Apparel Sourcing Week, 20 - 22 February 2020 - Bengaluru, India
18 - 20 February 2021
Bengaluru, India

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
1
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.
2
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).
3
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 2020

Apparel Sourcing Week 2020, a three-day Sourcing Show not only provides the Asian manufacturers a platform to showcase their products & manufacturing capabilities to the Brands & Retailers from all over the world including India, but also extends them a chance to attend the multiple seminars (headed by industry experts), workshops, open-house discussions and networking opportunities organised during these three days, which would help the manufacturers get a better understanding of Indian and International Retail and evolving dynamics of sourcing in various markets and retail formats.

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.