Is Sub-Saharan Africa ready to serve as an alternative apparel-sourcing destination to Asia for US Fashion companies? A product-level analysis

Abstract

Purpose

The prospect of Sub-Saharan Africa (SSA) as an apparel-sourcing base for US fashion companies has been a growing heated debate among academia, industry practitioners and policymakers. This study aims to evaluate SSA countries’ readiness to serve as an alternative sourcing destination to Asia for US fashion companies, focusing on comparing the similarities and differences of US apparel imports from these two regions at the product level.

Design/methodology/approach

This study was based on a statistical analysis of detailed product features and assortment information of thousands of apparel items at the stock-keeping unit level sold by US retailers between January 2021 and December 2023.

Findings

US fashion companies seemed to leverage SSA countries as suppliers of “niche products,” such as those relatively simple and basic apparel categories containing African cultural elements and targeting the luxury and premium market segment. However, the range of apparel products available for US fashion companies to source from the SSA region remained significantly more limited than those from Asia. Also, US apparel imports from SSA countries were primarily made of cotton and polyester, with less use of other fiber types, including nylon, rayon, viscose, wool and those made from recycled textile materials.

Originality/value

The study’s findings provided fresh insights into why US fashion companies sourced from SSA countries and the specific types of products they were sourcing, going beyond existing studies based on macro trade statistics. The results also deepened the understanding of SSA countries’ competitiveness as an apparel-sourcing destination and their potential to serve as an alternative to sourcing from Asia, particularly from a unique product perspective.

Citation

Lu, S. (2024), "Is Sub-Saharan Africa ready to serve as an alternative apparel-sourcing destination to Asia for US Fashion companies? A product-level analysis", Competitiveness Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CR-03-2024-0041