Case Study — Apparel & Sourcing

A tariff event, priced before it landed.

Sourcing concentration is a policy exposure. This is what it costs, and what rebalancing recovers.

Client

Global Apparel Retailer

South Asia & US Trade Policy

Tariff, labour-cost and regulatory exposure across six sourcing countries — modelled months before the shift hit.

Tariff structuresLanded cost modelingSourcing optimizationWage inflationPolicy detectionMargin protection

7.5 pts

Effective tariff rate cut

55% → 5%

China exposure reduced

0 wks

Advance warning on tariff shifts

Interactive: Sourcing Mix Optimizer

Toggle the scenarios to see how rebalancing cut the effective tariff rate.

Effective Tariff Rate

35.8%

China Exposure

5%

Sourcing distribution, stacked by country

25%
18%
22%
18%
12%
China
Vietnam
Bangladesh
India
Indonesia
Cambodia

Rebalanced mix. China exposure cut from 55% to 5%. Effective tariff rate dropped to 35.8%. Margin protected without disrupting the buying cycle.

Result

The analysis modeled the tariff impact 8 weeks before imposition. In the modeled rebalance, China sourcing falls from 55% to 5% and the effective tariff rate from 43.3% to 35.8% — protecting margin without disrupting the buying cycle.

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