Textile and Garment Outsourcing: At a Crossroads

Once among the earliest industrial activities in many countries, the textile and garment industry has evolved into a globalized sector dominated by outsourcing. Production has gradually shifted from developed economies to developing nations, where labor costs are lower. Today, Bangladesh and Vietnam stand out as the two most prominent garment manufacturing hubs, while the United States and European countries remain the largest importers of fashion products. But as the world changes, can this “golden age” of outsourcing continue—or is it nearing its end?

The Golden Age of Garment Outsourcing

Textiles and garments—including footwear—represent one of the world’s largest markets, valued at around USD 1.3 trillion and employing more than 300 million workers globally. The industry stretches across every continent: cotton farming in India and Brazil, fabric production in China and Pakistan, and garment manufacturing in Bangladesh and Vietnam. Meanwhile, the U.S. and Europe have long been the biggest consumers.

However, recent years have seen major changes. Between 2023 and 2025, several major mid-tier fashion retailers in Europe, such as Celio, Gap, and Camaïeu, have shut down. The reasons behind these bankruptcies reveal a deeper transformation in global fashion consumption.

When the Buyers Change

Several factors are reshaping the fashion landscape. These include fierce competition from fast fashion, the rise of e-commerce, and—most importantly—a shift in Western consumers’ attitudes toward consumption. Overproduction and material excess have driven many to rethink their purchasing habits.

Two major events accelerated this change. First, growing awareness of environmental pollution from synthetic fabrics, particularly polyester. According to France’s ADEME (Agency for Ecological Transition), washing polyester releases more than 500,000 tons of microplastics into the ocean each year—particles that ultimately enter the human food chain.

Second, the tragic 2013 collapse of the Rana Plaza building in Bangladesh, which killed over 1,300 workers and injured more than 2,500 others. The disaster shocked the world and triggered a global movement questioning the true cost of cheap fashion. Campaigns such as #WhoMadeMyClothes forced brands to confront uncomfortable truths about working conditions and sustainability.

Europe Steps In

These social pressures soon translated into policy. Several European governments, particularly France, have launched initiatives promoting sustainable fashion and circular production. France now requires fashion brands to disclose the environmental footprint and supply chain of each product. The country has also introduced 45 textile recycling points nationwide and offers financial incentives for consumers to repair, rather than replace, clothing.

From 2023 through 2025, France has continued to expand its repair-subsidy program, offering financial support of €7 for shoes and up to €25 for coats and suits. This ongoing policy aims to reduce waste, preserve traditional craftsmanship, and create local jobs—while lowering environmental impact.

France’s National Institute of Textiles (IFTH) emphasizes that producing garments “Made in France” is one of the most effective ways to restore transparency, sustainability, and traceability in fashion supply chains. The French government now mandates periodic reporting on environmental and labor conditions throughout production.

Toward a New Balance

The textile industry now faces a dual challenge: maintaining efficiency while embracing sustainability. Fast fashion remains dominant, but the rise of “slow fashion” reflects growing global awareness of responsible consumption. Consumers are increasingly looking for brands that combine affordability with ethical values.

This shift marks a turning point for countries like Vietnam and Bangladesh. While low-cost production remains their strength, global buyers are demanding transparency, environmental responsibility, and compliance with international labor standards. Those who adapt fastest to this new reality may not only survive—but lead—the next phase of global textile manufacturing.


by Adam Moha

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