Product sourcing is about striking a balance between speed, quality, and pricing, to meet the exacting demands of consumers. While many hard goods, ranging from consumer electronics to furniture, are still being sourced overwhelmingly from China, apparel and footwear production is widely dispersed and more mobile. Preferential trade terms have boosted exports from Cambodia and Bangladesh to the European Union, while Indonesia has tended to be a more popular sourcing destination for Japanese and North American buyers.
Countries in South and Southeast Asia should continue to attract interest as China relinquishes its position as the world's manufacturer of low-cost goods. With minimum wage levels up to four times higher than those in othe rparts of South and Southeast Asia, China can no longer compete on a low-wage basis, although evidently it can still defend its position in many categories where it maintains an edge through productivity and the reliability of its infrastructure.
Click here to download the full report for further insights (PDF 2.53 MB)