AsiaInspection today announces its 2013 Q4 Barometer, offering a year in review of outsourced manufacturing and the quality control services industry.
2013 was a challenging year for brands and retailers worldwide in the face of increasing supply chain social issues, most notably the Rana Plaza tragedy, where a Bangladesh factory collapse took the lives of 1,129 people.
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AsiaInspection Q4 Barometer: The Year of Social Accountability in the Supply Chain?
1. The Year
of Social Accountability
in the Supply Chain?
AsiaInspection Q4 Barometer
2. SOCIAL ISSUES PLAGUE
GLOBAL SUPPLY CHAINS
ASIAINSPECTION PRESENTS THE 2013 Q4 BAROMETER
A year in review of outsourced manufacturing
and the quality control services industry.
AsiaInspection,
A leading quality control service provider
A leading quality control service provider
that partners with international Brands, Retailers and Importers
that partners with international Brands, Retailers and Importers
to secure and manage their global supply chain.
to secure and manage their global supply chain.
3. AS IA MANU FACTURIN G
LIFE AFTER R ANA PLA ZA
2013 was a challenging year
for brands and retailers worldwide in the face of supply chain social issues
for brands and retailers worldwide in the face of supply chain social issues
Most notably the Rana Plaza tragedy in May,
where a factory collapse in Bangladesh
took the lives of
1,129 people
1,129 people
4. Throughout the year in factories across India,
Bangladesh, Cambodia and Myanmar:
Strikes
Riots
Workers Demanding
Higher Wages
The minimum wage in Bangladesh is half China
The minimum wage in Bangladesh is half China
and Cambodia is $80 per month.
and Cambodia is $80 per month.
5. Child labor back in the spotlight
Child labor back in the spotlight
78 Million Children Engaged in Child Labor
in the Asia and Pacific Region*
* US Department of Labor. October 2013
6. Figures for AsiaInspection reflect
brands and retailers are taking action
+61% Audits increase
+61% Audits increase
in Asia for 2013 compared with 2012
While Bangladesh was in the spotlight,
buyers took to securing their supply chain in all sourcing regions, year over year
+47% Audits
+47% Audits
in Bangladesh
+112% Audits
+112% Audits
in India
+58% Audits
+58% Audits
in China
7. As a result of the tragic incidents in Bangladesh
news emerged of buyers starting to look for alternatives in the region.
AsiaInspection ordered inspection figures further support this.
+36%
+44%
Inspections in Bangladesh
Inspections in India
+71%
Inspections in Vietnam
+114%
Largest exporter for apparel
in volume after China
Inspections in Cambodia
8. W ITH CHRIS TMAS BE HIND US
AR E CHINESE TOYS FINA LLY SAFE?
China continues to dominate toy manufacturing
80%
of all toys sold in western countries
are made in China
which is when up to 70%
of all toy sales occur
consumer safety was
on the agenda last quarter
9. • In November, 200,000 dolls made-in-China were seized at US ports
for containing high levels of phthalates (a banned chemical used in plastic)
• The same happened in France in December with
30,000 non-compliant Chinese toys destroyed by customs
• Concurrently, a U.S. Public Interest Research group
analyzed 50 toys and found lead 29 times the safety limit,
banned phthalates, excessive levels of cadmium and choking risks.
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10. The Toys & Recreational industry shows a worrying trend
The Toys & Recreational industry shows a worrying trend
with the number of failed toy inspections in Asia rising
with the number of failed toy inspections in Asia rising
2012
2012
27%
2013
2013
33%
While most failed inspections
were for minor non-life threatening issues
more than 4% of toys
AsiaInspection
testing by AI did not pass safety standards
testing by AI did not pass safety standards
11. SOUR CINGOFPOWER :
THE WORLD
NA VS. REST
CHINA VS. REST OF THE
Despite fears that China’s competitiveness would be eroded
by the appreciation of the RMB and wage inflation,
China’s exports continue to set new highs.
12.7%
November was up
compared with a year earlier
9.3%
2013 showed an increase
for the period of January to November
compared to 2012
This puts China on track to report
This puts China on track to report
the largest annual trade surplus since 2008
12. AsiaInspection inspection figures mirror this with a
+17% increase in ordered inspections in China
in 2013 compared with 2012.
Bangladesh exports amounted
Bangladesh exports amounted
to a mere 1% to that of China.
to a mere 1% to that of China.
In 2013, China remained by far
In 2013, China remained by far
the largest sourcing region
the largest sourcing region
used by AI clients.
used by AI clients.
CHINA
BANGLADESH
BANGLADESH
AsiaInspection
n
spectio
AsiaIn
AsiaInspe
ction
13. 2013 confirmed
the trend for new sourcing regions
with Africa
seeing a 47% increase
the second half of the year
Vietnam was up
by 71%
increase
ection
AsiaInsp
on
on
AsiaInspection
AsiaInspecti AsiaInspecti
Cambodia doubled
despite protests
over wage concerns
14. WHAT TO EXPECT
URCING
IN 2014 GLOBAL SOURCING
obvious from the
tragic events in 2013
“ It’sthat transparencycurrent statistics andare in great need.
and accountability
Western buyers do not actually know what’s going on in their factories
Western buyers do not actually know what’s going on in their factories
as was demonstrated when H&M published their entire supplier list.
Sebastien Breteau, CEO of AsiaInspection
on
AsiaInspection
pecti on
AsiaInspe cti
AsiaIns
“
“
2014 will be a year of transparency
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