One question we often encounter is, “Do we source products only from China?” The answer is a resounding “No.” In fact, we have continued to diversify our product sourcing strategy, moving away from exclusive reliance on China. Let’s take a closer look at the trajectory of our sourcing efforts over the past few years.

Approximately two years ago, a mere 10% of our projects involved sourcing from outside of China. However, the sourcing landscape has significantly evolved since then. Today, around 40% to 45% of our projects still originate in China, while the rest come from various locations across the globe.

Driving Diversification:

What propels this diversification in our sourcing strategy? The answer lies in the pursuit of robust and reliable supply chains. Our sourcing now extends to other Asian countries, such as Vietnam, Malaysia, Thailand, Indonesia, and even countries further to the west, including India, Pakistan, and Bangladesh.

Beyond Asia, we have observed a noteworthy trend among our European sellers and brands. There’s a shift away from exclusive production within Europe, the EU, or Turkey. Notably, Africa is emerging as an increasingly appealing production hub. Chinese companies and government initiatives are directing substantial investments into Africa, envisioning it as a manufacturing epicenter, often referred to as ‘China’s China.’

For our U.S. sellers, regions like the Mexican market, South America, and of course, the U.S. and Canada, are emerging as promising sourcing alternatives. But why the move away from exclusive reliance on China for our sourcing efforts?

Challenges and Considerations:

Over the past two years, the global supply chain has encountered a series of disruptions. Factory closures, soaring order backlogs, and shipping challenges, including the notorious Suez Canal blockade, have posed substantial obstacles. These disruptions have underscored the need for diversification to ensure a stable supply chain.

An additional critical consideration, especially pertinent to us in the U.S., is the intricate economic dynamic with China. Since 2018, an ongoing economic standoff has led to the imposition of significant import tariffs, ranging up to 25% or even higher, occasionally peaking at around 47% to 48%. As a consequence, it frequently proves pragmatically beneficial for us to explore sourcing from other Asian countries with lower or even zero import duties. Additionally, we’ve been increasingly drawn to a ‘near-shoring’ approach, where production is situated closer to the U.S., as seen with options like Mexico or South America.

Expansive Sourcing Strategy:

Our sourcing strategy is no longer limited to China; it now encompasses multifaceted locations worldwide. To provide a snapshot of our journey over the past few years, we initially embarked on this path with only 10% of our projects stemming from sources outside of China. At present, around 40% to 45% of our projects still have ties to China, while the remaining projects span the globe.

Feel free to reach out if you require further assistance or additional refinements. We are committed to helping you navigate the evolving landscape of global sourcing, ensuring a stable and efficient supply chain for your business.