Adidas Wants To Put Production In All Parts Of The World.

Yesterday, in response to this newspaper's report on Adidas's withdrawal from China, Adidas Greater China responded that China would continue to be its most important production site, and that the absolute value of output would not drop, but at the same time, it also indicated that "maybe later", the percentage of China made will decline.

An industry analyst pointed out that for a multinational sportswear brand designer who concentrating on the design field and manufacturing industry around the world, such as Adidas, the balance of cost and profit makes it the best choice to pfer production to cheaper areas, but it is a fatal blow to the foundry enterprises at the very end of this business mode.

"China is still the most important place of production." although Adidas headquarters in Greater China told reporters in an email reply, "China will continue to be our most important production site."

Adidas manufacturing in China will still maintain a high level. "

But Adidas also acknowledges that it is ready to put product production around the world.

For example, Russia, Western Europe and other Asian countries, like Kampuchea, will increase their production. "

According to Adidas, 50% of its products are made in China, and there are 264 factories in the country, with 300 thousand workers.

According to this analysis, if Adidas's orders shift to other regions, the livelihood of at least some of the 300 thousand people will become a problem.

In January this year, a Adidas factory in Dongguan was left empty and locked.

It was not until the media was exposed that the public knew that the name of the enterprise was "frequent shoe industry".

It is understood that the company was founded in October 1995, covers an area of 6.6 square meters, and employs nearly 4000 people.

Ge AMT, a senior consultant in garment industry, told reporters that Adidas, Nike and other sports brands are mostly brand operation models. They focus on the design field, and do not have their own production plants, that is, global design, global search for foundry enterprises and global sales.

The most vulnerable part of the Dai factory is in Guangdong, mainly for Adidas and other big brand OEM shoes, which was moved from Guangzhou to Qingyuan because of cost pressure.

Yesterday, reporters tried to contact Wan Bang shoe spokesman, who was the Secretary General of the European Union's anti dumping alliance against Chinese shoe products, Guo Weiwen.

After understanding reporters' intentions, his assistant told reporters that Guo was not in the company. As of press release, Wan Bang shoe industry did not give any reply.

"The situation of subcontracting enterprises is very delicate. The key lies in the bargaining power between the brand and the OEM brands."

An anonymous international well-known sports brand OEM company official told reporters that his own business is also in Guangdong, and partners have asked them to invest in India to build factories.

But after inspecting the resources in India, he found that the lack of supporting facilities, working hours and other factors caused the production capacity to fail to meet the requirements and the cost increased, so now it is only a wait-and-see attitude.

Yang Yelin, Deputy Secretary General of Guangdong shoe factory chamber of Commerce, said that the comprehensive competitive advantage of China's footwear industry is still difficult for other countries to compete with.

However, he also pointed out that large companies like Adidas have their own advantages and build factories outside China, and many supporting facilities can be built on their own.

The supporting industry has been affected by the shift. Experts who have studied the management mode of clothing shoes enterprises have told reporters that in recent years, multinational brands such as ADI are reducing the proportion of production in China, mainly due to the rising cost of production.

According to its introduction, Yu Yuan has set up many factories in Dongguan and other places in China, especially for ADI, and so on. In recent years, Yuyuan has begun to pfer to Southeast Asia and stay in the mainland from the coast to inland.

According to Li Hua (a pseudonym), general manager of a clothing trade company in Suzhou, "many factories are now able to survive only by constantly shifting their factories to the areas where the raw materials are richer and the labor cost is lower."

Lihua said that the number of direct orders supplied by Adidas factory has been reduced, and the total agent's price has also been raised.

Nike also asked some Chinese shoe manufacturers to move their production base to India.

It is reported that these enterprises have a certain scale and qualification requirements for these brands.

"If ADI and other enterprises reduce production lines on a large scale, the impact on foundry and matching is very great, because many of these enterprises are difficult to survive independently, just part of the process, and rely on orders such as ADI and other enterprises to survive. After the order is pferred, the pressure of these enterprises is increasing rapidly."

China's footwear industry has made relatively modest margins on foreign brands.

Huajian group mainly produces high-end women's shoes, with an export price of around $14, but it can only earn 1~2 dollars from it.

The overall average price of China's footwear exports to the world is less than 3 US dollars, and the profit of many processing enterprises is only about 5%.