Textiles Manufacturing in Asia: Alternatives to China

August 07, 2023
Table of Contents

Looking for clothing and textile suppliers outside of China? In this article, I explain why buyers - both big and small - decide to source in other countries. In addition, I also compare suppliers in Europe, Vietnam, India, and Thailand to help you understand which country is the best choice for your products and order volumes.

Why are importers looking for alternatives to manufacturing in China?

While some importers are looking for suppliers outside of China as a reaction to the ongoing trade war, this is far from the only reason for doing so. Some importers have the assumption that it’s somehow easier to work with suppliers Vietnam, India and elsewhere in Asia - simply because it’s not China.

This is not the case if you ask me, but resulting from the difficulties faced by importers in China - which leads to the assumption that if China is difficult then manufacturing elsewhere must be easier.

Second, it’s a matter of cost.

Yes, wages are lower in Vietnam and India (which is not necessarily a good thing) compared to China. However, this doesn’t translate into cost reductions for smaller buyers. This can be explained by higher logistics and (sometimes) material costs.

Sure, for big brands like Adidas and Uniqlo it can make a difference - but not for smaller buyers.

This is not saying that it doesn’t make sense to source outside of China, but it should be done for the right reasons - and with realistic expectations.

Here are some good reasons why it’s actually worth the effort:

  • Import textiles from China to the US just got significantly more expensive. Buying from suppliers in other countries can help you avoid additional tariffs.
  • There are great suppliers in Vietnam, India, Thailand and the EU that are simply more suitable for certain products.
  • Manufacturing in certain countries makes more sense when it comes to certain materials. This is especially true when planning to manufacture apparel using recycled, sustainable and eco-materials.

 

Europe

Textiles manufacturing is not all about Asia. In fact, we have lost far more customers taking production to Europe, compared to those who have shifted orders to factories in Vietnam, India, Thailand and elsewhere in Asia.

Textiles manufacturers in Portugal and Estonia tend to offer fairly low minimum order quantities, while also allow for more flexibility. This means a lot for brands looking to get a wide range of products - each SKU produced in not more than a few hundred units.

In addition, the EU is also home to world-leading manufacturers of sustainable, recycled and eco-friendly materials. Manufacturing apparel closer to home makes even more sense if you’re looking for such materials.

Advantages

  • Experienced manufacturers
  • Lower MOQs
  • Easier access to eco-friendly and recycled materials

Disadvantages

  • Higher unit cost
  • Harder to find verified suppliers online

 

Vietnam

Vietnam is often quoted as the next China. While that comparison is for historical not very popular among the Vietnamese people, there is some truth to it when it comes to manufacturing.

Exports are booming in Vietnam and the country is home to sophisticated apparel manufacturers.

Vietnam is not in any way new in the game when it comes to textile manufacturing. Instead, many Vietnamese textile factories are highly sophisticated and primarily working with big buyers.

That’s also a problem many small buyers are facing, as Vietnam is not really that small volume friendly. A few months ago I visited a textiles factory based in Ho Chi Minh City to discuss their MOQ requirements.

Indeed, they were happy to offer ‘low volumes’ - starting from ‘only 1000 pcs per color’.

That’s more than most small brands can purchase.

But, there are plenty of great suppliers in Vietnam as long as you can reach the MOQs.

Advantages

  • Sophisticated manufacturers
  • Lower unit costs (for big buyers)

Disadvantages

  • Higher MOQs
  • Harder to find verified suppliers online

 

India

India is the third-largest textiles exporter, after China and the EU. I personally have less first-hand experience working with textile manufacturers in India. However, here are some of the things our customers tell us:

1. Indian suppliers are generally more flexible when it comes to minimum order quantity (MOQ) requirements.

2. Prices are comparable to what they pay when buying from Chinese factories (but without the added tariffs, if you sell in the USA).

3. Indian suppliers are generally easier to communicate with (which doesn’t exactly come as a surprise). This also makes it easier to procure high-quality fabrics, such as GOTS certified organic cloth.

4. However, it can be hard to get a response when sourcing suppliers online. Our impression is that it takes a lot more to get a supplier’s interest.

5. India is not the best choice when manufacturing sportswear and activewear made of synthetic fabrics.

Advantages

  • Sophisticated manufacturers
  • Flexible MOQ (depending on the material)
  • Easier to communicate
  • Lower unit costs
  • You can find suppliers online (IndiaMart.com etc)

Disadvantages

  • It can be hard to get a response when requesting quotations
  • Not the best choice for synthetic materials

 

Thailand

Thailand is by many textiles importers not even considered. However, smaller buyers looking for an alternative to China are far more likely to find a suitable supplier in Thailand, rather than any other country in the region.

1. Textiles manufacturers in Thailand tend to offer lower MOQs. Some suppliers offer MOQs as low as 100 - 200 pcs per design.

2. Some textiles suppliers also offer techpack creation and design services. This is almost unheard of in Mainland China.

3. It can be hard to find suppliers online as there’s no Thailand version of Alibaba. Also, there aren’t that many Thailand based textiles suppliers on Alibaba.com or Globalsources.com for that matter. It’s generally better to attend a trade show if you want to source suppliers in Thailand.

Advantages

  • Flexible MOQs
  • Design services offered
  • Generally small business-friendly

Disadvantages

  • Hard to find suppliers online
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