Global apparel retailers are better positioned for supply chain diversification
Companies across various sectors are increasingly shifting manufacturing away from China in an effort to reduce vulnerability and exposure to rising labor costs. The risks associated with these diversification strategies, however, have proven costly for some.
Research from Moody’s finds that large global apparel companies may fare the best when diversifying as they are relatively well-positioned to cope with increased costs and compliance requirements. Discount brands and smaller companies with low margins and high reliance on emerging markets face a costlier uphill battle.
