The global fashion industry is constantly evolving, with companies in the United States looking to diversify their sourcing base to mitigate geopolitical risks. A recent survey conducted by the University of Delaware and the United States Fashion Industry Association revealed interesting insights into the changing landscape of clothing sourcing.
According to the 2024 Fashion Industry Benchmarking Study, while Asia remains the primary region for clothing sourcing, the top suppliers in the region are undergoing a shift. China and Vietnam continue to lead in terms of utilization rates, but India has emerged as a popular sourcing destination, surpassing Bangladesh for the first time.
The survey included executives from 30 leading fashion brands, retailers, importers, and wholesalers in the US. It highlighted that more respondents are now sourcing from India, with nearly 60% planning to increase sourcing from the country through 2026. India’s textile and apparel exports rank high globally, showcasing its potential as a top sourcing destination.
One of the reasons for India’s popularity as a sourcing destination is its established local textile manufacturing capability. Unlike countries like Bangladesh, Cambodia, and Vietnam, India relies less on imported components for garment exports. This factor, coupled with relatively lower geopolitical risks, makes India an attractive option for US fashion companies.
Despite its competitive product costs, Bangladesh faces challenges in terms of product diversity beyond basic cotton goods and knitwear. The country’s social responsibility record in the garment sector has also come under scrutiny, impacting sourcing decisions for some companies. However, Bangladesh remains the most cost-competitive nation in terms of product costs, according to the survey.
Vietnam, another key player in the Asian sourcing landscape, has an average price-competitiveness grade of 3.5. The country’s strategic location and well-established manufacturing capabilities make it a preferred sourcing destination for many fashion companies. Cambodia, with its growing utilization rate, is also gaining traction as a sourcing hub in Asia.
Overall, the survey highlights the dynamic nature of the global fashion industry and the importance of diversifying sourcing bases to mitigate risks. As companies in the US look to expand their sourcing options, countries like India, Vietnam, and Cambodia are emerging as key players in the evolving landscape of clothing sourcing. With changing consumer preferences and geopolitical dynamics, the fashion industry continues to adapt and innovate to meet the demands of a rapidly evolving market.