{"id":105474,"date":"2024-10-02T08:40:43","date_gmt":"2024-10-02T06:40:43","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=105474"},"modified":"2024-12-09T16:37:48","modified_gmt":"2024-12-09T15:37:48","slug":"how-to-decide-if-nearshoring-is-the-right-strategy-for-fashion-brands","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/is-nearshoring-a-suitable-strategy-for-your-fashion-brand\/","title":{"rendered":"Is nearshoring a suitable strategy for your fashion brand?"},"content":{"rendered":"<p>&nbsp;<\/p>\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p><span class=\"TextRun SCXW214393170 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW214393170 BCX8\">Fashion brands are increasingly relocating their manufacturing operations from Asia to North Africa and regions closer to their primary markets.<strong> The Mediterranean region, including Egypt, Tunisia, and Morocco, now drives over 8% of European procurement<\/strong>, <\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">showcasing<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\"> the powerful impact of nearshoring strategies<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">\u00b9<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">. Meanwhile, in North America, more than <strong>90% of companies have adjusted their supply chains to mitigate risks<\/strong><\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">\u00b2<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">, with Mexico <\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">emerging<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\"> as a key nearshoring hub. According to BCG research<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">\u00b3<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">, executives are willing to sacrifice more than 2% of their gross margins to secure reliable <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW214393170 BCX8\">labor<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">, shorter lead times, and stronger <\/span><span class=\"NormalTextRun SCXW214393170 BCX8\">logistics<\/span><span class=\"NormalTextRun SCXW214393170 BCX8\"> infrastructure. This shift, driven by logistical advantages, sustainability concerns, and evolving consumer preferences, is reshaping the global fashion supply chain landscape.<\/span><\/span><span class=\"EOP CommentStart SCXW214393170 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>3 convincing arguments for nearshoring<\/h2>\n<div class=\"tabs backgroundTwo componentPadding\" is=\"block-tabs\">\n  <div class=\"container\">\n    \n    <div class=\"tabs-thumbs\">\n              <button type=\"button\" class=\"tabs-thumbs-item trigger active\">\n          \n        <\/button>\n              <button type=\"button\" class=\"tabs-thumbs-item trigger\">\n          \n        <\/button>\n              <button type=\"button\" class=\"tabs-thumbs-item trigger\">\n          \n        <\/button>\n          <\/div>\n\n    <div class=\"tabs-slider swiper-container\" data-swiper>\n      <div class=\"swiper-wrapper\">\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p><span data-contrast=\"auto\">Countries like <strong>Egypt, Tunisia, Morocco, Turkey, and even parts of Eastern Europe are emerging as key nearshoring destinations<\/strong><\/span><strong> for fashion brands<\/strong><span data-contrast=\"auto\">. These regions offer <strong>significant geographical advantages <\/strong><\/span><strong>and better access to raw material <\/strong><span data-contrast=\"auto\">compared to traditional manufacturing hubs in Asia. The closer proximity to Europe, for example, enables brands to benefit from shorter lead times, allowing them to quickly respond to shifting consumer demands while minimizing the risk of holding obsolete stock and outdated collections. <\/span><span data-contrast=\"auto\">Additionally, sourcing raw materials like cotton and leather becomes more reliable, as brands face fewer dependencies on long, complex transportation networks, reducing intermediaries and simplifying inventory management.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\"><strong>Shorter transit times further enhance inventory management by reducing the need for large stockpiles.<\/strong> The increased use of road freight, as opposed to large container shipments, allows for more flexible optimization, whether partial or full loads. This agility enables companies to maintain<strong> leaner, more responsive supply chains\u2014critical in the fast-paced fashion industry<\/strong>, where trends shift rapidly and adaptability is key.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/09\/india.png\" alt=\"\" width=\"568\" height=\"382\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p><span data-contrast=\"auto\">Today&#8217;s consumers are more environmentally conscious than ever, with nearly <strong>every second person considering environmental responsibility to be of significant importance when making purchasing decisions<\/strong>. This shift in consumer preferences is pushing fashion brands to adopt more sustainable practices.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">By relocating production to regions closer to their primary markets, companies can <strong>reduce their carbon footprint<\/strong>. Shorter shipping distances mean lower emissions, and sourcing materials locally further minimizes environmental impact. For instance, brands nearshoring to Turkey or Morocco can leverage regional resources, thereby reducing their reliance on long, environmentally taxing supply chains.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2022\/06\/esg-kritieren-768x201.jpg\" alt=\"\" width=\"768\" height=\"201\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n                  <div class=\"swiper-slide\">\n            <div class=\"tabs-slider-content\">\n                              <div class=\"tabs-slider-content-text\">\n                  <p><span data-contrast=\"auto\">The fashion industry is not immune to the broader geopolitical and economic trends affecting global markets. Increasing geopolitical tensions, high market volatility, and changing customer requirements are prompting brands to <strong>rethink their sourcing strategies<\/strong>. The COVID-19 pandemic highlighted the <strong>vulnerabilities of relying on distant suppliers<\/strong>, especially in Asia, where lockdowns and shipping disruptions severely impacted the supply chain.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">More recently, geopolitical instability in the Red Sea region has caused significant <strong>increases in lead times<\/strong>, with shipments from China to Europe facing delays of an additional 10 to 20 days. As a result, some carriers are now bypassing the Suez Canal in favor of the longer route around the Cape of Good Hope,<\/span> <span data-contrast=\"auto\">at the southern tip of Africa.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In response, many brands are <strong>adopting a &#8220;de-risking&#8221; strategy, diversifying their production across multiple regions to reduce dependency on any single source<\/strong>. Nearshoring to North Africa, Turkey, and Eastern Europe is a key component of this strategy, offering a <strong>balance of cost-efficiency, supply chain resilience, and speed to market.<\/strong><\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n\n                <\/div>\n                            \n                              <div class=\"tabs-slider-content-image\">\n                  <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/09\/fashion-luxury.png\" alt=\"\" width=\"450\" height=\"450\" class=\"img-fluid\" \/>\n                <\/div>\n                          <\/div>\n          <\/div>\n              <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n<h2><span class=\"TextRun SCXW11723039 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW11723039 BCX8\">Nearshoring \u2013 No\u00a0<\/span><span class=\"NormalTextRun SCXW11723039 BCX8\">one-size-fits-all approach<\/span><\/span><\/h2>\n<div class='container  py-3'><\/div> <div class=\"row \"><\/div><div class=\"col-lg-12\"><\/div>\n<div is=\"tab-content\">\n    <div class=\"tabs responsive-tabs container is-style-leading_numbers overflow-visible\">\n        <div class=\"row \">\n            <div class=\"col-md-4 navContainer\">\n                <ul class=\"nav nav-tabs-02\" role=\"tablist\">\n                                            <li class=\"nav-item\" role=\"presentation\">\n                                                            <div class=\"bg-circle \"\n                                                                                style=\"background-color: #004146\"\n                                                                    >\n                                                                            1\n                                                                    <\/div>\n                                                        <button class=\"trigger-button active\" id=\"btn-tab-1-0\" data-bs-toggle=\"tab\" data-bs-target=\"#tab-1-0\" type=\"button\" role=\"tab\" aria-selected=\"true\">\n                                <span class=\"trigger-button-title\">Fast Fashion<\/span>\n                            <\/button>\n                        <\/li>\n                                            <li class=\"nav-item\" role=\"presentation\">\n                                                            <div class=\"bg-circle \"\n                                                                                style=\"background-color: #004146\"\n                                                                    >\n                                                                            2\n                                                                    <\/div>\n                                                        <button class=\"trigger-button\" id=\"btn-tab-1-1\" data-bs-toggle=\"tab\" data-bs-target=\"#tab-1-1\" type=\"button\" role=\"tab\" aria-selected=\"true\">\n                                <span class=\"trigger-button-title\">Mass Market<\/span>\n                            <\/button>\n                        <\/li>\n                                            <li class=\"nav-item\" role=\"presentation\">\n                                                            <div class=\"bg-circle \"\n                                                                                style=\"background-color: #004146\"\n                                                                    >\n                                                                            3\n                                                                    <\/div>\n                                                        <button class=\"trigger-button\" id=\"btn-tab-1-2\" data-bs-toggle=\"tab\" data-bs-target=\"#tab-1-2\" type=\"button\" role=\"tab\" aria-selected=\"true\">\n                                <span class=\"trigger-button-title\">Premium<\/span>\n                            <\/button>\n                        <\/li>\n                                    <\/ul>\n            <\/div>\n            <div class=\"col-lg-8 col-xl-7\">\n                <div id=\"tab-1--tabContent\" class=\"tab-content tab-content-type-02\" role=\"tablist\">\n                                            <div class=\"tab-pane fade card show active\" id=\"tab-1-0\" role=\"tabpanel\" aria-labelledby=\"btn-tab-1-0\">\n                            <div class=\"card-header\" role=\"tab\" id=\"heading-tab-1-0\">\n                                <button class=\"trigger-button trigger-button--icon\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-tab-1-0\" aria-controls=\"collapse-tab-1-0\" aria-expanded=\"true\">\n                                                                            <div class=\"bg-circle \"\n                                                                                                style=\"background-color: #004146\"\n                                                                                        >\n                                                                                            1\n                                                                                    <\/div>\n                                                                        <span class=\"trigger-button-title\">Fast Fashion<\/span>\n                                    <i class=\"icon icon-arrow-right\"><\/i>\n                                <\/button>\n                            <\/div>\n                            <div id=\"collapse-tab-1-0\" class=\"collapse show\" data-bs-parent=\"#tab-1--tabContent\" role=\"tabpanel\" aria-labelledby=\"heading-tab-1-0\">\n                                <div class=\"card-body\">\n                                    <div class=\"inner\">\n                                    \n                                                                            <p><span class=\"TextRun SCXW267415286 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">Brands that thrive on rapidly bringing <\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">new trends<\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\"> to market, such as <\/span><\/span><span class=\"TextRun SCXW267415286 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">a <\/span><strong><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">Zara and H&amp;M<\/span><\/strong><\/span><span class=\"TextRun SCXW267415286 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">, are at the forefront of the nearshoring trend. By moving production closer to their target markets, these brands can significantly <strong>reduce lead times, allowing them to quickly adapt to changing consumer preferences.<\/strong> For instance, <\/span><\/span><span class=\"TextRun SCXW267415286 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">Asos<\/span><\/span><span class=\"TextRun SCXW267415286 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\"> has increased sourcing from <\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\">Turkey<\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW267415286 BCX8\"> and Morocco, particularly for their trend-led, seasonal lines. This shift helps them avoid the longer lead times and inflated costs associated with shipping from Asia.<\/span><\/span><\/p>\n\n                                                                        <\/div>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                                            <div class=\"tab-pane fade card \" id=\"tab-1-1\" role=\"tabpanel\" aria-labelledby=\"btn-tab-1-1\">\n                            <div class=\"card-header\" role=\"tab\" id=\"heading-tab-1-1\">\n                                <button class=\"trigger-button trigger-button--icon\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-tab-1-1\" aria-controls=\"collapse-tab-1-1\" aria-expanded=\"false\">\n                                                                            <div class=\"bg-circle \"\n                                                                                                style=\"background-color: #004146\"\n                                                                                        >\n                                                                                            2\n                                                                                    <\/div>\n                                                                        <span class=\"trigger-button-title\">Mass Market<\/span>\n                                    <i class=\"icon icon-arrow-right\"><\/i>\n                                <\/button>\n                            <\/div>\n                            <div id=\"collapse-tab-1-1\" class=\"collapse\" data-bs-parent=\"#tab-1--tabContent\" role=\"tabpanel\" aria-labelledby=\"heading-tab-1-1\">\n                                <div class=\"card-body\">\n                                    <div class=\"inner\">\n                                    \n                                                                            <p><span class=\"TextRun SCXW166415392 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW166415392 BCX8\">For brands focusing on providing affordable everyday wear, like <\/span><\/span><strong><span class=\"TextRun SCXW166415392 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW166415392 BCX8\">GAP and C&amp;A<\/span><\/span><\/strong><span class=\"TextRun SCXW166415392 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW166415392 BCX8\">, the primary goal is to <strong>mitigate risks associated with trade policies and supply chain disruptions<\/strong>. <strong>By diversifying their sourcing regions to include North Africa and other nearby areas, these brands can ensure continuity in production without compromising on cost.<\/strong> For example, <\/span><\/span><strong><span class=\"TextRun SCXW166415392 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW166415392 BCX8\">Decathlon<\/span><\/span><\/strong><span class=\"TextRun SCXW166415392 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW166415392 BCX8\"> recently reversed its trend of relying on Asian suppliers, returning to Moroccan and Tunisian manufacturers to meet environmental and logistical demands.<\/span><\/span><\/p>\n\n                                                                        <\/div>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                                            <div class=\"tab-pane fade card \" id=\"tab-1-2\" role=\"tabpanel\" aria-labelledby=\"btn-tab-1-2\">\n                            <div class=\"card-header\" role=\"tab\" id=\"heading-tab-1-2\">\n                                <button class=\"trigger-button trigger-button--icon\" type=\"button\" data-bs-toggle=\"collapse\" data-bs-target=\"#collapse-tab-1-2\" aria-controls=\"collapse-tab-1-2\" aria-expanded=\"false\">\n                                                                            <div class=\"bg-circle \"\n                                                                                                style=\"background-color: #004146\"\n                                                                                        >\n                                                                                            3\n                                                                                    <\/div>\n                                                                        <span class=\"trigger-button-title\">Premium<\/span>\n                                    <i class=\"icon icon-arrow-right\"><\/i>\n                                <\/button>\n                            <\/div>\n                            <div id=\"collapse-tab-1-2\" class=\"collapse\" data-bs-parent=\"#tab-1--tabContent\" role=\"tabpanel\" aria-labelledby=\"heading-tab-1-2\">\n                                <div class=\"card-body\">\n                                    <div class=\"inner\">\n                                    \n                                                                            <p><span class=\"TextRun SCXW123007726 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">High-end brands that prioritize quality and <\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">craftsmanship<\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">, such as <\/span><\/span><strong><span class=\"TextRun SCXW123007726 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">Michael Kors and Coach<\/span><\/span><\/strong><span class=\"TextRun SCXW123007726 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">, often nearshore to regions like Portugal or Italy, where <\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">there is a strong tradition of <\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">craftsmanship<\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">. This strategy allows them to <\/span><strong><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">maintain<\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\"> their brand prestige while also <\/span><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">benefiting<\/span><\/strong><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\"><strong> from the efficiencies of closer production.<\/strong> A prime example is <\/span><\/span><strong><span class=\"TextRun SCXW123007726 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">Veja<\/span><\/span><\/strong><span class=\"TextRun SCXW123007726 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun CommentHighlightClicked SCXW123007726 BCX8\">, which has moved production of its bestselling styles to Portugal to serve the European market more efficiently while ensuring the highest standards of quality.<\/span><\/span><\/p>\n\n                                                                        <\/div>\n                                <\/div>\n                            <\/div>\n                        <\/div>\n                                    <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2>4 steps to help decide if nearshoring is right for you<\/h2>\n<p><span class=\"TextRun SCXW117493212 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/smi-12\/nearshoring-resilient-supply-chains-through-regionalization\/\"><span class=\"NormalTextRun CommentStart CommentHighlightPipeRestV2 CommentHighlightRest SCXW117493212 BCX8\">Nearshoring<\/span><\/a><span class=\"NormalTextRun CommentHighlightRest SCXW117493212 BCX8\">\u00a0is not merely a passing trend but a strategic imperative in today\u2019s rapidly evolving market<\/span><span class=\"NormalTextRun CommentHighlightRest SCXW117493212 BCX8\">. <\/span> <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/nearshoring-study-results-2023\/\"><span class=\"NormalTextRun SCXW117493212 BCX8\">Nearshoring<\/span><\/a><span class=\"NormalTextRun SCXW117493212 BCX8\">\u00a0is designed to help fashion brands <strong>navigate the complexities of <\/strong><\/span><strong><span class=\"NormalTextRun SCXW117493212 BCX8\">relocating<\/span><span class=\"NormalTextRun SCXW117493212 BCX8\"> production closer to their primary markets. <\/span><\/strong><span class=\"NormalTextRun SCXW117493212 BCX8\">There are four phases <\/span><span class=\"NormalTextRun SCXW117493212 BCX8\">to the <\/span><span class=\"NormalTextRun SCXW117493212 BCX8\">decision-making process<\/span><span class=\"NormalTextRun SCXW117493212 BCX8\"> that you need to<\/span><span class=\"NormalTextRun SCXW117493212 BCX8\"> tailor to your brand&#8217;s unique needs, ensuring a smooth and successful transition.<\/span><\/span><span class=\"EOP SCXW117493212 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p><\/div><\/div><\/div>\n    <div class=\"container py-3\">\n        <div class=\"row\">\n                        <ul class=\"process-list-leading-numbers\" style=\"background-color:#ffffff;\">\n                \n                                            <li class=\"animate-inview\" style=\"border-color: #a0d60a;color: #ffffff;\">\n                            <div style=\"color:#282828;\">\n                                <h3><strong><span style=\"color: #004146;\">1. Supply Chain Assessment<\/span><\/strong><\/h3>\n<p><span class=\"NormalTextRun SCXW190460937 BCX8\">S<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">tart by thoroughly<strong> analysing your current supply chain<\/strong>, pinpointing potential risks and areas for improvement. <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">Conduct <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">your analysis<\/span><strong><span class=\"NormalTextRun SCXW190460937 BCX8\"> at the category level<\/span><\/strong><span class=\"NormalTextRun SCXW190460937 BCX8\">, <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">considering<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\"> your product catalogue and the diverse array of suppliers and countries involved in sourcing raw materials<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">. This detailed examination helps <\/span><strong><span class=\"NormalTextRun SCXW190460937 BCX8\">determine<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\"> whether nearshoring is a strategic fit for your <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">company<\/span><\/strong><span class=\"NormalTextRun SCXW190460937 BCX8\">, particularly in <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">optimizing<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\"> lead times, <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">enhancing supply chain resilience<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">, and <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">improving <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">inventory <\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">management<\/span><span class=\"NormalTextRun SCXW190460937 BCX8\">.<\/span><\/p>\n\n                            <\/div>\n                        <\/li>\n                                            <li class=\"\" style=\"border-color: #a0d60a;color: #ffffff;\">\n                            <div style=\"color:#282828;\">\n                                <h3><strong><span style=\"color: #004146;\">2. Nearshoring evaluation<\/span><\/strong><\/h3>\n<p><span class=\"NormalTextRun SCXW61889969 BCX8\">If a long-term shift to nearshoring is <\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">deemed<\/span><span class=\"NormalTextRun SCXW61889969 BCX8\"> beneficial, evaluate <strong>how this strategy <\/strong><\/span><strong><span class=\"NormalTextRun SCXW61889969 BCX8\">can address both the risks and opportunities within your supply chain<\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">.<\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">\u00a0<\/span><\/strong> <span class=\"NormalTextRun SCXW61889969 BCX8\">Use your<\/span><span class=\"NormalTextRun SCXW61889969 BCX8\"> insights into sourcing markets <\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">to <\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">help <\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">you to<\/span> <span class=\"NormalTextRun SCXW61889969 BCX8\">optimize<\/span> <span class=\"NormalTextRun SCXW61889969 BCX8\">your<\/span><span class=\"NormalTextRun SCXW61889969 BCX8\"> indirect spend while emphasizing nearshoring to <\/span><span class=\"NormalTextRun SCXW61889969 BCX8\">improve lead times, enhance supply chain agility, and reduce costs.<\/span><\/p>\n\n                            <\/div>\n                        <\/li>\n                                                    <\/ul>\n                    <\/div>\n    <\/div>\n\n    <div class=\"container py-3\">\n        <div class=\"row\">\n                        <ul class=\"process-list-leading-numbers\" style=\"background-color:#ffffff;\">\n                \n                                            <li class=\"animate-inview\" style=\"border-color: #a0d60a;color: #ffffff;\">\n                            <div style=\"color:#282828;\">\n                                <h3 class=\"headline\"><strong><span style=\"color: #004146;\">3. Scenarios exploration<\/span><\/strong><\/h3>\n<p><span class=\"TextRun SCXW150262516 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW150262516 BCX8\">E<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">xplore various nearshoring options and alternative supply chains to ensure the best fit for your brand. <\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">Ensure you <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW150262516 BCX8\">analyze<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\"> different regions, such as North Africa, <\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">Turkey<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">, and Eastern Europe, to <\/span><strong><span class=\"NormalTextRun SCXW150262516 BCX8\">determine<\/span> <span class=\"NormalTextRun SCXW150262516 BCX8\">where specific production processes can be most efficiently <\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">relocated<\/span><\/strong><span class=\"NormalTextRun SCXW150262516 BCX8\"><strong>,<\/strong> while <\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">maintaining<\/span> <span class=\"NormalTextRun SCXW150262516 BCX8\">high standards<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\"> of quality and sustainability.<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\"> For instance, <\/span><\/span><strong><span class=\"TextRun SCXW150262516 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW150262516 BCX8\">a major German casual wear brand<\/span> <\/span><\/strong><span class=\"TextRun SCXW150262516 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW150262516 BCX8\">we worked with<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\"> explored intensifying nearshoring in <\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">Turkey<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\"> and North Africa as part of a broader strategy to reduce dependency on Asian suppliers, <\/span><span class=\"NormalTextRun SCXW150262516 BCX8\">we helped with a<\/span><span class=\"NormalTextRun SCXW150262516 BCX8\"> comprehensive risk analysis and scenario planning.<\/span><\/span><span class=\"EOP SCXW150262516 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n\n                            <\/div>\n                        <\/li>\n                                            <li class=\"\" style=\"border-color: #a0d60a;color: #ffffff;\">\n                            <div style=\"color:#282828;\">\n                                <h3><strong><span style=\"color: #004146;\">4. Implementation roadmap<\/span><\/strong><\/h3>\n<p><span class=\"TextRun SCXW247647735 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW247647735 BCX8\">C<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">reat<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">e<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\"> a <strong>detailed roadmap, with quantifiable KPIs to measure progress. <\/strong><\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">E<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">nsur<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">e<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\"> that your transition to nearshoring is not only <strong>strategic but also measurable and sustainable.<\/strong> For instance, <\/span><\/span><strong><span class=\"TextRun SCXW247647735 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW247647735 BCX8\">a leading European sports equipment manufacturer<\/span><\/span><\/strong><span class=\"TextRun SCXW247647735 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW247647735 BCX8\"> considered <\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">relocating<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\"> the production of their specialty footwear back to Europe, <\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">and needed <\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">to ensure the transition met the company\u2019s <\/span><span class=\"NormalTextRun SCXW247647735 BCX8\">high standards<\/span><span class=\"NormalTextRun SCXW247647735 BCX8\"> for quality control and faster response times.<\/span><\/span><span class=\"EOP SCXW247647735 BCX8\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n\n                            <\/div>\n                        <\/li>\n                                                    <\/ul>\n                    <\/div>\n    <\/div>\n\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><h2 class=\"text-center\">Meet our experts<\/h2><\/div><\/div><\/div>\n\n    <div class=\"container authors-section fadeIn \" is=\"authors-and-partners\">\n        <div class=\"description row\">\n            <h2>\n                                                            Authors\n                                                <\/h2>\n        <\/div>\n\n        <div class=\"row\">\n                            <div class=\"mb-5 col-md-6 col-lg-4 mb-md-4\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2022\/05\/daniela-klotz-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2022\/05\/daniela-klotz-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2022\/05\/daniela-klotz-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Daniela Klotz<\/h3>\n                        <p class=\"person-position\">Principal <\/p>\n                                                    <div class=\"short-desc\"><\/div>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:daniela.klotz@kgmstrategy.com\" class=\"mail-link\">contact@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/is-nearshoring-a-suitable-strategy-for-your-fashion-brand\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                            <div class=\"mb-5 col-md-6 col-lg-4 mb-md-4\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/09\/birte-nernst-250x250.png\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/09\/birte-nernst-250x250.png 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2024\/09\/birte-nernst-75x75.png 75w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Birte Nernst<\/h3>\n                        <p class=\"person-position\">Senior Project Manager<\/p>\n                                                    <div class=\"short-desc\"><\/div>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:contact@kgmstrategy.com\" class=\"mail-link\">contact@kgmstrategy.com<\/a>\n                                                                                    <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/is-nearshoring-a-suitable-strategy-for-your-fashion-brand\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                            <div class=\"mb-5 col-md-6 col-lg-4 mb-md-4\">\n                    <div class=\"author\">\n                                                    <figure>\n                                <img loading=\"lazy\" decoding=\"async\" width=\"250\" height=\"250\" src=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/JM_AP-1-250x250.jpg\" class=\"img-fluid\" alt=\"\" srcset=\"https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/JM_AP-1-250x250.jpg 250w, https:\/\/www.KGM Strategy.com\/wp-content\/uploads\/2021\/08\/JM_AP-1.jpg 400w\" sizes=\"auto, (max-width: 250px) 100vw, 250px\" \/>\n                            <\/figure>\n                        \n                        <h3>Jan Mersmann<\/h3>\n                        <p class=\"person-position\">Principal<\/p>\n                                                    <div class=\"short-desc\"><p>is a Principal at KGM Strategy in Cologne. He advises customers from the automotive sector, medical technology and the process industry, with a particular focus on process optimization<\/p>\n<\/div>\n                                                <div class=\"contact-information\">\n                                                                                                <a href=\"mailto:Jan.mersmann@kgmstrategy.com\" class=\"mail-link\">Jan.mersmann@kgmstrategy.com<\/a>\n                                                                                                                                                <\/div>\n                                                    <a href=\"https:\/\/www.KGM Strategy.com\/en\/insights\/is-nearshoring-a-suitable-strategy-for-your-fashion-brand\/\" class=\"btn btn-outline-secondary text-terciary\">Contact<\/a>\n                                            <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n\n<div class='container  py-3'><div class=\"row \"><div class=\"col-lg-12\"><p><b><span data-contrast=\"auto\">Sources:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u00b9 : <\/span><a href=\"https:\/\/blog.qima.com\/traceability\/nearshoring-reshoring-trends\"><span data-contrast=\"none\">Nearshoring &amp; Reshoring Trends: Recent Data | QIMA<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u00b2 :<\/span> <a href=\"https:\/\/www.bcg.com\/press\/21september2023-north-american-companies-have-relocated-production-sourcing-over-past-five-years\"><span data-contrast=\"none\">More Than 90% of North American Companies Have Relocated Production and Sourcing Over the Past Five Years (bcg.com)<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">\u00b3 :<\/span> <a href=\"https:\/\/www.bcg.com\/publications\/2023\/harnessing-tectonic-global-shift-in-manufacturing\"><span data-contrast=\"none\">Harnessing the Tectonic Shifts in Global Manufacturing | BCG<\/span><\/a><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:278}\">\u00a0<\/span><\/p><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fashion brands are increasingly relocating their manufacturing operations from Asia to North Africa and regions closer to their primary markets.<\/p>\n","protected":false},"author":10,"featured_media":105858,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Nearshoring for Consumer Goods | KGM Strategy, a BCG Company","_seopress_titles_desc":"Nearshoring | Arguments for Nearshoring | No one-size-fits-all approach | 4 step approach","_seopress_robots_index":"","footnotes":""},"categories":[700,722,724,736],"tags":[],"class_list":["post-105474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article","category-consumer-goods","category-fashion-luxury","category-retail"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/105474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/comments?post=105474"}],"version-history":[{"count":1,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/105474\/revisions"}],"predecessor-version":[{"id":107237,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/posts\/105474\/revisions\/107237"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media\/105858"}],"wp:attachment":[{"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/media?parent=105474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/categories?post=105474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.KGM Strategy.com\/en\/wp-json\/wp\/v2\/tags?post=105474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}