China Plus One for apparel: is Nepal your second sourcing country?

“China Plus One” — keeping your main supply base but adding a second country to reduce risk — has moved from strategy deck to standard practice. Over 80% of US fashion brands now source from 10+ countries, and most plan to add more. If you’re building your “plus one” for knit basics, here’s why Nepal deserves a look.

Why brands are diversifying now

• Tariff volatility — US tariffs on China have spiked, and rates shift with politics.
• Concentration risk — a single country (or factory) is a single point of failure.
• Buyer and investor pressure for resilient, transparent supply chains.

What makes a good “plus one” for knit basics

You want a country with favourable duty access to your market, competitive cost, and factories that suit your order size. For tees, polos, and jersey, that points to LDC producers with duty-free access — where Nepal stands out.

Why Nepal works as a second source

• Duty-free to the EU, UK, and Canada (LDC single-transformation rules — imported fabric qualifies).
• No duty-free US access — Nepali knitwear pays standard MFN duty there, like its regional peers.
• Spare capacity and low MOQs — you get attention and flexibility, not a queue behind mega-buyers.
• Ethical, transparent production — a story your customers increasingly ask for.

The honest trade-offs

Nepal is landlocked (bulk sea freight routes via Kolkata/Vizag), and the industry is smaller — it’s ideal for small-to-mid knit programs, not 100,000-piece single orders. For most brands diversifying their knit basics, that’s exactly the right fit.

Thinking about your plus-one? See the full Nepal sourcing case or start a conversation — we’ll be honest about whether we’re the right fit.