The Delicate Balance of Global Fashion Trade

Welcome back to the ANTHORA Journal—it’s been some time since our last written entry in January, as we’ve been focusing on our podcast series with industry leaders. Today, I’m sharing reflections from a different hat I wear: as Managing Director of Nice Tones Ltd., my family’s garment manufacturing business in Hong Kong. While ANTHORA represents our vision for sustainable women’s wear, this piece comes from decades of firsthand experience navigating global supply chains as a producer. The views here are personal, but the challenges are universal.

The Immediate Impact of 180% Tariffs
When the new tariffs were announced, our Nice Tones team began evaluating every active order. With duties potentially reaching 180% on China-made goods, the economic feasibility dissolved overnight. Our discussions with clients shifted from routine operations to contingency planning: identifying which orders could be modified, which production stages allowed flexibility, and how to collectively minimize disruptions. This moment revealed the fragility of supply chains refined over decades—where every component from fabric sourcing to final assembly exists in precise calibration to meet quality, cost, and delivery requirements that can't be hastily reconfigured.  

The Full Value Chain Perspective 
To properly assess trade dynamics, we must consider the complete ecosystem. A garment selling from factory to brand for $10 often retails for $100–$140 in Western markets. This markup reflects the value added through design, marketing, distribution, and retail operations—activities predominantly managed by brands in consumer markets. While manufacturing nations specialize in production efficiency, the intellectual property and brand equity remain concentrated elsewhere. This specialization has created interdependence, where regions leverage distinct competitive advantages that developed organically over time.  
China's Manufacturing Evolution: A 40-Year Journey  
Understanding today's supply chain challenges requires acknowledging how manufacturing ecosystems mature. China's development followed an irreversible trajectory:  

1980s: Basic textile and apparel manufacturing begins after economic reforms  
1990s: Supply chain networks develop with foreign investment and expertise  
2000s: Vertical integration and quality improvements establish global competitiveness  
2010s: Sustainability and efficiency advancements set new industry standards  

This progression mirrors—in compressed form—the industrialization paths of now-developed nations. Other manufacturing hubs like Vietnam and Bangladesh are following similar arcs, though starting from different baselines. The decades-long development cycles explain why production ecosystems can't be rapidly replicated: they require cumulative investments in infrastructure, skilled labor, and supplier networks that new regions would need generations to match.  

The Squeeze on Manufacturing Margins
Today’s suppliers face compounding pressures: rising costs collide with demands for faster turnarounds, smaller orders, and sustainable practices—all while margins contract. The industry’s historical reliance on overproduction to meet factory minimums has made fashion the world’s second-largest polluter, but this approach was never inevitable. Responsible manufacturing requires aligning output with actual demand, even when it means redefining productivity. While many still operate the old way, the math is clear: systems prioritizing volume over value exact too high an environmental cost.

A Path Forward Through Shared Understanding 
Lasting solutions require moving beyond blame to recognize mutual dependencies. Brands rely on manufacturing expertise cultivated over decades, just as suppliers depend on stable demand. At Nice Tones—and through ANTHORA’s work—we’re committed to:  

1. Transition frameworks that allow gradual supply chain evolution without catastrophic disruption  
2. True cost accounting that values sustainability and fair wages alongside efficiency  
3. Innovation in production through 3D design and demand forecasting to reduce waste  

The current moment, for all its challenges, invites us to rebuild with intention—creating systems where quality, ethics, and economics align for all participants in the process.  

As always, I welcome your thoughts. While this journal has been quiet, our podcast continues these conversations with remarkable guests—I hope you’ll join us there too.  

*Photo taken on site at Nice Tones Ltd. Shenzhen factory.