The clothing industry1 has shifted dramatically over the past few decades. While the USA once had a strong textile manufacturing sector, most production has now moved overseas, particularly to China.
Most clothes sold in the USA are manufactured in China and other Asian countries. Due to lower labor costs and large-scale production facilities, China remains the dominant global supplier of apparel.
The shift from domestic manufacturing to overseas production happened gradually. Rising labor costs in the USA and advancements in supply chain logistics made outsourcing more profitable. Let’s explore where clothes are really made today.
What percentage of American clothing is made in China?
Decades ago, most clothing worn by Americans was made domestically. But today, China plays a dominant role in the supply chain.
Approximately 30-40% of all clothing sold in the USA is made in China. While China's share has decreased slightly in recent years due to diversification, it remains the largest apparel supplier2 to the US market.
Why Does China Dominate Apparel Manufacturing?
1. Cost Efficiency
China offers significantly lower labor costs than the USA. Even with rising wages in China, automation and economies of scale keep costs low.
2. Mass Production Capabilities
China has a highly developed textile infrastructure, with thousands of factories capable of producing large volumes quickly.
3. Flexible Supply Chain
Factories in China can produce a wide variety of styles, materials, and customizations, allowing brands to respond quickly to trends.
4. Global Trade Agreements
China has established strong trade relationships with major markets, making exports smoother and cost-effective.
Where are the majority of our clothes made?
When shopping for clothes, many consumers wonder where their garments are produced. Most clothing brands rely on global manufacturing networks.
The majority of clothes sold in the USA are made in China, Bangladesh, Vietnam, and India. These countries dominate due to low production costs and well-established garment industries.
Breakdown of Global Apparel Manufacturing
Country | Market Share in US Apparel Imports | Key Strengths |
---|---|---|
China | 30-40% | High capacity, cost-effective production |
Bangladesh | 10-15% | Low labor costs, strong knitwear industry |
Vietnam | 15-20% | Quality manufacturing, skilled workforce |
India | 5-10% | Strong textile industry, diverse fabric options |
Many brands source from multiple countries to reduce risks associated with tariffs, labor strikes, or political instability.
Where is most of the clothing that is sold in the USA made?
The USA imports billions of dollars’ worth of clothing each year. But which countries dominate apparel exports to America?
Most clothing sold in the USA is made in China, Vietnam, Bangladesh, and India. Imports from these countries account for over 70% of all apparel sold in the US market.
The Decline of US-Based Clothing Production
1. High Labor Costs
Manufacturing clothing in the USA is expensive. Minimum wages and operational costs are significantly higher than in Asian countries.
2. Limited Infrastructure
Many textile mills in the USA have shut down over the years, leaving fewer domestic production options.
3. Fast Fashion Demand
American consumers expect low-cost, fast fashion, which is best fulfilled by offshore manufacturers with cheaper labor and faster production cycles.
4. Exceptions: Luxury & Specialty Brands
Some brands still produce in the USA, such as American Giant, New Balance, and Brooks Brothers, but they cater to niche markets.
What percentage of Walmart products are made in China?
Walmart is one of the largest retailers in the USA, and a significant portion of its products come from overseas.
An estimated 70-80% of Walmart’s products, including clothing, are made in China. Walmart sources globally but relies heavily on Chinese manufacturers for cost efficiency.
Why Does Walmart Source Heavily from China?
1. Cost Reduction Strategy
Walmart operates on a low-price business model. Chinese manufacturers offer competitive prices that allow Walmart to maintain its "Everyday Low Prices" strategy.
2. High Manufacturing Capacity
China’s large factories can meet Walmart’s massive demand across categories, from clothing to electronics.
3. Established Supply Chains
China has a well-developed infrastructure for global exports, allowing Walmart to keep logistics smooth and costs low.
4. Shifting Trends
In recent years, Walmart has tried to increase sourcing from the USA, but China remains its dominant supplier due to cost advantages.
Conclusion
China remains the leading manufacturer of clothing sold in the USA, though Vietnam, Bangladesh, and India are growing players. The USA’s domestic clothing production is minimal due to high costs, and retailers like Walmart still rely heavily on Chinese-made products.