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Over the last few years, global sourcing has quietly undergone a major shift. You may have heard the term “China+1 strategy” mentioned by large brands and multinational companies—but what does it actually mean, and why should small or mid-sized retailers care?
Let’s break it down simply.
What Is the China+1 Strategy?
The China+1 strategy means companies continue sourcing from China but deliberately add one more country to their supply chain.
The reason is straightforward: relying on a single country for production has become risky.
Over the past decade, businesses have faced:
- Factory shutdowns during COVID
- Rising labor and production costs in China
- Trade tensions, tariffs, and shipping delays
- Longer lead times and unpredictable supply cycles
Large companies learned this the hard way. Instead of pulling out of China completely, they chose a safer approach: diversify.
How Big Brands and MNCs Are Handling It
Multinational brands don’t move overnight. They take a phased approach:
- Pilot small volumes from alternative countries
- Test quality and consistency
- Gradually shift categories outside China
- Maintain China as one source—not the only one
Today, many global retailers and distributors already source:
- Apparel from Bangladesh and Vietnam
- Electronics from Vietnam and Taiwan
- Home textiles, décor, and handicrafts from India
But What About Small & Mid-Sized Retailers?
This is where the challenge begins.
Unlike large corporations, small and mid-sized retailers often face:
- High minimum order quantities (MOQs)
- Limited access to verified overseas manufacturers
- Communication gaps and unclear timelines
- Quality inconsistencies between samples and bulk orders
Because of this, many retailers assume global sourcing is only for big players.
That assumption is no longer true.
Why India Is Emerging as the Strongest China+1 Option
India stands out not just as an alternative—but as a practical upgrade for many product categories.
1. Strong Fit for Small & Mid-Sized Orders
Unlike some manufacturing hubs, Indian suppliers are more open to:
- Flexible MOQs
- Custom developmen
- Small-batch and test orders
This makes India especially suitable for boutiques, independent retailers, and growing brands.
2. Depth in Home & Lifestyle Categories
India has long-standing expertise in:
- Home textiles
- Décor and furnishings
- Handcrafted and natural-material products
These are categories where design, craftsmanship, and consistency matter more than mass-scale automation.
3. Cost Isn’t the Only Advantage—Control Is
While India remains cost-competitive, the real value is:
- Better transparency
- Easier communication
- Greater control over quality and timelines
Retailers often discover that fewer surprises matter more than the lowest unit price.
The Missing Piece: Access and Trust
Even though India is a strong sourcing option, the real difficulty lies in:
- Finding the right manufacturers
- Verifying capabilities
- Managing production remotely
- Ensuring sample-to-bulk consistency
This is exactly the gap large companies solve with dedicated sourcing teams—something small and mid-sized retailers usually don’t have.
How Yetira Helps Level the Playing Field
Yetira bridges the gap between India’s manufacturing strength and retailers who want to source smartly without risk.
We help small and mid-sized retailers:
- Connect with pre-verified Indian manufacturers
- Start with manageable MOQs
- Maintain clear communication and realistic timelines
- Reduce sourcing risks without needing a full sourcing team
China+1 shouldn’t be a strategy only big companies can afford.
With the right structure, India becomes a reliable first step—not a leap of faith.