As per a report by Fash465, more US apparel companies are consolidating their existing sourcing base more than they did during the pandemic. Nearly half of the top 30 US apparel companies have either sourced from fewer countries or worked with fewer vendors in 2020 than 2017-2019 before the pandemic. In comparison, only about one-third of respondents sourced from more countries in 2020 than two years.
As per the report, the consolidation strategy of these US apparel companies focus on forming a closer relationship with key vendors and ensuring social and environmental compliance. Apparel companies are leaning more heavily on suppliers that have proven to be reliable, capable, and flexible. They are working closely with these suppliers to build an efficient and trust-based supply chain, the report adds.
Companies are also cutting ties with vendors not adhering to government mandates and proprietary codes of conduct. They are also diversifying away from China to its competitors in Asia. In response to COVID-19 and the new business environments, US brands and retailers are also committing to innovations in sourcing and supply chains.