Welcome to SourceTrends 2015
Gary M. Barraco
VP, Industry Development
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
Making News
 US Federal Contractors required to
eradicate human trafficking from
global supply chains.
 MIT, Boston Consulting Group and
UN Global Compact released a
fascinating research study on
Collaboration and Sustainability.
 Canadian menswear company
Kanati pulls out of Pakistan.
 Fast Retailing responds to recent
reports on factory working
conditions by SACOM.
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2
Making News
 Bangladesh continues to be in
turmoil after another factory fire
leads to unrest.
 Footwear Distributors and Retailers
of America (FDRA) released a wage
map for China that it hopes will
bring transparency for sourcing
professionals.
 Individual state legislation in the US
is adding an additional layer of
requirements to federal regulations.
– Oregon Toxic Free Kids Act
– State of New York Children’s Products
 Product testing on basic items like
PJs is still not getting done right
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3
Thomas Ng
General Manager
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A Single, End-to-End, Global Trade and
Supply Chain Management Solution for
Retailers
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5
Keynote Address
Rick Darling
Executive Director of Government and Public Affairs
Li & Fung Ltd.
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Panel Session:
Updates on High-Risk Countries and
Regions
Avedis Seferian, President &CEO, WRAP
Ian Spaulding, Alliance for Bangladesh Worker Safety
Lary Brown, Vice President-Head of Global Sourcing
Compliance, Esprit
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8
Panel Session:
State and Country-Specific Product
Testing Regulations
Christy Chan, Deputy Director- Regional Key Account Mgmt,
SGS Testing
Kitty Man, Senior Product Safety Manager, VF Corp
Tina Meng, Engineer, GTT
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
Regulation Update
Kitty Man
VF Corporation
Content
•
•
•
•
US
Japan
Europe
Some useful resources
CPSC
• Proposed update on phthalates restriction
• 8 phthalates (BBP, DBP, DEHP, DIBP,
DPENP, DnHP, DCHP, DINP)
• DNOP and DIDP are delisted
• Limit: 0.1%
Japan (Proposed)
•
•
•
•
•
•
Household Products
24 restricted aromatic amines
Limit: 30 mg/kg
Leather and textile product
Proposed date of adoption: March 2015
Proposed date of enforcement: April 2016
EU – Nickel Directive
Definition of “prolonged contact with skin”:
• 10 minutes on three or more occasions
within two weeks, or
• 30 minutes on one or more occasions
within two weeks.
AAFA RSL
AFIRM Toolkit
Popular regulations for importing textile goods
into China market
中國服裝市場監管與合規要求
—— Tina Meng
1
Introduction
2
Compliance Requirements
3
Quality Supervision in China Mainland
Introduction
• National law
a. Product Quality Law of R.R.C
中华人民共和国产品质量法
b. Standardization Law of P.R.C
中华人民共和国标准化法
c. Law of the P.R.C on the Protection of the Rights and
Interests of Consumers
中华人民共和国消费者权益保护法
Introduction
• Standards
a. Importance
Mandatory and Recommended
b. Level
National ,Industrial, Enterprise…
c. Type
Product standard, testing standard…
Introduction
• Classified according to importance
Mandatory
standards
GB
Recommended
standards
GB/T
FZ/T
QB/T
Introduction
Classified according to level
National
standards
Industrial
standards
GB GB/T
FZ/T QB/T
DB/T
Local standards
Enterprise standards
Q/SIRZ 01-2010 Q/SIRZ
02-2010
Introduction
Classified according to type
1
2
Product
standard
Testing
method
standard
FZ/T 81006-2007
FZ/T 73020-2012
GB/T 3920-2008
GB/T 7573-2009
Introduction
FZ/ T 73020– 2012 Knitted casual wear
FZ
T
73020
2012
Knitted casual wear
The first letters of administrative
departments draw up the standards.
Recommended standard
Standard code
Standards approval issued year or
standard final revision year.
Standard name
Compliance Requirements
Mandatory Standard
a)
Mandatory Standard of Safety
Standard Code
Standard Name
Applicable
Product
GB 18401-2010
National general safety technical
code for textile products
Textiles
GB 18383-2007
General technical requirements for
products with filling materials
Fillings
GB 20400-2006
Leather and fur—Limit of harmful
matter
Leather and
Fur
GB 21550-2008
Restriction of hazardous materials in polyvinyl
polyvinyl chloride artificial leather
chloride
artificial
leather
GB 28480-2013
Adornment-Provision for limit of
baneful elements
Adornment
Compliance Requirements
Mandatory Standard
a)
Mandatory Standard of Safety
Standard Code
Testing Items
GB 18401-2010 AZO
FM
GB 20400-2006 AZO
FM
GB 21550-2008 VCM
Pb
GB 28480-2013 Ni
release
As, Cr,
Hg, Pb,
Cd
pH CF
Applicable Products
Odour Textiles
Leather and Fur
Cd
Other
s
polyvinyl chloride
artificial leather
Adornment
Compliance Requirements
b) Mandatory Standards of Labeling
Standard Code
Standard Name
Applicable
products
GB 5296.4-2012
5296.4 Instructions for use of products of
consumer interest--Instructions for use of
textiles and apparel
Textiles and
Apparel
GB/T 29862-2013
Textiles—Identification of fiber content
Textiles and
Apparel
GB/T 1335.1-1335.3 Standard sizing systems for garments
Garments
GB/T 6411-2008
A series of size of knitted underwear
Knitted underwear
GB/T 8685-2008
Textile—Care labeling code using symbols
Textiles and
Apparel
Compliance Requirements
b. Recommended Standards
a) Product Standards
Be applicable to certain products.
Standard Code
Standard Name
Applicable Standard
FZ/T 73020-2012
Knitted casual wear
Knitted casual wear
FZ/T 73018-2012
Wool knitting goods
Wool sweater
FZ/T 81007-2012
Casual wear
Woven casual wear
FZ/T 81014-2008
Infant wear
Woven infant wear
GB/T 14272-2011
Down garment
Down garment
Compliance Requirements
c. Regional regulation
a) 3 Guarantees, eg. footwear
b) Labeling requirement, eg. Chongqing
c) Barcode regulation, international barcode
Quality Supervision
• Institutes of Quality supervision
• Inspected items and assessment
• Process procedure after quality supervision
Quality Supervision
• Institutes of Quality supervision
National
Provincial
Municipal
AQSIQ
SAIC
CCA
CIQ
QTS
AIC
CCA
CIQ
QTS
AIC
CCA
Inspect and supervise
Import and export
products
Inspect and supervise
Production
Supervise retailing
Protect consumer
rights
Product quality
Comparison
Retailing
Quality Supervision
•
Inspected items and assessment
Quality Supervision
AQSIQ
SAIC
• GB 18401
• GB 18401
• Fiber content
• Fiber content
• Labeling
• Important testing
items required in
product standard
CCA
• GB 18401
• Fiber content
• Labeling
• Important testing
items required in
product standard
Quality Supervision
1
2
3
4
5
GB 18401
Fiber content
Other colorfastness+ physical testing items
Labeling
Quality Supervision
Process procedure after quality supervision
• QTS: Normal
Apply for
recheck
If PASS,
it will be fine.
•
Failed
If also Failed
Public Notice
Punishment
PAYING FINE
QTS: Serious
Apply for
recheck
Failed
Public Notice
and
punishment
Rectify and
improvement
Re-inspect
Quality Supervision
Process procedure after quality supervision
• SAIC
Apply for
recheck
Public Notice
Failed
And
Punishment
Transfer to
QTS
Recommendation
Tips for entering Chinese market
• Correct labeling
• Good quality
• Official communication channels
THANKS FOR YOUR LISTENING!
Q&A
LUNCH
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38
Panel Session:
Tech Tools for Risk-Based Quality
Inspections
Mike Hill, VP, Business Development
Dr. Christopher Tam, Technical Director, Sears Holdings
Bill Blay, SVP-QA & QC, Brown Shoe Company
Alex Thomas, Vice President Supply Chain & Manufacturing, VF Corp.
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
Bill Blay
SVP-QA & QC, Brown Shoe Company
40
OMITTED AT SPEAKER’S REQUEST
Collaborative Program – Vendor Accreditation Program
Dr. Christopher Tam
Technical Director, Sears Holdings Global Sourcing
Mar 23, 2015
AGENDA – VENDOR ACCREDITATION PROGRAM (VAP)
• Objective
• Pros and Cons
• 4 steps VAP Processes
• Case Study
43
Objective
To certify vendor and/or factory QC
to inspect and approve shipment
44
Pros and Cons
1. Enhance flexibility
2. Ensure factory QC has good
understanding on your product
quality expectations
1. Insufficient visibility on bulk
shipment
2. High Factory QC turnover
3. English barrier in China region
3. Prevent quality issues at the
early stage
4. Save time and cost
5. Allocate resources to other high
risk factories and/or products
45
4-STEPS VAP
Validation & Monitoring
Factory Nomination
• Unannounced audit
• Inline inspections for
styles required attention
• Annual performance
review
• Review factory quality
history e.g. score card
• Identify factory QC
candidates
• Align sourcing strategy
Assessment & Certification
Factory evaluation and Training
• QC assessment
• Defect interpretation
• Process understanding
• Inspection correlation
• Basic Maths and English
evaluation
• Factory gap analysis
• Seek factory top
management support
• VAP QC candidate
training and correlation
study
46
CASE STUDY
1ST STEP: FACTORY NOMINATION
 Select Potential Factory and QC
1. Select potential VAP factory
1) Previous quality record including:
•
•
•
•
•
•
Late shipment
Short shipment
1st Final pass rate
Defect rate
Claim rate
Store inspection record
2) Pass factory evaluation
3) Align sourcing strategy
2. Select potential VAP candidate
1) Basic QA and QC knowledge
2) Basic English knowledge
3) Basic Maths knowledge
4) Hue / Color Blindness test
48
2ND STEP: FACTORY EVALUATION AND TRAINING
Factory Top
Management Support
Production Gap
Analysis
Nominated QC
training
• Kick off meeting with factory top management to understand and
support VAP
• Pre-production
• Pilot run check
• Incoming material control
• Production planning
• Sub-process quality control
•
•
•
•
•
• QA manual
• AQL sampling plan
• Defect classification
• Packaging requirements
• Reporting system
• Follow up processes (CAP)
• QA folder
In process quality control
Inline quality control
End line quality control
Inspection process
Package and Loading
Probation VAP QC
49
3RD STEP: ASSESSMENT & CERTIFICATION
Written
Assessment
Certified
VAP QC
Field
Inspection
Correlation
tests
50
4TH STEP: VALIDATION & MONITORING
1. Random audit for half year.
2. Unannounced audit.
3. Inline inspections for styles required attention.
• 50 % random
audit
• Unannounced
audit
1st 3 months
3 – 6 months
• 20 % random
audit
• Unannounced
audit
• Unannounced
audit
After 6
months
After 1 year
• Unannounced
audit
• Annual
performance
review
51
SUCCESSFUL HISTORY
• VAP is successfully implemented in Softline, Footwear
and Hardline factories
52
~ END ~
Prepared by: Christopher Tam
[email protected]
Alex Thomas
VF Asia Ltd.
Omitted at the request of the speaker
Thank you
Panel Session:
Electronic Filing of Certificates of
Compliance
Gary M. Barraco, ecVision
Benjamin Wilner, COO, Asia Inspection
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
CPSC and CBP Proposal
 Consumer Product Safety Commission is
proposing to have the
Certificates of Compliance submitted
electronically to the US Customs and
Border Protection agency with other
entry filings.
 This requirement is a major
change to current supply chain
operations and could have an
adverse affect on the industry.
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58
About the Proposed Rule
 Regulated consumer products must be certified as
compliant with CPSC regulations by the manufacturer
(including an importer) and the private labeler of the
product, if applicable.
 A certificate of conformity must accompany the applicable
product or shipment of products.
 In May 2013, the CPSC proposed that to satisfy this
requirement, certificates for regulated finished products
that are imported for consumption or warehousing must be
filed electronically with CBP at the time of filing the entry
(or entry and entry summary if filed together).
 The proposed rule also sought comment on allowing
certificates to be filed at a time earlier than entry, at
manifest.
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59
About the Proposed Rule
 The CPSC proposed that electronic filing be done
in the form of an image, a PDF file or data
elements that can be uploaded into CBP’s
database and electronically provided to CPSC for
review.
 The Commission recognized that electronic filing
would require software upgrades that may need
to be completed in stages by CBP, CPSC and
stakeholders.
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60
Proposed Benefits
 Streamline the import and export process
electronically with an Automated Single
Document Window.
 To allow traders and importers to apply one
time, to a single agency.
 Faster review and release of cargo
 Elimination of paper
 Cost savings from electronic processing
 Consumer safety and brand image
 Competitive advantage for large corporations?
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61
Proposed Solution
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Agencies Requiring Entry Documentation
 In addition to the 10+2 packet…
–
–
–
–
–
–
–
Food and Drug Administration
Centers for the Disease Control
Animal and Plant Health Inspection Service
Disease Contract Management Agency
Food Safety and Inspection Service
Environmental Protection Agency
National Oceanic and Atmospheric Agency
– And now Consumer Product Safety Commission
– Under the proposal, all entry documents for all
agencies could be submitted via ACE,
a Single Agency and "Single Window"
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63
Actions
 In September 2014, CBP held a workshop for interested
parties.
 The intent was to receive practical and procedural
information from stakeholders about the electronic filing of
certificates at entry into CBP’s Automated Commercial
Environment (ACE).
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64
Industry Response
 This requirement contravenes the CPSIA, which calls for
GCCs to be submitted “upon request,” suggesting that
GCCs need not be submitted with each shipment.
 While the CPSIA does envision the possible development of
a rule providing for advance electronic filing of GCCs, that
provision also echoes the “upon request” language.
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65
Industry Response
 This requirement is unworkable, inasmuch as
CBP’s Automated Commercial Environment (ACE)
functionality for cargo release is not yet fully
developed, nor is the software even contemplated
that would allow the GCC to be filed in the
manner proposed by CPSC.
 It is worth noting that five years ago when it
wrote the CPSIA, Congress declined to require
advance electronic submission because of these
same constraints.
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66
Industry Response
 The proposed rule itself calls attention to this deficit
by noting “…such a requirement may require software
upgrades by CBP, CPSC, and stakeholders that must
be completed in stages.”
 The proposed amendment also seems to contravene
President Barack Obama’s, February 19, 2014,
Executive Order on “Streamlining the Export/Import
Process for America’s Businesses” which requires the
U.S. government to complete the International Trade
Data System (ITDS) by December 2016.
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67
Industry Response
 The new requirement will lead to confusion among product
safety stakeholders.
 Will the certificates be required for the right to make entry
of the imported products? Will the lack thereof permit CBP
to deny entry of the products into the United States?
 If the certificates will now be a component of the entry
process for imported merchandise, will they be subject to
CBP's rules for entry documentation, record keeping, and
penalties, which are separately regulated and enforced
from CPSC's rules?
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68
What the ramifications are…
 New processing and resource demands on both the
regulated community as well as the enforcement
community.
 Add increasing costs to both companies and agencies.
 Increased processing times.
 The increase in backlogs could magnify across ports,
especially during peak seasons.
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69
Today
 CPSC has tabled the amendment to 16 CFR 1110 for now.
 Industry associations continue to monitor and rebuff any
actions.
 ecVision and its testing/auditing partners are poised to
assist with complying if necessary.
 CBP is promoting the new Single Window platform.
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
70
Features in ecVision Suite
 Direct integration to testing companies for
detailed testing results
 Product Master and Test Request is flagged when
a COC is ready to generate
 Document carries over supplier, test, PO, and
product data to eliminate redundant data entry
 Combine this with the Trade Compliance docs and
send with shipment
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Approved Lab Test Results Delivered On-Line
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COC Generation
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Printable COC PDF for e-Filing
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74
What’s next?
More layers of regulation?
Additional systems to interface with?
Share your thoughts….
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75
BREAK
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76
Panel Session:
Consumer Facing Sustainability
David Pircher, Business Development Mgr, OEKO-TEX®
Joyce Chau, China Representative, BSCI
Ashley Hegland, Regional Director, Business & Social Purpose,
Edelman Consulting.
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
Consumer Facing Sustainability
Moderator: David Pircher, Business Development Manager, OEKO-TEX®
Speaker: Joyce Chau, China Representative,
Business Social Compliance Initiative-Foreign Trade Association (BSCI)
Speaker: Ashley Hegland, Regional Director, Business & Social Purpose, Edelman Consulting
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
78
OEKO-TEX®, Business Development
Contact: [email protected]
MBA general management
Degree in Textile Engineering
Textile industry expertise
• Textile Manufacturers & Machinery
• Consulting Executive Level
• Sustainability and Product Safety
• Strategy and Marketing
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
79
Consumer facing sustainability
Product safety and sustainability gain more
and more importance among consumers.
But why?
And how?
Is it really a consumer issue?
Consumers
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80
Consumer facing sustainability
Brands
and
Retailers
Legislation
Industry
Consumer
NGO’s
Initatives
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Consumers
81
Economic challenges
What is achievable within the textile world?
• Step by step approach is required
• Transparent approach
• From an «easy» self declaration to
verification
• Credibility on a high level
• Communication to the end consumer (e.g.
POS)
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What is Made in Green?
Made in Green by OEKO-TEX® is a traceable product label,
exclusively for textiles:
made with materials tested for harmful substances,
made in safe and socially responsible workplaces, and,
made in environmentally friendly facilities*.
* Sustainably produced in accordance with OEKO-TEX Guidelines. www.madeingreen.com
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84
What is Made in Green?
The Made in Green product label can be awarded to any kind of textile,
anywhere in the world, at any stage of the textile supply chain. Labelled
products can be easily traced, offering the consumer as well as
business partners new levels of transparency.
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85
Made in Green Benefits
Made in Green is transparent and
allows identification and benchmarking
of the supply chain for a single product
The Made in Green label with Product ID
and/or QR Code is a unique
communication tool which
allows consumers to trace the
manufacturers of textile products
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86
Made in Green Benefits
Being part of the OEKO-TEX ® community offers
companies competitive advantages
• third-party certified products (tested for harmful
substances), produced in a safe, socially and
environmentally responsible manner
• ability to show a third-party certified
supply community without providing access
to your suppliers (proprietary knowledge).
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
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Consumer facing Information
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88
Consumer facing Information
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89
Communication for Made in Green community
The OEKO-TEX® Made In Green system allows its members to
communicate transparently
End-consumers have more sustainable choices
Each company is empowered to communicate the relevant pieces of
its sustainability story
Detailed data is delivered in a validated, simple and timely manner
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Where is this data coming from?
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91
Produkt ID:
M001ASXL7
92
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Entire Supply Chain mapping and evaluation
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One platform – many benefits
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94
The Needs for a responsible business
Comprehensive
benchmarking
Risk management tool
Information
about certificates
Supply chain
evaluation
Transparancy
Easy to use and
understandable
Supply chain mapping
Fair price
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.
Thank you very much for your attention!
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SourceTrends 2015: Global Testing and
Compliance Complexity
SourceTrends 2015:
Global Testing and Compliance Complexity
Cusumer Facing Sustainability
- Cascade Effect
Joyce Chau
FTA/BSCI Representative China
March 16, 2015
Some Facts We Are Responsible?
•
Roughly one third of the food produced in
the world for human consumption every
year — approx. 1.3 billion tonnes — gets
lost or wasted.
* A metric ton =1000 kg or 2,205 pounds
•
Food loss and waste also amount to a
major squandering of resources, including
water, land, energy, labour and capital and
needlessly produce greenhouse gas
emissions, contributing to global warming
and climate change
Source: UNEP Quick Facts
*****
Developing countries vs developed economies
- wastes happened in different stages of supply chain
*****
Free Trade Sustainable Trade
Unite over 1400 retailers, importers, brands and national associations to pursue free
and sustainable way through international trade policy, social compliance and
business environmental performance
Global Joint Efforts
Some Key Participating Companies
Cascade Effect
Thank You!
[email protected]
www.bsci-intl.org
www.bsci-cn.org
www.bepi-intl.org
SourceTrends 2015
Consumer Facing Sustainability
Monday, March 16, 2015
CHANGING
CONSUMERS?
STAKEHOLDER
ACTIVISM
FOOD SECURITY
RESOURCE
SCARCITY
LABOUR
/
EMPLOYEE
RELATIONS
CLIMATE
CHANGE
LICENSE TO
OPERATE
TRANSPARENCY
TRUST to
BUILDING
6 Attributes
BuildingATTRIBUTES
Trust
ENGAGEMENT
LISTENS TO CUSTOMER NEEDS AND FEEDBACK
TREATS EMPLOYEES WELL
PLACES CUSTOMERS AHEAD OF PROFITS
COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS
Edelman Trust Barometer
Edelman Trust Barometer
research reveals 16 SPECIFIC
research reveals 16 SPECIFIC
ATTRIBUTES which build trust.
ATTRIBUTES which build trust.
INTEGRITY
These can be grouped into
These can be grouped into
FIVE PERFORMANCE CLUSTERS
FIVE PERFORMANCE CLUSTERS
listed here in rank order of
listed here in rank order of
importance.
importance.
PRODUCTS & SERVICES
HAS ETHICAL BUSINESS PRACTICES
TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS
HAS TRANSPARENT AND OPEN BUSINESS PRACTICES
OFFERS HIGH QUALITY PRODUCTS OR SERVICES
IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS
PURPOSE
WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT
ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS
CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY
PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS
OPERATIONS
HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP
RANKS ON A GLOBAL LIST OF TOP COMPANIES
107
DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS
TRUST BUILDING ATTRIBUTES
BUSINESS IMPORTANCE
VS.
Informed
Public
COMPANY PERFORMANCE
Ga
p
INTEGRITY
Has Ethical Business Practices
35%
16%
Takes Responsible Actions To Address An Issue Or A Crisis
32%
12%
Has Transparent And Open Business Practices
ENGAGEMENT
Places Customers Ahead Of Profits
31%
14%
Listens To Customer Needs And Feedback
32%
13%
32%
13%
PRODUCTS
Offers High Quality Products Or Services
Is An Innovator Of New Products, Services Or Ideas
PURPOSE
Creates Programs That Positively Impact The Local Community
12%
Addresses Society'S Needs In Its Everyday Business
Partners With NGOs, Government And Third Parties To Address Societal Issues
29%
14%
Ranks On A Global List Of Top Companies, Such As Best To Work For Or Most Admired
Delivers Consistent Financial Returns To Investors
-13
25%
-11
15%
13%
-10
-10
20%
10%
-17
25%
22%
12%
OPERATIONS
Has Highly-Regarded And Widely Admired Top Leadership
-19
-13
25%
12%
12%
-19
36% -20
16%
Works To Protect And Improve The Environment
-17
-20
29%
9%
Communicates Frequently And Honestly On The State Of Its Business
-20
36% -20
16%
Treats Employees Well
-19
-4
19%
23%
Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means
that action is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. Informed
Publics, Hong Kong.
Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-point scale where
one means they are "performing extremely poorly" and nine means they are "performing extremely well". Informed Publics, Hong Kong.
*Excludes don’t know responses
-10
PG 108
WHY TRUST MATTERS
Informed
Public
BEHAVIOR BASED ON TRUST IN HONG KONG
Distrusted Companies
-60%
Refused to buy products/services
-60%
Criticized them to a friend/colleague
Trusted Companies
Recommended them to a
friend/colleague
59%
Paid more for
products/services
-37%
Shared negative
opinions online
-26%
I sold shares
75%
Chose to buy products/services
50%
Shared positive opinions
online
44%
I bought shares
42%
Defended
company
23%
Q371-376. Thinking back over the past 12 months, have you taken any of the following actions in relation to companies
that you trust? Please answer yes or no to each action. Informed Publics, Hong Kong.
Q377-380. Still thinking about the past 12 months, have you taken any of the following actions in relation to companies
that you do not trust? Please answer yes or no to each action. Informed Publics, Hong Kong.
PG 109
MOVING FROM A TRANSACTION-BASED RELATIONSHIP…
PURCHASE
RATIONAL
CONSUMER
NEEDS
BRAND
BEHAVIORS
CONSUMER
ACTIONS
RECOMMEND
EMOTIONAL
DEFEND
brandshareTM
2014 © Daniel J. Edelman, Inc .
110
TO ONE THAT’S DYNAMIC AND MULTIDIMENSIONAL (SEXY)
RATIONAL
+
CONSUMER
NEEDS
EMOTIONAL
+
PURCHASE
SHARE
PURCHASE
INFO
BRAND
BEHAVIORS
CONSUMER
ACTIONS
RECOMMEND
SHARE
BRAND
CONTENT
SOCIETAL
DEFEND
111
brandshareTM
2014 © Daniel J. Edelman, Inc .
FULFILLING SOCIETAL NEEDS DRIVES BETTER
BUSINESS OUTCOMES
I feel good about this company’s commitment to its
community
I believe in the brand’s purpose
I feel the brand cares about things other than itself
brandshareTM
2014 © Daniel J. Edelman, Inc .
112
MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS
BENEFIT TO BRANDS
RATIONAL
+
EMOTIONA
L
+
SOCIETAL
+12%
+12%
+11%
+10%
+ 8%
RECOMMEND
SHARE BRAND CONTENT
SHARE PERSONAL INFO
DEFEND
PURCHASE
brandshareTM
2014 © Daniel J. Edelman, Inc .
113
Closing Remarks
Jim Preuninger
CEO, Amber Road
© 2015 Amber Road, Inc. All rights reserved. Proprietary and Confidential.