As the crisis takes hold, consumers equip their homes yet reduce their purchases of mobile electronic gadgets & accessories

The figures from the Quality Control industry in Asia certainly account for a good indicator of the health of International Trade.

With 8,000 Inspections performed during 1st Quarter of 2009 (+ 29% vs. Q1 2008) on behalf of more than 2,000 Importers, AsiaInspection pinpointed some very illuminating trends.

It is clear that this growth is due in part to the numerous well documented cases related to the Quality of products made in China – since during this time, Asian exports have fallen (- 3% from China in 2008). It was just a few days ago that thousands of Americans were altered to the possibility of contamination by tainted drywalls imported from China and used in the building of houses.

These scandals have pushed Importers to control their production lines more systematically – high time it was too – and introduce many of new International regulations, often making Lab Testing compulsory in addition to standard Product Inspections.

Analysis of the 8,000 Quality Inspections performed by AsiaInspection during 1st Quarter 2009 has identified some trends of International Trade with Asia, as well as the impact of the global economic crisis on families’ consumption worldwide.

AsiaInspection: Q1 barometer of International Trade with Asia 

As you would expect, the USA is the market which is the most affected by the crisis in terms of imports from Asia. Indeed, AsiaInspection’s turnover from serving US clients has grown by only + 2.7% between Q1 2008 and Q1 2009, while sales to European and Asian clients have risen by + 32.4% and + 8.7% respectively during the same period.

Based on the geographical split of Inspections performed by AsiaInspection, it is evident that the Asian country least affected by the crisis is Bangladesh, with + 180% growth between Q1 2008 and Q1 2009.

Inspections undertaken in China have also grown significantly (+ 8.3%), while Inspections in India have remained stable (- 0.9%).

In the context of crisis, families tend to equip their houses, and also switch to low-cost products that could present higher Quality risks

The evolution of inspected product categories also acts as a good indicator of the impact of the crisis on consumers’ behavior.

With + 64% growth in Inspections of homewares (electrical appliances, lighting, kitchenware and bathroomware, audio & video etc...) between Q1 2008 and Q1 2009, it seems that families wish to make their homes more comfortable as they have been forced to limit their external activities.

Garments and other textile products manufactured in Asia are also beneficiaries, with a + 85% growth in the number of Inspections.

Conversely, non essential and already ubiquitous small electronic products (mobile phone, mp3/mp4 etc) have been particularly affected, with a - 64% fall in the number of Inspections.

  

AsiaInspection will publish the Q2 barometer based on similar indicators next July.