As the world was brought to a sudden stop by the coronavirus crisis, China suffered a major supply shock that almost upended global sourcing and manufacturing efforts. The crisis exposed how fragile modern supply chains are. At the same time, it revealed how important it is to diversify the existing supply chains. For several decades now, China has ruled the market as the top destination of global sourcing. Since its inclusion in the World Trade Organization (WTO) in 2001, the country has been serving as the manufacturing powerhouse of the world. But in recent years, the Asian giant is facing steep competition from several other countries as they are steadily emerging as reliable, cost-effective, and versatile sourcing hotspots. In this regard, India, Turkey, and Vietnam have come up as the leading competitors. Particularly after 2020, India procurement freelancers, along with Vietnamese and Turkish sourcing agents, have established a stronghold over the global supply chains and show promising growth to surpass China in the process.
According to QIMA’s Q 2021 report, the emerging trends in global sourcing indicate that these three countries, in particular, are experiencing a sustained level of growth. And these alternative sourcing regions are expected to change the global sourcing landscape in the years to come. And if the ongoing COVID-19 pandemic has taught us any lessons, it emphasized the importance of diversifying global supply chains.
Vietnam Emerges as a Leading Force in the Regional Competition
Even before the COVID-19 pandemic hit the world, Vietnam has emerged as the most preferred sourcing alternative. It has experienced a steady growth of popularity among Western buyers in the last couple of years and has successfully maintained the trend in 2021. As the QIMA survey revealed, 43% of US-based buyers have chosen Vietnam as one of their top 3 buying locations overseas as of the early quarter of 2021. The report also indicates that the demand for procuring goods and services from Vietnam is only rising among Western buyers. The strong economic growth, low-cost labor, efficient manufacturing, and the relative ease of conducting business in Vietnam have only fueled the buyers’ appetite.
Turkey is Coming Up as a Strong Contender
Similar to India and Vietnam, Turkey has also emerged as a preferred sourcing location of Western buyers in the post-coronavirus lockdown phase. As businesses started to look for alternative geographies to procure goods and services, Turkey procurement freelancer services quickly rose to the competition and successfully leveraged the changed scenario. As soon as the pandemic-related lockdown has been lifted in the USA and European countries, buying closer to home once again became a preferred mode of purchasing for most brands and retailers. Among all the Mediterranean buying markets, Turkey is a clear favorite among most Western buyers. The data from the QIMA survey also confirms the trend, as over one-third of the respondents cited Turkey as their top-priority near-shore sourcing location. With the robust economic growth and remarkable performance in recent years, Turkey shows significant promises to offer more efficient solutions to become an effective alternative to China. Also, the favorable fiscal policies and a business culture that is very similar to the West have made the location one of the top contenders in the global supply chain.
India Emerges as the Top Alternative
Enduring a prolonged period of lockdown and economic hurdles owing to the COVID-19 pandemic, India is once again reclaiming its spot as one of the most preferred sourcing destinations of US-based buyers. Traditionally, the country has been considered a top textile hub. However, in the last few years, India procurement freelancers and sourcing agents have remarkably stepped up their game in multiple categories, including promotional products, electronics, furniture, footwear, jewelry, and fashion accessories. Almost 26% of respondents of the QIMA’s survey cited India as their top choice for sourcing. Diversifying the supply chain would only mean shifting base from traditional sourcing hubs. And in this regard, India has all the potential to grab the top spot. Squat cost, low attrition, skilled labor, and labor-intensive manufacturing are the major reasons behind India’s success as a sourcing hotspot. Internal QIMA data also affirms the increased demand in sourcing from India in Q1 in comparison to 2020.
While the world is still battling with the Coronavirus crisis, businesses will have to find a way to ensure resilience and sustainability. In this regard, diversification of the supply chains has become the key to prevent collapse and reduce risk factors. So, if you want to step up your business too, look for India, Vietnam, or Turkey procurement freelancer services and diversify your supply chain. After all, the market is widening with each passing day and so should your business.