INSIDE THE FASHION INDUSTRY – Trade Shifts and Strategic Product Development: Should Emerging Designers Go Offshore or Stay Local?

The recent US-China trade agreement, as reported by Vogue Business, may offer some short-term relief for brands—but for emerging designers, it raises a far more strategic question: Where should product development happen next?

Tariff fluctuations, shipping delays, and political negotiations are reshaping the global fashion supply chain. For new brands, these headlines aren't just economic theory—they directly impact product costs, development timelines, and business viability. But instead of focusing solely on the fear of trade instability, this moment presents an opportunity to make smarter, more tailored decisions about where and how you bring your designs to life.

Let’s break it down: offshore vs. local development—what are the real trade-offs in 2025?

Offshore Development: The Appeal and the Risks

Offshore development, especially in China, Vietnam, and India, remains attractive because of lower labor costs and access to specialized skill sets, particularly in categories like denim, activewear, and embellished garments. These countries also tend to have vertically integrated factories—where everything from sampling to final production can happen under one roof—saving you time and coordination headaches.

BUT, this model has hidden vulnerabilities! Political shifts (like the recent tariff back-and-forth), global shipping disruptions, and rising compliance standards in the US can suddenly impact your margins and timelines. Even if tariffs ease today, what happens in six months if policy changes again?

If you choose offshore development:

• Build strong relationships with your factory partners—video calls, sampling systems, and clear tech packs are essential.

• Consider developing two production calendars: one flexible, lower-cost option overseas, and one domestic fallback plan if disruptions occur.

• Invest in a reliable sourcing agent or production manager with local language skills and on-ground experience.

Local Development: A Strategic Investment, Not Just a Safety Net

Developing and producing locally—especially within the US—has often been dismissed as cost-prohibitive. But the post-pandemic environment and unpredictable international trade have shifted the calculus. Many emerging designers are discovering that local development offers unmatched transparency, speed, and the ability to pivot quickly.

In the US, you can visit pattern makers, oversee fittings, and respond to feedback in real time. This is crucial when launching a brand, testing the market, or working with smaller MOQs. What you pay in higher labor costs, you often gain back in fewer sampling rounds, faster lead times, and fewer mistakes.

If you choose local development:

• Focus on capsule collections or pre-order models to offset costs.

• Use the "Made in USA" label as part of your brand story—many consumers are willing to pay more for locally produced, ethically made goods.

• Leverage the proximity for faster iteration, giving you a competitive edge over brands locked into longer offshore timelines.

Hybrid Models: Designing for Agility

For most emerging designers, the best option isn’t purely local or offshore—it’s a mix. Develop your first samples locally, where you can fine-tune fit and fabrics hands-on. Then, once you finalize the product, move production offshore for cost efficiency and scale. This approach helps you minimize waste, avoid costly mistakes, and meet both creative and business goals.

In a world where a single political negotiation can shift your cost structure overnight, agility is your strongest asset! This means designing not just beautiful garments, but building a product development process that can adapt to whatever the market throws your way.

The US-China trade agreement may signal temporary relief, but it’s also a wake-up call: strategic production decisions are no longer optional—they're foundational.

I’ve helped many designers navigate this very challenge—balancing creativity with logistics, finding reliable development partners, and scaling smartly even during times of uncertainty. If you're trying to figure out your best path forward, I invite you to book a free 30-minute strategy call with me here: https://go.oncehub.com/BarbaraSessim