Supply Chain Risk Pulse: Luxury Sector Risk Hotspots

Luxury supply chains are global, complex, and under constant scrutiny. EiQ data shows that 41.4% of reported supply chain incidents are rated high or extreme risk. When these risks surface, they disrupt operations, tarnish brand credibility, and break consumer trust.

Inside the Luxury Supply Chain

EiQ statistics show that labour issues, including claims of forced labour, workplace fatalities, and serious health and safety incidents, account for 36.6% of reported supply chain incidents. There are severe operational and reputational repercussions to these issues if left unaddressed.

Long working hours, the vulnerabilities of migrant workers, and health and safety issues are all concerns tied to brands sourcing from countries such as Bangladesh, China, India, Indonesia, and Vietnam, known global sourcing hubs, where 67% of high-risk incidents originate from.

In our latest report, you’ll discover:

• A clear view of the highest-risk sourcing regions
• Insight into critical labour and ethical sourcing challenges
• Greater visibility into hidden risks beyond tier-one suppliers
• A data-driven foundation to protect brand reputation and ensure continuity

Routinely monitoring compliance is essential for protecting a brand’s ethical reputation. Challenges such as unauthorised subcontracting, restricted freedom of association, and inhumane treatment continue across multiple markets.

Supply chains change rapidly, meaning risks can emerge long before the next scheduled audit. Without continuous visibility, these risks can escalate into costly disruptions.

Download the report to understand where your supply chain is most exposed, and how to take a more proactive approach to risk management.