Rapid wage inflation means China's textile industry, which accounts for over two-thirds of Australia's clothing imports, is no longer as viable as it once was. Manufacturers are being forced to adapt in ways that will have a direct and indirect impact on Australian businesses.
" With up to 70 per cent of Australia's retailers now sourcing directly from overseas, understanding the upstream dynamics have never been so important."
Mark Ganz, Director, Client Insights & Solutions, ANZ
As shown in the exclusive infographic below, emerging Asian markets including Indonesia, Vietnam, Bangladesh and Cambodia are becoming destinations for business. None of these countries were being considered as sourcing locations two years ago, highlighting how quickly the market is evolving and how important it is to understand the region.
For an industry increasingly reliant on direct sourcing of products from overseas, retailers which outperform over the next decade will not only have the right product mix, store footprint and customer engagement model but they will also exhibit best practice risk management behaviour and will fluently manage both their physical and financial supply chain.