Press Releases

Press Release 16 July 2021

China still a preferred destination, but India and Vietnam have potential

Post the disruption in supply chains in 2020, apparel manufacturing bases around the world have been struggling to find their footing. While some are handling the situation better than others, challenges remain for all of them. QIMA, a leading provider of supply chain compliance solutions, which partners with brands, retailers and importers to secure, manage and optimise their global supply network, has recently published the findings of a survey which analyses the manufacturing destinations that will thrive in the future, answering the critical questions as to why and how.
QIMA survey indicates that 71 per cent of the global respondents from textile and apparel sector are planning/considering a switch to suppliers in new regions in the coming 12 months! This is important in the backdrop that most brands and companies are avoiding their ‘complete reliance’ on China while keeping it at the centre of the sourcing strategies as well as identifying vulnerabilities to material shortages and having contingency plans.
So is China really out of the race and which destinations in Asia could benefit… let’s see what the QIMA survey findings have to say
China far from being out of the race
After witnessing a dent in reputation, China’s 2021 outlook seems to be a mixed bag of sourcing expectations of respondents. 40 per cent respondents have planned to buy as much or even more from Chinese apparel suppliers; 25 per cent have plans to buy less from Chinese suppliers as well as move their facilities from China; and 19.50 per cent said they will buy less from Chinese suppliers, but don’t have plans to move facilities from the country. While the share of respondents globally naming China among their TOP 3 sourcing geographies in H1 2021 remained virtually unchanged (for all industries) at 74 per cent vs. 75 per cent on Y-o-Y basis, but the sourcing of apparel products is seeing a continuous decline in China.
India’s inherent strength could come handy
The share of USA brands naming India as a TOP 3 sourcing market doubled in H1 2021 vs. H1 2020. The country has been a prominent sourcing hub for a variety of goods and textile is one of the dominant categories for which India is always looked upon by the global buyers. Despite a slump in its apparel exports in recent year, India is still considered a preferred destination for apparel sourcing, because of the fact that the country can adapt to the ever-evolving fashion trends and make smoother transition in its production units – thanks to its upper-hand in producing high-fashion garments. Interestingly, the report indicates that, no longer pigeonholed as a textile hub, India is a prominent sourcing choice for a variety of consumer goods such as fashion accessories (33 per cent) and footwear (32 per cent).
Vietnam enjoys the China proximity edge
The country has been a traditional first choice for buyers looking for sourcing options, away from China. No wonder in an era where China plus for sourcing is becoming a norm, Vietnam saw its popularity among Western buyers grow by leaps and bounds over the past few years – a trend that has remained in effect so far in 2021. According to the survey, around one-third of buyers globally and 38 per cent of US-based buyers name it among countries from where they plan to buy more in 2021, while 43 per cent respondents named Vietnam among their TOP 3 (vs. 36 per cent in 2020). Significantly, QIMA data also shows +16 per cent Y-o-Y expansion in demand for inspections and audits in Vietnam in Q1 2021, which represents a third consecutive quarter of growth.

About Apparel Sourcing Week

Apparel Sourcing Week (ASW) platform is aligned to the changing dynamics of the industry, moving in pace with evolving and shifting world trade of apparel sourcing while also acknowledging the changing needs and wants of the customer.

To facilitate the seamless process of sourcing for greater transparency and reach, the ASW platform offers the industry three independent verticals – Big Show, Marketplace, and V-Expo – to enhance business opportunities for all players in the fashion retail chain, in an environment of networking, knowledge, and inspiration. With the three verticals, the supplier has marketing opportunities all around the year like never before, while the buyer has multiple avenues to search his perfect sourcing partner from South Asia.

About the Organiser

Apparel Resources is well known for its benchmark publications – Apparel Online, StitchWorld and Resource Guide published from India, Bangladesh & Vietnam. These publications have been around in the industry for over 35 years, supporting, guiding and standing by garment exporters and the retail industry globally, providing them a platform to source better.

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