Blog: Leonie BarrieTop marks for Tesco

Leonie Barrie | 27 October 2006

Good to hear that Sri Lanka’s escalating civil conflict hasn’t deterred Tesco from ramping up its plans to buy more apparel from the country. Top executives from the UK-based retailer say they intend to buy up to 40% more clothing from the island next year, focusing on its up-market lines where Sri Lankan expertise can add value.

Even though Tesco’s confidence is undaunted – helped of course by duty-free tax breaks to Europe, lead times among the best in Asia, and first-class service – the underlying message is that it’s as important as ever to spread your sourcing risks. Tesco, for example, splits production between five main countries and certainly doesn’t believe in putting all its eggs in one basket. Just look at those firms who flocked to China and now regret it because quotas have been re-imposed on specific categories of clothing.

And what about other recent incidences of civil unrest (Thailand) and strikes (Bangladesh). Both are huge garment-producing countries, yet on recent visits myself and members of the just-style team have seen evidence of investment, optimism and, crucially, continuing visits by overseas buyers. Those very same buyers would be missing out on increasingly good deals if they let the threat of unrest put them off.

UK: Tesco to increase buying from Sri Lanka


BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

BLOG

Trump administration starts to shake up trade

Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...

BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

just-style homepage



Forgot your password?