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    The Way Of Labor Intensive Industries Pfer

    2010/7/22 15:14:00 42

    Labor-Intensive Adidas'S Cheap Labor Force

      

    Foxconn

    The way of northward migration is in line with the shift of labor intensive industries in the global scope of "low cost".

    Chasing the low cost of manpower, land and operation, pferring the lowest value-added processing links to areas with large and cheaper labor, and upgrading the industry with relocation and relocation is a major international market.

    labour

    Power

    Intensive type

    The development logic of enterprises.


    With this development law, labor intensive industries have launched 3 large-scale industrial pfers worldwide.


    For the first time, in 1950s, the United States shifted textile and other traditional manufacturing industries to Japan, West Germany and other countries to concentrate on developing new technology intensive industries such as semiconductors, telecommunications and computers.


    The second time, in the twentieth Century 60~80 era, Japan, West Germany and other countries shifted the labor-intensive industries with low added value to the newly industrialized countries and regions such as the four small dragons in Asia, and turned to technology intensive industries themselves.


    The third time since 1990s, developed countries such as Europe and America and Japan and Asia's "four dragons" and other newly industrialized countries or regions have pferred their industries that do not have competitive advantages (310368, fund bars) to developing countries represented by China.


    International footwear giant

    Adidas

    The development path can be seen as a microcosm of the three large-scale industrial pfer: in the 70s of last century, Adidas pferred from Europe and America to Japan and Korea.

    In 80s, he entered the Taiwan area of China.

    In 90s, due to the appreciation of new Taiwan dollar and rising labor costs, China began to shift to mainland China.

    While outsourcing low value-added manufacturing to independent third party factories, Adidas concentrates on brand operation, concentrates on the design field, and grasped the highest value-added part of the profit curve.

    Now China is Adidas's most important production base, but due to inflation and RMB appreciation, Adidas began to consider extending production line from China's coast to Southeast Asia.

    However, due to inadequate infrastructure facilities and unstable policies and regulations, China's inland areas may have more competitive advantages than Indonesia, Vietnam and other places in Southeast Asia.


    In fact, the current trend of industrial pfer in China is more obvious than that in the international arena.

    Foxconn, the world's second largest electronic contract manufacturing service provider (EMS), is 2/3 of its 24 square kilometers industrial production area in China.


    Since its arrival in China in 1988, Flextronics has used Shenzhen as a bridgehead to expand its base to the whole country.

    With the increase of production costs in Shenzhen, Flextronics in 1995 turned its attention to Zhuhai, which was relatively backward in its development, and bought private enterprises producing printed circuit boards (PCB), making Zhuhai Doumen its own base.


    As the cost of human resources in the Pearl River Delta region has increased, Flextronics has begun to lay its own way of moving along with Foxconn. This year, in May 31st, Flextronics of the world's top 500 enterprises officially announced plans to establish power production and service facilities in Ganzhou, Jiangxi.


    The coincidence of the move of two OEM giants, Foxconn and Flextronics, may indicate that the internal areas of mainland China will become another major destination for labor intensive industries.

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