Global Textile Market | Top Countries for Sourcing | India's Textile Sector Growth #textilemarket

Global Sourcing Scenario

Global Sourcing is the key step of sourcing goods and services from the international market across geopolitical boundaries. It aims to exploit global efficiencies such as lower cost skilled labor, cheaper raw materials and other economic factors like tax breaks and low trade tariffs. Apparel
industry plays a pivotal role in developing a country's economy in terms of revenue generation and creation of employment. 

MAJOR APPAREL SOURCING COUNTRIES IN THE WORLD - 

1) China
The textile industry of China is the largest manufacturer and exporter in the world with an export turnover of $266.41 Bn.

2) India
The textile and apparel industry in India is among the world’s largest producers and exports. India stands at 5th largest countries with an export turnover of $37.11 Bn. India is using intensive technology for mass production of textile products with spinning, weaving, processing, and apparel.

3) Bangladesh
In recent decades, Bangladesh has emerged as a powerhouse for apparel manufacturing. The country’s strengths are low labor cost and vast workforce. The country is a leading textile exporter with a turnover of USD 38.73 Bn.

4) Vietnam
The Textile industry of Vietnam has benefited producers and buyers diversify their supply chains, backed by its low labor costs and industry focus on specialization, modernization and increasing value addition.
With an export turnover of USD 37.93 Bn, Vietnam is the top 4th global exporters of textile and apparel.

5) Turkey
The Textile and Apparel industry of Turkey has an important role in world textile trade with the capability to meet the high standard and a broad range of products. The export value of Turkey textile industry has reached a value of USD 27.56 Bn.

6) United States of America
The United States is a globally competitive manufacturer and exporter of textile raw materials, fabrics, yarns, apparel, home furnishing, and other textile products. The United States is the 8th largest textile exporter with the exported value of USD 27.14 Bn.

To know more about the Global Textile Scenario - 

SHIFTING OF GLOBAL APPAREL SOURCING

The fashion industry’s sourcing operations have been hit hard by COVID-19. Businesses are scrambling to ensure their survival while also facing humanitarian challenges for both their own employees and those of their suppliers and partners.

Reasons for shift in Global Apparel Sourcing: 

1. Geo political Issues
2. COVID 19 Pandemic
3. US China Trade War
4. Slow Move Towards sustainability

In this shifting scenario, Tradyl is making textile sourcing and wholesale fashion easier. 

Steps for Sourcing Executives

➔ Securing inventory and managing the ramp-down and ramp-up of
supply chains: Sourcing executives are negotiating a delicate balancing act to minimize inventory buildup, ensure newness in assortment, and secure future supply all while being mindful of the financial and humanitarian impact of these actions in the countries of production. 

➔ Optimizing cash flow along the supply chain and ensuring the
optimal trade-off between cash position, profit impact, and supplier
stability: Sourcing executives have indicated a variety of responses when it comes to making payments.

➔ Proactively managing financial risk across the entire supply chain,
with an approach tailored to suppliers: Cancellations and order reductions are putting suppliers into financial distress. Most fashion-sourcing executives report that at least 25 percent of their suppliers are facing financial
distress now and anticipate that more than half will be in this position in six months’ time, putting millions of jobs and livelihoods at risk.

➔ Adjusting internal costs, including open commitments and operating
expenses of the sourcing function: More than half of sourcing executives have applied temporary staff measures to help manage operating costs, including salary reductions, furlough, temporary layoffs, and deferred compensation.

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