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Global Value Chains in a Postcrisis World
Table 5A.8 Brand Marketers and Manufacturers: Sourcing Strategies, 2008 Brand firm
Sales Sourcing (US$, billions) strategy
Description and known countries
Nike
19.2
Direct sourcing
Apparel from 38 countries. China, largest—others including Thailand; Indonesia; Malaysia; Vietnam; Turkey; Sri Lanka; Cambodia; Taiwan, China; El Salvador; Mexico; India; and Israel.
Inditex (Zara) (Spain)
15.1
Direct sourcing; manufacturer
50 percent owned manufacturing (Spain, “fashion items”); 50 percent sourced, with 40 percent from Asia (China, Bangladesh, basics, t-shirts); and 10 percent, Europe and Northern Africa (Morocco). 1990: Asia represented almost 0 percent.
VF Corporation
7.6
Direct sourcing; manufacturer
77 percent sourced: China largest; others including Bangladesh, Vietnam, Indonesia, Thailand, Cambodia, the Philippines, Pakistan, India, Sri Lanka, Egypt, Chile, Argentina, Tunisia, and Morocco. 23 percent owned manufacturers incl. Mexico, Nicaragua, Honduras, Poland, and Turkey.
Liz Claiborne
4.2
Hanesbrands
4.0
Phillips-Van Heusen (PVH)
2.5
Direct sourcing
Timberland
1.5
Intermediary: Li and Fung License to PVH for some apparel
Intermediary: Li and Fung Direct sourcing; manufacturer
34 percent sourced from 3rd party manufacturing (FOB); 66 percent: owned facilities or 3rd party cut/sew contractors (CMT). Hanesbrands owns 52 manufacturing plants with locations in the United States, Vietnam, Thailand, Puerto Rico, Dominican Republic, El Salvador, and Honduras. 175 manufacturing plants in 26 countries (including Bangladesh, Cambodia, United States) to firm specifications (FOB)
Source: Authors; sales figures from Driscoll and Wang (2009).