“Sourcing goods in China purely because of ultra-low costs is a thing of the past,” said KPMG’s Nick Debnam.In a new report title Product Sourcing In Asia Pacific, KPMG notes China’s disadvantages include rising labour costs and an ageing workforce. Of the 11 countries discussed, China has the oldest population with a median age of 34.
More companies are turning to Indonesia and Vietnam for footwear manufacturing. India’s specialisations in hand stitched fabrics and metalware have made it a major alternative to China. Cambodia and Bangladesh are experiencing a booming export industry thanks to favourable trade agreements with the European Union.
KPMG profiled the major competitors.
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