Near-shoring is likely to be a key purchasing factor


near-soaringMcKinsey surveyed industry executives and sourcing teams at leading international apparel brands. Nearly 79 per cent said near-shoring is likely to be a key purchasing factor for mass-market apparel consumers by 2025. According to the research by McKinsey suggests near-shoring of apparel production will soar as automation and rising labor costs in Asia add up to production costs of apparels. The report suggests sustainability is a key factor in executive decision making on this issue. Consumers are becoming increasingly aware of the environmental impact of the traditional linear apparel production modes, and the public outcry concerning overstock liquidation is becoming louder. The report also points out that while brands shifted production to Asia en masse two decades ago, the benefits of producing far away are becoming outweighed by the costs.