Kaken Test Center plans to increase its sales by 2% in the current fiscal year.Its business in Japan increased during the April-June period, but decreased by slightly more than 5% abroad. As the appreciation of the Japanese currency has had an impact on sales, it will keep a close watch on the fluctuation of exchange rates hereafter.
Its offices in Tokyo provide information on the standards of 50 countries, and continuing after the Osaka office, the Tokyo offices can also conduct tests for overseas, supporting companies that are expanding their business abroad.
Although the relocation of apparel production from China to Southeast Asia is prominent, there are also moves to return to China. Products that allow longer delivery time or are in larger lots can be shifted to Southeast or South Asia, but China still has the advantage when it comes to quick delivery time and small-lot production. The production location cannot be determined with labor costs alone.
For instance, the investment environment in Myanmar is improving at a slower speed than Vietnam, and as wages are likely to be hiked further, some Korean-affiliated companies have withdrawn their operations. Kaken is assuming a wait-and-see attitude for establishing new bases in Southeast Asia.
Currently, Kaken has BVCPS Vietnam in Ho Chi Minh City, Vietnam, a business alliance with Bureau Veritas. In Vietnam, test requests are favorable, and there are many apparel manufacturers that have moved their operations from China. Vietnam is attracting attention even in regard to TPP, and hopes for the future are great. It can also handle test requests from Cambodia through Bureau Veritas in Cambodia. Requests in the northern part of Vietnam (Hanoi) are entrusted to Kaken Hong Kong.
In Dhaka, Bangladesh, KOTITI Bangladesh was opened in a partnership with KOTITI. The KOTITI Japanese team (which can communicate in Japanese) conducts tests for Japan.
In addition to Japan, Kaken provides information services abroad, and has held seminars on Japanese specific aromatic amine regulations and new care labels in Cambodia, Vietnam, Indonesia, Korea and Hong Kong.
Beside Shanghai Kakon Inspection & Testing Service Co., Ltd. in China, Kaken has laboratories in Nantong, Qingdao, Dalian, Ningbo and Wuxi. Shanghai Kakon has also started antibacterial tests, and it can respond to quick delivery needs in China. Its system can conduct tests on specific aromatic amines in quantity, even for sales in the domestic market. Test requests at the Kaken Dalian Laboratory are favorable, but the Kaken Qingdao Laboratory that has been performing well up to now is beginning to be affected by the shift to ASEAN among major local companies.