Nearshoring is beginning to gain traction.
Recently, Spanish fast-fashion brand Zara announced that nearshoring helped them double their profits in 2021.
Through nearshoring, Zara is able to replenish inventory quickly. This allows it to respond to fashion trends and consumer interests in a more on-demand way. Zara manufactures retail clothing and gets it in stores within just two weeks.
Adopting nearshoring has allowed the brand to surpass its competitors. During the first two quarters of 2022, Inditex, Zara’s mother company, reported a net profit of $812 million; an 80% year-over-year jump. Time will tell if more companies embrace nearshoring as supply chain bottlenecks continue.