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    How To Turn The Crisis Into China And Create Higher Challenges

    2012/9/21 8:48:00 3

    CrisisMade In ChinaChallenges

      

    Adidas

    In July 18, 2012, it announced the closure of its only own manufacturing plant in China. The disbanded workers were told that they would receive "N+1 (N for the whole year in the factory) multiplied by the monthly salary".

    This is another signal after the closure of Nike brand in China's factory in 2009, the world shoe product withdrew from China.

    Many people in the industry analyzed that Adidas closed in the Chinese factory and had a close relationship with the growth of labor costs in China, and now the Southeast Asian region with more favourable labor force is likely to become the favorite object of Adidas.


    Law of pfer of labor intensive enterprises under economic globalization


    Actually, the closure of Adidas's factory in China is the inevitable outcome of economic globalization.

    With China's accession to the WTO, the degree of integration of countries in the world is tight, and labor-intensive industries continue to flow from high cost countries to low cost countries.

    The labor intensive industry in the world has undergone a major global shift. From the US and Europe to the four small dragons in Asia, with the rapid development of the manufacturing economy of the four dragons, the policy of "bringing in and going out" has created a good hotbed for the pfer of labor-intensive enterprises, and intensive industries have turned to mainland China.

    China's "reform and opening up" policy, cheap land and labor costs quickly get all kinds of manufacturers brand of favor.

    Since then, "made in China" has begun to move towards the world, but a series of "made in China" cheap goods have also been accompanied. It has been calculated that Chinese people produce 1000 pairs.

    leather shoes

    It is also not a knowledge-based product produced by Native American enterprises.


    China's manufacturing advantages reduce Vietnam's manufacturing possibilities


    With the development of China's economy, the rapid development of the eastern region's economy and the repeated improvement of the CPI, labor-intensive industries have also staged a shift from east to west, pferring from heavy industry to manufacturing industry.

    And Adidas's own factory in China is located in Suzhou, a city with high consumption index. Relatively speaking, the cost will not be too low. At the same time, in recent years, the minimum wage standard has been raised repeatedly, and the rent level has increased by foam. Adidas's production in China has lost its cost advantage.


    The possibility of Adidas manufacturers turning to Southeast Asian countries is increasing.

    According to the relevant survey, the average monthly salary of Chinese workers is 3000 yuan, Vietnam is 1800 yuan, and Kampuchea is 1200 yuan.

    The huge gap between people and capital is a great temptation to attract foreign investment in Southeast Asia and other places.

    More importantly, Southeast Asian countries have extended olive branches, cheap labor and preferential tax policies to foreign-invested enterprises in recent years.

    Compared with our disadvantage, the pfer of Adidas to Southeast Asia is infinitely increased.


    How to turn the crisis into China and create higher challenges


    Although Adidas has caused numerous conjectures, experts still say that "made in China" has its advantages.

    Excellent industrial environment and skilled worker operation, this series of mature systems can provide a turning point for "made in China".

    All along, "made in China" has been in constant trouble in the international market.

    Low prices often lead to "anti monopoly" cases in other countries, or the title of "inferior goods".

    Under such circumstances, "made in China" urgently needs to seek opportunities and upgrade products so as to pform China from "manufacturing power" to "knowledge power".


    The closure of Adidas's factories in China is both an opportunity and a challenge in other respects.

    "Made in China" needs to be pformed from the processing field of cheap products to the original site created by China. This is not only from the level of R & D, but also in the clothing manufacturing industry.

    The only difference between the famous brand products made in China and the local products is the lack of a world-famous brand, the removal of "famous brand" Adidas sports shoes and the Chinese mainland.

    footwear

    The difference should not be very different. In the face of new challenges, China's manufacturing industry faces difficulties. This is a task entrusted by a new era.

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