Q4 2023 Barometer: China Sourcing Back in the Spotlight?
For this month’s newsletter, we will be sharing some highlights, key trends and findings from our latest Q4 2023 Barometer report that are shaping the global sourcing landscape as we approach the end of 2023.
In a context of cooling consumer demand, global brands and retailers are once again turning their attention to China sourcing . After several years of shifting sourcing volumes away from China due to tariff wars, Covid lockdowns, and geopolitical uncertainties, it appears that interest in China sourcing is on the rise again among US- and EU-based buyers.
One notable trend is the resurgence of China in the textiles and apparel sector. QIMA's data reveals that demand for textile inspections and audits in China has grown by 14% globally and 17% among Western buyers in the first nine months of 2023. This indicates a shift in order volumes back to China as brands and retailers seek to leverage the benefits of its well-established manufacturing infrastructure.
Meanwhile, some of China's competitors in South-east and South Asia, as well as nearshoring regions, are experiencing challenges in handling the recent influx of new business. For instance, Bangladesh, a prominent textile sourcing market, has seen a 10% year-on-year dip in demand for inspections and audits. To stay competitive, Bangladesh needs to diversify its exports, explore new product categories , such as manmade textiles, footwear, leather, and home textiles, and strengthen local institutions responsible for internationally recognized certifications.
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The importance of nearshoring is also highlighted in the report. Mexico has emerged as the largest trading partner for the United States in 2023, driven by its geographic proximity, zero tariffs, low labor costs, and mature manufacturing base . Demand for inspections and audits in Mexico has grown by 17% year-on-year in Q3. Similarly, EU-based brands continue to conduct business with suppliers around the Mediterranean, including Turkey, Jordan, Tunisia, and Egypt.
Diversifying supply chains remains a challenge for many businesses. QIMA's data indicates that less mature supplier markets tend to have higher rates of product defects. This emphasizes the importance of thorough quality inspections and audits when exploring new sourcing opportunities.
To delve deeper into these industry trends and gain a comprehensive understanding of the shifting global sourcing landscape, we invite you to download the full Q4 2023 Barometer. It provides in-depth analysis, additional data, and actionable insights that can inform your sourcing strategies moving forward.
Download or view the full version of the Q4 2023 Barometer
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