Navigating Rising Tariffs & Supply Chain Disruptions
How Stateless Helps Fashion Brands Build Resilience and Navigate the Rise in Tariffs on Chinese-Made Goods
In today’s volatile global market, fashion brands must be prepared to navigate an increasingly complex supply chain landscape. With rising tariffs, factory instability, and shifting global trade policies, flexibility and resilience are crucial. Stateless offers the expertise and strategies you need to adapt and thrive in these uncertain times.
One of the most important steps in building a resilient supply chain is diversifying your vendor base. Having all your production tied to one factory or region puts your brand at risk of disruptions. This was evident during the 2020 COVID crisis when supply chains crumbled, leaving many brands stranded with goods stuck in shuttered factories. Stateless helped clients transition to alternative, financially solvent factories in different regions, ensuring their goods were delivered on time and at optimal cost. We often recommend split-sourcing strategies across multiple vendors and regions to reduce risk and increase flexibility.
Another challenge many fashion brands face is rising tariffs, particularly when sourcing from high-tariff countries like China. To mitigate the impact of tariffs, consider diversifying your manufacturing footprint to countries with lower tariffs or more favorable trade agreements. Regions like Southeast Asia, Latin America, and even Eastern Europe offer cost-effective alternatives to traditional sourcing hubs. Stateless works with brands to identify the most efficient and cost-effective sourcing strategies to help offset these rising costs.
Furthermore, your factories should never own the intellectual property (IP) of your designs. Retaining control over your patterns and designs gives you the freedom to pivot when necessary—whether it’s due to shifts in tariffs, factory issues, or changing consumer demand.
That said, producing in China remains the most cost-effective option in many cases, even with the increase in tariffs. Our factory partners in China have developed strategies to mitigate these tariff impacts. They are offering DDP (Delivered Duty Paid) terms, which means the factory covers the duties, reducing production costs per unit. Additionally, they are collaborating with fabric vendors to further minimize expenses. Stateless has engaged in extensive discussions with our Chinese partners to create strategies that benefit our clients.
As we look ahead, supply chain disruptions are likely to continue. Stateless is here to help you navigate these challenges, build a more flexible, resilient supply chain, and secure the future of your brand. We're ready to strategize with you and turn today’s challenges into tomorrow’s opportunities.
Need help transitioning to or navigating a new supply chain?