Month: October 2025

Hot Button Apparel Trade and Sourcing Issues: Gen Z’s Perspective (October 2025)

As the fashion industry faces an unprecedented business and trade policy environment, hearing directly from Gen Z fashion majors—the next generation of both consumers and young professionals—has never been more critical.

In a new Just-Style mini series, students from FASH455 and the FASH department at the University of Delaware shared their valuable Gen Z perspectives on several hot-button apparel trade and sourcing issues as well as their vision for the future of the fashion apparel industry. Several findings are noteworthy:

First, like other consumer groups, Gen Z has felt the increasingly noticeable retail price hike driven by higher tariffs, and they are responding by reducing clothing purchases.  Compared to a survey conducted in April, nearly all Gen Z consumers now see higher price tags across a broad range of products, including necessities, outerwear, and footwear in the U.S. retail market. Notably, Gen Z consumers feel most strongly about the price hikes at fast fashion retailers—including Shein. Due to the perceived low quality and use of inexpensive textile materials, it is even more challenging for fast fashion brands to justify price increases. Our students who frequently thrift clothing also noted a price increase in the secondhand clothing market. As a warning sign to fashion companies, many surveyed Gen Z students say they plan to spend less this holiday season, or keep shopping “to a minimum” because of price increases.  For example,

  • Gabriella Krug, Fashion Merchandising and Management senior: As a shopper, I’ve adjusted by buying fewer items overall, checking sales racks more often, and using platforms like Depop and Poshmark to sell and buy trendy pieces. For the holidays, I think these price increases will push me, and most shoppers like me, to focus more on quality rather than quantity. I’ll definitely be taking advantage of Black Friday and Cyber Monday deals this year. Ultimately, tariffs could cause people to make more intentional and selective purchases this holiday season.
  • Cheyenne Weiss, Fashion Design & Product Innovation senior: While the higher tariffs have widespread effects on the fashion industry, I have personally noticed raised prices for outerwear and footwear. I noticed these two categories specifically as they are what I was shopping for going back to school and it is telling of how directly trade policy impacts consumers. The effects of the tariffs are hitting close to home, and I would feel most frustrated to see loungewear and athleisure categories rise in price. While these areas seem to already be feeling the effects of raised tariffs, it would be hard as a consumer to continue purchasing these items if tariffs keep rising, considering these are the fashion categories I buy from the most often. As a shopper, the higher prices discourage me from going out and purchasing new clothing.
  • Skye Johnson, Fashion Merchandising and Management senior: I have noticed that prices are rising among all types of clothing. In particular, I have heard that Fast Fashion retailers like H&M or even Shein have increased their prices significantly. While I personally do not shop at fast fashion retailers like Shein, I’ve seen the impact through school research projects and conversations with friends. This is frustrating because these fast fashion items are made with very cheap materials like polyester and nylon.
  • Julia Brady, Graduate Student studying Fashion and Apparel with a focus on Sustainability: I mainly shop using online resale sites, such as Depop, and just enjoy browsing higher-end online consignment stores, like Vestaire and theRealReal, for secondhand designer deals. I have seen fewer deals on the site and more high-priced secondhand designer items… Even on Depop, international listings are higher than normal. The category I would be most frustrated to see prices rise in would be footwear… I also expect to buy holiday gifts from local artisans and local stores, due to higher quality and (hopefully) decreased tariff impact.
  • Nadia Grosso, Fashion Merchandising and Management senior: I’ve noticed myself becoming even more price-sensitive when shopping because of the rising prices, so I’m always looking to find the best deal to stretch my budget as much as I can. Overall, I think shoppers are trying to limit their spending as much as possible, and being more cognizant of prices when choosing what to purchase and who to purchase from. As a result, come holiday shopping time, I might be more inclined to shop at discount retailers or even decrease how much I purchase compared to previous years.

Second, Gen Z fashion majors view globalization and international trade as generally beneficial for the fashion industry. At the same time, they emphasize the need to enhance sustainability and social responsibility in the global apparel trade. For example, while most survey respondents supported leveraging apparel trade to promote economic development in developing countries, they also stressed that trade volume alone should not define success. Instead, many highlighted the importance of ensuring that garment workers in developing countries directly benefit from trade and Western fashion brands and retailers have a responsibility to help make this happen. For example,

  • Emilie Delaye, Master’s student in fashion and apparel studies: I believe that it is almost virtually impossible to move manufacturing fully back into the US. Nearshoring could really help sustainability (as fewer emissions would be released), but nearshoring would require investment and savvy trade deals to ensure that many different kinds of products can be produced there. I don’t really think it is that important that the US maintains a “strong” textile and apparel sector. As we know from the innovation or economic development timeline, the textile and apparel sector is an entry point for less developed economies. It could actually be perceived as a positive that we aren’t largely in this market. I think that there are other more critical sectors to focus on for the US. Plus, we simply do not have the skilled labor or machinery needed to do this. I support the leveraging of the clothing trade to support economic development in the countries that need it. I believe that if done sustainably and socially responsibly, the apparel sector could help millions of individuals in these countries.
  • Abigail Loth, Fashion Merchandising and Management senior: As a consistent consumer in the US fashion industry, I believe that globalization and international trade is vital for our success. Not only does it keep trends fresh, globalization and international trade encourage styles to remain diverse and costs to be cheap… Maintaining a strong domestic textiles and apparel sector in the US is also extremely important. This is because it provides an abundance of jobs/opportunities, innovation and sustainability practices. So, in order to leverage the clothing trade and support workers in developing countries as ethical sourcing and fair labor practices help ensure that globalization benefits more than just corporations.
  • Ekaterina Forakis, Fashion and apparel studies 4+1 graduate student: Globalization and international trade are crucial aspects of the U.S. fashion industry. It is these that keep the U.S. fashion industry running. Trade theory explains why globalization benefits countries like the U.S. and allows them to focus on textile manufacturing, one of the country’s strong suits. Higher tariffs and import restrictions are not necessary to maintain U.S. manufacturing because the U.S. is already a top textile exporting country and does not specialize in apparel production. The country’s capacity for automation is what makes it reliable in the textile sector. Automation allows for more standardized production of textiles which are necessary for developing countries to produce apparel.
  • Emma Lombardi, Fashion Design and Product Innovation senior: I view globalization and international trade as a double edged sword for the U.S. fashion industry, because on the one hand, while it doesn’t benefit the creation of jobs in rural areas that many covet, it also shifts the emphasis towards more sophisticated industries in technology development and innovation both in mechanical and textile sectors.
  • Julia Brady, Graduate Student studying Fashion and Apparel with a focus on Sustainability: I think tariffs and import restrictions are necessary, but not just to protect U.S. domestic manufacturing. Tariffs could help regulate the amount of toxic chemicals along the textile manufacturing value chain. An alternative route for the U.S. to take would be to scale up flax for fibers to be used in domestic textile manufacturing. Perhaps tariffs will force companies and the federal government to invest in agricultural advances in this field…I would never want to advocate taking away work in developing countries; however, for the sake of our environment, we may need to shift the way the fashion supply chain currently operates. It is important to me that the U.S. maintains a strong textiles and apparel sector because we are a big part of the problem. We must take control over the way we consume and dispose of textiles. There could be so many opportunities for economic growth if we shift toward domestic manufacturing, prioritizing the use of materials we already have.

Third, associated with the debate on the future of textiles and apparel “Made in the USA,” most Gen Z fashion majors show little interest in factory jobs. On the one hand, unlike most developing countries, today’s U.S. fashion industry provides Gen Z fashion majors with many exciting and promising non-manufacturing job opportunities, ranging from apparel design, product development, sourcing, trade compliance, and merchandising to marketing. By contrast, factory jobs are often perceived as “low paid,” “repetitive,” and “poor working conditions.”  Our Gen Z fashion majors particularly emphasized that their preferred employers should provide both financial and career progress opportunities, and they want to see keywords such as “innovation,” “sustainability,” “room to grow,” and “inclusiveness” associated with their future jobs. In other words, to attract more Gen Z workers to factory jobs, companies need to do more than just offer competitive pay. For example,

  • Gabriella Krug, Fashion Merchandising and Management senior: At this point in my career, I have not pursued an interest in textile or apparel manufacturing or factory-related jobs. My internships have exposed me to different sides of the industry…That said, I think my generation could see these roles as more appealing if companies focused on innovation, sustainability, and clear opportunities for growth. For example, if factories showcased their role in a circular fashion and created a more modern, flexible work environment, I think more Gen Z talent would be drawn in since we’re motivated by making a positive impact. Personally, I’m most interested in jobs that mix creativity with business—like sales, buying, or trend forecasting. When it comes to an employer, I value opportunities to learn and grow, strong mentorship, and a culture built on collaboration and inclusivity.
  • Cheyenne Weiss, Fashion Design & Product Innovation senior: I am not personally interested in pursuing a career in textile or apparel manufacturing as I see myself in a more creativity-based position. I feel as though my skills in fashion would be better suited for a role where I’m working directly with design and developing the fit and aesthetics of garments. Factory-related jobs in fashion could become more appealing to my generation if more rising fashion professionals knew about the opportunities that are available… When considering the qualities of an employer that I would want to work for, an important factor for me is a growth mindset. I value being able to learn and adapt as the industry evolves and I would want my employer to share my same persistence to always be learning and bettering the quality of work I can produce.
  • Skye Johnson, Fashion Merchandising and Management senior: I am not interested in pursuing careers in textile and apparel manufacturing or factory related jobs. However, I completely respect the importance of these roles in our fashion industry. I feel that my skills or career goals do not align with these jobs, but there could definitely be ways to make it more appealing to Gen Z. For example, offering safer working conditions, competitive pay, clear paths for professional growth, etc… When considering an employer, I value a workplace that aligns with my values, offers an inclusive environment, open communication, creative freedom, and room to grow in the company. I want to feel like I belong and am making an actual impact where I work.
  • Abigail Loth, Fashion Merchandising and Management senior: I personally do not have any interest in pursuing a career in textile or apparel manufacturing and factory-related jobs. These jobs consist of heavy hands on labor, limited creativity and repetitive daily tasks. The job is very cookie-cutter and has limitations for growth and opportunity. In order to make these types of factory jobs more appealing to our generation, the employers should provide safer working conditions, more money, and a sense of change/development in the everyday job. If factory jobs allowed more flexibility for creative thinking and alterations, they would appeal more to Gen Z.
  • Julia Brady, Graduate Student studying Fashion and Apparel with a focus on Sustainability: I am interested in pursuing a career related to textile and apparel manufacturing. Specifically, I would love to work towards a more socially responsible fashion industry. I could see myself working for a textile recycling plant in the U.S.; I expect more to be popping up over the next decade. If the factories were focused on green engineering and diverting textile waste, this might be another attractive core value of a potential future employer. I would be more inclined to work a factory job if the conditions in the factory were regulated and protective of the workers’ health. Additionally, if the employer was prioritizing the use of natural materials combined with textile recycling outputs, this would be very appealing to me as a prospective employee.

Fourth, Gen Z fashion majors show a high awareness of AI and are open to increasing its use in the fashion industry. Specifically, our Gen Z students believe that AI can be a powerful tool widely adopted by fashion companies, such as supporting apparel sourcing decisions, generating designs, and conducting data analysis and forecasting. Many also envision bold, creative applications of AI, such as optimizing secondhand clothing use or dynamically altering garments’ colors and textures based on weather conditions or consumers’ moods. These findings underscore the growing importance of deliberately integrating AI into fashion education and strengthening collaborations between industry and academia. For example,

  • Emilie Delaye, Master’s student in fashion and apparel studies: I think that AI could help understand and simplify the complex supply chains we have. Perhaps by incorporating AI into sourcing decisions, it could help determine the most efficient and eco-friendly path for the garment.
  • Gabriella Krug, Fashion Merchandising and Management senior: If there were no limits in terms of technology or resources, I would love to see AI used to create a truly circular fashion system. Garments would be designed with little to no waste from the very beginning with AI predicting the most sustainable production methods. Also, I think AI should account for each garment’s end-of-life by tracking how items can be reused, recycled, or repurposed.
  • Skye Johnson, Fashion Merchandising and Management senior: I still feel that AI will not be able to completely take over in the fashion industry, we still need that human touch. That human aspect is what makes the industry go round, especially when it comes to designers…If I could pick a bold AI-driven innovation to see in the fashion industry, I would love to see garments that change color or texture based on your mood or the weather. The AI technology could read your personal style and predict what looks best on you. That would definitely take years to make, but it would further blur the lines between fashion, technology and art.
  • Abigail Loth, Fashion Merchandising and Management senior: I would love to see AI-driven innovation that would be able to make custom designs depending on preferred colors, style, size, or shape and deliver it based on preferences of style and sustainability.
  • Nadia Grosso, Fashion Merchandising and Management senior: AI can be a helpful tool to analyze data and make recommendations on how to apply its findings to real-world situations. Especially with the uncertainty surrounding changing prices and geopolitics, AI could be implemented to help fashion companies navigate difficult sourcing decisions and manage their complex supply chains. I would also love to see AI be implemented more to drive sustainability initiatives such as reducing waste within production or even assisting with the discovery and development of more sustainable materials. However, I don’t think AI can fully replace human intelligence and creativity, so it’s important for it to be used as a tool and not as a replacement.

Additionally, the results show that Gen Z fashion majors overwhelmingly support the increased use of recycled textile materials in clothing and view it as an important opportunity to address the textile waste problem. However, as consumers, they still expect such products to remain financially affordable, match the quality of non-sustainable options, and look stylish. Additionally, with greater knowledge and awareness of sustainability, Gen Z consumers expect fashion companies to provide more transparency regarding their recycling practices and price structures (i.e., what they are actually paying for). This requires fashion companies to continue to improve their supply chain mapping and traceability in the era of textile recycling. For example,

  • Emilie Delaye, Master’s student in fashion and apparel studies: The (recycled) garments currently on the market are very expensive and do not appeal to my personal style…And it is very important for fashion companies to provide clear sustainability information. I think providing information on the cost breakdown would be valuable to see and ensure that the money is distributed more evenly.
  • Gabriella Krug, Fashion Merchandising and Management senior: Yes, I do care about clothing made from recycled textile materials because it feels like a step in the right direction and it makes me feel like I am making a more thoughtful choice as a consumer…What makes these products most appealing to me is the mix of style and transparency. Especially with Gen Z, the culture is shifting more and more toward eco-conscious consumers, now with the help of Depop, ThredUp, and Poshmark. These platforms give people an easy way to step into the world of sustainable fashion. For me, I want to know that the clothing looks and feels just as high-quality as non-sustainable options, but I also don’t want to feel like I’m overpaying just because it’s labeled as eco-friendly…I want brands to be upfront about what percentage of a garment is actually recycled and how it was made
  •  Skye Johnson, Fashion Merchandising and Management senior: For me, the appeal of recycled or sustainable fashion products comes from a combination of style, price, and brand transparency. I believe it is very important that fashion companies provide clear sustainability information and have the efforts and data to back it up… Obviously, no brand is perfect, but when I see a brand putting in the work to do better, I respect them a ton more.
  • Nadia Grosso, Fashion Merchandising and Management senior: Fashion brands need to do more to educate their consumers and highlight the importance of sustainability, while also incorporating it as a value into all of their business practices. I think that we can make sustainable and recycled products more appealing to consumers by being transparent and educating them on their importance. Fashion brands are becoming increasingly aware that providing clear sustainability and sourcing information to their consumers is necessary to gain their trust and loyalty, especially as a growing number of consumers are considering these practices as influencing factors to make purchases.

FASH students who contributed to the series include:

  • Gabriella Krug, Fashion Merchandising and Management senior
  • Emilie Delaye, Master’s student in fashion and apparel studies
  • Cheyenne Weiss, Fashion Design & Product Innovation senior & 4+1 graduate student
  • Skye Johnson, Fashion Merchandising and Management senior
  • Julia Brady, Master’s student in fashion and apparel studies
  • Abigail Loth, Fashion Merchandising and Management senior
  • Nadia Grosso, Fashion Merchandising and Management senior
  • Ekaterina Forakis, Fashion and apparel studies & 4+1 graduate student
  • Emma Lombardi, Fashion Design and Product Innovation senior

Explore more:

Updated Impact of Increasing Tariffs on U.S. Fashion Companies’ Sourcing and Businesses

This study aims to examine the impacts of the Trump administration’s escalating tariffs on U.S. fashion companies’ apparel sourcing practices. Based on data availability, transcripts of the latest earnings calls from about 30 leading publicly traded U.S. fashion companies were collected. These earnings calls, held between August and October 2025, covered company performance in the second quarter of 2025 or later. A thematic analysis of the transcripts was conducted using MAXQDA.

Key findings:

First, U.S. fashion companies reported a more significant impact of the increasing tariffs on their financial performance as the tariff increase expands from China to other countries. Many companies regarded tariffs as one of their top-most pressing external challenges to profitability in 2025, especially in the second half and beyond.  For example:

  • G-III Apparel: “We expect the total incremental cost of tariffs to be approximately $155 million, up from the $135 million original estimate, and this is based on the latest tariff increases implemented for Vietnam, India and Indonesia, among others.”
  • American Eagle: “On tariffs, yes, we are providing the guidance here for the third and fourth quarter. About $20 million of impact from Q3. $40 million to $50 million in Q4. So that will pressure gross margin a bit.”
  • Hanesbrands: “When you think about tariffs and the impact on our business, first of all, we won’t be really experiencing that cost until Q4 because of the inventory that we have and the way cost flows off of our balance sheet.”
  • Victoria’s Secret: “Our projected net tariff impact of $100 million in 2025 is up $50 million versus our assumption embedded in our previous guidance. With approximately $10 million of net tariff impact already recognized in the first half of the year, our guidance assumes approximately $20 million of net tariff pressure in the third quarter with $70 million impact in Q4.”
  • Tapestry: “We are facing greater than previously expected profit headwinds from tariffs and duties, with the earlier-than-expected ending of de minimis exemptions being a meaningful factor. In aggregate, the total expected impact on profitability this year from tariffs is $160 million, representing approximately 230 basis points of margin headwind.”
  • Carter’s: “We’ve assessed the higher incremental tariffs, which have already been implemented, an additional 10% duty for all countries and higher incremental duties for products from China, Vietnam and Indonesia. Relative to a few months ago, we’re preparing for a world with higher and more permanent tariffs above the over $100 million in duties, which we have paid historically. Our estimate of the additional baseline tariffs is that it would represent a gross additional tariff amount between $125 million and $150 million on an annualized basis.”

Second, despite the higher tariff burdens, most U.S. fashion companies still try to avoid across-the-board price hikes due to concerns about losing consumers. Instead, most companies opt for selective price increases, value-based pricing, and closely monitor consumers’ price sensitivity. However, price increases could be more noticeable down the road. For example:

  • Oxford industries: “We’ve not done sort of an across-the-board approach to pricing. We’ve really looked at it on an item-by-item basis and balanced the need to protect our margins and try to recover some of the tariff impact with not wanting to get too far ahead of ourselves because that tariff number…as we get into spring ’26… And on average, that’s led to sort of low to mid-single digit or low mid-single-digit price increases…we’re just being very cautious about increasing the price too much before we really know where things are settled out.”
  • URBN: “our pricing strategy…is really to look at some gentle price increases where we feel like there’s the value that contributes to that. So making sure that we’re protecting some of the opening price points that the customer counts on and some programs that we know drive a lot of volume…Recognizing the value equation is really important to all of our consumers.”
  • TJX: “I think you’re gonna see a more of a little bit of a gradual increase in pricing as the tariffs come in…I don’t think you’ll see step all of a sudden Right. With the tariffs set,because I don’t wanna, I think, turn off customers immediately by seeing a dramatic price shift. So I think they might they might they might absorb it initially for a little bit, and eventually, they’ll get there.”
  • Columbia Sports: “We expect higher prices for many consumer goods will negatively impact consumer demand…In fall ’25, we’re working with our retail partner to deliver value to consumers and keep inventory and dealer margins healthy. As a result, we’re not making any significant price changes to our fall ’25 product line and expect to absorb much of the incremental tariff costs this year…Our goal is to offset higher tariffs over time through a combination of actions, including price increases, vendor negotiations, SG&A expense efficiencies and other mitigation tactics.”
  • Ralph Lauren: “The big unknown sitting here today is the price sensitivity and how the consumer reacts to the broader pricing environment and how sensitive that consumer is. And that’s what we’re watching very closely as we head into the second half.”
  • Ross stores: “Some of the India tariffs, especially if the 25 goes to 50…I think that you’ll see this go into next year, and I think we would expect to see price increases. And — but over time…we think it will reach equilibrium, and it will be business as usual.”
  • Burlington stores: “we are seeing that competitors are taking up retail prices. So far, though, I would say that those price increases have been quite selective and quite restrained…Part of it may just be the time lag between imports arriving in the country and those goods showing up in stores. But also my sense is that wholesalers and retailers have been reluctant to make decisions on raising prices until they know what the final tariff rates are going to be. Now it does feel like there is more clarity on this now than there was a couple of months ago. So it wouldn’t be surprising if retail prices were to go up across the industry in the back half of the year. Now of course, we know that our customer is very, very price sensitive.”
  • VF Corporation: “we have actions in place to mitigate the tariff impact through sourcing savings and pricing actions that will take effect later this year.”

Third, while U.S. fashion companies overall continue to reduce their apparel sourcing from China amid the current tariff and geopolitical tensions, some companies still regard China as a viable sourcing base given its many unique advantages, such as speed to market, production efficiency, and well-developed supply chain infrastructure. For example:

  • Carter’s Inc: “We’ve meaningfully reduced our exposure to China manufacturing over the last number of years. And now, as summarized here, our largest countries of origin are Vietnam, Cambodia, Bangladesh, and India.”
  • Abercrombie & Fitch: “Our approach and underlying principles for tariff mitigation remain unchanged, supported by a deep playbook and experience. We continue to expect China sourcing share in the U.S. will be in the low single digits for the year.”
  • Steve Madden: “Since the last call…We have moved certain production for fall back to China, where we felt it would be difficult to ensure on-time delivery, appropriate product quality and/or reasonable pricing in an alternative country. For fall 2025, we currently expect to source approximately 30% of our U.S. imports from China, down from 71% for the full year 2024..
  • Oxford industries: “With the recent tariff increases announced during the second quarter, including increased tariffs in countries like Vietnam and India that were included as part of our shift away from China, largely offset by the mitigation efforts we have undertaken, including accelerated inventory receipts and quickly shifting our sourcing network.”
  • American Eagle: “If you start with all the country of origin remixing…China where we know we were at a higher penetration coming into the year is mid-single digit now in a full year.”

Fourth, establishing a geographically diverse sourcing base continues to be a crucial strategy employed by U.S. fashion companies to mitigate tariff impacts and policy uncertainty. U.S. fashion companies are also intentionally adding speed, flexibility, and agility to their sourcing base and supply chain. However, given the complex sourcing factors fashion companies have to consider, plus the broad scope of “reciprocal tariffs, there is no clear winner. For example:

  • Kohl’s: “We have a diversified sourcing strategy from a country standpoint. We’re not heavily reliant on any one particular country, and we have the flexibility and agility to actually move production to other countries if necessary.”
  • PVH: “We work closely with an established network of global sourcing partners across more than 30 countries, and we continue to leverage our deep long-standingrelationships to further optimize our sourcing and production costs.”
  • American Eagle: “If you start with all the country of origin remixing…India is small for us. Rebalancing some things out of Vietnam.”
  • Steve Madden: “we were focused on moving a lot of product to Brazil. We’re going to have to wait and see what happens. I think that really goes not just for Brazil, but for a lot of the countries that we work with. So we’ve tried to create a more diversified sourcing footprint. And — but there’s obviously a lot of uncertainty still about where the ultimate tariff rates will land by country. And so we’re going to have to wait and see what happens and then react accordingly. That’s all we can do.”
  • Hanesbrands: “when you think about tariffs and the impact on our business…not only do you have the Q4 impact, but you have to think about those other offsets about meaningful U.S. content that we have in our products that are exempt from reciprocal, the good East-West balance that we have in our supply chain…”
  • Land’s End: “With regard to sourcing…we have been intentionally repositioning our sourcing network to better serve the business we are building leading to a more balanced supply chain that enables us to bring new solutions to customers with more speed and frequency throughout the year. For example, our licens epartners are becoming part of our sourcing network…By tapping into the full breadth of our sourcing matrix, we are able to swiftly and strategically reposition fabric and manufacturing as tariff conditions evolve.”

Fifth, as part of their tariff cost mitigation strategy, many U.S. fashion companies have been strategically but cautiously building preemptive stock, adopting a data-driven approach to optimize inventory, and simplifying product assortment. For example:

  • Levi’s: “And for Q4, we declared a dividend of 14¢ per share, which is up8% to prior year. We ended the quarter with reported inventory dollars up 12%, driven by purposeful investment ahead of the holiday and higher product cost than a year ago due to tariffs. In unit terms, inventory was up 8% versus last year. As of today (October 9, 2025), we have 70% of the product in the US needed for holiday.”
  • Ralph Lauren: “So we feel good about our inventory levels as we head into the fall season. So we ended Q1 (2025), as you know, with inventories up 18% versus Q1 of last year (2024)…if you think about sort of our Q2 revenue guide of up high single digits, relates to the strategic acceleration of largely core inventory receipts into the U.S. in Q1 during the tariff pause period…So if you back out that tariff-related strategic pull up, our inventory growth is actually a little behind our double-digit top line growth for Q1 and right in line with our expected high single-digit top line growth for next quarter, Q2. And…for the year to go, we expect inventories to moderate as we move throughout the fiscal year, and we plan on ending fiscal ’26 with levels generally in line with demand.”
  • PVH: “Inventory at quarter end (Q2, 2025) was up13% compared to Q2 last year (2024), including a 1% increase due to tariffs, and reflects a planned improvement compared to up 19% in Q1.”
  • Hanesbrands: “we’re leveraging advanced analytics with the use of AI to drive operational improvement around the globe, including inventory and assortment management as well as demand planning and forecasting.”
  • Tapestry: “We’re bringing more innovation to the assortment while we streamline our offering, reducing handbag styles by over 30% by fall, allowing us to stand behind our big ideas with clarity and intention.”

by Sheng Lu

FASH455 Video Discussion: Textiles, Trade & National Security: A Conversation with Parkdale Mills COO Davis Warlick

Discussion questions (for students in FASH455, please answer at least three questions from below)

  • #1 Use 1-2 examples from the video and explain how CAFTA-DR and USMCA help shape the Western Hemisphere textile and apparel supply chain.
  • #2 Based on the video, what do you see as the main opportunities for textile and apparel nearshoring or reshoring in the Western Hemisphere? Please also identify 1–2 key bottlenecks (e.g., cost, infrastructure, labor, sustainability, or trade policy) and explain your viewpoint.
  • #3 The speaker argues for a sectoral trade policy for textiles and apparel rather than broad “free trade.” What is your evaluation? Please make 1-2 specific points and use specific examples from the video to illustrate your viewpoint.
  • #4 How does the video help deepen your understanding of the complex economic and non-economic factors related to textile and apparel nearshoring and reshoring in the Western Hemisphere? Explain at least one insight that challenges your prior assumptions/views about sourcing and trade.

Patterns of Global Textile and Apparel Trade Measured by Origin of Value Added (updated October 2025)

Textiles and apparel today are produced through a global supply chain. For clothing labeled as “Made in Vietnam,” it is likely that the textile raw materials, such as yarns, fabrics, and trims, are sourced from elsewhere.

According to the newly released 2025 OECD trade in value added estimation, as of 2022, a country’s apparel exports commonly contain value added created in another country due to the use of imported textile materials and other inputs. This is the case for exports from leading apparel exporting countries in Asia, such as Vietnam (44% foreign value added), ASEAN members (35% foreign value added), Cambodia (45% foreign value added), India (21% foreign value added), and Jordan (42% foreign value added). Other emerging apparel sourcing destinations in North, South, and Central America, as well as the EU, also used substantial imported inputs for their apparel exports, such as Mexico (27.3% foreign value added), Türkiye (23.9% foreign value added), and Egypt (19.7% foreign value added). [See detailed data here]

Notably, among the sixteen countries and regions examined, they mostly increased the use of non-domestic value added in textile and apparel exports between 2015 and 2022 (note: paired T-test result was statistically significant at the 99% confidence level). This suggests that co-production through regional or global supply chains, rather than 100% domestic production, has become a more prominent phenomenon in the textiles and apparel industry. [See detailed data here]

Furthermore, the value added from China appears to be increasing in the textile and apparel exports of many countries. Specifically, between 2015 and 2022, textile and apparel exports from several countries contained a higher percentage of value added from China, including not only Asian countries such as Vietnam (up 6 percentage points), ASEAN (up 4.1 percentage points) and Jordan (up 6.1 percentage points), but also those in other regions such as Egypt (up 3.3 percentage points), Mexico (up 1.7 percentage points), and South & Central America as a whole (up 4.7 percentage points). [See detailed data here] This result reflected China’s deliberate effort to expand its global economic presence through foreign direct investment, Belt and Road initiatives, and new trade agreements in recent years. 

The latest data from the World Trade Organization (WTO) also shows that while China’s market share in the world clothing exports fell to 29.6% in 2024—the lowest level since 2010—China’s market share in textile exports increased to 43.3% in 2024, up from 41.5% a year earlier. In other words, consistent with the stage of development theory, China’s role as a major textile supplier to other apparel-exporting countries continues to grow, despite a decline in its finished garment exports. [See detailed data here]

In comparison, while the United States remained an important contributor to the value added of textile and apparel exports from Mexico and Canada, its contribution slightly declined between 2015 and 2022 (i.e., from about 12%-14% to 11%). As the USMCA undergoes its mandated six-year review, it is critical to strengthen, rather than weaken, this North American co-production supply chain, which has a significant impact on the economic interests of the U.S. textile and apparel industry. This is particularly important given that supply chain collaboration between the U.S. and Asian or EU countries for textile and apparel production has been limited, with little indication of growth: According to OECD data, the U.S. value added in Asian and EU countries’ textile and apparel exports remained only around 1.5% [See detailed data here].

by Sheng Lu

(This post is not open for discussion due to its technical nature)

FASH455 Video Discussion: Vietnam Garment Factory Tour (updated: October 2025)

About the factory

  • The factory is a foreign direct investment (FDI) operation in central Vietnam specializing in ODM (Original Design Manufacturing) — producing ready-made designs that can be customized for private labels. Specific products include sportswear, casual wear, workwear, and uniforms.
  • The factory hires about 500 workers, and it aims to increase the size to 700-1000 workers, which was the pre-COVID level. The monthly pay averaged about $400.
  • The garment factory mainly exports to the U.S., Europe, and Brazil. The factory can do both full package sourcing (i.e., manages the entire production process, from procuring materials to manufacturing, quality control, and packaging—delivering finished goods ready for export) and CMT sourcing (i.e., cut make and trim–buyer provides the materials and designs, while the supplier only performs garment assembly, sewing, and finishing).
  • The factory mostly uses woven fabrics, and they are mainly sourced from China and Europe. Other sources include Taiwan, Thailand, and Malaysia. Some fabrics are Oeko-Tex certified, given the growing importance of using sustainable materials.
  • To meet the rules of origin requirements under free trade agreements (FTAs), such as the EU-Vietnam FTA, Vietnam is making efforts to enhance its local textile manufacturing capability.
  • To meet the clients’ needs, the factory has received several certifications related to social compliance and sustainability, including WRAP, BSCI, and ISO 9000.
  • Textile waste is partly sold or donated (e.g., blankets and jackets for local communities).

Discussion questions (for FASH455, please answer all of them):

  • How does the video help you understand the complexity of apparel sourcing?
  • Based on the video, what is your evaluation of the strengths of the factory as an apparel sourcing base for US fashion companies? Any specific area in which the factory can be improved?
  • If you have the chance to visit a garment factory, what would you focus on evaluating and why?

Additional reading: Vietnam overtakes China as US’s top apparel supplier (FDi intelligence, Financial Times, October 8, 2025)