Sourcing: China loses ground against South Asian and Mediterranean countries
Since the beginning of the year 2022, to counter the disruptions of supply chains in China in particular due to the confinements linked to the Covid-19 and the congestion of ports (cf.International transport: supply chains again under high voltage), Western buyers sought to diversify their supplier portfolios. Qima, a quality control specialist, published a barometer on supplier inspection requests in the first quarter of 2022 that highlights the decline in sourcing in China for the benefit of other countries. Unsurprisingly, the figures show that in both the United States and Europe, Beijing's share of supplier portfolios has fallen to its lowest point in three years.
Vietnam, often considered an alternative to China, has also seen its share decline as the country was weakened by a wave of Covid-19 in February and is currently facing a severe labour shortage. By the end of 2021, long delays in delivery from that country had already discouraged Western buyers, so it is strong to bet that the latter leave the Vietnamese track for their sourcing. Cambodia, Indonesia and the Philippines are also struggling to maintain their growth momentum.
However,South Asiawho had already seduced buyers, particularly Americans, in 2021, continues to attract new customers, especially in the textile and household goods sectors. The largest increase since the beginning of the year has been in demand from European buyers. LIndiaregistered a very sharp increase in demand, with a 47% jump for European brands alone. It must be said that with a shorter supply chain, India makes it possible to earn 20 to 30 days on transport. Another alternative to China is theBangladeshalso recorded an increase, but less glaring (+6%).
Share of major supply markets for US and European buyers.
Source Qima.
European companies have also turned toTurkey, market they know well. But, a new phenomenon, Ankara also benefited from an influx of American and Asian buyers. Finally,near-shoringEuropean suppliers also pushed them toJordan,IEgypt,MoroccoandTunisia.
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