After months of focusing almost solely on US tariffs, the industry now has a challenge on its doorstep.  Capacity shortages in Cambodia and Vietnam (where so many orders moved as brands looked to ‘derisk’ from China) have caused prices to surge – and brands to literally scramble to find space.  Lead times are longer. MOQs are a lot less flexible.  And that’s if you’re lucky enough to find capacity.  

Unlike the tariffs, this impacts all brands sourcing in those countries.

Having committed to reducing sourcing in China (or in some cases a ‘no China’ policy), brands are now facing an uncomfortable situation of having to accept a less-than-desirable situation in Vietnam and Cambodia – or go to a different country.