Vietnam Has Replaced China As The Largest Production Base For Nike Shoes.
Nike announced its fourth quarter of fiscal year 2011 in June 27th, but has yet to disclose data on the share of global production base.
According to its annual report, Vietnam replaced China in the 2010 fiscal year.
Nike
The largest production base for shoes.
(fiscal year 2010 means June 1, 2009 to May 31, 2010.
)
According to Nike website, the earliest Nike factory was located in Japan. With the increase of labor cost and the appreciation of Japanese yen, the production base moved to Korea and Taiwan, China.
Later, the cost of Korea and Taiwan increased, and Nike began to shift its production base to Philippines, Thailand, Malaysia and Hongkong, and to investigate the long-term production base in the future.
After comparing China and India, China was chosen.
In 1981, Nike began to produce in China.
Gym shoes
。
In the next 30 years, China quickly became the largest producer of Nike sports shoes until Vietnam was over Vietnam in 2010.
Nike sneakers are all
OEM
Production.
Its annual report shows that in 2001, China produced 40% of its total number, ranking first in Vietnam, and only 13% in Vietnam. In 2005, China's share dropped to 36%, ranking first, Vietnam rose to 26%, and second; in 2009, China and Vietnam ranked first, 36%; 2010, Vietnam surpassed China, accounting for 37%, and China retreated second, accounting for 34%.
In the past 10 years, Indonesia's share has dropped, but it still has a considerable share.
By 2010, Indonesia accounted for 23%, and the first three had reached 94%.
The share of countries such as Thailand and India is negligible.
According to Nike's website, sports shoes are more sensitive to labor costs. Enterprises must control labor costs within 24%, so that they can be competitive.
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