ADI'S Response To The Decline Of Production Proportion In China

Adidas said that Adidas would not be the largest producer in China in the future. However, for its designers, it is the best way to strike a balance between global manufacturers and manufacturers. Although Adidas will continue to be the most important producer in China. Adidas made in China will still maintain a very high level. " But Adidas also acknowledged that "we are ready to launch production all over the world. For example, Russia, Western Europe and other countries in Asia, such as Cambodia, will increase their production According to Adidas, 50% of its products are made in China. There are 264 factories in the country with 300000 employees. According to this analysis, if Adidas's orders are transferred to other regions, the livelihood of at least some of these 300000 people will become a problem. in January this year, an Adidas foundry in Dongguan was empty and its door was locked. It was not until the media exposure that the public knew the name of the company as "Changdeng shoes". It is understood that the company was established in October 1995, covering an area of more than 66000 square meters and employing nearly 4000 people. Ge Xing, senior consultant of AMT clothing industry, told reporters that most sports brands such as Adidas and Nike are brand operation modes. They focus on the design field and have no production plants, that is, global design, global search for OEM enterprises and global sales. In Guangdong, Wanbang shoes, which mainly manufactures sports shoes for Adidas and other big brands, moved its production line from Guangzhou to Qingyuan because of the cost pressure. Yesterday, the reporter tried to contact the spokesman of Wanbang footwear industry, who was the Secretary General of "EU anti dumping alliance against China's footwear products". After understanding the reporter's intention to interview, his assistant told the reporter that Guo was not in the company. As of the reporter's press release, Wanbang shoes did not reply. "the situation of OEM enterprises is very delicate, the key is to see the bargaining power between OEM brands." A person in charge of a well-known international sports brand OEM enterprise, who did not want to be named, told the reporter that his company was also in Guangdong, and the partner had asked them to invest in India to build a factory together. However, after examining India's resources, he found that the production capacity could not meet the requirements due to the lack of supporting facilities and the working hours of workers, which led to the increase of its cost. Therefore, he is only holding a wait-and-see attitude. Yang Yelin, Deputy Secretary General of the chamber of Commerce of Guangdong shoe factories, said that the comprehensive competitive advantage of China's footwear industry is still unmatched by other countries. But he also pointed out that big companies like Adidas have their own advantages. They can build factories outside China, and many supporting facilities can be built by themselves. . According to its introduction, Yuyuan has set up many factories in Dongguan and other places in China, which is specialized in OEM work for ADI and other places. In recent years, Yuyuan has begun to move to Southeast Asia, and those who stay in China also transfer from coastal areas to inland areas. According to the general manager of the factory, only by transferring the raw materials to Suzhou can we survive Lihua said that ADI's direct supply to their final orders has been reduced, and the price of the general agent has also increased. Some Nike manufacturers are required to move to China. It is reported that the enterprises that do OEM for these brands have certain scale and qualification requirements. "if ADI and other enterprises reduce production lines on a large scale, it will have a great impact on OEM and supporting facilities, because many of these enterprises are difficult to survive on their own, only a part of the process flow, relying on the orders of these enterprises such as ADI, the pressure of these enterprises increases sharply after the orders are transferred out." link the profit of OEM in shoe industry is meager the profit of OEM of Chinese shoe industry to foreign brands is relatively small. However, it can only earn about US $1 to US $1 in the export of high-end shoes. However, the overall average unit price of China's footwear exports to the world is less than US $3, and the profits of many processing enterprises are only about 5%.