The second half of 2015 brings numerous developments for compliance. China's new Food Safety Law introduces harsher standards and punishments, the Bangladeshi prosecutors bring murder charges against the owners of Rana Plaza and the Tazreen factory, while the UK's Modern Slavery Act demands more transparency in global supply chains. A recent AI whitepaper analyzes the impact of consumer awareness on modern-day slavery and examines the scale of the problem in more detail. Growth in the Southeast continues, while the yuan depreciation is expected to strongly affect China's major imports, particularly Indian textile and apparel.

1. CSR, IT’S BECOMING HARDER TO HIDE.
CHINA GROWTH HITS NEW LOW.
ASIAINSPECTION Q4 BAROMETER

2. HONG KONG, OCTOBER 8, 2015
ASIAINSPECTION (AI)
A LEADING GLOBAL QUALITY CONTROL AND COMPLIANCE SERVICE PROVIDER
THAT PARTNERS WITH BRANDS, RETAILERS AND IMPORTERS AROUND THE WORLD
TO SECURE, MANAGE AND OPTIMIZE THEIR SUPPLY CHAINA
today announces its 2015 Q4 Barometer, a quarterly synopsis
on outsourced manufacturing and the quality control services industry.

3. BANGLADESH – COMPLIANCE IMPROVES,
BUT REMAINS A WORK IN PROGRESS
While inspections grew in Bangladesh by 68%, 42% of factories audited in Asia
showed major non-compliances and 26% were at serious ethical risk.

4. OWNERS OF GARMENT FACTORIES ARE BEING TRIED FOR THEIR
ROLE IN THE DEATHS OF WORKERS AT THEIR FACILITIES.
Owners of the Tazreen factory in Dhaka, site of the deadliest industrial fire
in Bangladesh, are to stand trial on murder charges.1

5. SOUTHEAST ASIA SEES STAGGERING GROWTH
AT THE EXPENSE OF CHINA.
China Southeast Asia
VS
Performed Inspections Growth
(Y-O-Y)
+3.2%
+104%

6. CHINA HAS RECENTLY INVESTED $4.5 BILLION IN TWO
INDUSTRIAL PARKS IN BANGLADESH DUE TO MORE
COMPETITIVE LABOR COSTS.2
Despite Bangladesh often lacking the most basic infrastructure
and suffering from frequent disruptions.

7. VIETNAM AND CAMBODIA CONTINUE
STRONG GROWTH TREND
Vietnam exported $1 billion USD in apparel in one month3
.
AI saw an increase of 168% in product inspections.
Cambodia was also among the strong growers with an increase
of 268% in product inspections.

8. India’s exports have contracted for nine months in a row.
Despite the persistent problems, AI recorded a 40% Y-O-Y growth in product
inspections.
INDIA SEES GROWTH IN TEXTILE INDUSTRY
DESPITE EXPORT CONTRACTION

9. Product quality increase is a possible reflection of the efforts by Indian textile
companies to innovate in order to boost their overseas competitiveness.4
Performed Inspections Growth
(Y-O-Y)
Product Quality
+40%
+5%

10. NEW FOOD SAFETY LAWS EFFECTIVE IN CHINA
CHINA’S NEW FOOD SAFETY LAW CAME INTO EFFECT ON 1 OCTOBER,5
in the wake of several high-profile food safety scandals.

11. 48%37% VS
(Q2 2015 vs Q3 2015)
CHINA’S FOOD INSPECTION FAILURE RATE
WORRYINGLY INCREASES

12. AsiaInspection (AI), a leading global quality control
and compliance service provider
that partners with Brands, Retailers and Importers around the world
to secure, manage and optimize their supply chain.
ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™

13. With unique web-based quality control management,
AI OFFERS PRODUCT INSPECTION, SUPPLIER AUDIT PROGRAMS
AND LABORATORY TESTING SERVICES
for more than 4,000 clients worldwide.

14. The 2015 Q4 Barometer is a
QUARTERLY SYNOPSIS ON OUTSOURCED MANUFACTURING
AND THE QUALITY CONTROL SERVICES PERFORMED BY AI EACH YEAR
(supplier audit programs, product inspections and laboratory testing).

15. ABOUT ASIAINSPECTION
YOUR EYES IN THE FACTORY!™
DEDICATED ACCOUNT MANAGER
A supply chain partner
offering advice on your specific needs
INDUSTRY LEADING TURNAROUND
Onsite within 48 hours.
Reports the same day 80% of the time
COMPREHENSIVE ONLINE MANAGEMENT
Use your real-time dashboard
to benchmark and identify
your high performing suppliers
FLEXIBLE
Cancel or modify orders up to 4pm
the day before the inspection for free
PRODUCT EXPERTISE
Hundreds of off-the-shelf customizable
product specific checklists
TRUSTED AND TRULY INDEPENDENT
100% QC. AI is not involved in sourcing
and protects your factory information
MOBILE
Book, check reports
and make decisions on the go
ALL-INCLUSIVE PRICING
Easy to budget. No hidden costs

16. FOOTNOTES
1/ http://www.theguardian.com/world/2015/sep/03/bangladesh-court-indicts-factory-owners-over-deadly-2012-fire
2/ http://www.thedailystar.net/city/china-plans-investment-two-industrial-parks-149407
3/ https://sourcingjournalonline.com/apparel-imports-from-vietnam-top-1-billion-in-july
4/ http://www.livemint.com/Industry/NnhgvTY1cH27pNtZO1emYI/Textile-makers-file-for-patents-to-enhance-export-market-sha.html
5/ http://www.natlawreview.com/article/china-s-food-safety-law-takes-effect-today-are-you-ready