Why Is The International Shoe Giant "Turning Manufacturing Out Of China"?

At the same time, it is reported that Nike, Puma and other international footwear giants are also ready to shift the production and procurement of some products from China.

"We are not very clear about this news."

In recent days, Adidas's response to Adidas's (Suzhou) Limited was exceptionally cautious because of the fact that China's labour costs were too high to reduce its production ratio in China.

A Adidas Chinese confirmed to reporters.

At present, nearly 50% of Adidas products are made in China, and there are 264 foundry factories throughout the country.

But in recent years, the cost of China's footwear industry has been rising, exceeding Adidas's expectations, so they are considering shifting.

In particular, the instability of the RMB exchange rate may engulf the order profit or even make the company lose money.

Adidas has made a compromise on the cost raising requirements of the next generation factory.

"Now is the game between factories and buyers."

A shoe maker analyzed that nearly half of the shoe factories and affiliated enterprises in mainland China were bankrupt or shrinking. The bargaining power of large factories increased, and buyers had many orders in hand because they did not want to increase their prices, so buyers and factories were in a stalemate.

"In this game process, Chinese enterprises lost 10% to 15% of their orders, mainly to Southeast Asia."

While ADI is "leaving", some of the factories are also "hijacked" to go overseas.

According to the introduction, Taiwan Yuyuan group has set up many factories in mainland China, specially for ODI and other foundry workers. In recent years, they have begun to pfer to Southeast Asia, and factories in mainland China have also shifted from coastal areas to the mainland.

"Adidas shoes, which have been acquired by Reebok, can produce as many as about 1000000 pairs in one month in Vietnam."

The director of Adidas R & D center told Jiang Hong that this is a process of shifting, and the increase of shoe orders in Vietnam and Indonesia naturally means the reduction of orders in mainland China.

It is reported that these enterprises have a certain scale and qualification requirements for these brands.

He said that the number of direct orders supplied by Adidas factory has been reduced, and the total agent's price has also been raised.

"The situation of subcontracting enterprises is very delicate. The key is to discuss the bargaining power between the brand and the OEM brand."

A person who is not willing to disclose the name of the international well-known sports brand agent told reporters that their own enterprises are also in Jiangsu, the partners have asked them to invest in India to build a factory.

But after inspecting the resources in India, he found that the lack of supporting facilities, working hours and other factors caused the production capacity to fail to meet the requirements and the cost increased, so now it is only a wait-and-see attitude.

According to the 2007-2008 survey report on the competitiveness of China's manufacturing industry released by the Shanghai chamber of Commerce and the Alan consulting company, more than half of the respondents agree with the statement that "China is losing its competitive edge in manufacturing compared with other low-cost countries."