Target Corporation, like most American mass-market stores, utilizes a vast network of global manufacturers to stock its shelves and fulfill online orders. The question of what percentage of Target’s products are sourced from China sits at the center of discussions about geopolitical risk, consumer costs, and corporate sustainability. While a single, definitive, real-time percentage is proprietary and impossible to obtain, the available context reveals a clear trend of strategic reduction in reliance on the world’s largest manufacturing hub. This provides a framework for understanding the company’s sourcing strategy.
Why a Precise Percentage Is Difficult to Determine
Major retailers do not publicly disclose a simple, static percentage of goods sourced from any single country due to the proprietary nature of this business data. The supply chain is fluid, with sourcing decisions often changing based on material costs, production capacity, and logistics expenses. This complexity is compounded by the difference between “final assembly” and component sourcing, where a product labeled “Made in Vietnam” might contain numerous intermediate parts and raw materials originating from China.
The practice of trans-shipment further obscures the true origin of many items, as goods may be shipped through an intermediate country for minor processing or relabeling before entering the United States. Furthermore, the available figures often represent the cost of goods sold (COGS) rather than a count of individual items. This means a small number of high-value electronic products can disproportionately influence the overall percentage.
The Scope of Target’s Global Sourcing Network
Target’s sourcing operations are managed through a broad international infrastructure designed to procure merchandise for its owned brands and vet suppliers for national brands. The company maintains a network of 21 global sourcing offices across 12 different countries and regions. This extensive footprint includes locations in Mainland China, Hong Kong, Taiwan, South East Asia, South Asia, and Latin America.
The global sourcing team ensures high-quality and value-driven products, particularly for the retailer’s extensive portfolio of owned labels, which now number more than 45. While Target’s sourcing from China represented a high of approximately 60% of its goods in 2017, company data indicates this percentage has been substantially reduced to an estimated 20% to 30% of its cost of goods sold in recent years. This reduction reflects a deliberate effort to spread manufacturing across a wider geographical area, with key sourcing regions extending to Vietnam, India, and Bangladesh, especially for textile-based products.
Benchmarking: China’s Role in U.S. Retail Supply Chains
Target’s sourcing trends exist within the broader context of the U.S. retail industry’s reliance on Chinese manufacturing capabilities. China remains a dominant force, supplying approximately 40.7% of all U.S. containerized imports as recently as 2022, despite a multi-year decline from its historical peak. The country maintains a near-monopoly in the production of certain consumer goods, particularly toys, furniture, and various consumer electronics.
Overall U.S. imports from China have decreased from 21.6% of total U.S. imports in 2018 to a lower figure in the 2020s, a decline often attributed to trade conflicts and diversification efforts. Industry reliance is still evident in specific product sectors where China’s mature industrial ecosystem and massive scale remain largely unmatched. The volume and complexity of goods imported means nearly every major American retailer must contend with China’s manufacturing dominance.
Target’s Strategy for Supply Chain Diversification
Target is actively pursuing a “China Plus One” strategy, which involves maintaining a presence in China while simultaneously establishing robust secondary manufacturing channels in other nations. This proactive approach mitigates the financial risks associated with tariffs and operational disruptions caused by geopolitical instability. The goal is to build resilience by preventing over-reliance on a single country or region for production.
The company is strategically shifting new or expanded production to alternative sourcing locations, including Vietnam, India, and Mexico, focusing on increasing speed to market for North American consumers. Mexico offers a distinct advantage for nearshoring, reducing transit times and inventory risk for goods produced closer to the final point of sale. This diversification involves developing new supplier relationships and investing in the infrastructure of these emerging sourcing countries.
The move to multiple sourcing locations allows Target to leverage favorable trade agreements and lower input costs in new markets while ensuring a stable flow of goods. This strategy is a long-term adjustment to a new era of global trade, prioritizing supply chain stability and risk management over the lowest possible unit cost. Building these new supply chains requires significant investment in quality control, logistics, and compliance infrastructure in the new regions.
Economic and Ethical Considerations of Sourcing from China
The decision to source from China has always been a balance between economic benefits and increasing compliance challenges. Economically, China offers unmatched manufacturing infrastructure, mature supplier ecosystems, and the capacity for high-volume production, which historically translated to significant cost efficiencies. However, substantial tariffs have significantly eroded this cost advantage, forcing retailers to either absorb the cost or pass it on to consumers.
Ethical considerations also play a role in Target’s long-term sourcing decisions, particularly concerning labor standards and environmental impact. The company operates a Responsible Sourcing and Sustainability audit program to ensure suppliers comply with its Standards of Vendor Engagement. This program monitors working conditions and addresses concerns like forced labor, which can expose the brand to reputational damage and regulatory penalties. The use of tools like the Higg Facilities Environmental Module reflects an effort to measure and improve the sustainability of manufacturing sites.