Regular Covid outbreaks in China are adversely impacting the global textile and apparel supply chain. Industry experts warn that this could result in production delays and factory closures.
The Omicron variant of the Covid virus ravaging several big cities in China.
According to figures from the Financial Times, more than half the 22m population is infected. It has resulted in disruption across industries in China resulting in staff shortages, logistic jams, and causing supply chain disruptions.
When Covid-19 first broke out in China in early 2020, garment-exporting countries in Asia struggled to get enough raw textile materials as China was their top supplier.
The same situation has been repeated after each new outbreak and could happen again after a new attack.
This has created uncertainties for fashion brands and retailers that are accelerating their “China exit” strategy.
Experts say that the uncertainty that exists within China has contributed to sourcing strategies closer to consuming markets, as witnessed in a revival of sourcing in the Western Hemisphere and in support of the US retail market.
The Omicron outbreak has brought forward the annual movement of more than 290m migrant workers from the coastal provinces back to poorer regions in the west, which occurs ahead of the festive period.
