Guess is relying more on suppliers from Bangladesh and India and less on China now. The group sourced 27 per cent of its apparel, jewelry and accessories from China in fiscal year 2021, a sharp drop from 42 per cent in fiscal year 2020 as the company continues reducing its reliance on China to avoid tariff risks. Suppliers from Bangladesh and India made up a larger share of the apparel company's purchases in fiscal year 2021, at about 23.5 per cent and 18 per cent, respectively. In fiscal year 2020, both were at less than 15 per cent.
Guess has made the changes to diversify its sourcing and as a result of changing economic conditions and purchasing strategy. It has reduced volumes from countries outside its top sourcing regions to consolidate its supply chain. As Guess expands its supplier base, the fashion brand will also expand its supply chain worker grievance program to factories in India and Vietnam. The program allows workers to report concerns anonymously.
Product excellence is also part of the group’s strategy. The company will extend its product offering to provide customers with a wider range of products for different occasions and lifestyles and will seek to better address local product needs.