As coronavirus continues to spread, concerns about the outlook of sourcing from China are growing. Many stores including well-known clothing and footwear brands have been closed. Major cities in the country have been locked down, making it impossible for many workers to return to their job. Further, it is hard to predict how long such an unprecedented large-scale lockdown will last. In fact the real impact of the coronavirus is yet to come. For western fashion brands and retailers sourcing from China is always slow in January and early February because of the Chinese New Year. Countries around the world have begun to impose travel restrictions on Chinese travelers.

While last year’s tariff war had pushed Western fashion brands to source less from China, the coronavirus could accelerate companies’ sourcing diversification strategy further. But shifting sourcing orders to other countries does not seem to be a quick solution at this point. China remains the single largest textile and apparel supplier with no alternatives. Other apparel exporting countries especially those in Asia rely heavily on textile raw material such as yarns and fabrics made in China. Many apparel factories in Asia and Africa have management teams from China.