Hasbro CEO Chris Cocks on Diversifying Manufacturing Away from China

Hasbro's Manufacturing Diversification Strategy

• 🎯 Hasbro is actively working to diversify its manufacturing base, aiming to reduce reliance on China.
• 📈 The goal is to shift approximately 40% of global sourcing away from China by the end of 2026, a target they expect to reach earlier.
• 🗓️ By 2025, Hasbro has already moved hundreds of SKUs from China to alternative locations such as Turkey, the US, Vietnam, and India.

Reasons for Diversification and China's Role

• 🇨🇳 China has been optimized for manufacturing over decades and remains an important sourcing location due to its expertise in specialized labor.
• 💡 Specific areas where China excels include high-end action figures requiring intricate painting and lower-end electronics.
• ⚠️ While countries like Vietnam and India are developing their capabilities, they have not yet fully caught up in certain specialized categories.

Evolving Global Supply Chain Partnerships

• 🤝 Hasbro is diversifying with companies that often have multi-country operations, rather than solely cutting ties with Chinese manufacturers.
• 🌍 Many large manufacturers in Vietnam and Indonesia have historical ties to China and are themselves diversifying their operations.
• ⏳ Hasbro has long-standing partnerships with manufacturers in Vietnam (15 years), India (10 years), and Turkey (10 years), facilitating this diversification.
• 💬 Other countries are actively adjusting their offerings to attract manufacturing business, indicating a dynamic global supply chain landscape.