A(sian) Race to the Bottom? Produktionsnetzwerke im globalen Sportartikelmarkt

1. A(sian) Race to the Bottom?Produktionsnetzwerke im globalen Sportartikelmarkt Ringvorlesung „Globale Güterketten", Wien und Graz im SoS 2010 Wolfram Manzenreiter Universität Wien Institut für Ostasienwissenschaften

2. Global sports shoes Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [2/all]

3. Apparel Commodity Chain Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [3/all]

4. global market for sport goods Asia in the global economy role of Asia for the global sporting goods production new variants of production networks developmental implications Content Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [4/all]

5. The Global Sports Market "… any income and expenditure circulating between private households, commercial sport clubs, sport centres and sport organisations, sports good manufacturers and retailers, sports media departments, and other private and public sector economic activity that either supplies goods and services to the sport sector." est. 2 % of global GDP (2005) gaterevenues 79 USD billion sponsorshipest. USD 20 billion broadcasting est. USD 50 billion sporting goods est. 126 USD billion international sport organisations Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [5/all]

6. Global Sporting Goods Market Weltmarkt für Sportartikel 2005 (nach Produktsparten) Quelle: Sporting Goods Intelligence Factbook, zit. nach Schmid/Kotulla 2007:2 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [6/all]

7. Asia Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [7/all]

8. Global Sporting Goods Market Weltmarkt für Sportartikel 2005 (nach Regionen) Quelle: Sporting Goods Intelligence Factbook, zit. nach Schmid/Kotulla 2007:2 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [8/all]

9. Asia • Chain of Developmental States • Japan • NIEs: South Korea, Taiwan, Hong Kong, Singapore • South-East Asian Tigers: Malaysia, Thailand, Indonesia, Philippines • New Dragons and Tigers: China, India, Vietnam • Next Generation: Cambodia, Sri Lanka, Laos • home to 25% of world production • home to 1/3rd of global trade • since 1980 • share of Asian developmental states tripled • share of China grew by 1,000 percent Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [9/all]

10. industrial change cuased by technological innovation and capital transfer intra-industrial inter-industrial international cyclical process import substitution foundation of competitive domestic industries support and protection of domestic market export of capital goods • flying geese model of economic development • (1935) Akamatsu Kaname Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

11. cotton spinning silk production textile industry of Japan Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

12. flying geese model: Japan‘s textile industry Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

13. flying geese model: industrial upgrading Wolfram Manzenreiter University of Vienna, Dept. of East Asian Studies

14. production networks: • multiple relations between various production levels • vertical, horizontal and multi-directional relations • actors in multiple roles • binary model of buyer – vs. producer-lead commodity chains is over-simplistic. • impact on development? • capitalism: exploitation of labour in industrial sweatshops • modernization: liberation from feudal dependencies • industrial upgrading Sporting Goods Supply Chain Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

15. Profits of Global Sport Brands Gewinne der Sportbekleidungsindustrie vor Steuern in Million US-Dollar Sources: MSN 2008:17; annual corporate reports Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [15/all]

16. contracting with Japan since 1960s • sourcing from Korea, Taiwan, Thailand since 1970s • shift towards Malaysia, Indonesia, Phillipines and Vietnam in 1990s • today: more than 600 factories in 46 countries Nike Production Network (2008) Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

17. 35,000 employees of Nike: most in merchandising, research, sales • 800,000 workers in production, most in Asia, none in Niek‘ factories • Nike is No 1 in sport shoes, vying for leadership in sports apparel; no 6 in sporting goods market • increasing variety of goods • best-ever turnover results in 2009 • consolidation: more contracted work to more workers at fewer companies of fewer countries Nike Workforce Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

18. Adidas Production Network Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

19. Adidas World 2009 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

20. Founded in 1990 • 30% share of domestic market for sporting apparel, shoes, goods • large regional spread, country-wide presence of shops and outlets • production shifting from coastal areas towards own industrial park in central China Li Ning 2008 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

21. Li Ning 2008 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

22. China Chain Map Wolfram Manzenreiter University of Vienna, Dept. of East Asian Studies

23. Yue Yuen 2009 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

24. Li&Fung 2009 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

25. Dongguang, Luen Thai Supply Chain City Wolfram Manzenreiter University of Vienna, Dept. of East Asian Studies

26. Apparel Commodity Chain Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [26/all]

27. (volumes in US$ billion; export share of apparel industries in %) Sources: 1980-1998 Gereffi 2006; 2008 UN Comtrade Database 1 data for 2007 Asia‘s world market share Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

28. Asics 2009 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

29. China Mizuno, since 2007 since 1994 since 1992 since 1970 Thai Sports Garments since 1990 since 1991 since 1982 since 1982 since 2008 since 1987 since 1990 Mizuno Network 2009 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

30. flying geese model Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

31. sweatshop critics Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

32. consolidation in consumer goods industries vertical integration; proprietary brand development, diversification of business (under „fast retailing“) communication technologies, production standards, internet and virtual market places unequal benefits? industrial upgrading but high degree of dependency from Northern markets as well as from large retailers race to the bottom is slowing down The China factor Baseball final Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

33. Japan apparel import Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies

34. China Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [34/all]