Energy Sector · Gulf Region · 2024
Exploration of New Oil Fields — Oman Entry Vector
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THREADS
THAT BIND
THE WORLD
Case Index ID
#081-GCC
Primary Mandate
Regional Product Adaptation
Core Corridors
Italy / Vietnam/ India / United States
Execution Year
2025
Project Overview
TALE OF A GLOBAL ATELIER
Executive Summary
L'Arte dell'Intreccio
Diversifying an Italian Fashion House’s Global Manufacturing & Sourcing Network Beyond China
An Italian fashion house with an established international business had outsourced virtually all of its apparel manufacturing to China, creating a significant concentration within its global production network. While the Chinese manufacturing base had provided scale, established supplier relationships and production efficiency, the company recognized the strategic need to diversify its manufacturing footprint as part of a broader China +1 strategy.
The objective was not to replace China, but to establish additional production capacity in strategically selected markets while maintaining the quality, specifications and commercial standards expected of an established Italian fashion brand.
Axhibit Worldwide was retained to identify and qualify alternative apparel manufacturing partners, assess production capabilities across multiple markets and develop a broader sourcing network capable of supporting the company’s long-term international growth.
The engagement ultimately expanded beyond finished-goods manufacturing. Axhibit also examined the company’s upstream raw-material supply chain, identifying opportunities to diversify sourcing through India, South Korea and the United States, creating a more geographically distributed production and supply ecosystem
Proprietary Methodology
Operational
Breakdown
01 / Mapping out the China+1 Strategy
Axhibit’s initial assessment focused on understanding the fashion house’s existing production structure, manufacturing requirements, supplier dependencies and strategic objectives.
The objective was not simply to locate factories outside China. Alternative manufacturing markets had to be evaluated against a broader set of criteria, including production capabilities, product specialization, capacity, quality standards, scalability, commercial competitiveness and the ability to meet the operational requirements of an established international fashion brand.
Axhibit mapped the company’s manufacturing requirements against potential production markets and identified Vietnam and Bangladesh as priority locations for additional apparel manufacturing capacity.
This created a structured China +1 strategy in which alternative manufacturing locations could complement the company’s existing Chinese production base rather than attempting to replace it prematurely.
02 / Building the Manufacturing Network
Axhibit then deployed its Local Partner Matchmaking capabilities to identify, screen and evaluate potential manufacturing partners in Vietnam and Bangladesh.
The search focused on factories with the appropriate capabilities for the company’s apparel categories, production volumes, quality expectations and development requirements. Potential partners were evaluated not simply on their ability to manufacture garments, but on their suitability as long-term strategic production partners.
Axhibit facilitated the connection between the Italian fashion house and qualified manufacturing facilities, helping the company establish relationships in markets where it previously had limited or no production infrastructure.
The result was a diversified manufacturing footprint spanning multiple Asian production centers, giving the fashion house greater flexibility in allocating production according to capacity, product requirements, lead times and market conditions
03 / Reengineering the Upstream Supply Chain
With alternative manufacturing capacity identified, Axhibit expanded the scope of the engagement upstream into the raw-material supply chain.
Rather than simply moving finished-goods production from one country to another, Axhibit examined the availability of critical materials and supplier capabilities across additional geographic markets.
Through its international sourcing network, Axhibit identified opportunities involving suppliers and raw-material sources in India, South Korea and the United States, creating additional options for materials required by the fashion house’s manufacturing network.
This approach allowed the company to separate manufacturing diversification from raw-material dependency. Production could increasingly be distributed across multiple countries while critical inputs could also be sourced through a broader international supplier base.
The resulting structure gave the fashion house greater control over its supply chain and reduced its dependence on a single country at multiple levels of production.
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