Adidas' Departure Has Caused Anxiety Of Hunan OEM Shoe Enterprises, And Advantages Are Losing

Adidas, a sportswear giant, announced in July that its direct factories would withdraw from the mainland of China. Later, it was reported that 10 Adidas OEM manufacturers had received the notice of termination of cooperation. According to the reporter's investigation, at present, there are nearly 10 enterprises in Hunan doing OEM for Adidas, and no notice of contract termination has been received.

However, adidas' order diversion also triggered a trace of anxiety among Hunan OEM shoe enterprises to some extent.

In recent years, our province footwear industry The news that Adidas, a sportswear giant, has decided to close its only factory directly under its jurisdiction in China is not unrelated to Hunan, which has made rapid development by undertaking overseas shoe processing.

　　 Contract worker Adi, someone calm, someone worried

According to the reporter's investigation, there are nearly 10 enterprises in Hunan that provide Adidas with OEM. "Orders from this brand are decreasing. In the first half of this year, Hengyang two factories made a total of 3 million pairs, which did not achieve the expected results." Tang Zhenshan, the relevant person in charge of Hengyang Rongyang Shoes Co., Ltd., told reporters. Hengyang Rongyang Shoes is a subsidiary of Rongcheng Group, and Adidas accounts for about 90% of the OEM brands. It is reported that Rongcheng Shoes is a factory specializing in the production of adidas sports shoes, and has its own production bases in Hengyang, Shuangfeng, etc.

According to the relevant person in charge of Rongyang Shoes, since last year, the number of orders from adidas has decreased significantly. In 2010, there was no off-season for Rongyang Shoes. At its peak, it could process 250000 to 300000 pairs of adidas shoes in January. From August to October last year, the number of orders decreased sharply, and only 150000 to 200000 pairs were processed each month.

Yueyang Wanfeng Shoes Co., Ltd., which also processes Adidas shoes, felt good in the first half of the year. "This year is the Olympic Games, and the order situation in the first half of the year is OK," said the relevant person in charge of the company.

　　 Emotion "Fluctuation" of Some OEM Shoe Enterprises in Hunan

At present, Hunan OEM shoe factories are mainly located in Hengyang, Yongzhou, Yueyang, Chenzhou, Shaoyang, Loudi and other places. With the promotion of industrial transfer in recent years, in addition to Adidas, Nike, Puma and other brands also began to send orders to Hunan. The order diversion of Adidas has also caused anxiety among these shoe manufacturers.

In the first half of this year, 30 million US dollars were completed. "The orders for the next three months are not ideal." Chen Jingyi, the relevant person in charge of Xiangwei Shoes, which mainly processes Puma brands, said, "The next step is to prepare the list of domestic brands."

Shuangfeng County Xingang Shoes Co., Ltd. processes Nike brand, and Rongcheng Shoes Co., Ltd. processes 361 °, UA. "At present, the order is not very good," said the relevant person in charge of Shuangfeng County Commerce Bureau.

There is such a rule that the shoe processing enterprises move inward to the central part mainly to get rid of the disadvantages of labor shortage and rising costs in the Pearl River Delta and Yangtze River Delta.

At present, there are four major groups engaged in shoe processing in China, namely, Baocheng Group, Wanbang Group, Rongcheng Group and Qinglu Group, all of which have factories to process for Adidas.

"The boss is very cautious when he comes here to build a factory, mainly focusing on the proximity to Dongguan, high-speed rail, labor cost advantages, etc." Huang Yihong of Juwang Shoes told the reason for moving to Leiyang. The most frequently cited reason is that "internal relocation mainly focuses on the wage advantage of employees."

　 Losing comparative advantage

However, a group of data reflects the gradual weakening of labor cost advantage. Tang Jianshan calculated the monthly wage of Vietnamese workers at $200-250, equivalent to RMB 1200-1500, while the average wage of workers in the Pearl River Delta reached RMB 2500-3000.

"After the transfer to the mainland, the situation is not as good as expected." Xie Shuguang analyzed that at present, the labor cost is just a little less than the coastal area, which is not much lower. When Nanyang Shoes Industry first came to Hunan, the general worker's salary was only 1100 yuan - 1500 yuan, and now it is basically more than 2000 yuan. Secondly, compared with coastal areas, the cost of transporting inland has also increased. In addition, after the company moved to the mainland, the mainland employees are basically local, and the management is not as convenient as before.

What is worth asking is that Adidas orders are gradually moving to Southeast Asia, which means that the spring of OEM in mainland China has passed?

According to the analysis of insiders, Nike, Adidas and other companies are currently distributing high-end products in mainland China, while gradually transferring low-end orders to Indonesia, Vietnam and other Southeast Asian countries. "For at least 5-10 years, these high-end international brands will not withdraw all these high-end orders from mainland China. Therefore, the OEM shoe enterprises in mainland China should seize this time to lock the high-end market and carry out transformation and upgrading in advance."