Report summary

Many major apparel brands and retailers have been pursuing so-called “China+1” sourcing strategies in recent years in order to reduce their reliance on a single source of supply. Following the adoption of these strategies, certain countries have emerged as key supplier nations, notably Bangladesh and Vietnam. Global apparel brands and retailers flocked to China after the country joined the World Trade Organization (WTO), having been attracted by the country’s efficiency, economies of scale and rapid turnaround times.

Since then, rising labour costs have eroded some of China’s competitive advantage. Furthermore, many brands and retailers have become overdependent on China and are looking to other countries to source from. Another factor is that consumer and regulatory pressures have pushed brands to adopt sourcing patterns which are more ethical and sustainable.

Also, brands have been forced by geopolitical risks and trade tensions—particularly between the USA and China—to shift their sourcing patterns away from China in order to mitigate potential tariffs and export restrictions. Under the China+1 sourcing model, brands have not abandoned China entirely but now supplement their production in China with additional hubs. Bangladesh remains a top choice for high volume, low cost apparel production.

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Publisher: Textiles Intelligence

‘Editorial: Can Bangladesh and Vietnam continue to grow as global apparel brands and retailers pursue China+1 sourcing strategies?

15 pages, published in June 2025

Report price: Euro 340.00; US$ 445.00

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