Nowadays home textiles are produced all over the world. From sustainable, premium, or recycled materials, buyers have access to all types of suppliers. Still, it´s hard to choose a manufacturer that produces consistently according to every requirement.
Countries like China represented 43.5% of Textile exportations worldwide in 2020. The huge amount of workforce and ability to offer fair quality/pricing has led China to be the first choice of many buyers since the end of the ATC in 2005.
However, in the last couple of years, things have changed, especially since COVID-19 appeared.
What is changing?
1-Increase in inflation and salary in Asia:
According to Morgan Stanley, Asia’s average inflation peaked at 5.5%. Adding to that, workers are earning 530$ per month according to China Labor Bulletin.
2- Cost and delays with shipping:
It costs around 9443.11€ to ship a 40-foot container from China to the UK and it takes between 20-25 days to arrive, according to movehub.
3- COVID 19 in China
China is constantly putting areas in isolation due to Covid 19. This damages the supply chain, as people aren't able to work, which increases the probability of orders being delayed.
Conclusion
Does this mean it´s not worth buying from China? Depends on what buyers are looking for and the risk they are willing to take. Some continue to buy and others decided to change and start working with countries like Portugal.
Although doens´t have the same workforce as China, Portugal offers a great service, quality, pricing, and faster shipping to Europe for instance. For example, sending a 40 feet Container from Portugal to the UK costs around 3750€ and takes 9-11 days to arrive.
Looking for a textile supplier that won´t disappoint you? At Luren, we help you find the one that fits your needs.