ADI Workers In Kampuchea Earn Less Than 900 Yuan A Month For Weaning In Chinese Factories.

At present, if we can not find new customers and large orders in the short term, part of the capacity will be attached to 100%.

The foundry factory is facing the risk of factory closing.

Adidas, regarded by many garment factories as its parents, its global integration strategy is gradually hitting the bottom.

Yesterday, Shanghai Dong Long down products Co., Ltd. (hereinafter referred to as "Dong Long"), Jiang Liuhong, told reporters that 4 generations of factories including Dong long have received notice of Adidas's termination of the contract in October this year, and another 2 will stop in March next year.

It is worth mentioning that Dong Long has cooperated with Adidas for more than ten years, and its factory in Tongling, Anhui, has about 70% capacity for Adidas.

"Two of the 6 families are very bad, because they are 100% of the capacity attached to Adidas, usually do not have contact with other customers, if there is no new order in the short term, only one way to close the factory."

Jiang Liuhong said.

In response, Adidas China yesterday replied to this newspaper: "because of the optimization of the global procurement structure, ten suppliers have received legal advice about terminating the contract."

ADI?

It has been the gold medal signboard of these generations for the world's most competitive sports company.

However, if we can not find new customers and large orders in the short term, some factories with capacity of 100% attached to Adidas's foundry will face the risk of closing factories.

Min Heng Industrial Co., Ltd. (hereinafter referred to as "Min Heng") is the first supplier of Adidas in Shanghai, and a garment factory under min Heng is one of the two 100% capacity companies that are attached to Adidas.

"The problem is not finding new orders, but it can't be found at all." Mr. Chen, the head of the clothing factory, is urgent and helpless. He told reporters that he hadn't made any money in the past two years.

The processing fee did not rise, but the labor cost rose.

Before 2010, the factory's profit was 8%~10%, but the profit was almost zero for two years.

Adidas's payment method has also changed. Before 2008, it was paid every month, and then it became a fee every two months.

"This industry is already very low profit. If ADI doesn't give compensation and fails to fulfill its promise, we will be bankrupt."

Mr. Chen said.

And what he promised is that in 2011, the senior executives of ADI China had held a meeting with suppliers, promising that the order plan would not change before 2015.

In fact, a few years ago, Adidas began to reduce orders from Chinese manufacturers.

"In 2006 and 2007, ADI's annual orders in Dong Long were about 2 million, and 2008 was a turning point. Since then, orders have been shrinking, and in 2008, Dong Long has made 1 million 500 thousand, and 2011 has reduced to 700 thousand."

Jiang Liuhong said.

Rong Yang of Hengyang

As a subsidiary of Rongcheng group, Adidas accounts for about 90% of the OEM brand.

Since last year, orders from Adidas have also been significantly reduced.

According to the relevant personage, in 2010, when the situation was good, it could process 250 thousand ~30 Adidas shoes in one month, and last month 8~10 months, only processed 150 thousand ~20 ten thousand pairs per month.

"There are indications that ADI is already preparing for the gradual pfer of production capacity."

Mr. Chen told reporters that "more than 600 workers in our factory are likely to be unemployed."

Cost trade-off

Although to some extent, it can provide OEM for Adidas and Nike giants, there is a halo effect for most foundries, but the requirements of these sports brands are also very strict.

For example, the cooperation agreement stipulates that the supplier must formulate and continuously update the 3 year strategic plan every year, and must ensure that its equipment and technology keep up with the needs of Adidas.

In order to cooperate with Adidas and other international manufacturers, the new factory built by Min Heng at the end of 2003 has more than 6000 square meters, and has its own embroidery workshop, printing workshop, accessories production workshop, etc., which can produce 50 thousand ~7 million dozen per month.

While demanding, Adidas is also empathic with foreign factories, including Burma and other Southeast Asian markets.

The main reason for migrating like migratory birds is the importance of labor costs.

For example, the number of workers in Tongling factory in Dong Long is 1600~1700, the average salary is 2000 yuan / month, while the number of workers in Shanghai factory is more, and the average salary is 2700~3000 yuan / month.

The monthly salary of Adidas's factory workers in Kampuchea has been exposed to a minimum of about 130 dollars, which is less than 900 yuan.

The cost gap is clearly visible.

Adidas's orders account for about 30% of the total capacity of Shanghai Santa Fe.

The limited company (hereinafter referred to as Santa Fe) is also a member of the "suspended list". Lily, the head of the company, told reporters that "ADI will gradually shift production to overseas."

Because labor costs in China are increasing year by year.

She said Adidas's annual orders for the company were about 500 thousand to 600 thousand, and the wages of the workers have now risen to around 3000 yuan.

A Dongguan garment processing factory, who has long been responsible for the scheduling and storage of orders, also told reporters that the scale of orders made by some Chinese manufacturers was too large, resulting in high inventory and high inventory. Even high-grade brands had to "go" through discount sales, but this was the last thing they would accept because they sacrificed profits and damaged the brand image.

This is also one of the reasons why some international brands began to withdraw from China.