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Tariffs changing global denim sourcing strategy

Denim and jeans manufacturers are finding their way through the sourcing complexities created by the US-China trade war. They are shifting their sourcing strategies to counter the trade climate. But production development has never been more at the forefront to meet new consumer challenges and sustainability requirements.

What’s happened as a result of the trade war and actual and threatened tariffs is that China has lost jeans market share mostly to other Asian nations. However, a lot of Chinese fabrics are now being exported to countries like Vietnam and Cambodia to make apparel, since they don’t have a textile base.

Changes are also taking place in the market thanks to smaller companies being able to make an impact with the growth of direct-to-consumer channels. These brands are working directly with fabric mills to develop materials to meet their customers’ needs. Brands have a sustainability strategy now that is built into their raw material buying plan. They want a certain percentage of sustainable cotton. They want a percentage of recycled polyester and they want reused materials. They want an aesthetic, but it has to include a sustainable or ecological element to meet their company goals and to be able to tell a brand story.

 
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