December 5, 2023
Apparel, Fashion, Retail

80% Of US Garment Brands Will Reduce Sourcing From China

Nearly 80 percent of US garment and fashion brands plan to reduce their China sourcing over the next two years.

This was revealed in a survey done by the United States Fashion Industry Association (USFIA) of 30 fashion companies between April and June 2023, a majority of them having more than 1,000 employees.

US fashion companies expressed a new level of anxiety and showed eagerness to reduce China exposure to mitigate the growing sourcing risks due to the deteriorating US-China relations and enforcement of the Uyghur Forced Labour Prevention Act (UFLPA).

With the launch of the Uyghur Forced Labour Prevention Act (UFLPA), the US fashion industry has doubled down in its efforts to eliminate forced labour from the supply chain.

These garment brands are also exercising a level of caution as they move into 2024, with only half expecting sourcing volumes to rise, as concerns about inflation, weak demand and the state of the economy continue.

“China is no longer the largest source of apparel imports for many US fashion companies regarding sourcing value or volume,” the report informs.

According to these executives, the five largest Asian apparel suppliers like Vietnam, Bangladesh, Cambodia, India, and Indonesia offer a product range almost equivalent to that of China.

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