Apparel supply chain between Europe and China

China plays a central role in apparel sourcing worldwide. There are many reasons why China accounts for such a big part of the sourcing volume. Besides the lower labor costs in comparison to other emerging countries, China offers many other advantages, e. g. relatively lower political, economical and financial risks, better conditions in terms of infrastructure, better qualified employees, etc. Moreover, the domestic demand in China keeps growing, which makes this market more attractive. “Sourcing in China” is slowly changing into “also selling in China”. However, the apparel companies, who are entering the Chinese market for either sourcing or selling, and the international logistics service providers, who are active in China for apparel transportation, are facing challenges, such as different transportation systems, regulatory restrictions, historically grown fragmented distribution systems, limited use of technology in the logistics sector, etc. Although there are plenty of publications about “China Sourcing” and the country’s rising economic power, they are often rather general or focus on e. g. automotive or electronics industry. However, this survey captured the current development in the apparel industry. Through intensive interviews with about 50 business professionals from 35 firms, including apparel companies (as buyers or sellers), buying agents, apparel manufacturers, logistics service providers, banks, consulting firms and associations, this paper offers the readers a comprehensive guide for apparel sourcing and distribution in China. In the paper, the processes along the entire supply chain between Europe and China and the main actors involved are described in detail. After providing the readers an overview of the apparel supply chain, three important issues – transport chain, financial performance and distribution logistics – are discussed in more depth. Besides the description of the relevant processes, critical aspects are analyzed and practical suggestions are given.