders from American buyers.

Many manufacturers are targeting 80% of their production for the local market, reflecting a strategic pivot towards catering to domestic demand while capturing international interest.

India has recently received a positive endorsement from the US ITC, distinguishing itself as a “profiled country” among key garment exporters. Other countries on this list include Bangladesh, Pakistan, Indonesia, and Cambodia, all of which have sought to increase their market share against China over the past decade.

Notably, last year, India exported approximately $4.6 billion worth of apparel to the U.S., establishing itself as the largest destination for Indian apparel exports.

India's share of the U.S. apparel market has seen a steady increase, rising from 4% in 2013 to 5.8% in 2023, making it the fourth largest supplier to American retailers.

In contrast, China’s apparel export share has significantly decreased from 37.7% to 21.3% during the same period, with Vietnam emerging as a key competitor, raising its market share from 10% to 17.8%.

As American brands recalibrate their sourcing strategies amid geopolitical shifts, India’s promise of stability and reliability positions it favourably in the global apparel landscape.

The evolving dynamics suggest a crucial turning point in the sourcing patterns of U.S. retailers, potentially reshaping the garment industry's competitive landscape in the years to come.

(KNN Bureau)