After a few strong years during the pandemic, e-commerce has started to stumble as many consumers decided to return to stores.

The ongoing conflicts in Ukraine and the Middle East continue to create challenges for global brands, as supply chains are disrupted and political uncertainty threatens an already challenged economy. Meanwhile, a growing number of countries are turning to legislation to hit climate targets and address growing concerns about labour rights.

Fashion sourcing predictions in 2024

Following Just Style’s analysis of the key challenges and opportunities to watch out for in 2024, we’ve asked supply chain experts to share their predictions for the next 12 months and how best to prepare for what lies ahead.

Dr Sheng Lu predicts a gradual shift in 2024

Lu, associate professor at the Department of Fashion and Apparel Studies at the University of Delaware says apparel sourcing is never about abrupt changes. However, fashion companies’ sourcing practices will gradually shift in 2024, in response to the evolving business environment.

He adds: “Besides conventional sourcing factors like costs, speed-to-market and compliance, fashion companies will increasingly emphasise flexibility and agility in vendor selection.

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“One driving factor is economic uncertainty. For example, the World Bank and International Monetary Fund, estimate that the world economy will maintain slow growth of around 2.6-3% in 2024. However, consumer demand for clothing could perform much better than expected.

“Companies need to be ready for all occasions. Likewise, geopolitical tensions, such as the Russia-Ukraine war to the US-China decoupling and the military conflict in the Middle East, could cause severe supply chain disruptions anytime and anywhere.

“Fashion companies need to rely on a more flexible and agile supply chain to address market uncertainties and mitigate unpredictable sourcing risks.

“It will be interesting to see to what extent fashion companies will further reduce their exposure to China. On the one hand, it is no surprise that companies are reducing finished garment sourcing from China as much as possible. However, fashion companies also admit it is difficult to find practical alternatives in the short to medium term.

“Meanwhile, investments from China are flowing into regions considered to be alternative sourcing destination, such as the rest of Asia and Central America. These new investments could complicate the efforts to limit exposure to China and potentially strengthen, not weaken, China’s position in the apparel supply chain.

“Regulations could affect fashion companies’ sourcing practices in 2024, particularly in sustainability-related areas. Fashion companies already have to deal with increasingly complex legal requirements to achieve sustainability – such as the enforcement of the Uyghur Forced Labour Prevention Act’s impact on recycled cotton. More than ever, fashion companies’ sourcing and legal sustainability teams may need to work even more closely to ensure that ‘sustainable apparel’ is available to consumers.”

Alice Cowley urges the sector to be prepared for ongoing global tensions

Cowley, managing director at Accenture’s UK retail industry practice notes it’s important that apparel firms continue to look at diversifying their supplier base but work towards a more focused supplier portfolio.

She explains: “China remains one of the biggest importers, but Bangladesh, India, Cambodia and Sri Lanka are increasing their share, as well as nearer shore alternatives in Eastern Europe and Africa.

“Ongoing tensions mean apparel retailers should have the ability to run scenarios and respond to rapid changes. As well as diversifying their supply chains, fashion retailers will need to continue to respond to the need for more agility in newness, while building their long-standing, traditional relationships for items that form part of their continuous assortment.

“Outside of geopolitical changes, apparel firms must continue to embrace sustainability in their sourcing strategy. More than ever, companies are being tasked with reporting on sustainability KPIs with new regulatory and reporting requirements coming into effect.

“If they are to remain competitive and resilient in 2024 and beyond, apparel companies and suppliers must have an ongoing and open dialogue. This transparency is fundamental to building loyal foundations for successful partnerships.

Lean inventory is key points out Stanley Szeto

Szeto, executive chairman at Lever Style highlights that an increasingly unpredictable world means brands need to keep their inventory lean to adapt to fickle consumer demand.

He says: “It calls for supply chains that can flexibly accommodate low volume production for test orders, quick response for immediate replenishment and the ability to easily change countries of origin to address shifting geopolitics.

“The days of chasing the lowest Free on Board (FOB) cost and putting up with long lead times and large minimum order quantities (MOQs) are over.”

Gerd Willschütz suggests adopting new technological tools in 2024

Willschütz, COO and co-founder at DMIx by ColorDigital GmbH believes the 2024 apparel sourcing landscape is set to be defined by digital transformation, sustainability imperatives and resilient supply chains.

He states: “In the wake of the pandemic, embracing digital platforms that facilitate seamless collaboration and production optimisation will all be crucial.

“Competitiveness will hinge on the integration of digital product creation (DPC) tools. Transitioning to digital material handling and 3D design will enable firms to shorten time-to-market, slash costs and quickly adapt to shifting consumer demands. A particularly accessible opportunity lies in digital colour communication and quality management, where established workflows and standard offer significant cost and time benefits.

“Global crises and their socio-economic impacts, balancing sustainability with quality and market unpredictability are pressing concerns. Keeping abreast of consumer trends towards ethical fashion, tech innovations and the geopolitical landscape is critical.

“Apparel firms must prioritise flexible sourcing, predictive analytics and strong, respectful supplier partnerships. Cultivating a culture that swiftly and efficiently adopts technology, while aligning with industry standards is non-negotiable.

“By 2024, the frontrunners will be those with data-driven, transparent supply chains and a mastery of tech to boose efficiency and sustainability. The ability to nimbly respond to consumer trends will further define success. Conversely, those resistant to the urgency of digital and sustainable shifts in the apparel industry will lag behind.”

Fashion sourcing executives must restructure the global supply chain argues Michael Colarossi

Colarossi, vice-president, innovation, product line management and sustainability, apparel solutions at Avery Dennison explains the pandemic and the subsequent supply chain disruptions have forced a re-evaluation of the conventional notion of “global supply chains”.

He points out: “Faced with regional tensions and uncertainties, there’s a discernible shift towards regional supply chains that goes beyond an immediate response to challenges and signifies a broader restructuring driven by the need for resilience in the wake of unforeseen global events.

“The trend for transparency will only accelerate, driven not only by the evolving landscape of customs regulations, but also new legislation, digital product passports and the rising expectations of consumers. The shift is not merely a trend, but represents a fundamental change in the way businesses operate, aligning with an increasingly ethical and environmentally-conscious consumer base.

“Businesses that proactively adapt to these trends are likely to thrive in this evolving landscape, where resilience, adaptability and transparency emerge as defining factors in the success of global players.”

Rick Horwitch predicts sourcing in 2024 could be more challenging than ever

Following discussions with sourcing executives in the US, Europe and Asia, Horwitch, who is chief of supply chain and sustainability strategy at Bureau Veritas Consumer Products Services, does not believe there will be any significant shifts in the sourcing landscape in 2024.

He says: “Based on movement away from China, regional nearshoring will continue, especially in India – for both domestic and exports. This does not mean 2024 will be a quiet year. In fact, 2024 will be as challenging than previous years, if not more so.”

Opposing forces will tug at brands’ sourcing structures in 2024 suggests Matthijs Crietee

Although often not the best strategy, adverse market conditions will drive some brands and retailers to increase their share of sourcing from countries with the lowest wages, argues Crietee, secretary general at International Apparel Federation (IAF).

He adds: “On the other hand, the need for shorter lead times will drive sourcing towards countries closer to the world’s major markets.

“Uzbekistan will grow from its strong raw materials base and opportunities in West Africa will be further developed. But generally, the appetite for new entrants to the global production systems is limited.

“In 2024, the pivotal role of garment manufacturers in improving the business performance of their clients will become more visible. Rather than just looking at productivity increases, we will be looking at a manufacturer’s ability to deliver products that the end consumer desires. Sometimes brands and manufacturers will need to pay suppliers more to obtain the products that make more money on the shop floor.

“Reducing the risk of disruption in supply chains will be important in 2024, but I also expect sourcing strategy to encompass process innovation, creating new and more constructive dynamics in supply chains, ideally breaking us out of the low price trap.”

2024 will see the generational sourcing shift continue says Stephen Lamar

American Apparel and Footwear Association (AAFA) president Lamar highlights: “We are in the midst of a generational sourcing shift, where brands and retailers are diversifying from traditional suppliers to build stronger relationships with trusted partners who share their values. This will continue in 2024.