India, Vietnam key sourcing destinations for US, EU buyers

Western buyers are considering Vietnam and India equally important sourcing destinations, after China, in 2023, according to the latest report.

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India and Vietnam are neck-and-neck in the competition for the business of Western consumers, according to about 26 per cent of the more than 250 enterprises surveyed globally by QIMA in the first half of 2023, mentioned in their report titled QIMA Sourcing Survey 2023: Disruption, Diversification and Digitisation.

Despite their sourcing diversity, 81 per cent of the surveyed enterprises still mentioned China, indicating that it still plays a significant role in the global supply chain.

“In the 2023 ranking of key sourcing destinations, India and Vietnam proved equally popular (after China), and were named (among the top three sourcing partners) by 26 per cent of the US- and EU-based brands,” read the report.

Viewed by industry, India as a supplier market was the third most popular among businesses for the textile and apparel sector with 40 per cent naming the country among their top 3, preceded by accessories, jewellery, accessories coming first and promotional products second.

The analysis examined both long-term trends and patterns over the previous five years as well as the most recent changes in worldwide procurement patterns. The evolution of important supplier regions, supply chain digitisation trends, and the effect of the ESG regulations on sourcing practises were among the insights provided.

By the end of the year, about 87% of organisations predicted that supply chain problems would not worsen. In the last 12 months, 76% of businesses worldwide said they have changed the location of their suppliers. According to the report, the recently diversified supply chains battled with capacity and quality but benefited from flexibility.

Brands utilised digitisation to improve visibility, quality and compliance, as globally 74 per cent of businesses were investing in supply chain digitization. Main drivers to do so included improving supply chain visibility, product traceability, quality control, and supplier compliance.

Source: Apparel Resources News-Desk 

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