The trend of purchasing diversification of Textile clothing enterprises in the United States is becoming more obvious
In July, the Fashion Industry Association of America released its annual industry benchmark report. The report shows that in order to adapt to the changing business environment, cope with shipping delays, supply chain disruptions, over-concentration of procurement sources and other problems, more and more US textile and apparel enterprises are focusing on the diversification of procurement.
In addition to the diversification of procurement, Asian countries still play a leading role. Among the top 10 procurement countries for US textile and garment enterprises, 8 Asian countries take up the top four, with 91%, 88%, 84% and 72% of surveyed enterprises purchasing from these countries respectively. The only two non-Asian countries in the top 10 are Mexico and the CONTINENTAL United States.
At the same time, "China + Vietnam + others" is still the mainstream mode of American textile and apparel procurement, but the connotation has changed. On the one hand, China is still the most important source of procurement for US textile and apparel companies, but their dependence on China has decreased. One-third of the surveyed companies said their purchases in China in 2022 will not exceed 10% of their total purchases, and 50% of the surveyed companies said their purchases in Vietnam will exceed those from China.
Meanwhile, the share of "China plus Vietnam" has dropped to 20-40% from 40-60% a few years ago. The price advantage of Southeast and South Asian countries such as Vietnam, Bangladesh and Cambodia, as well as African Growth and Opportunity Act (AGOA) members, is even more pronounced.
Companies surveyed believe that China's advantage in procurement flexibility has declined due to the epidemic prevention policy. Bangladesh has become less risky and more competitive in terms of social responsibility.
Source: Overseas Market promotion Association of Shaoxing Keqiao Textile City
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