Global clothing brands and retailers have been increasingly implementing near-shoring strategies, resulting in a significant rise in demand for inspections and audits in countries like Turkey, while simultaneously leading to a decline in such activities in Bangladesh.
According to a recent report by QIMA, a quality-control company, there has been a noticeable upward trend in the demand for inspections and audits from European buyers in Turkey over the past two years.
The report titled 鈥楺3 2024 Barometer: Halfway into 2024, Global Sourcing is on a See-Saw鈥� said that this trend reflected a broader shift towards near-shoring, driven by the need for shorter lead times, reduced geopolitical risks, and greater supply chain resilience.
In the QIMA鈥檚 2024 sourcing survey, a quarter of European Union-based businesses identified Turkey as one of their top three sourcing partners.
The report noted that inspection and audit demand in Turkey surged by 27 per cent year-on-year during the first half of 2024, compared with that of 15 per cent in 2023.
In contrast, Bangladesh has experienced a decline in the growth rate of inspections and audits.
The QIMA report indicated that the growth rate for such activities in Bangladesh fell to 14 per cent in 2024, down from 17 per cent in the previous year.
Vietnam also saw a decline, with growth dropping to 21 per cent from 27 per cent during the same period, while India experienced static growth at 29 per cent.
The report showed that China鈥檚 manufacturing remained a cornerstone of global supply chains, recording an 81 per cent growth in inspections and audits.
Bangladesh Knitwear Manufacturers and Exporters Association executive president Mohammad Hatem said that export orders from European buyers to Turkey had increased in recent months due to shorter lead times.
He mentioned that many EU buyers and brands preferred Turkey over Bangladesh to avoid risks associated with the Red Sea.
Bangladesh has seen a decline in export orders because mainly of the long lead times and the Red Sea crisis, Hatem said.
He also said that exporters had been unable to accept many orders due to low prices offered by buyers.
Hatem said that issues such as the gas crisis, lack of cooperation from banks and harassment by customs officials contributed to the extended lead times.
The QIMA report said that inspections and audits ordered by German businesses expanded by over 27 per cent year-on-year in Q2 of 2024.
The UK also showed strong demand for China sourcing with a 32-per cent year-on-year growth in inspections and audits.
Meanwhile, US-based buyers took a more measured approach towards China sourcing amid ongoing efforts to 鈥榙e-risk鈥� supply chains in favour of 鈥榝riend-shoring鈥�.
The report showed that demand for inspections and audits in China from American brands and retailers rose by over 13 per cent year-on-year in Q2 of 2024.
This growth spanned various consumer goods categories, including apparel, toys, homewares and electronics, it said.