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

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

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

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 Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies Content [4/all]

79 USD billion The Global Sports Market international sport organisations sponsorship est. USD 20 billion gate revenues sporting goods est. 126 USD billion "… 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) Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [5/all] broadcasting est. USD 50 billion

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [6/all] Global Sporting Goods Market Weltmarkt f ü r 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 [7/all] Asia

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [8/all] Global Sporting Goods Market Weltmarkt f ü r 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 [9/all] Asia Chain of Developmental States 1)Japan 2)NIEs: South Korea, Taiwan, Hong Kong, Singapore 3)South-East Asian Tigers: Malaysia, Thailand, Indonesia, Philippines 4)New Dragons and Tigers: China, India, Vietnam 5)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 [10/all] Akamatsu Kaname 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)

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

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

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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [14/all] Sporting Goods Supply Chain 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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [15/all] Profits of Global Sport Brands Gewinne der Sportbekleidungsindustrie vor Steuern in Million US-Dollar Sources: MSN 2008:17; annual corporate reports Zuwachs in % Nike1,450.01,859.82,141.62,199.92, Adidas ,088.41, Puma ASICS Mizuno Li Ning Li & Fung Yue Yuen

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [16/all] Nike Production Network (2008) 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 Workforce Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [17/all] 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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [18/all] Adidas Production Network

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [19/all] Adidas World 2009

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [20/all] Li Ning 2008 Founded in % 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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [21/all] Li Ning 2008

China Chain Map Wolfram Manzenreiter University of Vienna, Dept. of East Asian Studies [22/all]

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [23/all] Yue Yuen 2009

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [24/all] Li&Fung 2009

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

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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [27/all] Asia‘s world market share totalgarmenttotalgarmenttotalgarmenttotalgarment Northeast Asia PRC19 8.6% % % % Hong Kong % % % % Japan % % % % South Korea % % % % Taipei China % % % % Southeast Asia Indonesia24 2.4% % % % Thailand7 4.2% % % % Malaysia14 1.2% % % % Philippines6 4.9% 8 8.4% % % Vietnam0 7.3% 1 5.0% % % South Asia Bangladesh1 10.0% % % % India8 7.5% % % % Sri Lanka1 10.0% % % % Pakistan3 3.3% % % % (volumes in US$ billion; export share of apparel industries in %) Sources: Gereffi 2006; 2008 UN Comtrade Database 1 data for 2007

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [28/all] Asics 2009

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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [30/all] flying geese model

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [31/all] sweatshop critics

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [32/all] final Baseball 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

Wolfram Manzenreiter University of Vienna Dept. of East Asian Studies [33/all] Japan apparel import

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