Broken China
The Times, November 2007
When the Olympics finally arrive in Beijing next year so will the spotlight of global attention. Focus will extend far beyond the medal tables. All aspects of the country will come under increased scrutiny from all angles – economic, political, social, environmental and ethical. It’s going to be a big year for Brand China.
Chances are that criticism and concern will accompany the attention – particularly on the social, environmental and ethical agenda. Whether it’s more on established issues such the Three Gorges and factory conditions or new issues altogether, the brand is likely to take a bit of bashing.
This raises big questions for the increasing number of brands linked to China through their supply chains.
Forward-looking Concerned Consumers are already deeply uncomfortable with China. The safety of toys made in China scores 4.29 on a scale of 1 to 5 where 5 is very concerned indeed. Conditions of workers comes in at 4.08. And its not just toys. Whether its fashion, electricals, automobiles – China is an issue.
All of which means that companies currently involved with China (and that’s most companies) need to start asking a big question. At what point does the association pose a risk to the brand that outweighs the cost savings outsourcing production?
Of course the answer depends on the brand and the level of its involvement with China. And on how both China and business responds to the situation. If China is able to convincingly address the issues things will change. If businesses are able (either individually or collaboratively) to implement audit systems backed up by credible quality marks which effectively reassure consumers this too will make a difference. But fear and concern runs deep and things may get worse before they get better. Brands working hard on all other levels to establish their social and environmental values may need to start asking whether they can really afford to wait.
