A Critical Corporate Profile of Li & Fung

Behind the prominent Brand names and Retail stores of global supply chains are intermediaries who provide services to large volume buyers. A key feature of the global apparel industry is complex supply chains with many contractors and subcontractors and intense competition among factories – induced by the buyers – to reduce cost and increase speed. Over the past two decades, scholars have noted the dramatic increase of market power of international retail corporations gained at the expense of the fragmentation of centers of production. Enter Li & Fung, a Hong Kong based firm which is the largest sourcing agent in the global apparel business. Li & Fung’s central role in shaping the supply chain of apparel potentially affects the lives of millions of workers in their direct supply chains and the labor markets in which they are such a commanding force. Their strategy of sourcing emphasizes the cutthroat competition among factories that is the source of apparel workers’ conditions. Our analysis also indicates that already an “unseen giant” Li & Fung appears to have decided to move towards higher value-added processes in the supply chain. Understanding the complex implications of Li & Fung’s business strategy for workers’ rights is crucial for securing decent conditions for workers in the apparel industry over the coming years

The global apparel value chain, trade and the crisis : challenges and opportunities for developing countries

This paper examines the impact of two crises on the global apparel value chain: the World Trade Organization phase-out of the quota system for textiles and apparel in 2005, which provided access for many poor and small export-oriented economies to the markets of industrialized countries, and the current economic recession that has lowered demand for apparel exports and led to massive unemployment across the industry’s supply chain. An overarching trend has been the process of global consolidation, whereby leading apparel suppliers (countries and firms alike) have strengthened their positions in the industry. On the country side, China has been the big winner, although Bangladesh, India, and Vietnam have also continued to expand their roles in the industry. On the firm side, the quota phase-out and economic recession have accelerated the ongoing shift to more streamlined global supply chains, in which lead firms desire to work with fewer, larger, and more capable suppliers that are strategically located around the world. The paper concludes with recommendations for how developing countries as well as textile and apparel suppliers can adjust to the crisis.Markets and Market Access,Economic Theory&Research,Free Trade,Labor Policies,Access to Markets

No. 04: Supermarkets, Wet Markets and Food Patronage in Nanjing, China

Although supermarkets have become a dominant food outlet for urban residents in developed countries, studies of food purchasing in developing countries such as China report a persistence of traditional food outlets, despite a proliferation of supermarkets over the past two decades. Yet, little is known about urban residents’ use of various food sources in the Chinese context. Building on the debate over the rise of supermarkets and the persistence of traditional food outlets, this paper analyzes the landscape of competing food sources including supermarkets, wet markets, restaurants, online food markets, urban agriculture and others. Based on the HCP citywide survey of 1,200 households in Nanjing, China, the paper looks at the purchasing frequency of a comprehensive list of food items in different food retail outlets, the accessibility of these outlets, and also the use of different food sources. We found that while supermarkets are the top source for purchasing staple grains, dairy products and processed food, wet markets still prevail for purchasing fresh produce and meat. The data demonstrates the high level of food accessibility in Nanjing and also indicates the significance of food sources beyond conventional retailing outlets, such as online food markets, urban agriculture and restaurants, in people’s daily lives

Online Store Locator: An Essential Resource for Retailers in the 21st Century

Most retailers use their websites and social media to increase their visibility, while potential customers get information about these retailers using the Internet on electronic devices. Many papers have previously studied online marketing strategies used by retailers, but little attention has been paid to determine how these companies provide information through the Internet about the location and characteristics of their stores. This paper aims to obtain evidence about the inclusion of interactive web maps on retailers’ websites to provide information about the location of their stores. With this purpose, the store locator interactive tools of specialty retailers’ websites included in the report “Global Powers of Retailing 2015” are studied in detail using different procedures, such as frequency analysis and word clouds. From the results obtained, it was concluded that most of these firms use interactive maps to provide information about their offline stores, but today some of them still use non-interactive (static) maps or text format to present this information. Moreover, some differences were observed among the search filters used in the store locator services, according to the retailer’s specialty. These results provided insight into the important role of online store locator tools on retailers’ websites

Regulating hedge funds.

Due to the ever-increasing amounts under management and their unregulated and opaque nature, hedge funds have emerged as a key concern for policymakers. While until now, hedge funds have been left essentially unregulated, we are seeing increasing calls for regulation for both microprudential and macroprudential reasons. In our view, most calls for the regulation of hedge funds are based on a misperception of the effectiveness of financial regulations, perhaps coupled with a lack of understanding of the positive contribution of hedge funds to the financial system. There are real concerns about consumer protection following from the expansion of the consumer base. However, it would be misguided to relax accreditation criteria. A more important issue is the investment of regulated institutions, in particular pension funds, in hedge funds. Since such institutions to enjoy direct or indirect government protection, the investment in hedge funds has to be regulated. However, such regulations are best implemented on the demand side by the pension fund regulator, rather than by directly regulating the hedge fund advisors themselves. Hedge funds provide considerable benefits, not only to their investors and advisors, but more importantly to the economy at large by facilitating price discovery, market efficiency, diversifi cation, and by being potentially able to put a floor under a crisis, a function not easily implemented by regulated institutions due to a minimum capital ratios, relative performance evaluation and other considerations. It would however be imprudent to leave hedge fund advisors completely unregulated since the failure of a systematically important hedge fund has the potential to create such uncertainty as to impede trading and in a worst case scenario cause significant damage to the real economy. These issues cannot be addressed by standard regulatory methodology such as disclosure and activity restrictions. Indeed, supervisors would be well advised to leave the hedge fund sector unregulated in their normal day-to-day activities. However, the regulator needs to have the power to resolve the informational uncertainty caused by the failure of a systematically important hedge funds. Prime brokers and other client banks would in such a scenario have a de facto or a de jure obligation to participate in the expedient removal of the uncertainty. To this end targeted consultation and contingency planning is essential.

Retail Innovation - The never-ending road to success? A critical analysis of pitfalls and opportunities

This paper outlines the current and continuous changes occurring in the retail and social environment that necessitate the constant evolution of retail formats. Over recent years experiential retail formats have appeared in recognition of the increasing need to ‘entertain’ shoppers and satisfy their ‘leisure’ needs. A number of ‘best practice’ examples of such retail innovation have been presented. While such experiential innovations appear to be the ‘holy grail’ of modern retailing, they often require considerable investments of both capital and management time. This paper has used an autoethnographic approach to reflect upon the constraints and costs involved in the design, construction and operation of such a retail enterprise to provide a unique and holistic assessment of the benefits and challenges experiential innovation holds in developing new retail formats and initiatives. The findings from this research highlight a number of previously unreported pitfalls that are likely to be encountered, financially, operationally and symbolically. It is recommended that retailers continue to explore experiential innovations, but that they proceed with caution

Efficient or Exclusionist: The Import Behavior of Japanese Corporate Groups

macroeconomics, corporate group, Japan

'Parasitic invasions' or sources of good governance: constraining foreign competition in Hong Kong banking, 1956-81

This paper investigates the operation and impact of the moratorium on new banking licences imposed in Hong Kong in 1965 and the claims that foreign banks destabilised the banking system and drained resources from the colony. First it examines foreign banks' attempts to circumvent the moratorium through claims of special circumstances and buying interests in local banks, and secondly it examines the efforts of incumbents to extend barriers to non-bank financial institutions and to branches of foreign banks. The general conclusions are that while the moratorium was aimed at increasing the stability of the banking system, it had the effect of decreasing the regulatory breadth of the government, and reducing incentives for mergers and acquisitions that might have improved governance

Who Pays for our Clothing from Lidl and KiK?

A report on the impact of buying practices of retail discounters Lidl and KiK on wages and working conditions in six selected suppliers in Bangladesh, as well as in German retailing as a whole

The Structural Crisis of Labor Flexibility

Paper evaluating the CCC’s aims, strategies, and activities. It includes an analysis of the persistence of poor working conditions in the garment industry; an overview of CCC strategies and the debate over codes of conduct, monitoring, and verification; and the description of three broad strategies for future action aimed at increasing the impact of voluntary, private instruments on working conditions