GLOBAL PRODUCTION NETWORKS IN THE ASIAN GARMENT INDUSTRY

Abstract

Garment sector as a “heart” of life-supporting industrial complex and one of the most globalized, fragmented and geographically mobile industries provides the basis for empirical research of the international division of production and consumption. The article analyses the processes of formation of global production networks in the garment industry as a result of the activities of transnational companies in various geographical contexts (cities, regions and entire states) in the Asian region. Such production networks are becoming not only more complex from the organizational point of view, but also more and more global in their geographical scope. The main spatial and structural characteristics of global production networks of the leading companies in the industry (Nike, H&M and Fast Retailing) are considered by the method of geocoding and data aggregation using geographic information systems. Cartographic material is compiled on the basis of obtained spatial distribution. Its qualitative analysis, in combination with statistical data on the industry, makes it possible to form a comprehensive picture of the key areas of clothing production in Asia. The results demonstrate that despite the differences (from the price segment of products to the procurement strategy) the production networks of these firms are very similar, and their suppliers are concentrated in the largest cities and metropolitan agglomerations of Asia. The role of the countries of the Asian region is undeniably increasing in the garment industry, as well as on the global economic landscape as a whole. It was revealed that from 55 to 92% of suppliers of the leading firms are concentrated in Asia.