report cover

The sourcing map has been redrawn.
Here's the clarity to navigate it.

For sourcing leaders right now

You are being asked to move faster, with less information than ever. Tariffs reshuffled categories overnight. China-plus-one is now China-plus-many. And the question every sourcing and quality team is wrestling with is the same one: what's actually working on the ground, and what looks fine on paper but isn't?


What the report is built on 
     

470K+

 

11

 

1,600+

Proprietary quality data points Sourcing countries Product categories with deep dives

With that clarity, seven live questions


Seven questions every sourcing and quality leader is being asked.

Each question is addressed with primary BV data, year-over-year trade flows, and field perspectives from supply chain leaders across China, Southeast Asia, and South Asia.
  
How is sourcing actually shifting by region?

US and EU import flows for softlines, hard goods, and E&E from 2019 to 2025, including Vietnam overtaking China in US softlines and Mexico overtaking China in US E&E.

// US softlines share · 2024 to 2025

China18% ↓8pp
Vietnam22% ↑8pp
Vietnam overtook China in US softlines in a single year.
Can expansion hubs genuinely match China on quality, at scale?

A weighted-pass-rate read across 11 sourcing countries — and what the headline number hides about workmanship, abortive inspections, and AQL failures.

// Weighted pass rate · 2025

China89.0%
Hubs
86.0%
Beneath the 3pp pass-rate gap, in expansion hubs:
Workmanship defect rate vs China
Abortive inspections & critical failure rates
1.7×
Critical AQL failures
The pass rate is the tip of the iceberg. The deeper metrics tell the real story.
Which product lines are ready to move — and which carry hidden risk?

Category-by-category readiness for apparel & textile, electrical & electronics, footwear, and furniture, with proven secondary hubs called out by name.

// Best-hub readiness · 5-star scale

Softlines●●●●●4 hubs ready
Furniture●●●●Vietnam, Cambodia
Hardlines●●●2-3 hubs
E&E●●●●●No hub above 4★
What does the workmanship gap actually cost?

On a 10-million-unit order moved from China to a typical hub, that gap converts to roughly 100,000+ extra workmanship defects. The unit economics, by category and country.

// Cost of moving a 10M unit order to a typical hub

~100,000+

Each gap maps to a specific upstream intervention. Close all four, capability follows.
Which expansion hubs are improving, and which are not?

Some hubs are improving on every metric while growing volume. Others are sliding on pass rate and workmanship. The split every brand is watching, with year-over-year detail.

// YoY trajectory · 8 expansion hubs scored on 5 metrics

3
Hubs improving
on all five metrics

2
Hubs with
mixed trajectory

3
Hubs declining
on most metrics

Volume is shifting faster than capability. Which side a hub lands on is now the sourcing question.
What does it actually take to build quality infrastructure in a less mature market?

A four-gap diagnosis (culture, leadership bandwidth, talent, raw-material volatility) and the upstream interventions that close them.

// The Four Gaps

Quality cultureLeadership bandwidth
Talent depthRaw-material volatility
Each gap maps to a specific upstream intervention. Close all four, capability follows.
What separates leaders from the rest?

Five moves we see in high-performing brands. Learn more from the report.

Image
Nicolas Girard
Nicolas
Girard

SVP, Supply Chain Solutions

Bureau Veritas CPS

Are supply chains under pressure, or just being redefined?

For leaders willing to embrace these changes, this is not a disruption. It is an opportunity to rethink how quality and sustainability are built, owned, and scaled. The real question is no longer where to source. It is how to draw the line of quality and sustainability ownership, no matter where sourcing happens.
The leaders behind those chapters


Field perspectives from BV supply chain leaders across six vantage points.

Each chapter of the report opens with a working leader's view from the ground, not external commentary. Highlights below; full perspectives are in the report.
   
US & Europe · Global Retail
What looks well-managed often isn't.

"Many senior executives believe their supply chain is well managed. But when you look beyond headline pass rates, workmanship defect rates in expansion hubs can be three times greater than in China, and abort rates are roughly double. The companies that weathered disruptions best were the ones that knew exactly where their exposure was."


Rick Horwitch
Chief of Supply Chain & Sustainability Strategy, Global Retail Lead

 

Region · China
Local excellence is designed locally.

"China remains the benchmark for manufacturing depth and capability. But what works in China does not automatically work elsewhere. Local factors — transportation, workforce skill sets, cultural differences — all shape how quality systems perform on the ground. Wherever you are expanding, work with the right partner, act fast, learn fast, and close the gaps."


Catherine Wang
Director of Supply Chain Solutions, China

   
Region · Southeast Asia
Quality belongs at the start, not the finish.

"High-performing organizations treat quality as a strategic pillar, not a final checkpoint. They embed it early, use risk-based testing, and invest in capability building continuously, not just when issues arise."


Marinela Perucho
Head of Operations, Supply Chain Solutions, Southeast Asia

 

Region · South Asia, MEA
Greater access. Greater expectations.

"As global brands diversify away from China, South Asia is clearly benefiting, and the EU-India Free Trade Agreement will further accelerate this shift by opening significant export opportunities. But greater access comes with greater expectations. Clients are no longer selecting suppliers purely on cost and capacity. They are prioritizing consistent quality, reliability, transparency, ESG compliance, and digital visibility. The next phase will be captured by those who can deliver consistent, transparent, and compliant operations at scale."


Kazi Nazrul Islam
Area Operations Manager, Supply Chain Solutions, South Asia, Middle East & Africa

   
Global · Footwear
From China Plus One, to multi-country reality.

"Vietnam now accounts for 37.4% of all US footwear imports. China sits at 23.8%. The brands navigating this well share one thing in common: they didn't just redirect compliance to a new geography. They rebuilt it. They are choosing suppliers based on verified capability, not assumed competence."


Paul Bridge
Director of Footwear, Leather and Accessories

 

Global Client Solutions
Predictability beats firefighting.

"Across the clients we support, those who move quality upstream share a common mindset. They want predictability, not firefighting. The evidence is clear: the cost of intervening early is a fraction of the cost of reacting late."


Michael Wu
Head of Global Client Solution and Technical Service, Supply Chain Solutions


How the report builds the answer


Seven chapters.
One coherent picture.

Each chapter stands alone but is designed to be read in sequence. The report builds from macro trade flows down to the sourcing decision on the operator's desk.
Global trade shiftVietnam overtakes China in US softlines. Mexico displaces China in US E&E. The four trade flows reshaping every sourcing brief.
The quality landscapeChina's 89% pass rate vs hubs' 86%, year-over-year trend, and the workmanship-defect gap underneath.
Production complexity469 product categories in China vs 177 across all expansion hubs combined. The complexity correction that triples the apparent gap.
Country-by-countryEight expansion hubs scored on pass rate, workmanship, abortive rate, supplier spread, and complexity. Year-over-year detail.
Category deep diveApparel, furniture, E&E, footwear. Where each can scale, where qualification rules trump country selection.
Voices from the groundMarinela in SEA, Kazi in South Asia, Paul on footwear. What our regional leaders see that the data does not show.
Five movesThe operating practices that separate high-performing brands. With named examples and the leading indicators to track.

 

Get the full picture.

DOWNLOAD THE FULL REPORT NOW
PLEASE COMPLETE THE FORM to Download the report
Would you like to receive marketing communication from Bureau Veritas?
Would you like to receive marketing communication from Bureau Veritas?