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Nike ADI And Other International Shoe Brand Production Line Retreat

2011/4/12 14:37:00 74

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Adidas

The company executives said that in view of the rising wage levels in China, Adidas is preparing to shift production and procurement of some products from China in order to reduce production costs.

At the same time, there was news that

Nike

Puma

And other international shoe giants also have the same preparation.

Li Peng, general secretary of the footwear association of Asia, said that the overall cost of China's footwear industry has increased by 25% to 30% in recent years, while the average profit margin of the footwear industry is 5% to 8%.

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

It is reported that Adidas is very concerned about the appreciation of the renminbi, the new policy of government processing trade and the influence of the labor contract law on the investment environment in the mainland, and has discussed with its large scale foundry enterprise Guangdong Wan Bang shoe company.

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

However, during the game between factories and purchasers, Chinese enterprises lost 10% to 15% of their orders, mainly to Southeast Asia.

At the same time, as a "leaving", a number of agent factories were also "hijacked" and rushed to "overseas".

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

At present, Yuyuan has more than 10 industrial zones in Vietnam and Indonesia, with millions of employees, and the proportion of footwear production is becoming more and more than China.

At the same time, Nike also asked some Chinese shoemaking enterprises to move their production base to India.

An anonymous international well-known sports brand OEM company official told reporters that the partners had asked them to invest and build factories in India.

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.