Adidas Empathize With OEM And Face Transformation Pains

Adidas China headquarters has announced that it will terminate some contracts in China in October this year. Reporters learned yesterday from a Adidas factory in our province. Adidas The "Empathy" also means that many generations of garment processing enterprises in our province must be transformed and upgraded.

　　 Seven years of cooperation will be "abandoned"

In the past few days, the workers of Tongling East Long East Garment Co., Ltd. are still working nervously, 190 thousand pieces. Adidas sportswear It must be rushed out in the near future. This will be the last order produced by the garment manufacturer for Adidas.

According to Mr. Yan, chief executive officer of Tongling Dong Long company, Tongling Dong Long is a subsidiary of Shanghai Dong Long down products Co., Ltd., since its establishment in 2005, it has started processing for the world class sportswear brand "Adidas". So far, it has a history of 7 years of cooperation.

However, according to Mr. Yan, Adidas will terminate its work with Tongling Dong long after completing the last order before October this year. clothing Processing cooperation.

It is understood that a few days ago, Adidas China headquarters issued a statement that it will officially close its only Adidas factory (Suzhou) Limited in China in October 31st this year. Meanwhile, 4 foundries including Dong long have received notice from Adidas that they will terminate the contract in October this year.

　 Part of the capacity is transferred to Southeast Asia.

Although Adidas has repeatedly denied that its factories close to China have nothing to do with wage increases and inventories. But industry analysts say that a large part of Adidas's withdrawal from China comes from the pressure of rising labor costs in China.

Take Tongling Tung Lung, for example, in 2007 and 2008, the number of employees reached more than 2000, and the average monthly salary was 1100 yuan. In recent years, the cost of labor has increased year by year. At present, the per capita wage has reached 2000 yuan / month, and the cost of increase has begun to erode the profits of processing enterprises and Adidas.

"ADI is already preparing for the gradual transfer of capacity." Tongling Dong Long responsible person said that at present, Adidas has transferred some of its capacity to some Southeast Asian countries. It is understood that the monthly salary of Adidas's factory workers in Kampuchea has been exposed to a minimum of about 130 US dollars, which is less than 900 yuan.

　 OEM is facing "turn around" labor pains

Now, Adidas's withdrawal is a heavy blow for these foundries.

For example, due to the long-term processing cooperation agreement signed between Adidas and the foundry, the foundries must ensure that their equipment and processes meet the needs of Adidas. Tongling East Long Yan introduced that the company spent about 10000000 yuan to introduce advanced equipment, and after the termination of cooperation, these equipment can not be used for other garment processing, and can only be sold at a reduced price. In addition, due to 70% of the company's capacity to serve Adidas, the termination of cooperation will make the company face "turn around" pains.

It is understood that the foundry factory, including Tongling Dong Long, has already started to make a statement to Adidas. Experts from the Anhui clothing trade association said, "the upgrading of garment industry should be from passive to conscious."