Mapping the Global Garment Supply Chain Presentation of a WageIndicator Report (Maarten van Klaveren and Kea Tijdens, August 2018)
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1 Mapping the Global Garment Supply Chain Presentation of a WageIndicator Report (Maarten van Klaveren and Kea Tijdens, August 2018) AIAS-HSI Lunch Seminar Amsterdam, November 1, 2018 Maarten van Klaveren
2 HISTORY OF THE REPORT April 2016: Wages in Context in the Garment Industry in Asia, WageIndicator Report for Dutch Ministry of Foreign Affairs in preparation of the Asian Living Wage Conference (May 2016, Islamabad), goals: Provide information about labour law and minimum wage setting in the garment industry in nine Asian countries: Bangladesh, Cambodia, China, India, Indonesia, Myanmar, Pakistan, Sri Lanka, Vietnam Compare wage levels of garment workers in these countries with cost of living and related living wages Provide overview of instruments for realising living wages Added: overview supply chains 25 brands (partly different from current) July 2017: update of Wages in Context report for forum debate at ILO s Regulating for Decent Work (RDW) Conference, Geneva 2017-current: WageIndicator projects in garment industry in Indonesia, Ethiopia, Myanmar Jointly impetus for building WageIndicator Garment Supply Chain Database 2018 (May-July 2018), as basis for report Mapping the Global Garment Supply Chain 16 October
3 CONTENTS Shares of 25 countries under scrutiny in world garment exports Overview 24 garment & footwear brands scrutinized: sales, employment, employment in supply chains Dependency of suppliers: number of brands supplied per factory Larger dependency? Clusters of factories working for the same brands Size matters: size of factories and number of brands supplied Size varies: size distribution of factories by country And also relevant: female participation rates Ownership: division national /foreign/joint-venture by country And ownership once more, by main countries of origin of investment 16 October
4 25 GARMENT-EXPORTING COUNTRIES: shares in world garment exports, 2016 COUNTRY % COUNTRY % China 34.3 South Korea 0.5 Bangladesh 6.2 Tunisia 0.5 Vietnam 5.4 Honduras 0.4 India 3.9 Myanmar 0.4 Turkey 3.3 Malaysia 0.4 Indonesia 1.6 Singapore 0.3* Cambodia 1.3 Egypt 0.3 Pakistan 1.1 Guatemala 0.3 Sri Lanka 1.1 Philippines 0.2 Mexico 0.9 Peru 0.2 Thailand 0.9 Taiwan 0.2 Morocco 0.8 Ethiopia 0.1 El Salvador 0.5 TOTAL 25 c October
5 24 BRANDS: net sales (bln. USD), own employment (x 1,000), employment in supply chains (x 1,000), 2017 home c. sales own empl. empl. chain Adidas DE Amer Sports FI ASICS JP ASOS UK Bestseller DK C&A CH Debenhams UK 3.4* 27* 283 Esprit HK/DE Gap Inc US G-Star RAW NL H&M SE KappAhl SE Levi Strauss UK M&S UK 13.7* New Balance US Nike US Pentland UK Primark IE/UK Puma DE PVH Corp US Tesco UK 12.6* 476 Under Armour US Uniqlo JP VF Corp US October
6 NUMBER OF BRANDS SUPPLIED PER FACTORY: country averages, 13 largest exporters aver. no. fact. El Salvador Bangladesh Sri Lanka Cambodia Pakistan Vietnam Indonesia Turkey India Morocco Thailand China Mexico Subtot. 13 c Total October
7 CLUSTERS: FACTORIES WORKING FOR THE SAME BRANDS: 25 exporting countries, selection of 5 major brands C&A H&M M&S PVH Tesco C&A H&M M&S PVH Corp Tesco Total % other 4 x x x x x October
8 SIZE OF FACTORIES AND AVERAGE NUMBER OF BRANDS SUPPLIED, total 16 brands > brand brands >= 4 brands Total October
9 SIZE OF FACTORIES BY COUNTRY, 13 largest exporters, total 16 brands >5000 total Bangladesh Indonesia Vietnam Cambodia Pakistan El Salvador Thailand Sri Lanka India Mexico China Morocco Turkey Total October
10 FEMALE PARTICIPATION RATES, averages of suppliers: 7 brands, 3 main product groups, 9 largest exporters Bangladesh Cambodia China India Indonesia Pakistan Sri Lanka Turkey Vietnam apparel footwear accessories total October
11 DISTRIBUTION OF OWNERSHIP: 3 categories, 13 largest exporters national foreign jointventure total Turkey India Pakistan Morocco Bangladesh China Sri Lanka Mexico Thailand Indonesia Vietnam El Salvador Cambodia Total 25 c October
12 OWNERSHIP BY MAIN ORIGINS OF INVESTMENT: home countries (hor.) vs host countries (vert.) BD CAM CHI IN ID MYA VN Bangladesh China Hong Kong India South Korea Taiwan Japan UK USA October
13 THANK YOU AND MORE INFO Thank you for your attention! General information WageIndicator: Questions concerning report: WageIndicator publications: 16 October
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