Since, India and
China have the advantage of making textiles and apparel at lower cost than in
most other countries, they have become the apparel sourcing choice for many
international fashion companies. Country of origin sourcing choices obviously
arise from the potential of profitability for the wholesaler or retailer. This
includes considering costs, such as, buying factors of production, such as land,
buildings and machines versus factors affecting revenues, including pricing,
marketing, and distribution. The issues of labor, material, shipping costs and
tariffs structure also affect the sourcing choices made by garment companies.
Since, apparel production is a labor-intensive activity, wage rates are also
clearly a major factor in sourcing decisions. This gives immediate competitive
advantage to producers in countries like China & India to export to more
developed and high cost countries like the United States and the European
Union.
Obviously other
countries are price competitive and offer good opportunities, but China &
India do currently have numerous advantages.
If you would like to
learn about clothing factories from around the
globe, you can also visit our manufacturer section and review resources by
category.