Adidas Orders No Reduction Shoes Export Unit Price Rise 30%

"Now, our monthly production is basically maintained at 1 million 100 thousand to 1 million 200 thousand pairs, with no reduction in orders and no significant growth."

For Adidas to pfer part of its production from China, Guangdong Wan Bang shoe company (spokesman Guo Weiwen responded so).

Adidas's stability to Wan Bang

One of the largest foundries in China is Adidas, one of the largest foundries in China. At present, nearly 20 thousand of the workers are produced. All the products are Adidas's orders.

Guo Weiwen said that although the order has not been reduced, but because of the appreciation of the renminbi, labor and raw materials and other costs rose sharply, the profits of the company decreased compared with last year. It has reduced the operating pressure by raising the unit price of the product, and Adidas has also accepted some of the price increase.

Guo Weiwen refused to disclose the price increase.

According to foreign reports, Hainer, Adidas's chief executive, recently said that 50% of Adidas's sports shoes are produced in China and will surpass Nike's sales in China by the end of this year.

With the rising cost of mainland China, the company intends to reduce its production ratio in China in the future.

Adidas has opened production lines in India, processing in Laos, Vietnam and Kampuchea, and will even return to Eastern European countries.

Guo Weiwen told reporters that in recent years, Adidas's orders for WAN Bang have been basically stable, and there has not been any ups and downs. The capacity of Wan bang in India has also increased significantly.

Adidas should set up a factory in India and start production at the end of 2006, at the beginning of the ten thousand or twenty thousand double trial production. Now the monthly output reaches 300 thousand to 400 thousand pairs, and is growing rapidly.

Adidas Greater China responded to the media in August 5th, saying that China will continue to be the most important production area. The absolute value of output will not drop, but at the same time, it may also indicate that the percentage of China made in the future will decrease.

Guangdong shoes export unit price rises 30%

Wu Zhenchang, chairman of Guangzhou Panyu Chuangxin footwear industry, said that the company mainly used for Nike, Disney and many other large brands, which were relatively stable, and the profit margins were still good. The export has not decreased this year, but if the cost continues to rise, it will not exclude the possibility of customers pferring their orders to other countries or regions.

It is hoped that China's macroeconomic policy will remain stable and slow down the pressure of export.

According to Guangzhou customs statistics, in the first half of this year, the average export price of Guangdong footwear products to global exports was 3 US dollars / double, an increase of 29.6%.

Wu Zhenchang said that the overall rise in the average export unit price is not all due to the fact that shoe-making enterprises have successfully increased their prices to purchasers. Under the double squeeze of the sharp rise in costs and the downturn in the market, the shoe companies that originally had some low price competition were eliminated. Due to the reduction of the performance of these low-priced shoes, the overall average unit price also increased correspondingly.

Affected by many factors, in the first half of 2008, the export business of footwear products in Guangdong province dropped to 3924 from 5811 in the same period last year.

Li Peng, Secretary General of the footwear industry association of Asia, said: "orders for major international brands such as Nike and Adidas are mainly invested in Taiwan enterprises that invest in factories in mainland China. At present, most of these export enterprises have not had much influence because they have mastered most of the customer orders and shoe factory management techniques and production skills. These enterprises have strong anti risk ability, and basically have no signs of pferring the production line from the mainland. Besides the advantages of complete production support, they are also related to the huge market in mainland China."

Li Peng believes that although the cost of manufacturing in mainland China has risen sharply, it is still very difficult for European and American buyers to pfer orders from China to other Southeast Asian countries in large scale, because the production of shoe making facilities in Vietnam, India and Indonesia is far from complete in mainland China, and a large number of shoe materials are mainly purchased from Guangdong.

After years of accumulation, China's footwear industry has developed into the present scale. It is far superior to Southeast Asian countries in terms of production technology, workers' quality and matching.

Facing the pressure of rising cost, Chinese shoe enterprises are also adjusting in time.

Guo Weiwen told reporters that in addition to raising the unit price of export, the company is also constantly reducing its operating costs through various ways. For example, the factory has been moved from Guangzhou to Qingyuan, Guangdong, to a certain extent, to reduce production costs.

In addition, orders from Adidas China are also growing rapidly.