Nike, Apple, Lululemon, IKEA and Kmart — where they manufacture, why, and the China-plus-one supply-chain lessons Australian SMEs can apply at their own scale.
Last updated: 14 June 2026
In short: The world's biggest brands — Nike, Apple, Lululemon, IKEA and the labels behind Kmart and Target Australia — manufacture overwhelmingly in Asia, led by China and Vietnam, with India, Indonesia and Bangladesh growing fast. They don't own most of these factories; they contract them. The real lesson for Australian importers isn't where these giants make things, but why and how — and how you can apply the same playbook at a smaller scale.
Here's a snapshot of where major brands manufacture and why — useful context whether you're benchmarking your own supply chain or just curious.
| Brand | Main manufacturing countries | Why there |
|---|---|---|
| Nike | Vietnam, China, Indonesia | Vietnam now makes the largest share of Nike footwear — skilled labour, scale, trade access |
| Apple | China (and increasingly India & Vietnam) | Unmatched electronics ecosystem and assembly scale; diversifying to cut risk |
| Lululemon | Vietnam, Cambodia, Sri Lanka, China | Specialist activewear and technical-knit factories |
| IKEA | China, Poland, Vietnam, India | Flat-pack furniture made close to raw materials and key markets |
| Kmart / Target Australia | China, Bangladesh, India | Low-cost, high-volume homewares and apparel for value retail |
It comes down to four things: deep supplier ecosystems (every component and material in one region), skilled labour at scale, mature logistics infrastructure, and total flexibility to scale a product line up or down fast. China built this over 40 years; Vietnam has replicated much of it for textiles, footwear and furniture — as covered in our guide to sourcing from Vietnam.
Cost matters, but it's not the whole story. Brands stay in Asia because the entire system — from fabric mills to ports — is built to move product reliably and quickly.
Almost never. Nike, Apple and Lululemon don't own the factories that make most of their products — they place contracts with manufacturing partners and enforce standards through audits and on-site teams. This is exactly the model an Australian SME uses with a sourcing partner: you don't need to own a factory to control quality, you need the right relationships and the right oversight — the foundation of developing your own product too.
You don't need Nike's volume to borrow Nike's thinking. Three lessons translate directly to a small Australian business:
For most Australian importers, yes — China remains the most complete manufacturing base on earth, and a stronger AUD has made Chinese pricing more attractive again. The smart move isn't China or Vietnam; it's knowing which one fits each product, and keeping a second option warm.
Where are most Nike shoes made?
Vietnam manufactures the largest share of Nike footwear, followed by China and Indonesia. Nike contracts these factories rather than owning them.
Why does Apple manufacture in China?
China offers an unrivalled electronics supply chain, vast assembly capacity and skilled labour. Apple is now expanding production in India and Vietnam to reduce its reliance on a single country.
Where are Kmart and Target Australia products made?
Predominantly in China, Bangladesh and India — the standard mix for high-volume, value-priced homewares and apparel.
Can a small Australian business use the same factories as big brands?
Often the same regions and supplier networks, rarely the exact factories (their MOQs are enormous). A sourcing partner matches you to factories that fit your volume while meeting comparable standards.
What is a China-plus-one strategy?
Keeping China as your primary manufacturing base while adding a second country — usually Vietnam — to spread risk across tariffs, supply shocks and capacity.
Epic Sourcing gives Australian businesses the same on-the-ground manufacturing access the big brands rely on — bilingual teams in China and Vietnam who vet factories, run quality control and help you build a resilient, diversified supply chain at your scale through our China importing service. Want to apply the big-brand playbook to your products? Book a free discovery call and we'll map out your options.
