Presentation Summary
As U.S. fashion companies continue to expand into emerging markets, including many non-Asian countries (e.g., Jordan, Egypt), this presentation discusses the strengths and limitations of these emerging sourcing destinations compared with mature supplying countries (e.g., China and Vietnam).
Leveraging the latest macro-U.S. trade statistics and product-level data running from Jan to Oct, 2026, several interesting patterns were found:
First, despite declining market share and fashion companies’ ongoing sourcing diversification, mature sourcing destinations, especially China, continue to demonstrate notable strengths in supplying a much wider variety of apparel products, as measured by the number of Stock Keeping Units (SKUs).
Second, emerging sourcing destinations mostly supply the mass and value market segments, likely because U.S. fashion companies face growing sourcing cost pressure amid tariff hikes. In comparison, a substantial share of US apparel imports from China and Vietnam already target luxury and premium market segments.
Third, U.S. fashion companies commonly source certain product categories from emerging sourcing destinations, such as Cambodia for tops, Jordan for T-shirts, tops, and bottoms, Egypt for tops and bottoms, and Sri Lanka for swimwear and underwear. In comparison, mature sourcing destinations like China and Vietnam can supply all major product categories. In particular, emerging sourcing destinations still have limited capacity to supply relatively more complex product types, including dresses and outerwear.
Similarly, US apparel imports from mature sourcing destinations demonstrate more diversity in fiber content. In comparison, US apparel imports from most emerging sourcing destinations often have gaps in the use of specific fibers, especially beyond cotton and basic polyester. This may reflect more advanced local textile manufacturing capacity in mature sourcing destinations.
Additionally, according to the 2026 USFIA benchmarking study, surveyed fashion companies mostly view emerging sourcing destinations as cost-competitive. Meanwhile, these countries still lag in speed to market, flexibility, agility, and minimum order quantity.
Overall, the findings raise some interesting trends to watch.
One is that mature sourcing destinations will remain highly relevant and could be used more strategically by leveraging their advantages in supplying a wider range of products and adjusting orders more easily. In other words, mature suppliers may no longer dominate sourcing volume, but they remain indispensable strategic partners.
Second, U.S. fashion companies could consider where to invest in emerging sourcing destinations further. Beyond expanding existing production capacity, there may be growing opportunities to diversify product offerings, strengthen local textile manufacturing, and develop capabilities to serve higher-value market segments.
Third, the next phase of sourcing diversification may be driven by a broader set of competitiveness factors. As emerging sourcing destinations gain importance and the global business landscape continues to evolve, it will be interesting to see how U.S. fashion companies balance conventional sourcing factors, such as cost and speed to market, with emerging priorities, such as trade compliance capabilities and regional balancing in sourcing.
By Sheng Lu
Note: The presentation was delivered at the 2026 Apparel Importers Trade and Transportation Conference co-hosted by the United States Fashion Industry Association and the Fashion Institute of Technology (FIT) in New York City.
