43% of fashion supply chains shifted sourcing in 2025, QIMA finds

Nearly half of fashion supply chains relocated at least some production in 2025, with Vietnam and Mediterranean manufacturing hubs emerging as the primary beneficiaries of a sweeping realignment driven by geopolitical risk and compliance pressures. QIMA, the quality control and compliance services provider, reports that 43% of supply chains shifted sourcing locations last year, whilst Vietnam experienced a 30% increase in sourcing activity and Mediterranean production rose 25%.

What drove the 2025 sourcing shifts?

The accelerated relocation of fashion manufacturing reflects converging pressures that made concentrated sourcing models untenable for many brands. Geopolitical tensions, particularly trade restrictions and tariff uncertainties, compelled companies to spread production across multiple countries rather than rely on single-country manufacturing bases. Compliance costs also escalated as regulations around supply chain transparency, forced labour prevention and environmental standards tightened across major markets.

Rising labour costs in established manufacturing centres further incentivised brands to explore alternative locations. Manufacturers in traditional hubs faced wage inflation alongside increased scrutiny of working conditions, prompting buyers to evaluate the total cost of sourcing rather than unit prices alone. Transport costs and delivery speed became critical factors as brands sought to reduce inventory risk and respond more quickly to consumer demand shifts.

Why did Vietnam gain 30% in sourcing activity?

Vietnam's emergence as a primary beneficiary of sourcing shifts builds on a decade of investment in textile and garment manufacturing infrastructure. The country offers a combination of competitive labour costs, established supplier networks and trade agreements that provide preferential access to major consumer markets. Vietnam's manufacturing base spans the full garment production chain, from fabric production to finished goods, enabling brands to consolidate multiple production stages within one country.

The 30% increase in sourcing activity reflects both new market entrants establishing production and existing suppliers expanding capacity to meet rising demand. Vietnam's geographic position in Southeast Asia facilitates regional supply chain integration, whilst its ports provide efficient shipping routes to North America, Europe and Asia-Pacific markets. Political stability and government support for manufacturing investment have reinforced Vietnam's attractiveness as a long-term sourcing destination.

What explains the Mediterranean's 25% manufacturing rise?

The Mediterranean region's 25% increase in manufacturing activity represents a strategic shift towards near-shoring for European brands and those serving European consumers. Countries including Turkey, Portugal, Morocco and Tunisia offer substantially shorter lead times compared to Asian manufacturing, reducing the time from design to retail from months to weeks. This proximity enables brands to test smaller production runs, respond to mid-season trends and reduce the working capital tied up in inventory in transit.

Mediterranean manufacturers have invested in technical capabilities that support premium and complex production, attracting brands that prioritise quality and flexibility over lowest unit cost. The region's trade relationships with the European Union, including free trade agreements and customs arrangements, reduce tariff barriers and simplify cross-border logistics. For sustainability-focused brands, shorter transport distances align with carbon reduction commitments whilst maintaining visibility over production conditions.

Which other regions attracted sourcing activity?

Beyond Vietnam and the Mediterranean, fashion sourcing diversified across multiple emerging manufacturing centres. Bangladesh, despite facing intense scrutiny over factory safety and labour conditions, retained significant production volumes for value-oriented brands due to its low-cost position and garment specialisation. India expanded its share of technical textile production and attracted brands seeking alternatives to other Asian manufacturing hubs.

Central American and Caribbean countries benefited from near-shoring trends serving North American brands, leveraging trade agreements and geographic proximity to reduce lead times. African manufacturing hubs, particularly in East Africa, attracted attention for cotton-based garment production, though volumes remained modest compared to established centres. Eastern European countries saw selective increases in production for brands requiring rapid turnaround on fashion-forward items.

What challenges do brands face when relocating production?

Shifting sourcing locations demands substantial investment in supplier identification, qualification and relationship development. Brands must assess potential manufacturers' technical capabilities, capacity, compliance standards and financial stability before committing production volumes. Quality consistency often requires extensive collaboration to transfer technical specifications, fit standards and finishing techniques from established suppliers to new partners.

The key challenges brands encounter when relocating production include:

• Supplier capacity constraints in high-growth markets, where demand for production slots exceeds available factory capacity
• Quality variation during the transition period, as new suppliers learn brand standards and production specifications
• Increased complexity in managing multi-country sourcing portfolios, requiring expanded compliance and logistics resources
• Higher minimum order quantities in some emerging hubs, where manufacturers lack the flexibility of established suppliers
• Currency fluctuations that can erode cost advantages when manufacturing countries experience exchange rate volatility

Compliance and transparency requirements add layers of complexity to sourcing transitions. Brands must conduct due diligence on labour practices, environmental management and business ethics across new supplier bases, whilst maintaining audit and monitoring programmes to verify ongoing compliance. Supply chain mapping becomes more challenging as brands work with suppliers that may have less developed systems for tracking sub-contractors and raw material sources.

How will sourcing patterns evolve through 2026?

The momentum towards diversified, regionalised sourcing appears likely to continue through 2026 and beyond. Brands that completed initial relocations in 2025 are now refining their multi-country strategies, balancing cost, speed, quality and risk across their supplier portfolios. Investment in manufacturing capacity in preferred destinations will determine whether current growth rates can be sustained or whether capacity constraints force brands to consider additional locations.

Regulatory developments will shape sourcing decisions as governments implement new requirements for supply chain transparency and due diligence. Brands are evaluating how different manufacturing locations align with evolving compliance obligations, factoring regulatory risk into long-term sourcing strategies. The economics of near-shoring will be tested as brands assess whether the benefits of speed and flexibility justify higher per-unit costs compared to distant, lower-cost manufacturing.