Why Is Asia The Best for Importing Textiles, Garments, and Footwear to Australia?

Demand for textile, clothing, and footwear in Australia

Although Australia produces textiles and garments locally, the industry has declined in recent years due to high labour costs, competition from overseas manufacturers, and changing consumer preferences.

According to the Australian Bureau of Statistics (ABS), the textile, clothing, and footwear manufacturing industry had approximately 37,500 workers in 2019, down from a peak of roughly 98,000 in the early 1980s.

Although this sector in Australia focuses on manufacturing high-quality, specialised products that frequently employ environmentally friendly and domestically sourced materials, the industry is relatively small, accounting for less than 5% of entirely produced garments in Australia, and is encountering significant challenges in the face of less expensive imported products.

Why is Asia the ideal solution?

Asia is often considered the best place for sourcing textiles, garments, and footwear for several reasons:

1. Cost-Effective: Asian countries such as China, Vietnam, Bangladesh, and India have lower labour and production costs than many other regions, making sourcing from these countries cost-effective for businesses.
2. Skilled Labor: Most Asian nations have a long history and tradition of textile and garment production, resulting in a skilled and experienced workforce that can produce high-quality products.
3. Large-scale Production: The large population (e.g. India, China, Vietnam), combined with the availability of low-cost labour and infrastructure, allows for mass production.
4. Access to Materials: Many Asian countries have easy access to raw materials such as cotton, silk, and leather, making it easier to source these materials locally to save costs.
5. Industry Cluster: Countries famous for manufacturing, like China, Vietnam, and India, have developed industry clusters where manufacturers, suppliers, and related businesses are located in close proximity, creating a well-established supply chain and logistics.
6. Technology Advancements: Knowing the above competitive advantages, Asian suppliers have also invested significantly in technology and innovation to upgrade their manufacturing processes, resulting in higher efficiency, accuracy, and quality.
7. Competitive Logistics: With a strategic location like China and Vietnam, it is highly convenient for shipping to Australia and other parts of the world by air freights and sea shipping.

These factors make Asia an attractive sourcing destination for textiles, garments, and footwear, offering a cost-effective and efficient supply chain that can produce high-quality products on a large scale.

Here are some noteworthy facts about the export of textiles, garments, and footwear from Asia:

1. According to the World Trade Organization (WTO), Asia was the world’s largest exporter of textiles and clothing in 2020, accounting for 61.4% of global textile exports and 63.8% of global clothing exports.
2. China remained the world’s largest exporter of textiles and clothing in 2020. China’s textile exports were valued at $267.2 billion, while clothing exports were valued at $133.4 billion, accounting for 37.8% and 30.6% of global exports, respectively.
3. Vietnam continued to be the world’s third-largest exporter of textiles and clothing in 2020. Vietnam’s textile exports were valued at $36.2 billion, while clothing exports were valued at $30.3 billion, accounting for 5.1% and 6.9% of global exports, respectively.
4. Regarding footwear exports, Asia was also the world’s largest exporter in 2020, accounting for 85.9% of global footwear exports. China was the largest footwear exporter, with exports valued at $48.8 billion, followed by Vietnam, with exports valued at $20.2 billion.
5. Also, most global brands like Nike and Adidas have contracts with domestic suppliers in China, Vietnam, India, and Bangladesh.

What to concern about when sourcing from Asia?

While Asia presents a promising sourcing destination, locating reliable suppliers can be challenging. When sourcing from Asia, buyers should consider the following key points.

Supplier verification

Finding the right supplier is essential to any successful product. There are several reasons why it is essential to trust a supplier:

• Allows to legally conform to compliances without the added stress of whether the supplier has fabricated any documents.
• Ensures no wasted resource in procurement if the supplier is then found to be fraudulent mid-production.
• Ensures there are no negative connotations with being associated with a fraudulent supplier.

The significance of carefully selecting suppliers becomes evident as it can have not only financial implications but also impact the reputation of your brand or company.

ESG compliance

As the climate becomes more unpredictable, and the COVID-19 pandemic and other socioeconomic events continue to have consequences, organisations must prioritise Environmental, Social, and Governance (ESG) considerations, especially when exporting to some developed countries where ESG is mandatory.

Your suppliers must fulfil all required social and ethical compliance, such as child labour laws, safety and health, minimum wage, etc.

It is also crucial that your suppliers’ production strictly follows the environmental protection laws and energy efficiency.

ESG compliance will help to enhance your brand image and reputation in the market, giving you a solid competitive advantage to be outstanding from your competitors. Hence, make sure your suppliers can achieve these requirements.

Quality standards

Quality, without a doubt, is the key factor in selecting a supplier. It is vitally important to ensure all quality standards and criteria are fulfilled. Various quality inspections and product testing processes are requested to guarantee that suppliers will strictly follow quality benchmarks and buyer guidelines. Furthermore, the quality here is not only about the product but also the entire production and shipment to secure flawlessly finished goods delivered successfully to customers.

Hence, it is about the quality of the supply chain, including supplies, production, packaging, loading and unloading, shipping, etc.

How to manage the quality assurance of your products in Asian countries?

While many companies in western countries, such as Australia, New Zealand, and Singapore, have shifted their production to Asia to take advantage of its competitive benefits, this comes with the challenge of managing geographically distant production and, therefore, less supervision.

Typically, brands use a third-party’s help to ensure quality control when sourcing from Asia. Hiring a professional and accredited quality inspection service provider can help manage a part or the entire supply chain, which is often more cost-effective than an in-house team that may lack the necessary manpower, expertise, and experience to handle quality control.

With over 25 years in business serving thousands of customers worldwide, HQTS is an internationally qualified and accredited third party that is fully capable of solving your concerns in quality control. We can help to verify suppliers, audit their factory and compliance, and ensure the quality of the products to meet your requirements.

Contact us now for enthusiastic and professional consultancy.