china / Supply Chain

Chinese fashion and beauty customers — long pivotal for the global luxury market — are reshaping how and where they shop, according to BoF Insights’ new report.

Fast fashion giant Shein will strengthen its presence in Europe and Mexico, including selling more locally made products, in a bid to diversify its China-centric supply chain.

Western brands shifting supply chains away from China hope to reduce disruptions caused by geopolitical tensions but ‘friendlier’ sourcing hubs aren’t always feasible.

This week, US lawmakers ratcheted up pressure on some of the industry’s biggest names as the relationship with Beijing and Washington continues to deteriorate.

The country is reporting its highest caseloads since the start of the pandemic, and whole regions are locked down, sending shudders through a still fragile global supply chain.

Further volatility in the property sector could dampen consumer appetite for fashion and luxury goods in some quarters, but it is unclear how big the impact might be.

Blackouts and power shortages at Chinese factories are adding to the growing list of supply chain challenges facing the global fashion industry.

Surging demand and supply disruptions are driving up prices for raw materials, labour and shipping in fashion’s largest manufacturing hub.