For years, China has been enjoying a dominant position as an apparel supplier to the world but of late, major importing countries such as the US and Europe are exploring new sourcing destinations in Southeast Asia and Africa. And this was focus of discussion at the recent Prime Source Forum in Hong Kong.
While experts agreed that China still leading owing to its mature supply chain, skilled labour, and growth in domestic consumption, they pointed out that the current change in sourcing pattern was not unexpected. As Bob McKee, Global Fashion Industry Strategy Director at Infor pointed out that the world will continue to change, and China will continue to change. Cost will continue to rise and the needle will continue to migrate.
Until two decades ago, 80 per cent of general merchandise was sourced from manufacturers in the UK and then it gradually moved to North Africa, Eastern Europe and India, followed by Indonesia, Vietnam, Bangladesh, Cambodia, Burma/Myanmar and now sub-Saharan Africa, which is currently being assessed by the importing nations. But Richard Thomas, Head of Far East region, sourcing, at Marks & Spencer (Asia Pacific) warns that too much migration can affect efficiencies.
Zhang Xi'an, Secretary General of the China Chamber of Commerce for Import and Export of Textile and Apparel opined that though most companies will maintain their high value-added manufacturing operations in China, the main areas for expansion, especially for mid-low end producers, will be in Africa and Southeast Asia.
Experts also said that sourcing is turning to be complex due to customers' needs for diversification, to take advantage of trade agreements, and demand for a shorter, flexible and more responsive supply chain.
