CSR, IT’S BECOMING HARDER TO HIDE. CHINA GROWTH HITS NEW LOW.

ASIAINSPECTION Q4 BAROMETER

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.

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.

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

SOUTHEAST ASIA SEES STAGGERING GROWTH AT THE EXPENSE OF CHINA.

China Southeast Asia

VSPerformed Inspections Growth

(Y-O-Y)+3.2%

+104%

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.

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.

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

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%

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.

48%37% VS(Q2 2015 vs Q3 2015)

CHINA’S FOOD INSPECTION FAILURE RATE WORRYINGLY INCREASES

AsiaInspection (AI), a leading global quality control and compliance ser vice 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!™

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.

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).

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 4pmthe 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 sourcingand protects your factory information

MOBILE

Book, check reports and make decisions on the go

ALL-INCLUSIVE PRICING

Easy to budget. No hidden costs

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