Bangladesh Defense
Saif
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Race for grabbing share of US apparel market
Despite a turbulent phase marked by a significant slowdown in the first half of FY26 (July-December 2025) with a decline in exports, the Readymade Garment (RMG) sector appears to be experiencing a turnaround in its fortunes in the first quarter of 2026. As reports go, Bangladesh overtook Chin
Race for grabbing share of US apparel market
FE
Published :
May 12, 2026 21:50
Updated :
May 12, 2026 23:35
Despite a turbulent phase marked by a significant slowdown in the first half of FY26 (July-December 2025) with a decline in exports, the Readymade Garment (RMG) sector appears to be experiencing a turnaround in its fortunes in the first quarter of 2026. As reports go, Bangladesh overtook China as a top garment exporter to the US in early 2026 (between January and March) primarily due to aggressive American reciprocal tariffs on Chinese apparel products. According to the latest data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, Bangladesh exported US$2.4 billion worth of apparel products to the US during (January-March) period of 2026.
Notably, during the same period China's apparel exports to the US market fell to US$1.70 billion. The OTEXA figures also indicate that US apparel retailers in their bid to avoid Chinese goods amid tariff storms are considering Bangladesh as an alternative sourcing destination. This clearly points to a major realignment in the US retail market so far as China's share in it is concerned. Within just a year, Chinese apparel exports to the US dropped by about 53 per cent (in the first quarter of 2026 as compared with the same period in 2025). Actually, the performance of major exporters to the US market remained largely negative, but China and India recorded the sharpest decline. Interestingly, Bangladesh's apparel exports to the US market also declined by 8.38 per cent year-on-year. This essentially means that comparison with other exporters whose fortunes in a certain market might be on the rocks due to any non-market influence cannot be the perfect yardstick to measure one's overall performance. Now that Bangladesh demonstrated its strength vis-à-vis Chinese export to US apparel market, it has still a long way to go to beat Vietnam. Because, as Bangladesh increased its market share to around 11.5 per cent in the first quarter of 2026, Vietnam held on to its position with 22.5 per cent market share as a top apparel supplier to the US market, benefiting from the broader trend of brands moving away from China.
In consequence of these developments, the order of dominance has been reset in that China now ranks third, while Bangladesh and Vietnam occupy the second and first places so far as export to the US market is concerned. It would be worthwhile to note that Cambodia, a Southeast Asian country, has meanwhile emerged as yet another potential competitor in the US apparel market and is being touted as the fastest growing supplier in the US apparel market. That means, it is not only Vietnam, Bangladesh will have to be watchful of other emerging players in the South and Southeast Asian region who are also in a race to have a slice of the US apparel market. While this competition to grab the US retail market for apparel goods among the traditional exporters is evolving, the overall US market is shrinking due to reduced consumer spending and the market even saw a general decline across most major suppliers. As the same division of the US department of commerce shows, during the period under review, overall import of apparel goods in US market shrank by 11.63 per cent. Seeing that the size of the US retail market of apparel goods is shrinking, Bangladesh's RMG sector should consider widening its export destinations to other fast-growing economies across the globe.
At the same time, this industry should also shift its focus from relying solely on low-cost labour to high-value-added products. And the strategies to that end should include automation, diversifying fibre beyond cotton and transitioning to manmade fibres. That Bangladesh's apparel sector has achieved some success vis-à-vis China's in a certain market is no reason to rest on its laurels. On the contrary, it should stress progressive improvement of its performance year-on-year and expansion of its market footprints.
FE
Published :
May 12, 2026 21:50
Updated :
May 12, 2026 23:35
Despite a turbulent phase marked by a significant slowdown in the first half of FY26 (July-December 2025) with a decline in exports, the Readymade Garment (RMG) sector appears to be experiencing a turnaround in its fortunes in the first quarter of 2026. As reports go, Bangladesh overtook China as a top garment exporter to the US in early 2026 (between January and March) primarily due to aggressive American reciprocal tariffs on Chinese apparel products. According to the latest data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, Bangladesh exported US$2.4 billion worth of apparel products to the US during (January-March) period of 2026.
Notably, during the same period China's apparel exports to the US market fell to US$1.70 billion. The OTEXA figures also indicate that US apparel retailers in their bid to avoid Chinese goods amid tariff storms are considering Bangladesh as an alternative sourcing destination. This clearly points to a major realignment in the US retail market so far as China's share in it is concerned. Within just a year, Chinese apparel exports to the US dropped by about 53 per cent (in the first quarter of 2026 as compared with the same period in 2025). Actually, the performance of major exporters to the US market remained largely negative, but China and India recorded the sharpest decline. Interestingly, Bangladesh's apparel exports to the US market also declined by 8.38 per cent year-on-year. This essentially means that comparison with other exporters whose fortunes in a certain market might be on the rocks due to any non-market influence cannot be the perfect yardstick to measure one's overall performance. Now that Bangladesh demonstrated its strength vis-à-vis Chinese export to US apparel market, it has still a long way to go to beat Vietnam. Because, as Bangladesh increased its market share to around 11.5 per cent in the first quarter of 2026, Vietnam held on to its position with 22.5 per cent market share as a top apparel supplier to the US market, benefiting from the broader trend of brands moving away from China.
In consequence of these developments, the order of dominance has been reset in that China now ranks third, while Bangladesh and Vietnam occupy the second and first places so far as export to the US market is concerned. It would be worthwhile to note that Cambodia, a Southeast Asian country, has meanwhile emerged as yet another potential competitor in the US apparel market and is being touted as the fastest growing supplier in the US apparel market. That means, it is not only Vietnam, Bangladesh will have to be watchful of other emerging players in the South and Southeast Asian region who are also in a race to have a slice of the US apparel market. While this competition to grab the US retail market for apparel goods among the traditional exporters is evolving, the overall US market is shrinking due to reduced consumer spending and the market even saw a general decline across most major suppliers. As the same division of the US department of commerce shows, during the period under review, overall import of apparel goods in US market shrank by 11.63 per cent. Seeing that the size of the US retail market of apparel goods is shrinking, Bangladesh's RMG sector should consider widening its export destinations to other fast-growing economies across the globe.
At the same time, this industry should also shift its focus from relying solely on low-cost labour to high-value-added products. And the strategies to that end should include automation, diversifying fibre beyond cotton and transitioning to manmade fibres. That Bangladesh's apparel sector has achieved some success vis-à-vis China's in a certain market is no reason to rest on its laurels. On the contrary, it should stress progressive improvement of its performance year-on-year and expansion of its market footprints.
