Western retailers and brands found a unique sourcing option with China. China’s comprehensive textile and clothing process provides unique opportunities all within one country: capacity, quality, skills, and a complete textile and clothing supply chain. Rising costs however are forcing Western retailers and brands to look for alternative sourcing options.
The only problem is there is no other single country that can provide the comprehensive processes that China delivers.
Bangladesh and Cambodia
Other inferior options include Bangladesh and Cambodia. While Bangladesh offers the world’s lowest textile costs and clothing production, sourcing within Bangladesh creates concerns over factory safety and the negative publicity accompanying with these concerns. Cambodia also offers a low cost option for sourcing however Cambodia has a seen recently seen labor unrest and reliability issues.
Another option is Vietnam. Vietnam has seen continued positive growth in imports by Western companies. In 2013, US textile and clothing imports grew by 14.6% from Vietnam. The first quarter within 2014 saw an increase by 15.5%. However, while the trend has been positive, the lack of a comprehensive program like China has proven to be a problem.
What do you predict will be the future of sourcing if China continues to see rising sourcing costs?